Jamia Serajul Uloom, Balrampur V. Commissioner of Income Tax, Faizabad

ITA 12/LKW/2014

• Counselvise Citation: 1223714 RSA 2014
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-09-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K KAPOOR
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.12/LKW/2014 ASSESSMENT YEAR:2013-14 JAMIA SERAJUL ULOOM GORAKHPUR V. CIT FAIZABAD TAN/PAN:AADTS4154N (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. P. K. KAPOOR, C.A. RESPONDENT BY: SHRI. AMIT NIGAM, D.R. DATE OF HEARING: 21 09 2015 DATE OF PRONOUNCEMENT: 06 10 2015 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX DENYING REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'). 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX AND THE DOCUMENTS FILED BEFORE HIM WITH THE SUBMISSION THAT THOUGH THE ASSESSEE HAS FILED COMPLETE BOOKS OF ACCOUNT AND BILLS & VOUCHERS FOR PERUSAL OF THE LD. COMMISSIONER OF INCOME-TAX, BUT INSTEAD OF EXAMINING THE SAME, THE LD. COMMISSIONER OF INCOME-TAX HAS GIVEN A FINDING IN HIS ORDER THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT AND SUPPORTING BILLS & VOUCHERS TO SUBSTANTIATE THE CLAIM OF EXPENSES INCURRED UNDER THESE HEADS. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER INVITED OUR ATTENTION TO THE WRITTEN SUBMISSIONS FILED BEFORE THE LD. COMMISSIONER OF INCOME-TAX ALONG WITH BALANCE SHEET AND INCOME & :- 2 -: EXPENDITURE ACCOUNT IN SUPPORT OF HIS CONTENTION THAT THE ASSESSEE IS RUNNING A SCHOOL AND FILED ALL THE EVIDENCE BEFORE THE LD. COMMISSIONER OF INCOME-TAX. THEREFORE, REGISTRATION UNDER SECTION 12AA OF THE ACT SHOULD BE GRANTED. 3. THE LD. D.R., BESIDES PLACING RELIANCE UPON THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX, HAS CONTENDED THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT ALONG WITH BILLS & VOUCHERS FOR VERIFICATION, THEREFORE, THE LD. COMMISSIONER OF INCOME-TAX HAS RIGHTLY DENIED REGISTRATION UNDER SECTION 12AA OF THE ACT. 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX IN THE LIGHT OF THE RIVAL SUBMISSIONS, WE FIND THAT THE LD. COMMISSIONER OF INCOME-TAX HAS CATEGORICALLY RECORDED IN HIS ORDER THAT THE BOOKS OF ACCOUNT AND BILLS & VOUCHERS FOR VERIFICATION WERE NOT PRODUCED BEFORE HIM; THEREFORE, THE EXPENSES COULD NOT BE VERIFIED. BUT DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE LETTER FILED ALONG WITH THE BOOKS OF ACCOUNT AND BILLS & VOUCHERS FOR VERIFICATION BEFORE THE LD. COMMISSIONER OF INCOME-TAX. ON A CAREFUL PERUSAL OF THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX, WE FIND THAT THE LD. COMMISSIONER OF INCOME-TAX HAS RECORDED IN HIS ORDER THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT AND BILLS & VOUCHERS FOR VERIFICATION, BUT ON THE CONTRARY THE LD. COUNSEL FOR THE ASSESSEE COULD NOT INVITE OUR ATTENTION TO THE ACKNOWLEDGEMENT WITH REGARD TO THE SUBMISSION OF THE BOOKS OF ACCOUNT AND BILLS & VOUCHERS BEFORE THE LD. COMMISSIONER OF INCOME-TAX. THEREFORE, IN THE LIGHT OF PRESUMPTIONS AS PER SECTION 114 (E) OF THE INDIAN EVIDENCE ACT, WE ARE SUPPOSED TO PRESUME THAT THE FACTS RECORDED IN THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX SEEMS TO BE CORRECT UNLESS AND UNTIL CONTRARY IS PROVED. IN THE LIGHT OF THIS LEGAL PREPOSITION, WE HAVE TO PRESUME THAT THE BOOKS OF ACCOUNT WERE NOT PRODUCED BEFORE THE LD. :- 3 -: COMMISSIONER OF INCOME-TAX. BUT IN ORDER TO RESOLVE THE CONTROVERSY IN THIS REGARD, WE SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME- TAX AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE-ADJUDICATE THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO PRODUCE THE BOOKS OF ACCOUNT AND OTHER RELEVANT EVIDENCE BEFORE THE LD. COMMISSIONER OF INCOME-TAX. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 6 TH OCTOBER, 2015 JJ:2109 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR