UNISED, Kanpur V. Commissioner of Income Tax (Exemption), Lucknow

ITA 142/LKW/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0732 (ITAT-LUCKNOW)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-06-2015
• Assessment Year: misc
• Appeal Filed On: 11-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• 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. 142 /LKW/201 5 ASSESSMENT YEAR: NOT APPLICABLE UNISED , 1 1, 128 WORLD BANK COLONY , KANPUR 208 022 . PAN:A ACFU5571A VS. CIT (EXEMPTIONS) , LUCKNOW (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY SHRI VIVEK MISHRA , CIT DR DATE OF HEARING 26/06/2015 DATE OF PRONOUNCEMENT 2 4 /07/2015 O R D E R PER A. K. GARODIA, A.M. T HIS IS ASSESSEE S APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT ( EXEMPTIONS ) LUCKNOW DATED 23 .0 1 .201 5 U/S 12AA OF I T ACT . 2. THE ASSESSEE HAS RAISED AS MANY AS 4 GROUNDS BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS FOR REJECTING THE APPLICATION FOR REGISTRATION U/S 12AA OF I T ACT, 1961. 3 . LEARNED AR OF THE ASSESSEE SUBMITTED THAT ON PAGES 93 94 OF THE PAPER BOOK IS COPY OF ORDER SHEET ENTRIES AND FROM THE SAME, IT CAN BE SEEN THAT ON 22.01.2015, BOOKS OF ACCOUNTS WITH BILLS AND VOUCHERS WERE PRODUCED BEFORE CIT. HE ALSO SUBMITTED THAT THE DETAILS OF THE PROJECT AVANT UNDERTAKEN BY THE ASSESSEE ARE AVAILABLE ON PAGES 51 TO 55 OF THE PAPER BOOK. HE ALSO DRAWN OUR ATTENTION TO COPY OF LETTER ISSUED BY STATE SHICHHAK ANUSANDHAN PARISHAD, UP, LUCKNOW AVAILABLE ON PAGES 42 TO 49 OF THE PAPER BOOK. OUR ATTENTION WAS ALSO DRAWN TO COPY OF LETTER ISSUED BY KARYALAYA ZILA BASIC SHIKCHHA ADHIKARI, AURIYYA AVAILABLE ON PAGE 50 OF THE PAPER BOOK. HE ALSO SUBMITTED THAT P & L ACCOUNT AND BALANCE SHEET FOR THE YEAR ENDED ON 31.03.2013 IS AVAILABLE ON PAGES 31 TO 2 33 OF THE PAPER BOOK AND SAME FO R THE YEAR ENDED ON 31.03.2012 IS AVAILABLE ON PAGE 34 OF THE PAPER BOOK. HE PLACED RELIANCE ON THE FOLLOWING JUDICIAL PRONOUNCEMENTS: - 1 ) CIT VS. VARANASI WELFARE TRUST, ITA NO. 227 OF 2014 DATED 12.11.2014 (ALLAHABAD HIGH COURT) 2 ) HARDAYAL CHARITABLE & EDUCA TIONAL TRUST VS. CIT, ITA NO. 107 OF 2012 DATED 15.03.2013 (ALLAHABAD HIGH COURT) 3 ) DIRECTOR OF INCOME TAX (EXEMPTION) VS. PANNA LALBHAI FOUNDATION, ITA NO. 853 OF 2012 DATED 02.04.2013 (GUJARAT HIGH COURT) 4 ) DALIT MAHILA SAMITI VS. CIT, ITA NO. 877/LKW/2014 DATED 05.06.2015 (LUCKNOW ITAT) 5 ) SURAJBEN HARAKHCHAND MEHTA VS. CIT, ITA NO. 1333/RJT/2010 DATED 11.02.2011 (SMC, RAJKOT ITAT) 6 ) CIT VS. RED ROSE SCHOOL, 163 TAXMAN 19 (ALD) 7 ) BAIJNATH CHARITABLE & EDUCATIONAL TRUST VS. CIT, 125 TTJ 255 8 ) SRI KRISHNA EDUCATION & WELFARE TRUST, 27 SOT 331 9 ) AGGARWAL MITRA MANDAL TRUST VS. DIT (EXEMPTION), 109 TTJ 128 10 ) DIT VS. GARDEN CITY EDUCATIONAL TRUST, 191 TAXMAN 238 (KARNATAKA) 4. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF CIT . 5 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IT IS STATED BY LEARNED CIT IN HIS ORDER THAT ON 22.01.2015, SHRI AVINASH TRIPATHI, SECRETARY ATTENDED AND HAS NOT FILED THE REQUIRED DETAILS AND DID NOT PRODUCE BOOKS OF ACCOUNTS, BILLS / VOUCHERS. BU T AS PER ORDER SHEET ENTRY AVAILABLE ON PAGE 93 OF THE PAPER BOOK, SHRI AVINASH TRIPATHI, SECRETARY ATTENDED AND FILED SOME DOCUMENTS AND BOOKS OF ACCOUNTS, BILLS/ VOUCHERS WERE PRODUCED AND EXAMINED. IN THIS MANNER, THERE IS COMPLETE CONTRADICTION IN THE ORDER AND ORDER SHEET ENTRIES AND WE DO NOT KNOW, WHICH ONE IS CORRECT BUT THIS IS ADMITTED POSITION THAT THE ORDER IS WITHOUT ANY FINDING ABOUT THE BOOKS OF ACCOUNTS AND BILLS/ VOUCHERS AND OTHER DOCUMENTS IN SUPPORT OF THE ACTIVITIES OF THE ASSESSEE SOCI ETY. 6. IN THE CASE OF HARDAYAL CHARITABLE & EDUCATIONAL TRUST VS. CIT (SUPRA), IT WAS HELD BY HONBLE ALLAHABAD HIGH COURT THAT AT THE TIME OF REGISTRATION U/S 12AA, THE COMMISSIONER IS NOT REQUIRED TO LOOK INTO THE ACTIVITIES AND WHERE A TRUST IS SET UP TO ACHIEVE ITS OBJECTS OF ESTABLISHING EDUCATIONAL INSTITUTION AND IS IN THE PROCESS OF ESTABLISHING SUCH INSTITUTION AND R ECEIVES DONATION, THE REGISTRATION U/S 12AA CANNOT BE REFUSED. SIMILARLY IN ANOTHER CASE OF CIT VS. 3 VARANASI WELFARE TRUST (SUPRA) ALSO, LEARNED CIT REFUSED TO GRANT REGISTRATION U/S 12AA ON THIS BASIS THAT THE ASSESSEE HAD NOT FILED MATERIAL IN RELATION T O ACTIVITIES OF THE TRUST BUT THE TRIBUNAL REVERSED THIS ORDER OF CIT BY FOLLOWING THE JUDGMENT OF HONBLE ALLAHABAD HIGH COURT RENDER IN THE CASE OF HARDAYAL CHARITABLE & EDUCATIONAL TRUST VS. CIT (SUPRA) AND WHEN FURTHER APPEAL WAS FILED BY THE REVENUE I N HIGH COURT, IT WAS HELD BY HONBLE ALLAHABAD HIGH COURT THAT SINCE THE OBJECTS ARE CHARITABLE, THE TRIBUNAL IS NOT IN ERROR. HENCE THE RATIO DECIDENDI OF BOTH THESE JUDGMENTS OF HONBLE ALLAHABAD HIGH COURT IS THIS THAT AT THE TIME OF REGISTRATION U/S 1 2AA, THE COMMISSIONER IS NOT REQUIRED TO LOOK INTO THE ACTIVITIES AND IF THE OBJECTS ARE CHARITABLE, REGISTRATION SHOULD BE GRANTED. THIS IS NOT AN OBJECTION OF THE CIT THAT THE OBJECTS OF THE ASSESSEE ARE NOT CHARITABLE. HENCE, WE FEEL THAT AS PER THESE T WO JUDGMENTS OF HONBLE ALLAHABAD HIGH COURT, REGISTRATION U/S 12AA SHOULD BE GRANTED TO THE ASSESSEE. WE DIRECT THE CIT ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL K UMAR YADAV) ( A. K. GARODIA ) JUDI CIAL MEMBER ACCOUNTANT MEMBER DATED: 2 4 /0 7 /201 5 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