GURU KRIPA SE CHARITABLE TRUST,KOLKATA vs. DIT(E),KOLKATA, KOLKATA

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ITA 654/KOL/2013Status: DisposedITAT Kolkata15 October 2015AY 2012-20132 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the orders passed by the Director of Income-tax (Exemptions) were non-speaking, cryptic, and did not adjudicate the issues or discuss the merits of the case. The Tribunal quashed these orders and remitted the matters back for fresh adjudication.

What were the facts?

The assessee, Gurukripa Se Charitable Trust, appealed against the orders of the Director of Income-tax (Exemptions) rejecting its applications for registration under Section 12AA and approval under Section 80G(5)(vi) of the Income-tax Act. The rejection was based on the notice for hearing being returned unserved and without adequate opportunity or consideration of merits.

What were the issues?

Whether the Director of Income-tax (Exemptions) erred in rejecting the application for registration and approval without providing adequate opportunity and without a speaking order. Whether the rejection based on unserved notice was arbitrary.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Before: Shri Mahavir Singh, JM & Shri Waseem Ahmed, AM]

Hearing: 15.10.2015Pronounced: 15.10.2015

ORDER Per Shri Mahavir Singh, JM:

This appeal by assessee are arising out of separate orders of DIT(E), Kolkata in M. Nos. DIT(E)/8E/218/2012-13/3248-50 and DIT(E)/8E/218/2012-13/3251-53 both dated 05.02.2013.

2. The only issue in this appeal of assessee in is against the order of DIT(E) rejecting the application for registration u/s. 12AA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”). For this, assessee has raised following two effective grounds i.e. ground nos. 1 and 2: “1. For that the DIT(E) has erred in rejecting the application for registration u/s. 12AA of the Income tax Act, 1961 solely on the basis that the notice for hearing issued to appellant was returned unserved without having specified the reason for which the notice was unserved and such action of the Ld. DIT(E) is arbitrary, unjustified, unwarranted and against the facts of the case.

2. For that the DIT(E) has erred in rejecting the application for registration u/s. 12AA of the Income Tax Act, 1961 without giving adequate opportunity and also without going into the merits of the case and such action of the Ld. DIT(E) is arbitrary, unjustified, unwarranted and against the facts of the case.”

The only issue in this appeal of assessee in is against the order of DIT(E) rejecting the grant of approval u/s. 80(G)(5)(vi) of the Act “Act”). For this, assessee has raised following two effective grounds i.e. ground nos. 1 and 2: “1. For that the DIT(E) has erred in rejecting the grant of approval u/s. 80(G)(5)(vi) of the Income tax Act, 1961 solely on the basis that the application for registration u/s. 12AA was rejected and such action of the Ld. DIT(E) is arbitrary, unjustified, unwarranted and against the facts of the case.

2.

For that the DIT(E) has erred in rejecting the grant of approval u/s. 80(G)(5)(vi) of the Income Tax Act, 1961 without giving adequate opportunity and also without going into the merits of the case and such action of the Ld. DIT(E) is arbitrary, unjustified, unwarranted and against the facts of the case.” 2. At the outset, for both the appeals, Ld. Counsel for the assessee drew our attention to the orders of DIT(E) and stated that the orders passed by him are non- speaking order and he has not adjudicated the issues and also adequate opportunity was not given to the assessee.

3.

We have gone through the grounds raised

by the assessee in both the appeals and seen that none of the grounds have adjudicated by DIT(E) in his appellate order. We also find that the orders of DIT(E) are cryptic one and non-speaking. There is no iota of merits discussed in the orders by DIT(E). The duty of the DIT(E) is to pass a speaking order after controverting all the facts given by assessee and decide the issue with reasons. Hence, we quash the orders of DIT(E) and remit the appeals back to his file for fresh adjudication with the above direction. We order accordingly. The appeals of assessee are allowed for statistical purposes.

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

5. Order is pronounced in the open court. Sd/- Sd/- (Waseem Ahmed) (Mahavir Singh) Accountant Member Judicial Member

Dated : 15th October, 2015

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