Income Tax Appellate Tribunal - Ahmedabad
Ideal Education & Charitable Trust,, ... vs The Pr. Cit (Osd) (Exemption),, ... on 23 October, 2017
ITA No. 2056/Ahd/2015
Ideal Education & Charitable Trust vs. The Pr. CIT
Assessment year: Block Period
Page 1 of 3
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "B" BENCH, AHMEDABAD
[Coram: Pramod Kumar AM and S S Godara JM]
ITA No. 2056/Ahd/2015
Ideal Education & Charitable Trust, .........................Appellant
Shrusti Levis Campus, Opp. Shyamvilla
Tenement, Nikol Gam, Ahmedabad-382350
[PAN : AAATI 9163 N]
Vs.
Principal Commissioner of Income-tax .......................Respondent
(OSD) (Exemption),
Ahmedabad
Appearances by:
None for the appellant
Dr Banwarilal for the respondent
Date of concluding the hearing : 23.10.2017
Date of pronouncing the order : 23.10.2017
O R D E R
Per Pramod Kumar, AM:
1. By way of this appeal, the assessee appellant has challenged correctness of learned CIT's order dated 18.05.2015 rejecting assessee's application for registration under Section 80G(5) of the Income-tax Act, 1961, on the following grounds:-
"1. That the learned Principal Commissioner of Income-tax (OSD) (Exemption), Ahmedabad has erred in law and on the fact in rejecting our application for registration of Trust u/s 80G(5) of the I.T. Act, 1961.
2. That the learned Commissioner has not appreciated the facts and circumstances of the case of the applicant and passed an ex-parte order without giving proper opportunity is bad in law and required to be reconsidered.
3. That the applicant has provided all the documents requires for registration of trust u/s 80G(5) of the I.T. Act, 1961 at the same time of application itself, but without considering the same, learned principal commissioner of income- tax (OSD) (Exemption) has rejected our application which is bad in law, illegal and required to reconsider.
4. Your applicant craves leave to add, alter, amend or delete any of the grounds till the appeal is finally heard and decided."ITA No. 2056/Ahd/2015
Ideal Education & Charitable Trust vs. The Pr. CIT Assessment year: Block Period Page 2 of 3
2. On a perusal of the impugned order, it is clear that the CIT has passed the impugned order ex-parte by summarily dismissing the application on the ground that certain details requisitioned by the Commissioner were not furnished. This is evident from the following extracts from the impugned order:-
"2. A letter dated 17.12.2014 was issued to the applicant to furnish detailed note on the activities actually carried out by the Trust as well as the following documents / details:
1. Copy of Bank Account since inception of Trust or last three years.
2. Copy of order u/s. 12AA or copy of notification u/s. 10(23C) or u/s. 35 of the l.T. Act.
3. Copy of audited accounts of last three years of Trust who completed one or more years.
4. Notes and evidence on genuineness of the activities of the trust since inception of the trust.
5. Whether the income of the trust is exempt u/s. 11 & 12 or 10(23C) or 35 of the Act.
6. Whether the trust is expressed for the benefit of any particular religion, community or others?
7. Whether any business is carried on by trust for which separate books of accounts are maintained?
8. Whether any object of the clause of deed is such that it is against social cause.
9. Whether the expenditure on religious purpose is with a 5% or not? Give figures and calculation.
10. Declaration u/s. 11(5) of the l.T. Act? :
11. Details of donations received or paid and confirmation/ PAN of the donors.
12. Further, it is seen that as per Trust deed the dissolution clause is not proper.
The above mentioned inquiry about the actual activities of the Trust is necessary in view of the requirement for approval of an institution or fund u/s 80G stipulated in Rule 11AA(3) -
(3)The Commissioner may call for such document or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness activities of such institution or fund.
3. However, on given date, neither applicant attended the office nor furnished any details/ documents nor sought any adjournment.
4. Therefore, with a view to give one more opportunity of being heard to the applicant another letter marked 'Final Opportunity' was issued to the applicant on 13.04.2015 requiring the details/ documents as mentioned therein on or before 05.05.2015. It was stated without any ambiguity in the said letter that failure to comply with the said letter will entail rejection of its application under ITA No. 2056/Ahd/2015 Ideal Education & Charitable Trust vs. The Pr. CIT Assessment year: Block Period Page 3 of 3 reference. This letter also failed to evoke any response from the applicant. Therefore, in the absence of complete details/documents, it is not possible to satisfy about the genuineness of the activities of the above trust or the same being carried out in accordance with the objects of the trust."
3. There is no discussion, however, about the details actually furnished by the assessee and as to how such details were inadequate or unacceptable. In any case, the order was passed ex-parte and summarily dismissing the appeal, and the assessee's case is that sufficient opportunity of hearing was not given.
4. In view of the above discussions and bearing in mind entirety of the case, we are of the considered view that the matter should be restored to the file of the CIT for passing a speaking order, in accordance with the law, after giving yet another opportunity of hearing to the assessee. Ordered, accordingly.
5. In the result, appeal is allowed for statistical purposes. Pronounced in the open court today on the 23rd October, 2017.
Sd/- Sd/-
S S Godara Pramod Kumar
(Judicial Member) (Accountant Member)
Ahmedabad, the 23rd day of October, 2017
**bt
Copies to: (1) The appellant
(2) The respondent
(3) Commissioner
(4) CIT(A)
(5) Departmental Representative
(6) Guard File
By order
TRUE COPY
Assistant Registrar
Income Tax Appellate Tribunal
Ahmedabad benches, Ahmedabad
1. Date of dictation: ......two pages manuscripts of Hon'ble AM attached as per order dated 2055/Ahd/2015.....typed on 23.10.2017
2. Date on which the typed draft is placed before the Dictating Member: ... 23.10.2017........
3. Date on which the approved draft comes to the Sr. P.S./P.S.: ... 23.10.2017.... .
4. Date on which the fair order is placed before the Dictating Member for Pronouncement:... 23.10.2017...
5. Date on which the file goes to the Bench Clerk : .. 24.10.2017....
6. Date on which the file goes to the Head Clerk : ..................................
7. The date on which the file goes to the Assistant Registrar for signature on the order: ......