Dhishaa Foundation Trust, Bangalore v. DIT, Bangalore

ITA 110/BANG/2010 | misc
Pronouncement Date: 31-05-2010 | Result: Allowed

Appeal Details

RSA Number 11021114 RSA 2010
Bench Bangalore
Appeal Number ITA 110/BANG/2010
Duration Of Justice 3 month(s) 29 day(s)
Appellant Dhishaa Foundation Trust, Bangalore
Respondent DIT, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 31-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 31-05-2010
Date Of Final Hearing 26-05-2010
Next Hearing Date 26-05-2010
Assessment Year misc
Appeal Filed On 01-02-2010
Judgment Text
PAGE 1 OF 4 ITA NO.110/BANG/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI GEORGE GEORGE K. J.M. AND SHRI A MOHAN ALANKAMONY A.M. ITA NO.110/BANG/2010 DISHA FOUNDATION TRUST KAMAL VAIBHAV NO.12/1 SOURASHTRAPET MAIN ROAD BANGALORE-53. - APPELLANT VS THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) BANGALORE. - RESPONDENT APPELLANT BY : SHRI H N KHINCHA RESPONDENT BY : SHRI JASON P BOAZ O R D E R PER GEORGE GEORGE K : THIS APPEAL OF THE ASSESSEE TRUST IS DIRECTED AG AINST THE ORDER OF DIRECTOR OF INCOME-TAX (EXEMPTIONS) DATED 22.01.2010 REFUSING TO RENEW THE RECOGNITION U/S 80G OF THE AC T. 2. THE EFFECTIVE GROUNDS RAISED READS AS FOLLOWS:- II) IN ANY CASE WITHOUT PREJUDICE THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS) HAS ERRED IN REJECTING THE APPLICATION SEEKING APPROVAL U/S 80G(5)(VI) OF I T ACT 1961 ON THE GROUND OF NON COMPLIANCE OF NOTICE ISSUED AND IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF ACTIVITIES OF THE APPELLANT. ON THE FACTS AND CIRCUMSTANCES PAGE 2 OF 4 ITA NO.110/BANG/2010 2 OF THE CASE AND THE LAW APPLICABLE THERE BEING NO NON COMPLIANCE THE APPELLANT IS ENTITLED TO APPROVAL U/S 80G(5)(VI) OF THE ACT. III) THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS) HAS ERRED IN HOLDING THAT THE COPIES OF ACCOUNTS FILED HAS NEITHER BEEN CERTIFIED BY THE CHARTERED ACCOUNTANTS NOR SIGNED BY THE TRUSTEES. THE OBSERVATION MADE IS NOT AT ALL CORRECT AND THE CONCLUSION DRAWN ON ERRONEOUS PREMISE IS TO BE DELETED. IV) THE APPELLANT IS A PURE CHARITABLE TRUST ENTITLED FOR RENEWAL OF RECOGNITION U/S 80G(5)(VI) OF THE I T ACT AND SAME IS TO BE GRANTED TO IT. 3. THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS:- THE ASSESSEE TRUST WAS ESTABLISHED BY DEED DATED 8.2.2003. THE TRUST WAS GRANTED REGISTRATION U/S 1 2A OF THE ACT W.E.F. 8.3.2001. IT WAS ALSO GRANTED RECOGNITION U/ S 80G OF ACT FROM 21.5.2001 TO 31.3.2002. THE ASSESSEE TRUST APPLIED FOR RENEWAL OF RECOGNITION U/S 80G VIDE ITS APPLICATION ON 31.7.20 09. 4. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) REJECTE D THE ASSESSEE TRUST RENEWAL OF RECOGNITION. THE DIRECTO R OF INCOME-TAX (EXEMPTIONS) HELD THAT TRUST WAS INVOLVED CHARITABL E ACTIVITIES PRIOR TO 31.3.2002. THE DIT (E) FURTHER HELD THAT ON EXA MINING THE COPIES OF THE ACCOUNTS WHICH WAS NEITHER CERTIFIED BY THE CHARTERED ACCOUNTANT NOR SIGNED BY THE TRUSTEE IT DID NOT DE PICT ANY ACTIVITY. THEREFORE HE CONSIDERED THAT ASSESSEE TRUST WAS IN ELIGIBLE IN TERMS OF SECTION 80G(5)(II) TO 80G(5)(IV). IT WAS ALSO S TATED BY DIRECTOR OF INCOME-TAX (EXEMPTIONS) THAT THERE WAS NO RESPON SE TO THE SHOW-CAUSE ISSUED ON 8.1.2010. PAGE 3 OF 4 ITA NO.110/BANG/2010 3 5. THE ASSESSEE TRUST BEING AGGRIEVED IS IN APPEAL BEFORE US. 6. THE LEARNED COUNSEL FOR ASSESSEE TRUST SUBMITTE D THAT SHOW-CAUSE NOTICE ISSUED BY DIT(E) ON 8.1.2010 WAS NEVER RECEIVED BY THE ASSESSEE TRUST. IT WAS SUBMITTED T HAT THE ASSESSEE TRUST IS PROMPT IN ITS REPLY TO ANY NOTICES CALL M EMO ETC. ISSUED BY THE DEPARTMENT. IT WAS FURTHER CONTENDED THAT HAD THE ASSESSEE TRUST RECEIVED THE SHOW-CAUSE NOTICE ASSESSEE WOULD HAVE PROMPTLY REPLIED TO SHOW-CAUSE NOTICE WHICH WOULD HAVE CONV INCED THE DEPARTMENT FOR GRANTING RENEWAL OF RECOGNITION U/S 80G OF THE ACT. IT WAS ALSO STATED THAT THE OBSERVATION OF DIT(E) T HAT THE COPIES OF THE ACCOUNTS FILED HAS NEITHER BEEN CERTIFIED BY CH ARTERED ACCOUNTANT NOR SIGNED BY THE TRUSTEE IS FACTUALLY I NCORRECT. 7. THE LEARNED DR ON THE OTHER HAND STRONGLY SUPPO RTED THE ORDER OF DIRECTOR OF INCOME-TAX (EXEMPTIONS). 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON FACTS OF THIS CASE WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE AND EQUITY THE MATTER NEED S TO BE RECONSIDERED BY DIRECTOR OF INCOME-TAX (EXEMPTIONS) . IT IS AN ADMITTED FACT THAT THERE WAS NO REPLY FROM THE ASSE SSEE TRUST TO THE SHOW-CAUSE NOTICE DATED 8.1.2010. THERE IS NOTHING ON RECORD TO SUGGEST THAT THE SHOW-CAUSE NOTICE DATED 8.1.2010 I SSUED BY THE DEPARTMENT HAS BEEN SERVED ON THE ASSESSEE TRUST. THEREFORE IN FITNESS OF THING THIS ISSUE IS RESTORED TO THE FIL E OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS). THE DIRECTOR OF INCOME-TA X PAGE 4 OF 4 ITA NO.110/BANG/2010 4 (EXEMPTIONS) SHALL PASS FRESH ORDER AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 9. IN THE RESULT THE APPEAL FILED BY THE ASSESSE E IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED ON MONDAY THE 31 ST DAY OF MAY 2010 AT BANGALORE. SD/- SD/- (A MOHAN ALANKAMONY) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER COPY TO : 1) THE ASSESSEE (2) THE REVENUE (3) TH E CIT(A) CONCERNED. (4) THE CIT CONCERNED. (5) THE DR (6) GUARD FILE. (7) GUARD FILE NEW DELHI. MSP/28.5 BY ORDER ASST. REGISTRAR ITAT BANGALORE.