ALIPORE TARUN DAL WELFARE SOCIETY,KOLKATA vs. CIT(EXEMPTIONS), KOLKATA, KOLKATA

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ITA 1895/KOL/2016Status: DisposedITAT Kolkata12 May 20174 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not afforded a proper opportunity of being heard. Therefore, the impugned orders were set aside, and the matter was remanded back to the CIT(Exemption) for fresh examination.

What were the facts?

The assessee society applied for registration under Section 12A and approval under Section 80G. The CIT(Exemption) rejected both applications due to the assessee's non-appearance on the hearing dates and failure to provide required details.

What were the issues?

Whether the assessee was denied a proper opportunity of being heard by the CIT(Exemption) before rejecting the applications for registration and approval.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G(5)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : KOLKATA

Heard together (2 matters)

ITA No.1895/Kol/2016
ITA No.1896/Kol/2016

Read from the judgment's own cause title. This page is filed under one of them.

ORDER Per N.V.Vasudevan, JM is an appeal by the Assessee against the order dated 25.07.2016 of C.I.T.(Exemption), Kolkata rejecting the application of the assessee for grant of registration u/s 12A of the Income Tax Act, 1961 (Act). ITA No.1896/Kol/2016 is an appeal by the Assessee against the order dated 25.07.2016 of C.I.T.(Exemption), Kolkata rejecting the application of the assessee for grant of approval u/s 80G(5)(vi) of the Income Tax Act, 1961 (Act).

2.

The Assessee is a society registered under the Society Registration Act, 1860. The Assessee made an application for grant of registration u/s 12A of the Act on 18.01.2016. On the very same day the assessee also filed an application for grant of approval u/s 80G(5)(vi) of the Act. The Assessee has its objects of providing assistance to the poor section of the people. According to the assessee its objects are charitable and there was no reason why the assessee should not be granted registration u/s 12A of the Act as well as approval u/s 80G(5)(vi) of the Act.

3.

The CIT(Exemption), Kolkata issued a notice dated 02.03.2016 fixing the case for hearing on 06.04.2016. The matter was adjourned to 16.05.2016 for submitting the amended Memorandum of Association. On 24.05.2016 the ld. AR for the assessee attended the proceedings and few questions regarding donations/compensation received, bank statement and financial statements were demanded. The next hearing was on 02.06.2016. Since on 02.06.2016 none attended for the hearing on behalf of the assessee the CIT(Exemption), Kolkata fixed the hearing again on 22.07.2016. According to CIT(Exemption) none appeared on 22.07.2016 and therefore the application for registration u/s 12A of the Act was rejected by CIT(Exemption), Kolkata as the required details were not filed. Consequently the application for grant of approval u/s 80G(5)(vi) was also rejected by CIT(Exemption), Kolkata.

4.

Aggrieved by the aforesaid orders of CIT(Exemption), Kolkata the assessee has filed the present appeals before Tribunal.

5.

The ld. Counsel for the assessee drew our attention to page 67 of the assessee’s paper book which is a request for an adjournment for hearing fixed before CIT(Exemption) on 22.07.2016. The said application for adjournment is also accompanied by a medical certificate certifying that Mr. Rana Basu, Chartered Accountant of the assessee was under treatment for acute backache. In the application for adjournment the assesee had prayed for grant of at least 10 days adjournment and fix the hearing in the second week of August, 2016. It appears that this letter was taken to the office of CIT(Exemption) on 22.07.2016 which happened to be a Friday. Mr. S.Das, Office Assistant in CIT(Exemption)’s office informed the general secretary of the assessee who attended the hearing before CIT(E) that the request for adjournment can be filed in the office of CIT(Exemption) on Monday. He also informed that the next date of hearing would be 19.08.2016. The Secretary of the assessee went to the office of CIT(Exemption) on 25.07.2016 and filed the request for adjournment. To the shock and surprise of the assessee the impugned orders dated 25.07.2016 were received by the assesee on 30.07.2016.

6.

The ld. Counsel submitted that the assessee has not been afforded proper opportunity of being heard by CIT(Exemption), Kolkata and there has been violation of the principles of natural justice. It was contended by her that in the interest of justice, the order of CIT(Exemption), Kolkata should be set aside and CIT(Exemption) should 2 be directed to consider the question of grant of exemption u/s 12A of the Act and approval u/s 80G(5)(vi) of the Act to the assessee afresh in accordance with law after affording opportunity of being heard to the assessee.

7.

We have considered the submissions of the ld. Counsel for the assessee and are of the view that the assessee has not been afforded proper opportunity of being heard. We therefore set aside the impugned orders and direct the CIT(Exemption), Kolkata to examine the claim of the assessee afresh in accordance with law after affording opportunity of being heard to the assessee. For statistical purposes the appeals are treated as allowed.

8.

In the result the appeals of the assessee are allowed for statistical purposes.

Order pronounced in the Court on 12.05.2017.

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