Saraswati Vidya Mandir, Pratapgarh V. Commissioner of Income Tax, Faizabad

ITA 13/LKW/2014

• Counselvise Citation: 1323714 RSA 2014
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-04-2014
• Assessment Year: misc
• Appeal Filed On: 30-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K AGARWAL F
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

1 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.13/LKW/2014 ASSESSMENT YEAR:N.A. SARASWATI VIDYA MANDIR, LALGANJ, PRATAPGARH. PAN:AAGAS9152G VS. C.I.T., FAIZABAD. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. AGARWAL, F.C.A. RESPONDENT BY SHRI MANOJ KUMAR GUPTA, CIT, D.R. DATE OF HEARING 23/04/2014 DATE OF PRONOUNCEMENT 1 3 /05/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT, FAIZABAD DATED 22/10/2013 PASSED U/S 12AA OF THE ACT. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. BECAUSE THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE CONDITION FOR GRANTING REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 WERE NOT MET BY THE SOCIETY AND THEREBY REJECTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. BECAUSE THE APPELLANT SOCIETY IS RUNNING AN EDUCATION INSTITUTION AND GENUINELY CARRYING OUT EDUCATIONAL ACTIVITIES. THE CONCLUSION DRAWN THAT THE LEARNED COMMISSIONER OF INCOME TAX DID NOT COME TO SATISFACTION THAT MAY CAUSE TO GRANT REGISTRATI ON IS BASED ON CONJECTURE AND SURMISES AND NOT ON THE BASIS OF ANY MATERIAL ON RECORD. 2 3. BECAUSE THE APPELLANT SOCIETY IS MAINTAIN REGULAR BOOKS OF ACCOUNT AND SUPPORTING BILLS AND VOUCHERS WHICH WERE PRODUCED BEFORE THE LEARNED COMMISSIONER OF INCOME TA X. THE FINDING TO THE CONTRARY THAT IT WAS NOT POSSIBLE TO VERIFY THE AUTHENTICITY IN ABSENCE OF BOOKS OF ACCOUNT AND SUPPORTING BILLS AND VOUCHERS IS MISLEADING. 4. BECAUSE THE APPLICANT SOCIETY FULFILL ALL THE CONDITIONS SPECIFIED UNDER THE INCOME TAX A CT FOR GRANT OF REGISTRATION UNDER SECTION 12AA AND THE COMMISSIONER OF INCOME TAX SHOULD HAVE GRANTED THE REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 5. BECAUSE THE ORDER APPEALED AGAINST IS CONTRARY TO FACTS, LAW AND PRINCIPLE OF NATURA L JUSTICE. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE ORDER PASSED BY LEARNED CIT IS VERY CRYPTIC AND HENCE, THE MATTER MAY BE RESTORED BACK TO HIM FOR DECIDING THE ISSUE AFRESH BY WAY OF SPEAKING ORDER. HE ALSO SUBMITTED THAT CIT HAS NOT EXAMINED THE BOOKS AND IN THE SECOND ROUND , THE ASSESSEE SHOULD PRODUCE THE BOOKS AND THE CIT SHOULD PASS THE ORDER AFTER EXAMIN ING THE BOOKS OF THE ASSESSEE. 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT. 5. WE HAVE CONSIDERED TH E RIVAL SUBMISSIONS AND THE ORDER PASSED BY LEARNED CIT. WE FIND THAT IT IS NOTED BY LEARNED CIT IN PARA 3 OF HI S ORDER THAT IT WAS NOT POSSIBLE TO VERIFY THE AUTHENTICITY OF VARIOUS DETAILS IN ABSENCE OF BOOKS OF ACCOUNT & BILLS AND VOUCHERS AND BECAUSE OF THIS , HE HELD THAT HE IS NOT SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE. CONSIDERING ALL THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD GO BACK TO CIT FOR FRESH DECISION. WE ORDER ACCORDINGLY. WE WANT TO MAKE IT CLEAR THAT THE ASSESSEE SHOULD PRODUCE BOOKS OF ACCOUNT AND SUPPORTING BILLS AND VOUCHERS ETC. BEFORE CIT TO ENABLE HIM TO EXAMINE THE SAME AND THEN DECIDE THE ISSUE REGARDING GENUINENESS OF THE ACTIVITIES OF THE 3 ASSESSEE SOCIETY. THE C IT SHOULD DECIDE THE ISSUE AFRESH AS PER THE ABOVE DISCUSSION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 3 /05/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR