Ajay Kumar Singh, Mathura V. C.I.T.-I, Agra

ITA 133/AGR/2014

• Counselvise Citation: 13320314 RSA 2014
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-06-2014
• Assessment Year: 2013-2014
• Appeal Filed On: 19-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJI T SINGH
• Assessee Lawyers: ROOP KISHORE AGARWAL
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NO.133/AGRA/ 2014 ASSESSMENT YEAR: 2013-14 MATHURA POSITIVE PEOPLES WELFARE VS. COMMISSIONER OF INCOME TAX-I, SOCIETY, AGRA. 1860H, SUBHASH NAGAR, MATHURA. (PAN AABAM 1691 D). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ROOP K ISHORE AGARWAL, ADVOCATE RESPONDENT BY : SHRI INDERJIT SI NGH, CIT (D.R.) DATE OF HEARING : 23.06.2014 DATE OF PRONOUNCEMENT : 27.06.2014 ORDER PER PRAMOD KUMAR, ACCOUNTANT MEMBER: BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF LEARNED COMMISSIONERS ORDER DATED 17 TH APRIL, 2014, REJECTING APPLICATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS :- 1. BECAUSE THE CIT ERRED IN HOLDING THAT NO CHARIT ABLE ACTIVITY HAS BEEN DONE BY TRUST. THE AUDITED DETAILS OF CHARITA BLE EXPENSES WRONGLY DISCARDED BY HIM FOR NO REASON. ITA NO.133/AGRA/2014 A.Y. 2013-14 2 2. BECAUSE THE CIT ERRED IN LAW AS WELL AS ON FACT TO OVERLOOK THE EXPLANATIONS AND EVIDENCE RELATING TO CHARITABLE OB JECTS AND CHARITABLE ACTIVITIES REGULARLY PERFORMED BY TRUST. 3. BECAUSE THE CIT HAS ERRED IN RELYING ON THE WRON G AND INCORRECT REPORTS OF ITI AND J.C.I.T., RANGE-3, MAT HURA & DID NOT PROVIDE COPY OF SUCH REPORTS TO APPELLANT FOR SUBMI SSION OF EXPLANATION/OBJECTION. THUS IMPUGNED ORDER IS ONE SIDED. 4. BECAUSE THE CIT ERRED IN LAW AS WELL AS ON FACTS BY PASSING ORDER WITHOUT DISCUSSION OF FACTS AND EVIDENCE ON R ECORD. THE ARGUMENTS MADE AT THE TIME OF HEARING AND EVIDENCE PRODUCED, HAVE ALSO NOT BEEN OVERLOOKED. 5. BECAUSE THE CIT HAS PASSED SUMMARY ORDER IN THRE E LINES AT PAGE 2 OF IMPUGNED ORDER RELYING ON THE DEPARTMENTA L REPORTS WHICH ARE WRONG AND AGAINST THE FACTS. 6. BECAUSE THE APPELLANTS TRUST HAS OBTAINED FINAN CIAL HELP FROM RELATED ORGANISATION WORKING FOR HIV PEOPLES. HOWE VER, CIT HAS PASSED ORDER BY OVERLOOKING THESE FACTS RELATED TO GENUINENESS OF TRUST & ITS ACTIVITIES. 7. BECAUSE THE TRUSTEES OF THE TRUST AND BOARD MEMB ERS OF TRUST ARE THEMSELVES HIV PEOPLE AND DOING CHARITABLE WORK FOR HIV SUFFERED PEOPLE. THIS ACTIVITY IS COVERED U/S 2(15 ) OF IT ACT MEDICAL RELIEF. 8. BECAUSE THE APPELLANT CRAVES LEAVE TO AMEND/ALTE R OR ADD ANY GROUND IN THIS APPEAL MEMO AT TIME OF HEARING OR BE FORE HEARING. 3. TO ADJUDICATE ON THIS APPEAL, ONLY A FEW MATERIA L FACTS NEED TO BE TAKEN NOTE OF. THE ASSESSEE APPELLANT MOVED AN APPLICATION, F OR REGISTRATION UNDER SECTION 12AA, ON 14.10.2013. THIS APPLICATION WAS REJECTED BY THE LEARNED COMMISSIONER, VIDE ORDER DATED 17.04.2014. WHILE SO REJECTING TH E ORDER, LEARNED COMMISSIONER OBSERVED AS FOLLOWS: ITA NO.133/AGRA/2014 A.Y. 2013-14 3 2. TO EXAMINE THE GENUINENESS OF THE SOCIETY, THE ASSESSEE WAS REQUIRED TO ATTEND AND PRODUCE EVIDENCE IN SUPPORT OF THEIR CLAIMS FOR GRANT OF REGISTRATION U/S. 12AA OF I.T. ACT, 1961. SHRI AJAY KUMAR SINGH, PRESIDENT OF THE SOCIETY, THE AR OF THE APPL ICANT ATTENDED. HE HAS SUBMITTED LETTER DATED 25.03.2014 ENCLOSING CER TAIN RELATED PAPERS AND A NOTE ON WHAT THE TRUST HAS BEEN DOING. HE HAS STATED THAT THE SOCIETY IS ELIGIBLE FOR REGISTRATION IN VI EW OF THE OBJECTS EXPLAINED AND GIVEN IN WRITING. 