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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI D.KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश आदेश / ORDER आदेश आदेश
PER D. KARUNAKARA RAO, AM :
There are two appeals filed by the assessee under consideration against the two separate orders of the CIT commonly dated 27-06-2014 under section12AA and section 80G of the Act respectively. Rejection of registration of the trust and also of the exemption u/s.80G of the Act are the issues raised in these two appeals.
We shall take up the appeal ITA No.1582/PUN/2014 first relating to rejection of request for registration u/s.12AA of the Act.
Grounds raised by the assessee are extracted as under :
“1. The Hon’ble CIT-1, Nashik erred in appreciating the submissions, rather taking them on record while passing his order rejecting application made u/s.80G and 12A of the Income Tax Act, 1961. 2. The Hon’ble CIT-1, Nashik erred in rejecting the registration of trust u/s.12AA by holding that the objects carried on by the trust are community specific.
The order dated 27-06-2014 pronounced by the Hon’ble CIT-1, Nashik rejecting the exemption u/s.80G as well as order dated 27-06- 2014 of the Income Tax Act rejecting the exemption u/s.12A, be set aside and the Hon’ble CIT-1, Nashik be directed to grant the exemption of the same of the Income Tax Act, 1961 to the appellant trust. 4. The appellant craves leave to add, alter or withdraw any of the grounds of appeal.”
Briefly stated relevant facts of the case are that the assessee is a
Trust and filed Form No.10A for registration of Charitable or Religious
Trust u/s.12AA of the Act. Trust was created on 27-07-2012 under the
Bombay Public Trust Act, 1950. The objects of the trust revolve around
the charity benefits to a particular communicated called “Ladshakiya
Wani Samaj”. As per the proceedings u/s.12AA of the Act, CIT-1,
Nashik issued letters dated 20-05-2014, 19-06-2014 posting the case to
29-05-2014 and 26-06-2014 respectively to hear the assessee. On both
the occasions, for one reason or the other, assessee did not appear.
Consequently, the CIT vide Para No.5 of his order observed as under :
“5. None attended on behalf of the appellant trust on the said dates and thus the assessee trust has failed to prove that expenses were genuine and incurred towards the objects of the trust. The assessee has also failed to prove that the trust was engaged in genuine work of charitable in nature.”
Resultantly, the CIT rejected the application made by the assessee for
registration u/s.12AA of the Act as well as the claim of exemption
u/s.80G of the Act. Aggrieved with the same, the assessee is in appeal
before us.
Deviating from the grounds raised before us, Ld. Counsel for the
assessee submitted that the assessee could not appear before the CIT
as there was death in the family of a main trustee, who is aware of the
facts of the trust. On the second occasion also, the assessee could not
appear on the specified date. Further, he mentioned that the trustee
appeared on the subsequent date and however, there is no evidence to
support the same. In the written submissions, assessee’s
representative submitted that, on similar facts in various cases, the
registration/exemption was granted u/s.12AA/80G of the Act. Further,
Ld. Counsel submitted that considering the fact that the assessee need
to represent before the CIT, this matter may be restored to the file of AO
for fresh adjudication.
On hearing both the parties and the Ld. DR for the Revenue who
dutifully relied on the order of CIT, we are of the opinion that, on the
facts of the present case, the principles of natural justice are not
complied with for one reason or the other by either party of the
litigation. Considering the same, we are of the opinion that there is
requirement of scrutinizing the activities of the trust and if they are in
tune with the objects of the trust. There are number of decisions as
cited by the Ld. Counsel for the assessee before us which require to be
considered in the remand proceedings. Therefore, we remand the all
the grounds in the appeal to the file of CIT for fresh adjudication after
granting reasonable opportunity of being heard to the assessee.
Assessee is also directed to appear before the CIT with all the requisite
documents. Accordingly, the grounds raised by the assessee are
allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical
purposes.
ITA No.1583/PUN/2014 – Section 80G of the Act
We find the result of the CIT’s finding in appeal ITA
No.1582/PUN/2014 shall have effect on this appeal since this appeal
pertains to claim u/s.80G of the Act. Therefore, the issues raised in
this appeal are also stand remanded to the file of CIT for fresh
adjudication after granting reasonable opportunity of being heard to the
assessee. Accordingly, the grounds raised by the assessee are allowed
for statistical purposes.
In the appeal, the appeal of the assessee is allowed for statistical
purposes.
To sum up, both the appeals of the assessee are allowed for
statistical purposes.
Order pronounced in the open court on this 01st day of June, 2018.
Sd/- Sd/- (VIKAS AWASTHY) (D. KARUNAKARA RAO) �याियक �याियक सद�य �याियक �याियक सद�य सद�य /JUDICIAL MEMBER लेखा सद�य लेखा लेखा सद�य लेखा सद�य सद�य / ACCOUNTANT MEMBER सद�य
पुणे Pune; �दनांक Dated : 01st June, 2018 सतीश
आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत
अपीलाथ� / The Appellant 1. ��यथ� / The Respondent 2. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “A Bench” Pune; 3. गाड� फाईल / Guard file. 4.
आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार आदेशानुसार
स�यािपत �ित //True Copy// Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune