Dadri Madresa Ibadatkhana & Kabrastan Trust,, Surat v. The CIT-II,, Surat

ITA 2974/AHD/2014 | misc
Pronouncement Date: 24-04-2015 | Result: Allowed

Appeal Details

RSA Number 297420514 RSA 2014
Assessee PAN AABTD7084J
Bench Ahmedabad
Appeal Number ITA 2974/AHD/2014
Duration Of Justice 5 month(s) 11 day(s)
Appellant Dadri Madresa Ibadatkhana & Kabrastan Trust,, Surat
Respondent The CIT-II,, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 24-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 24-04-2015
Date Of Final Hearing 06-04-2015
Next Hearing Date 06-04-2015
Assessment Year misc
Appeal Filed On 12-11-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD (BEFORE SHRI SHAILENDRA KR. YADAV J.M. & SHRI ANIL CHATURVEDI A.M.) I.T. A. NO. 2974 /AHD/2014 (ASSE SSMENT YEAR: N.A. ) DADRI MADRESSA IBADATKHANA & KABRASTAN TRUST DADRI TARSADI POST: KOSAMBHA (RS) TAL: MANGROL DIST: SURAT -394120 V/S THE CIT-II ROOM NO. 227 SECOND FLOOR AAYKAR BHAVAN MAJURA GATE SURAT- 395002 (APPELLANT) (RESPONDENT) PAN: AABTD7084J APPELLANT BY : SHRI S.N.DIVETIA A.R. RESPONDENT BY : SHRI SANJAY AGARWAL CIT/DR ( )/ ORDER DATE OF HEARING : 09-04-201 5 DATE OF PRONOUNCEMENT : 24-04-2015 PER SHRI ANIL CHATURVEDI A.M. 1. THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT-II SURAT DATED 26.09.2014. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER. 3. ASSESSEE IS A CHARITABLE TRUST REGISTERED WITH CHAR ITY COMMISSIONER SURAT. IT HAD APPLIED TO THE LD. CIT FOR REGISTRATION U/S. 12 A(A) OF THE ACT. THE APPLICATION FOR REGISTRATION WAS REJECTED BY LD. CI T VIDE ORDER DATED ITA NO 2974/ AHD/2014 2 26.09.2014 FOR THE REASON THAT ON THE BASIS OF EVID ENCES COLLECTED BY LD. CIT HE WAS OF THE VIEW THAT THE TRUST WAS WORKING FOR O NLY MUSLIM COMMUNITY AND NOT FOR THE BENEFIT OF PUBLIC AT LARGE AND THER EFORE THE TRUST DOES NOT SATISFY THE CONDITIONS LAID DOWN U/S. 12A OF THE AC T AND THUS THE APPLICATION FOR APPROVAL OF REGISTRATION WAS REJECTED U/S. 12AA (1)(B)(II) OF THE ACT. AGGRIEVED BY THE AFORESAID ORDER OF LD. CIT ASSESS EE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS;- 1.1 THE ORDER PASSED U/S.12AA(L)(B)(II) ON 26-09-20 14 BY CIT-II SURAT REFUSING REGISTRATION TO THE APPELLANT TRUST IS WHO LLY ILLEGAL UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 1.2 THE LD. CIT HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN NOT ALLOWING ANY OPPORTUNITY MUCH LESS REASONABLE BEFORE DECLI NING REGISTRATION U/S. 12AA(1) THOUGH THE PROVISO TO THIS SUB-SECTION EXP RESSLY ALLOWS IT APART FROM THE RULES OF NATURAL JUSTICE. 2.1 THE LD.CIT HAS GRIEVOUSLY ERRED IN LAW AND ON F ACTS IN REFUSING REGISTRATION U/S. 12AA(L)(B)(II) THOUGH THE ACTIVI TIES OF THE APPELLANT TRUST WERE FOUND TO BE GENUINE AFTER MAKING DUE INQUIRY T HROUGH AO. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW THE LD.CIT OUGHT NOT TO HAVE REJECTED THE APPLICATION F OR REGISTRATION U/S. 12AA(1) OF THE ACT ON THE GROUND THAT THE ACTIVITIE S WERE CARRIED ON FOR THE BENEFIT OF ONE PARTICULAR COMMUNITY THOUGH IT COUL D NOT BE A GROUND FOR REJECTION U/S. 12AA OF THE ACT. 4. BEFORE US LD. A.R. SUBMITTED THAT THE ONLY ISSUE I S WITH RESPECT TO DENIAL TO REGISTRATION U/S. 12A OF THE ACT. HE SUBMITTED THAT LD. CIT CARRIED OUT THE INQUIRY WITH THE A.O WITH REGARD TO THE ACTIVITIES OF THE TRUST AND ON THE BASIS OF THE REPORT OF THE A.O CONCLUDED THAT THE ASSESSE E WAS WORKING ONLY FOR ITA NO 2974/ AHD/2014 3 ONE PARTICULAR COMMUNITY AND NOT FOR THE BENEFIT OF PUBLIC AT LARGE AND THUS THE APPLICATION FOR REGISTRATION WAS REJECTED. LD. A.R. FURTHER SUBMITTED THAT THE ASSESSEE WAS NEITHER GIVEN THE COPY OF THE REPO RT SUBMITTED BY THE A.O NOR ANY SHOW CAUSE NOTICE WAS ISSUED ON THE BASIS O F REPORT AND THUS THERE WAS GROSS VIOLATION OF PRINCIPLE OF NATURAL JUSTICE . HE THEREFORE SUBMITTED THAT ASSESSEE BE GRANTED AN OPPORTUNITY TO PRESENT ITS CASE BEFORE LD. CIT AND THEREFORE THE MATTER MAY BE SET ASIDE TO THE FI LE OF LD. CIT. LD. D.R. ON THE OTHER HAND SUPPORTED THE ORDER OF LD. CIT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE APPLICATION FOR REGISTRATION U/S. 12A WAS REJECTED FOR THE REASON THAT THE LD. CIT ON THE BASIS OF THE REPORT SUBMITT ED BY THE A.O CONCLUDED THAT THE ASSESSEE TRUST WAS WORKING FOR ONLY ONE PA RTICULAR COMMUNITY AND NOT FOR THE PUBLIC AT LARGE. BEFORE US IT IS ASSES SEES CONTENTION THAT THE REPORT OF THE A.O WAS NOT MADE AVAILABLE TO THE ASS ESSEE NOR ANY SHOW CAUSE NOTICE WAS ISSUED TO IT AND THEREFORE THE ASS ESSEE WAS NOT GRANTED REASONABLE OPPORTUNITY OF BEING HEARD BEFORE REJECT ING THE APPLICATION FOR REGISTRATION. BEFORE US NO MATERIAL HAS BEEN PLACE D ON RECORD BY THE REVENUE TO CONTROVERT THE AFORESAID SUBMISSIONS MAD E BY LD. A.R. IT IS A SETTLED LAW THAT THE PRINCIPLES OF NATURAL JUSTICE ARE APPLICABLE TO THE PROCEEDINGS UNDER THE INCOME TAX ACT AND THE ELEMEN TARY PRINCIPLE OF NATURAL JUSTICE IS THAT THE ASSESSEE SHOULD HAVE KN OWLEDGE OF THE MATERIAL THAT IS GOING TO BE USED AGAINST HIM SO THAT HE MAY BE ABLE TO MEET IT. IN VIEW OF THE AFORESAID FACTS WE FEEL THAT IN THE INTERES T OF JUSTICE ONE MORE OPPORTUNITY NEEDS TO BE GRANTED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE LD. CIT. WE THEREFORE REMIT THE ISSUE BACK TO THE FILE OF LD. CIT FOR HIM TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND AFTER GIVING REASONABLE ITA NO 2974/ AHD/2014 4 OPPORTUNITY OF HEARING TO THE ASSESSEE. WE THUS DIR ECT ACCORDINGLY. IN THE RESULT THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STA TISTICAL PURPOSES. 6. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 24 - 04 - 2015. SD/- SD/- (SHAILENDRA KR. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD. TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AH MEDABAD