THE INDIAN EDUCATIONAL FOUNDATION, RANCHI V. CIT(EXEMPTION), PATNA

ITA 147/RAN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0244 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 05-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Cancellation of registration
• Section: 12AA; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 147 / RAN / 2017 THE INDIAN EDUCATIONAL FOUNDATION, NR.VIVEK MEMORIAL SCHOOL, NEW NAGAR, DIPATOLI, RANCHI- 834009 [ PAN NO.AAATT 8127 D ] V/S . COMMISSIONER OF INCOME TAX (EXEMPTION), CENTRAL REVENUE BUILDING, BEER CHAND PATEL MARG, PATNA-800 001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI M.K. CHUDHURY, ADVOCATE /BY RESPONDENT SRI INDERJEET SINGH, CIT-DR /DATE OF HEARING 04-03-2020 /DATE OF PRONOUNCEMENT 04-03-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSI ONER OF INCOME TAX (EXEMPTION)-PATNAS ORDER DATED 03.04.2017, DENYING REGISTRATION IN PROCEEDINGS U/S. 12AA OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . SHRI M.K. CHOWDHARY, ADVOCATE REPRESENTING ASSESS EE AND SHRI INDERJEET SINGH CIT-DR APPEARING AT THE REVENUES BEHEST. 2. CASE FILE INDICATES THAT THE CIT(EXEMPTION) HAS DECLINED ASSESSEES ON PLEA OF SEC. 12AA REGISTRATION VIDE FOLLOWING DETAI LED DISCUSSION:- ITA NO.147/RAN/2017 THE INDIAN EDUCATIONAL FOUNDATION VS. CIT( EX), PATNA PAGE 2 THE APPLICANT IS A TRUST. AN APPLICATION IN FORM NO .10A OF THE INCOME-TAX RULES, 1962 FOR GRANT OF APPROVAL U/S. 12AA OF THE ACT WAS FIELD ON 07.12.2016 IN THE OFFICE OF THE COMMISSIONER OF INCOME-TAX (EXEMPTI ONS), PATNA. 2. THE CASE WAS FIXED FOR HEARING ON 22.03.2017 IN THIS OFFICE TO PRODUCE CERTAIN DETAILS WHICH WAS COMMUNICATED TO THE APPLICANT VI DE THIS OFFICE LETTER F.NO. CIT/PAT/TECH/12AA/REGD./04(261)/206-117/6854,DATED 02.03.207 AND THE SECRETARY OF THE TRUST WAS REQUESTED TO APPEAR ON THE SAID D ATE & TIME EITHER IN PERSON OR THROUGH AN AUTHORIZED REPRESENTATIVE ALONGWITH THE DETAILS/PAPERS/DOCUMENTS ETC. SOUGHT FOR. IN RESPONSE TO THAT SRI M.K. CHOUDHARY , ADVOCATE & AUTHORIZED REPRESENTATIVE OF THE APPLICANT TRUST APPEARED ON 06.04.2017 AND LATER ON SHRI PRAMOD KUMAR, TRUSTEE OF THE APPLICANT TRUSTS, AND SHRI AVINASH KUMAR ANJAN, ADVOCATE & AUTHORIZED REPRESENTATIVE, ATTENDED ON 26.04.2017. WRITTEN SUBMISSIONS WERE ALSO FILED. CASE DISCUSSED WITH T HEM. 3. FROM THE DETAILS FILED IT EMANATES THAT THE REG ISTRATION GRANTED U/S.12A OF THE ACT WAS CANCELLED ON 17.01.2013 BY THE CIT, RANCHI, U/ S 12A(3) ON FINDING THAT THE CASH, BELONGING TO THE TRUST, WERE DEPOSITED IN THE UNDI SCLOSED BANK ACCOUNT OF THE TRUSTEE ON DIFFERENT DATES. THE HONBLE ITAT HAD CONFIRMED THE ORDER OF THE CIT, RANCHI AND THE APPLICANT HAS TAKEN THE ISSUE BEFORE THE HONB LE JHARKHAND HIGH COURT. SINCE, THE ISSUE IS SUB-JUDICED , FRESH APPLICATION OF THE APPLICANT CANNOT BE ADJUDICATED AS THE ISSUE INVOLVED FOR CANCELLATION OF REGISTRATION OF THE ACT STILL PERSISTS 4. IN VIEW OF THE ABOVE, THE APPLICATION FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT IS HEREBY REJECTED . 3. IT FURTHER EMERGES THAT THE CIT(EXEMPTION)S EAR LIER ORDER REJECTING THE ASSESSEES IDENTICAL REGISTRATION STANDS UPHELD UPT O THE TRIBUNAL AND ITS TAX APPEAL IS STATED ADMITTEDLY PENDING BEFORE THE HON BLE JURISDICTIONAL HIGH COURT. LEARNED COUNSELS ONLY CASE DURING THE COURSE OF HE ARING IS THAT THE IRREGULARITIES OF CASH DEPOSIT ETC. WHICH EXISTED I N EARLIER ROUND OF PROCEEDINGS ARE NO MORE INVOLVED IN THE INSTANT SECOND ROUND SI NCE THE ASSESSEES APPLICATION TO THIS EFFECT DULY CONFIRMS ALL PROCED URAL REQUIREMENTS. MR. SINGHS CASE ON THE OTHER HAND IS THAT WE OUGHT TO FOLLOW J UDICIAL CONSISTENCY SINCE THE ASSESSEE HAS FAILED ON IDENTICAL ISSUE IN THE EARLI ER ROUND. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO TH E FOREGOING RIVAL PLEADINGS. SUFFICE TO SAY, IT IS CLEAR ALTHOUGH THE ASSESSEE HAS LOST IN THE EARLIER ROUND OF REGISTRATION PROCEEDINGS, THE FACT ALSO REMAINS THAT THE FOREGOING DISTINCTION OF NO CASH DEPOSITS IN THE IN STANT SECOND ROUND IS STATED TO BE NO MORE INVOLVED SO AS TO VIOLATE THE REGISTR ATION NORMS. WE THEREFORE DEEM IT APPROPRIATE TO RESTORE THE INSTANT LIS BACK TO THE CIT (EXEMPTION) FOR ITA NO.147/RAN/2017 THE INDIAN EDUCATIONAL FOUNDATION VS. CIT( EX), PATNA PAGE 3 AFRESH ADJUDICATION AS PER LAW AFTER TAKING INTO CO NSIDERATION ALL THE RELEVANT FACTS AND CIRCUMSTANCES, HE MAY ALSO AWAIT HONBLE DECISION HIGH COURTS FINAL JUDGMENT AS PER LAW. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON WEDNESDAY, 4 TH MARCH 2020 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP $- 04 / 03 /20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-THE INDIAN EDUCATIONAL FOUNDATION, NR VI VEK MEMORIAL SCHOOL NEW NAGAR, DIPAA TOLI, RANCHI-834009 2. /RESPONDENT-CIT(EX) CENTRAL REVENUE BUILDING, BEER CHAND PATEL MARG, PATNA-800 001 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 5 ##/, /, / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , SR.PS, (ON TOUR), RANCHI