Sh. Guru Hargobind Sahib Charitable Trust, Jagaron V. CIT-III, Ludhiana

ITA 1083/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86200 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-03-2015
• Assessment Year: misc
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 1083/CHD/2014 (UNDER SECTION 12AA OF THE ACT) SH.GURU HARGOBIND SAHIB CHARITABLE TRUST, VS. THE C.I.T-III, OPPOSITE LUDHIANA HOSPITAL, LUDHIANA. VILLAGE KOTHE BHAGGU, JAGARON. PAN: AACTS9358K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHWANI KUMAR RESPONDENT BY : SMT.JYOTI KUMARI, DR DATE OF HEARING : 16.03.2015 DATE OF PRONOUNCEMENT : 16.03.2015 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX-III , LUDHIANA DATED 14/17.11.2014 REJECTING THE APPLICAT ION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. BRIEFLY, THE FACTS ARE THAT THE ASSESSEE TRUST F ILED APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT BEFORE THE LEARNED COMMISSIONER OF INCOME TAX IN PR ESCRIBED FORM. THE MAIN OBJECTS OF THE ASSESSEE ARE RUNNIN G OF EDUCATIONAL ASSOCIATION IN THE NAME OF GHG ACADEMY, THE SAID SCHOOL RUNNING CLASSES FROM NURSERY TO 10+2. ANOT HER SCHOOL 2 IS ALSO PURCHASED. THE APPLICATION WAS FORWARDED TO THE ASSESSING OFFICER AND THE ASSESSING OFFICER SENT HI S REPORT DATED 25.8.2014. IN ORDER TO SATISFY THE CONDITIO NS NECESSARY FOR REGISTRATION, A QUESTIONNAIRE DATED 29.8.2014 W AS ISSUED ENCLOSING THEREWITH THE REPORT OF THE ASSESSING OFF ICER FOR ASSESSEES COMMENTS REQUIRING TO FURNISH INFORMATIO N. THE PROCEEDINGS WERE NOT ATTENDED TO BY THE ASSESSEE. FURTHER QUESTIONNAIRE WAS ISSUED ON 26.9.2014 SEEKING REPLY OF THE ASSESSEE. ON 2.10.2014 THE ASSESSEE FILED WRITTEN REPLY. ACCORDING TO THE LEARNED COMMISSIONER OF INCOME TAX , THE ASSESSEE DID NOT CONTROVERT THE REPORT OF THE ASSES SING OFFICER. THEREFORE, THE LEARNED COMMISSIONER OF I NCOME TAX WAS OF THE VIEW THAT THE ASSESSEE DID NOT PERFORM T HE ACTIVITIES OF THE SOCIETY AS PER THE AIMS AND OBJEC TS OF THE TRUST DEED. ACCORDING TO THE LEARNED COMMISSIONER OF INCOME TAX, THE ASSESSEE DID NOT OFFER ANY EXPLANATION WIT H REGARD TO THE MISUSE OF THE SOCIETYS FUNDS. IN THE ABSENCE OF THE REQUIRED INFORMATION/DETAILS, VERIFICATION OF THE F ACTS CANNOT BE CARRIED OUT. THEREFORE, THE REGISTRATION APPLI CATION UNDER SECTION 12AA OF THE ACT WAS REJECTED. 3. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECOR D. THE ASSESSEE IN THE PAPER BOOK FILED THE COPIES OF THE NOTICES ISSUED BY THE I.T.O.-IV, MOGA, HEAD QUARTER JAGRAON SEEKING VARIOUS DETAILS FROM THE ASSESSEE AND THE ASSESSEE IN RESPONSE THERETO, FILED REPLY ALONGWITH DOCUMENTS O N 17.7.2014 AND 19.8.2014. THE ASSESSEE ALSO FILED COPY OF THE 3 LETTER ISSUED BY THE I.T.O.-IV, HEAD QUARTER (JUDIC IAL) DATED 29.8.2014 SEEKING SEVERAL QUERIES FROM THE ASSESSEE , WHICH WAS REPLIED TO BY THE ASSESSEE ON 2.10.2014. THE LEARNED COUNSEL FOR ASSESSEE REFERRING TO THESE DOCUMENTS S UBMITTED THAT COMPLETE INFORMATION AND DETAILS WERE FURNISHE D BEFORE THE I.T.O.-IV, MOGA, HEAD QUARTERS JAGRAON AS WELL AS BEFORE THE I.T.O. HEAD QUARTERS (JUDICIAL). THEREFORE, TH E FINDINGS OF THE LEARNED COMMISSIONER OF INCOME TAX ARE INCORREC T THAT NO COMPLETE DETAILS/INFORMATION HAVE BEEN PROVIDED. CONSIDERING THE ABOVE DOCUMENTS ON RECORD, WE ARE O F THE VIEW THAT THE ASSESSEE HAS FILED REQUIRED DETAILS B EFORE THE I.T.O.-IV, MOGA, HEAD QUARTERS JAGRAON AS WELL AS B EFORE THE I.T.O. HEAD QUARTERS (JUDICIAL). THEREFORE, IT WA S THE DUTY OF THE LEARNED COMMISSIONER OF INCOME TAX TO CONSIDER THE MATERIAL ON RECORD AND SHOULD HAVE GIVEN FINDINGS O F FACT ON MERITS INSTEAD OF REJECTING THE APPLICATION OF THE ASSESSEE BY STATING THAT NO REQUIRED DETAILS ARE FILED ON RECOR D. ACCORDING TO SECTION 12AA OF THE ACT, THE COMMISSIO NER OF INCOME TAX ON RECEIPT OF THE REGISTRATION APPLICATI ON SHOULD HAVE SATISFIED HIMSELF ABOUT THE OBJECTS OF THE TRU ST OR INSTITUTION AND GENUINENESS OF ITS ACTIVITIES BEFOR E GRANTING REGISTRATION OR REJECTING THE REGISTRATION APPLICAT ION. HOWEVER, NO SUCH FINDINGS HAVE BEEN GIVEN ON BOTH T HE ISSUES. FURTHER IT APPEARS FROM THE NOTICES ISSUED BY THE I .T.O.-IV, MOGA, HEAD QUARTERS JAGRAON AND I.T.O. HEAD QUARTER S (JUDICIAL) ENQUIRIES HAVE BEEN CONDUCTED BY THE I.T .O.-IV, MOGA, HEAD QUARTERS JAGRAON AND I.T.O. HEAD QUARTER S (JUDICIAL). THE REQUIREMENT OF LAW IS THAT THE EN QUIRIES 4 SHOULD HAVE BEEN CONDUCTED BY THE LEARNED COMMISSIO NER OF INCOME TAX HIMSELF ON REGISTRATION APPLICATION AND HE SHOULD HAVE SATISFIED HIMSELF ABOUT THE OBJECTS OF THE TRU ST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES. IT APPEARS THAT NO SUCH ENQUIRIES HAVE BEEN CONDUCTED BY THE L EARNED COMMISSIONER OF INCOME TAX AND NO DOCUMENTS FURNISH ED BY THE ASSESSEE HAVE BEEN TAKEN INTO CONSIDERATION. THE ISSUE ON MISUSE OF SOCIETYS FUNDS IS NOT WITHIN THE DOMA IN OF THE LEARNED COMMISSIONER OF INCOME TAX TO BE CONSIDERED AT THE STAGE OF GRANT OF REGISTRATION TO THE ASSESSEE. I T IS A MATTER OF REGULAR ASSESSMENT TO BE CONSIDERED BY THE ASSES SING OFFICER. IT, THEREFORE, APPEARS THAT IN THE ABSENC E OF PROPER ENQUIRY INTO THE MATTER AS PER THE REQUIREMENT OF S ECTION 12AA OF THE ACT BY THE LEARNED COMMISSIONER OF INCO ME TAX, THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF LEARNED COMMISSIONER OF INCOME TAX-III, LUDHIANA. 4. IN VIEW OF THE ABOVE DISCUSSION, WE SET ASIDE TH E IMPUGNED ORDER AND RESTORE THE MATTER IN ISSUE TO T HE FILE OF THE LEARNED COMMISSIONER OF INCOME TAX-III, LUDHIAN A WITH DIRECTION TO REDECIDE THE REGISTRATION APPLICATION OF THE ASSESSEE IN ACCORDANCE WITH LAW BY FOLLOWING THE PR OVISIONS OF SECTION 12AA OF THE ACT STRICTLY AND THE LEARNED CO MMISSIONER OF INCOME TAX SHALL DECIDE THE REGISTRATION APPLICA TION ON MERITS AFTER GIVING REASONABLE SUFFICIENT OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. THE LEARNED COMMISSIONER O F INCOME TAX SHALL DECIDE THE MATTER WITHIN ONE MONTH FROM R ECEIPT OF THIS ORDER. 5 5 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF MARCH, 2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 16 TH MARCH, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH