Puduvayal Sri Veerasekara Umayambikai Educational and Charitable Trust,, Sivagangai v. CIT, Madurai

ITA 1509/CHNY/2010 | misc
Pronouncement Date: 13-01-2011 | Result: Allowed

Appeal Details

RSA Number 150921714 RSA 2010
Assessee PAN AABTP6101G
Bench Chennai
Appeal Number ITA 1509/CHNY/2010
Duration Of Justice 3 month(s) 28 day(s)
Appellant Puduvayal Sri Veerasekara Umayambikai Educational and Charitable Trust,, Sivagangai
Respondent CIT, Madurai
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 13-01-2011
Date Of Final Hearing 13-01-2011
Next Hearing Date 13-01-2011
Assessment Year misc
Appeal Filed On 15-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI U.B.S. BEDI J.M. & SHRI ABRAHAM P. GEO RGE A.M. I.TA. NOS.1508 AND 1509/MDS/2010 PUDUVAYAL SRI VEERASEKARA UMAYAMBIKAI EDUCATIONAL AND CHARITABLE TRUST 13-312H BANGALA OORANI STREET NADARAJAPURAM PUDUVAYAL SIVAGANGAI DISTRICT. [PAN: AABTP6101G] VS. THE COMMISSIONER OF INCOME TAX I MADURAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI T. VASUDEVAN REVENUE BY : SHRI SHAJI P. JACOB O R D E R PER U.B.S. BEDI J.M. THESE TWO APPEALS OF THE ASSESSEE ARE DIRECTED AGA INST SEPARATE ORDERS OF THE LD. CIT I MADURAI BOTH DATED 08.12.2009 PAS SED UNDER SECTIONS 12AA AND 80G RESPECTIVELY. 2. THESE APPEALS WERE HEARD TOGETHER THEREFORE B EING DISPOSED OF BY THIS SINGLE ORDER FOR THE SAKE OF CONVENIENCE. 3. FACTS INDICATE THAT THE ASSESSEE FILED AN APPLI CATION ON 13.06.2008 FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INC OME TAX ACT SIMULTANEOUSLY ALONG WITH AN APPLICATION FOR INITIAL CERTIFICATE O F APPROVAL UNDER SECTION 80G OF THE ACT. THE ASSESSING OFFICER WAS ASKED TO CONDUCT PRELIMINARY ENQUIRY REGARDING THE ACTIVITIES OF THE APPLICANT TRUST. TH E ASSESSING OFFICERS REPORT WAS RECEIVED ON 09.10.2009 WHEREIN HE STATED TO HAVE N OT RECOMMENDED FOR GRANT OF REGISTRATION UNDER SECTION 12AA OR APPROVAL UNDE R SECTION 80G AND THE SAID IT ITIT ITA NO A NO A NO A NOS SS S. .. .1508 & 1509 1508 & 1509 1508 & 1509 1508 & 1509 /MDS/ /MDS/ /MDS/ /MDS/10 1010 10 2 REPORT WAS ENDORSED BY THE ADDL. CIT. OPPORTUNITY W AS GIVEN TO THE ASSESSEE BY ISSUING HEARING NOTICE FIXING THE CASE FOR HEARI NG ON 01.12.2009. IT IS MENTIONED IN THE ORDER OF THE LD. CIT THAT THERE WA S NO RESPONSE TO IT AND THE LD. CIT PROCEEDED TO DECIDE THE APPLICATION ON THE BASI S OF MATERIAL AVAILABLE ON RECORD. IT WAS NOTED BY THE LD. CIT THAT THERE WAS NO INFORMATION REGARDING THE EDUCATIONAL QUALIFICATION FINANCIAL CAPACITY OR PR OFESSIONAL COMPETENCE TO RUN ANY CHARITABLE ORGANIZATION WHICH INFORMATION IS N ECESSARY TO ASCERTAIN THE GENUINENESS OF THE CONSTITUTION OF THE TRUST AND IT S ACTIVITIES PARTICULARLY AFTER THE AMENDMENT OF THE ACT WITH EFFECT FROM 01.04.199 7 WHEREBY SECTION 12AA WAS INTRODUCED MAKING IT MANDATORY FOR THE COMMISSI ONER TO CONDUCT NECESSARY ENQUIRY IN THIS REGARD AND TO GRANT REGIS TRATION ONLY IF HE IS SATISFIED ABOUT THE GENUINENESS OF THE TRUST. THE LD. CIT FUR THER NOTED THAT THE TRUST WAS CREATED ON 13.06.2008 BY MRS. S. LAKSHMI AND 17 OTH ERS WHO WERE DECLARED AS THE TRUSTEES. IT WAS FURTHER NOTED THAT THE TRUS T WAS NARRATED UNDER A BROAD BAND OF MULTIFARIOUS ACTIVITIES INCLUDING ESTABLISH MENT AND RUNNING OF BOYS AND GIRLS HOSTELS AND HOMES FOR ORPHANS ETC. SINCE THE ASSESSEE DID NOT APPROPRIATELY RESPONDED TO THE HEARING NOTICES ISSU ED BY THE ASSESSING OFFICER HE REJECTED THE APPLICATION OF THE ASSESSEE MOVED U NDER SECTION 12AA OR APPROVAL UNDER SECTION 80G BECAUSE OF WHICH THE A SSESSEE HAS PREFERRED 2 SEPARATE APPEALS. IT WAS CONTENDED THAT THE ORDERS OF THE LD. CIT ARE CONTRARY TO LAW AND ARE ERRONEOUS AS SUCH UNSUSTAINABLE. ON THE FACTS OF THE CASE NO MATERIAL OR CONVINCING REASONS HAVE BEEN PLACED/MEN TIONED IN THE ORDER IT ITIT ITA NO A NO A NO A NOS SS S. .. .1508 & 1509 1508 & 1509 1508 & 1509 1508 & 1509 /MDS/ /MDS/ /MDS/ /MDS/10 1010 10 3 PASSED BY THE LD. CIT WHO OUGHT TO HAVE APPLIED HO NBLE MADRAS HIGH COURTS DECISION AS REPORTED IN 246 ITR 532 TO GRANT REGIST RATION SINCE THE INCEPTION OF THE TRUST ON 13.06.2008. THE ASSESSEES COUNSEL WH ILE RELYING UPON THE GROUNDS OF APPEAL HAS FURTHER PLEADED THAT THE ASSE SSEE UNDERTAKES TO REPRESENT THE CASE BEFORE THE LD. CIT IN CASE ORDER S OF THE LD. CIT IS SET ASIDE AND MATTER IS RESTORED BACK ON HIS FILE AND PRODUCE NECESSARY EVIDENCE AND MATERIAL WHICH WOULD BE DEMANDED TO ESTABLISH THAT THE ASSESSEE TRUST IS GENUINE ONE AND FULFILLS ALL THE CONDITIONS BEING A CHARITABLE TRUST THEREFORE IN THE INTEREST OF JUSTICE ONE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TO REPRESENT HIS CASE BEFORE THE LD. CIT. THE ASSESSE ES COUNSEL SUBMITTED THAT THE LD. CIT HAS CONDUCTED ENQUIRY AND OBTAINED REPO RT FROM THE ASSESSING OFFICER WHICH IS STATED TO HAVE BEEN APPROVED BY T HE ADDL. CIT BUT THE REPORT HAS NOT BEEN CONFRONTED TO THE ASSESSEE THEREFORE SUCH ORDERS ARE VIOLATIVE ON THE PRINCIPLES OF NATURAL JUSTICE. 4. THE LD. DR DID NOT STRONGLY OBJECT IN CASE MATT ER IS RESTORED BACK ON THE FILE OF THE LD. CIT FOR RECONSIDERING THE APPLICATI ONS OF THE ASSESSEE UNDER SECTIONS 12AA AND 80G. 5. AFTER HEARING BOTH THE SIDE CONSIDERING THE MA TERIAL ON RECORD AS WELL AS CASE LAW CITED BY THE ASSESSEE WE FIND THAT THE LD . CIT HAS CONDUCTED PRELIMINARY ENQUIRIES REGARDING ACTIVITIES OF THE A SSESSEE TRUST AND THE ASSESSING OFFICERS REPORT WAS RECEIVED BY HIM ON 0 9.10.2009 WHICH HAS NOT BEEN CONFRONTED TO THE ASSESSEE. THEREFORE IN THE INTEREST OF JUSTICE AND TO IT ITIT ITA NO A NO A NO A NOS SS S. .. .1508 & 1509 1508 & 1509 1508 & 1509 1508 & 1509 /MDS/ /MDS/ /MDS/ /MDS/10 1010 10 4 HAVE FAIR PLAY IN THE MATTER WE FIND IT JUST AND A PPROPRIATE TO RESTORE THE MATTER ON THE FILE OF THE LD. CIT WITH THE DIRECTION TO RE -DECIDE THE APPLICATIONS OF THE ASSESSEE MADE UNDER SECTION 12AA FOR REGISTRATION A ND APPROVAL UNDER SECTION 80G AFRESH AFTER GIVING DUE OPPORTUNITY TO THE ASSE SSEE AND ALSO CONFRONTING THE ASSESSEE WITH ANY REPORT GOT OBTAINED IF SAME I S TO BE USED AGAINST THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. 6. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED SOON AFTER THE CONCLUSION OF HEAR ING ON 13.01.2011. SD/- SD/- (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (U.B.S. BEDI) JUDICIAL MEMBER CHENNAI DATED THE. 13.01.2011 VM/- COPY TO : APPELLANT/RESPONDENT/CIT(A)- /CIT /DR