3. IN THIS CASE, A REPORT FROM THE ASSESSING OFFICE R AND ADDL. CIT, RANGE-3, MATHURA WAS ALSO CALLED FOR. THE ADDL. CI T, RANGE-3, MATHURA IN HIS REPORT DATED 19.03.2014 HAS STATED T HAT THE CHARITABLE WORK OF ASSESSEE TRUST IS NEITHER EDUCATIONAL NOR R ELIEF TO THE POOR AND NOR MEDICAL TO RELIEF. THE RECEIPT OF THE SOCIETY FOR GENERAL PUBLIC UTILITY IS UPTO 25 LAKHS, THEREFORE IT DOES NOT COM E UNDER THE AMENDED PROVISIONS OF SECTION 2(15) OF THE I.T. ACT. THERE FORE, THE CHARITABLE ACTIVITIES SHOWN ARE NOT MATCHING WITH OBJECTS ARE UNORGANIZED AND VAGUE AND, THEREFORE, IN VIEW OF THE ABOVE, THE ADD L. CIT HAS NOT RECOMMENDED FOR THE GRANT OF REGISTRATION U/S. 12AA OF I.T. ACT, 1961. 4. IN VIEW OF REPORTS OF THE ADDL. CIT, AND ON VERI FICATION OF THE OBJECTS OF THE TRUST/SOCIETY IT WAS FOUND THAT THE SOCIETY IS YET TO GENUINELY WORK ON AVOWED OBJECTS, THEREFORE, ITS AP PLICATION DATED 11.10.2013 IN FORM NO.10A FOR GRANT OF REGISTRATION U/S 12AA OF I.T. ACT, 1961 IS HEREBY REJECTED. 4. THE ASSESSEE IS AGGRIEVED AND IS IN APPEAL BEFOR E US 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTUAL MATRIX IN THE LIGHT OF APPLICABL E LEGAL POSITION. 6. A PLAIN READING OF THE IMPUGNED ORDER CLEARLY SH OWS THAT THE SOLE BASIS OF REJECTING THE REGISTRATION APPLICATION HAS BEEN REP ORTED DATED 19.03.2014 SUBMITTED ITA NO.133/AGRA/2014 A.Y. 2013-14 4 BY THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE -3, MATHURA. HOWEVER, THERE IS NOTHING ON THE RECORD TO EVIDENCE THAT THE ASSESSEE WAS CONFRONTED WITH THE CONTENTS OF THIS REPORT. LEARNED COUNSEL FOR THE A SSESSEE HAS CATEGORICALLY STATED THAT THIS REPORT WAS NEVER SHARED WITH THE ASSESSEE AND THAT THE ASSESSEE HAD NO OCCASION TO REBUT THE ADVERSE FINDINGS THEREIN. HE , HOWEVER, FAIRLY ADDS THAT HE HAS NO OBJECTION TO THE MATTER BEING RESTORED TO THE FI LE OF THE LEARNED COMMISSIONER FOR FRESH ADJUDICATION, AFTER GIVING A SSESSEE AN OPPORTUNITY OF BEING HEARD ON THE MATERIAL BEING PUT AGAINST THE ASSESSE E, AS LONG AS LEARNED COMMISSIONER IS DIRECTED TO COMPLETE THIS EXERCISE IN REASONABLE TIME FRAME. LEARNED DEPARTMENTAL REPRESENTATIVE DOES NOT OPPOSE THIS PRAYER. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE ARE OF THE CONSIDERED VIEW THAT ENDS OF JUSTICE REQUIRE THAT THE MATTER IS REMITTED TO THE FILE OF THE LEARNED COMMISSIONER FOR FRESH ADJUDICATION AFTER HEARING THE ASSESSEE O N ANY FINDING, ADVERSE TO THE ASSESSEE, IN THE SAID REPORT FILED BY THE ADDITIONA L COMMISSIONER. LEANED COMMISSIONER WILL PROVIDE THE ASSESSEE WITH A COPY OF THIS REPORT, AND ANY OTHER MATERIAL THAT HE INTENDS TO USE AGAINST THE ASSESSE E, AND GIVE THE ASSESSEE A FAIR AND REASONABLE OPPORTUNITY OF BEING HEARD IN RESPECT OF THE SAME. WHILE SO DECIDING THE MATTER AFRESH, LD. COMMISSIONER WILL DECIDE THE MATTER BY WAY OF A SPEAKING ORDER, IN ACCORDANCE WITH THE LAW AND WITHIN THREE MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. WE DIRECT SO. IN VIEW OF THESE DIR ECTIONS, THERE IS NO NEED TO DECIDE ITA NO.133/AGRA/2014 A.Y. 2013-14 5 THE ISSUE ON MERITS. ALL THESE GRIEVANCES REMAIN O PEN, AS THESE ARE RENDERED INFRUCTUOUS AT THIS STAGE. 8. IN THE RESULT, APPEAL IS ALLOWED IN THE TERMS IN DICATED ABOVE. (ORDER PRONOUNCED IN THE OPEN COURT ON 27.06.2014 ) SD/- SD/- (BHAVNESH SAINI) (PRAMOD KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATE: 27 TH JUNE, 2014 PBN/* 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