Maa Dhanwanti Devi Shiksha Prasar Samiti, Morena V. C.I.T., Gwalior

ITA 125/AGR/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2144 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-07-2013
• Assessment Year: misc
• Appeal Filed On: 22-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MAURYA
• Assessee Lawyers: MANOJ SHARMA S
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 125 AG./ 2013 MAA DHANWANTI DEVI SHIKSHA PRASAR VS. COMMISSIONE R OF INCOME TAX SAMITI AVAM SAMAJ, SEVI GWALIOR. SANSTHA, 452 VILLAGE & POST JOURAKHURD, MORENA (M.P.) (PAN AACAM 0389 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDRA SHARMA & SHRI MANOJ SHARMA, ADVOCATES RESPONDENT BY : SHRI S.L. MAURYA, SR. D.R. DATE OF HEARING : 16.07.2013 DATE OF PRONOUNCEMENT : 19.07.2013 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT GWALIOR DATED 22.02.2013, REJECTING THE APPLICATION UNDER SECTION 12AA OF THE INCOME TAX ACT. ITA NO.125/AG./2013 2 2. THE ASSESSEE SOCIETY FILED APPLICATION FOR REGIS TRATION IN THE PRESCRIBED FORM UPON WHICH THE REPORT FROM THE A.O. WAS CALLED FOR TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE SOCIE TY. THE J.C.I.T. GWALIOR HAS FORWARDED THE REPORT OF THE A.O. IN THE MATTER. THE LD. CIT OBSERVED THAT THE ASSESSEE FOR THE F.Y.2011-12 IS SHOWN TO HAVE RECEI VED UNSECURED LOANS IN CASH TO THE TUNE OF RS.27.25 LACS FROM THE PERSONS BEING SOCIAL WORKERS, HOUSE WIVES, PROPERTY DEALERS WHO WERE RESPONSIBLE FOR MANAGING THE AFFAIRS OF THE SOCIETY. THE GENUINENESS OF THE SOURCE OF THE FUND WAS FOUND TO BE DOUBTFUL. THE OPPORTUNITY WAS GIVEN TO THE ASSESSEE TO EXPLAIN TH E GENUINENESS OF THE SOURCE OF THE FUNDS OF THE SOCIETY AND TO PRODUCE THE BOOKS O F ACCOUNT AND OTHER MATERIAL FOR EXAMINATION. THE COUNSEL FOR THE ASSESSEE APPEA RED BEFORE LD. CIT AND STATED THAT THE AMOUNT IN QUESTION WAS RECEIVED IN CASH BU T BOOKS OF ACCOUNT, BILLS, VOUCHERS AND ETC WERE NOT PRODUCED. LD. CIT, THEREF ORE, FOUND THAT GENUINENESS OF THE CHARITABLE ACTIVITIES COULD NOT BE ESTABLISH ED BY THE ASSESSEE. APPLICATION WAS ACCORDINGLY REJECTED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORDS. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AUDIT REPORT WAS FILED BEFORE LD. CIT ALONG WITH AIMS AND OBJECT TO SHOW THAT ASSESSEE EXISTS FOR ITA NO.125/AG./2013 3 EDUCATIONAL AND CHARITABLE ACTIVITIES AND ALSO PAID NCTE BHOPAL FEES FOR REGISTRATION. THE REPORT OF THE A.O. FORWARDED THRO UGH J.C.I.T. WAS NOT CONFRONTED TO THE ASSESSEE TO PROVE WHETHER THEY RE COMMENDED FOR GRANT OF REGISTRATION OR THEY DID NOT RECOMMEND FOR GRANT OF REGISTRATION. ACCORDING TO SECTION 12AA OF THE ACT THE LD. CIT HAS TO SATISFY HIMSELF ABOUT GENUINENESS OF THE OBJECTS OF THE ASSESSEE SOCIETY AND ITS ACTIVIT IES. THEREFORE, THE AMOUNT TAKEN BY ASSESSEE IN CASH MAY NOT BE RELEVANT CRITERIA TO REJECT THE APPLICATION FOR REGISTRATION. THE LD. CIT ALSO DID NOT DISCUSS IN T HE ORDER AS TO WHAT WAS REPORT SUBMITTED BY THE A.O. IN THE MATTER. LD. COUNSEL FO R THE ASSESSEE UNDER TOOK BEFORE US THAT ASSESSEE MAY BE GIVEN ONE MORE OPPOR TUNITY TO PRODUCE THE BOOKS OF ACCOUNT AND OTHER MATERIAL FOR SATISFYING THE LD . CIT ABOUT THE OBJECTS AND GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE. CONS IDERING THE ABOVE DISCUSSIONS, IN THE LIGHT OF THE FACTS THAT REPORT OF THE A.O. I S NOT CONFRONTED TO THE ASSESSEE AND SAME IS ALSO NOT DISCUSSED IN THE IMPUGNED ORDE R AND LD. COUNSEL FOR THE ASSESSEE HAS GIVEN UNDERTAKING BEFORE US TO COOPERA TE WITH LD. CIT, WE ARE OF THE VIEW THAT INTEREST OF JUSTICE REQUIRES THAT ONE MOR E OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO PRODUCE ALL THE RELEVANT MATERIAL A ND EVIDENCES BEFORE LD. CIT FOR FRESH CONSIDERATION OF REGISTRATION APPLICATION. WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER IN ISSUE TO T HE FILE OF LD. CIT, GWALIOR WITH ITA NO.125/AG./2013 4 DIRECTION TO RE-DECIDE THE REGISTRATION APPLICATION OF THE ASSESSEE BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO OBEY HIS UNDERTAKING GIVEN BEFORE US AN D SHALL PRODUCE ALL BOOKS OF ACCOUNT OR MATERIAL BEFORE THE LD. CIT FOR FINAL DE TERMINATION OF THE APPLICATION AND SHALL COOPERATE WITH LD. CIT IN THE MATTER. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (A.L. GEHLOT) (BHAV NESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY