Aditi - Aanchal, Bangalore v. DIT(Exemptions), Bangalore

ITA 720/BANG/2009 | misc
Pronouncement Date: 29-01-2010 | Result: Allowed

Appeal Details

RSA Number 72021114 RSA 2009
Assessee PAN AABTA0925B
Bench Bangalore
Appeal Number ITA 720/BANG/2009
Duration Of Justice 6 month(s) 12 day(s)
Appellant Aditi - Aanchal, Bangalore
Respondent DIT(Exemptions), Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 05-01-2010
Next Hearing Date 05-01-2010
Assessment Year misc
Appeal Filed On 17-07-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE B BENCH BANGALORE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI A. MOHAN ALANKAMONY AM ITA NO.720(BANG.)/2009 (ASSESSMENT YEAR : N.A) ADITI - AANCHAL NO.224/16 RAMANA MAHARISHI ROAD BANGALORE-560 080. APPELL ANT VS THE DIRECTOR OF INCOME-TAX(EXE.) BANGALORE. RESPONDENT APPELLANT BY : SHRI D. DEVARAJ REVENUE BY : SMT. PREETI GARG O R D E R PER SHAILENDRA KUMAR YADAV JM: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE REJECTION OF RENEWAL OF RECOGNITION U/S 80G. 2. THE ASSESSEE TRUST FILED ITS APPLICATION FORM 10 G ON 21-11- 2008 SEEKING RENEWAL OF RECOGNITION U/S 80G. THE AS SESSEE TRUST WAS ESTABLISHED BY WAY OF TRUST DEED DATED 18-08-20 03 AND WAS REGISTERED U/S 12A ON 18-8-2003 AND HAS BEEN REGIST ERED U/S 80G UPTO 31-03-2008.THE ASSESSEE HAD APPLIED FOR RENEWA L OF RECOGNITION VIDE ITS APPLICATION DATED 21-11-2008. THE ITA NO.720(B)/09 2 DIT(EXE.)OBSERVED THAT AT THE TIME OF REGISTRATION OF TRUST FOLLOWING PERSONS WERE THE EMPLOYEES OF THE COMPANY OF M/S AD ITHI TECHNOLOGIES LTD. WERE THE TRUSTEES VIZ. ANJANA K AUL RAJESH V THACHIL JAYAKUMAR B.N KARTHIKEYAN E.S AND MADHAVAVENKATACHALAPATHI. THE DIT(EX.) OBSERVED THA T HE TRUST HAVE BEEN CHANGED AGAINST THE UNDERTAKING WITH REGA RDS TO COMMUNICATION OF ANY ALTERATION IN TERMS OF TRUST I N THE RULES GOVERNING THE INSTITUTION MADE AT THE TIME OF REGIS TRATION. THE DIT(EX.) ALSO FOUND SOME IRREGULARITIES WITH REGARD S TO RECEIPTS AND HE ALSO FOUND SOME IRREGULARITIES REGARDING PAYMENT S AND ACCORDINGLY THE DIT(EX.) HELD THAT THE ASSESSEE IS NOT ELIGIBLE FOR RENEWAL OF RECOGNITION U/S 80G. 3. BEFORE US LEARNED AR SUBMITTED THAT THE ASSESSEE HAD FILED DETAILS OF DONATIONS RECEIVED DIRECTLY TO THE COMPA NY. THE DIT(EX.) CONCLUDED THAT THE ASSESSEE HAS NOT ISSUED ANY INDI VIDUAL RECEIPTS AND THEREBY HELD THAT REQUIREMENT OF RECOGNITION U/ S 80G WAS NOT SATISFIED. ACCORDING TO LEARNED AR THE DIT(EX.) WA S NOT JUSTIFIED IN CONCLUDING THAT NON INTIMATION OF TRUSTEES WOULD AM OUNT TO NON- COMPLIANCE OF REQUIREMENTS UNDERTAKING MADE AT THE TIME OF REGISTRATION. THE LEARNED AR ALSO SUBMITTED THAT T HE DIT(EX.) WAS NOT JUSTIFIED IN CONCLUDING THAT THE ASSESSEE HAS N OT ISSUED ITA NO.720(B)/09 3 INDIVIDUAL RECEIPTS TO ITS EMPLOYEES. SO THE ORDER OF THE DIT(EX.) BE SET ASIDE AND THE MATER BE RESTORED TO HIM FOR FRES H CONSIDERATION. ON THE OTHER HAND LEARNED DR OPPOSED THE SAME. 4. AFTER GOING THROUGH THE RIVAL SUBMISSIONS AND MA TERIAL ON RECORD WE FIND THAT THE ASSESSEE IS A PUBLIC CHARI TABLE TRUST AND HAS BEEN GRANTED RECOGNITION UNDER /SECTION 12A VIDE NO.DIT(E)/12A/VOL.1/A.941/W-1/03-04 DATED 16-02-200 4. THE ASSESSEE HAS BEEN REGULARLY FILING THE RETURNS OF I NCOME UNDER PAN- AABTA0925B. THE ASSESSEE WAS GRANTED RENEWAL OF RE COGNITION U/S 80G(5)(VI) OF THE IT ACT 1961 UPTO 31-03-2008. TH E ASSESSEE MADE AN APPLICATION FOR RENEWAL OF RECOGNITION U/S 80G O N 21-11-2008. THE ASSESSEE RECEIVES DONATIONS MAINLY FROM M/S ADI THI TECHNOLOGIES PVT. LTD. AND THEIR EMPLOYEES. DURING THE COURSE OF RENEWAL PROCEEDINGS THE DIT(E) CALLED FOR VARIOUS DETAILS AND THE ASSESSEE FURNISHED THE SAME. IN THIS BACKGROUND T HE DIT(E) OBSERVED THAT THE ASSESSEE HAD NOT INTIMATED THE DE TAILS OF CHANGE IN TRUSTEES TO THE CONCERNED AUTHORITIES NOR PRODUC ED RESOLUTION COPIES IN SUPPORT OF THE SAME. ACCORDING TO ASSESSE E AS PER THE TRUST DEED THE TRUST HAS INHERENT POWERS FOR CHANGI NG THE CONSTITUTION OF THE TRUSTEES. THE DIT WHILE CONCLU DING THE RENEWAL PROCEEDINGS HELD THAT THE NON-INTIMATION OF THE CHA NGE IN TRUSTEES ITA NO.720(B)/09 4 WOULD BE IN CONTRAVENTION OF THE UNDERTAKING MADE A T THE TIME OF REGISTRATION. 5. SECONDLY THE DIT(E) SOUGHT FOR THE RECEIPTS IS SUED U/S 80G BOTH IN THE NAMES OF THE EMPLOYEES AND IN THE NAME OF THE COMPANY AN THE ASSESSEE FURNISHED THE SAME. THE ASSESSEE PR ODUCED DETAILS OF EMPLOYEE WISE DONATION RECEIVED DIRECTLY TO THE COMPANY ENCLOSING A COPY OF 80G RECOGNITION CERTIFICATE. HO WEVER THE DIT(E) CONCLUDED THAT THE ASSESSEE HAD NOT ISSUED INDIVIDU AL RECEIPTS AND THEREBY HELD THAT THE REQUIREMENTS FOR RENEWAL OF R ECOGNITION U/S 80G(5)(VI) ARE NOT SATISFIED. 6. THIRDLY THE DIT(E) COMPARED THE EXPENSES INCU RRED AS PER INCOME & EXPENDITURE ACCOUNT WITH THE BANK STATEMEN TS AND NOTICED THE DIFFERENCES FOR THE FINANCIAL YEARS 200 6-07 AND 2007-08. THE STAND OF THE ASSESSEE IN THIS REGARD IS THAT HE WAS NOT PROVIDED AN OPPORTUNITY TO RECONCILE THE DIFFERENCE. SO THE DIT(E) CONCLUDED THAT THE ASSESSEE HAS NOT MET THE REQUIREMENTS IN M AINTAINING THE ACCOUNTS REGULARLY AS REQUIRED IN TERMS OF SEC.80(5 )(VI). WE FIND THAT THE DIT(E) HAS REJECTED THE RENEWAL OF RECOGNITION U/S 80G FOR THE AFORESAID THREE REASONS AS DISCUSSED BUT WE FIND T HAT THE ASSESSEE HAS NOT PROVIDED DUE OPPORTUNITY OF HEARING. SO IN THE INTEREST OF JUSTICE WE RESTORE THE MATTER TO HIM WITH A DIRECT ION TO DECIDE THE ITA NO.720(B)/09 5 SAME AS PER FACTS AND LAW AFTER PROVIDING DUE OPPOR TUNITY OF HEARING BOTH PARTIES. 7. IN THE RESULT THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 29 TH JANUARY 2010. (A. MOHAN ALANKAMONY) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: BANGALORE DATED: AM* COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3. CIT(A) 4. CIT 5. DR 6. GF(BLORE) 7. GF(DELHI) BY ORDER AR ITAT BANGALORE