Shani Shakti Pith Pitra Seva Ashram, Ujjain V. The Exemption, Bhopal

ITA 15/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8513 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 11-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V J BORICHA
• Keywords: Opportunity of being heard; Set aside
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.15/IND/2019 ASSESSMENT YEAR: APPELLANT BY SHRI PAVAN VED , ADV. REVENUE BY SHRI V .J . BORICHA SR. , DR DATE OF HEARING 14 .01.2020 DATE OF PRONOUNCEMENT 21 .01.2020 O R D E R PER MANISH BORAD, AM. THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE OF ASSESSEE IS DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION) (IN SHORT LD.CIT], BHOPAL, DATED 20.1 1.2018 WHICH IS ARISING OUT OF THE ORDER U/S 12AA OF THE INCOME TAX ACT 1961(IN SHORT THE ACT) DATED 30.05.2018. 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; SHANI SHAKTI PITH PITRA SEVA ASHRAM UJJAIN VS. CIT(EXEMPTION) BHOPAL (APPELLANT) (REVENUE ) PAN NO. AAMAS2242K ITANO.15/IND/2019 SHANI SHAKTI PITH PITRA SEVA 2 1. THE LD. CIT ERRED IN DENYING REGISTRATION TO THE ASSESSEE SOCIETY WITHOUT ASSIGNING CLEAR REASON. 2. THE APPELLANT RESERVES RIGHT TO ADD AMEND OR ALTER GROUNDS OF APPEAL. 3. BRIEF FACTS RELATING TO THIS ISSUE ARE THAT THE ASSESSEE IS AN ASSOCIATION OF PERSON. IT APPLIED FOR REGISTRATION U/S 12AA OF THE ACT ON FORM NO.10A ON 30.05.2018. DESPITE TWO OPPOR TUNITIES PROVIDED NO RESPONSE WAS RECEIVED FROM THE APPELLAN T ASSESSEE ABOUT THE DETAILS CALLED FOR BY LD. CIT(EXEMPTION). FURTHER, THE JCIT & AO VIDE REPORT DATED 22.10.2018 ALSO DID NOT RECOMMEND THE CASE FOR REGISTRATION U/S 12AA OF THE ACT DUE T O THE FOLLOWING TWO REASONS: I. SOCIETY IS MAINLY ENGAGED IN RELIGIOUS ACTIVITIES R ELATED TO SHANI TEMPLE AND NO OTHER CHARITABLE ACTIVITIES ARE BEING CONDUCTED BY THE SOCIETY. II. THE SOCIETY HAS MENTIONED OBJECTIVE OF RUNNING DHAR MSHALA ORPHANAGE, GAUSHALA, SCHOOL BUT NO SUCH ACTIVITIES ARE CONDUCTED BY THE SOCIETY. 4. SINCE THE APPELLANT SOCIETY FAILED TO COMPLIANCE TO THE NOTICES AND CONSIDERING THE NEGATIVE REPORT BY THE JCIT & L D. AO. LD. CIT(E) DECIDED THE APPLICATION EX-PARTE REJECTING THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. AGAINST THIS REJE CTION THE ASSESSEE ITANO.15/IND/2019 SHANI SHAKTI PITH PITRA SEVA 3 IS IN APPEAL BEFORE THE TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT RELI GIOUS TRUST ARE ELIGIBLE FOR REGISTRATION. NO CHARITABLE ACTIVITIES AND WORK WAS STARTED AS THERE WAS NO FUND. THESE ACTIVITIES ARE ELIGIBLE FOR REGISTRATION AND NOTHING HAS BEEN MENTIONED BY LD. CIT(E) IN HIS ORDER AS TO WHY REGISTRATION CANNOT BE GIVEN ON THE SE OBJECTIVES. FURTHER THE LD. COUNSEL ALSO CONTENDED THAT THE REQ UISITE DOCUMENTS AS SOUGHT THROUGH RTI APPLICATIONS HAVE N OT BEEN SUPPLIED TO THE ASSESSEE WHICH SHALL PROVE THAT THE ASSESSEE HAD GIVEN ALL INFORMATION WITH THE APPLICATION. 6. ON THE OTHER HAND LD. CIT-DR PLACED RELIANCE UPO N THE ORDER OF THE LD. CIT(E). 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. BEFORE US THE LD. COUNSEL FOR THE ASSESS EE HAS CONTENDED THAT NO CHARITABLE ACTIVITIES AND WORK WAS STARTED AS THERE WERE NO FUNDS HOWEVER ACTIVITIES MENTIONED IN TRUST DEED AR E OF CHARITABLE IN NATURE AND ARE ELIGIBLE FOR REGISTRATION U/S 12A A OF THE ACT. FURTHER, THE REQUISITE DOCUMENTS AS SOUGHT THROUGH RTI ITANO.15/IND/2019 SHANI SHAKTI PITH PITRA SEVA 4 APPLICATIONS HAVE NOT BEEN SUPPLIED TO THE ASSESSEE . THEREFORE, LOOKING TO TOTALITY OF FACTS AND CIRCUMSTANCES WHIC H INDICATE THAT PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE W AS NOT PROVIDED TO THE ASSESSEE. WE, THUS IN THE INTEREST OF JUSTIC E SET ASIDE THE ORDER OF LD. CIT(E) AND RESTORE THE GROUNDS RAISED BY THE ASSESSEE BEFORE US TO LD. CIT(E). NEEDLESS TO MENTION THAT P ROPER OPPORTUNITY OF BEING HEARD TO BE PROVIDED TO ASSESSEE. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.01. 2020. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 21 ST JANUARY, 2020 PATEL/PS COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE