Vikas Educational Trust , Khanna V. CIT(E), Chandigarh

ITA 1508/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4063 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 05-12-2018
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B CHANDIGARH , ! ' . . . . # , $% ! BEFORE: SMT. DIVA SINGH, JM & DR. B.R.R.KUMAR, AM ./ ITA NO. 1508/CHD/2018 / ASSESSMENT YEAR : 2018-19 VIKAS EDUCATIONAL TRUST, VILLAGE KALAL MAJRA, NEAR AS COLLEGE, SAMRALA ROAD, KHANNA (PUNJAB). VS THE CIT (EXEMPTION), CHANDIGARH. ./ PAN NO: AABTV1875F / APPELLANT / RESPONDENT / ASSESSEE BY : NONE / REVENUE BY : SHRI G.S. PHANI KISHORE, CIT-DR ! ' # / DATE OF HEARING : 01.05.2019 $%&' # / DATE OF PRONOUNCEMENT : 07.05.2019 $& / ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER OF THE CIT(EXEMPTION) CHANDIGAR H DATED 27.09.2018 PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT,196 1 ON THE FOLLOWING GROUNDS : 1. THAT THE LD. CIT IS NOT JUSTIFIED IN REJECTING THE REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX TO THE APPELLANT ACT ON THE GROUND THAT 90% OF OBJECTS ARE NOT RELATING TO EDUCATION AND THE ACTIV ITIES OF THE APPELLANT SOCIETY ARE NOT GENUINE WHEREAS AS PER THE APPELLANT, THE S OCIETY IS CARRYING ON ITS ACTIVITIES WHICH ARE IN COMMENSURATE WITH THE OBJEC TS OF THE SOCIETY. THE APPELLANT SOCIETY IS CARRYING ON EDUCATION ACTIVITY AS ITS MAIN ACTIVITY AND WHICH IS A CHARITABLE ACTIVITY UNDER SECTION 2(15) OF THE INCOME TAX ACT, 1961. 2. THAT THE LD. CIT IS NOT JUSTIFIED IN REJECTING THE REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 TO THE APP ELLANT SOCIETY ON THE GROUND THAT THE SOCIETY DOES NOT APPEAR TO BE GENUINE WHER EAS AS PER THE APPELLANT THE SOCIETY IS DULY REGISTERED UNDER THE SOCIETIES REGI STRATION ACT, 1860 AND CARRYING OUT ACTIVITIES IN ACCORDANCE WITH THE SAID ACT. 3. THAT THE LD. CIT IS NOT JUSTIFIED IN REJECTING THE REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX TO THE APPELLANT ACT ON THE GROUND THAT APPELLANT SOCIETY HAS FAILED TO SUBMIT THE QUERIES RAISED BY THE OFFICE OF COMMISSIONER OF INCOME TAX (EXEMPTIONS) BY E-MAIL D ATED 18.09.2018 WHEREAS AS PER APPELLANT THE E-MAIL WAS POSTED ON 1 8.09.2018 AND THE COMMISSIONER OF INCOME TAX SEEK INFORMATION BY 20.0 9.2018 I.E. WITHIN LESS THAN 2 DAYS, WHICH IS PRACTICALLY IMPOSSIBLE AS APP ELLANT INSTITUTION IS LOCATED ITA 1508/CHD/2018 A.Y. 2018-19 PAGE 2 OF 3 AT KHANNA, ABOUT 80 KM FROM CHANDIGARH TO COMPILE AND COLLECT SUCH INFORMATION, SO THE LD. CIT HAS FAILED TO OBSERVED THE NATURAL JUSTICE. 4. THAT THE ASSESSEE PRAYS FOR ANY CONSEQUENTIAL RELIE F AND/OR LEGAL CLAIM ARISING OUT OF THIS APPEAL THE DISPOSAL OF THE SAME . 5. THAT THE ASSESSEE PRAYS FOR ANY ADDITION, DELETION, AMENDMENT AND MODIFICATION IN THE GROUNDS OF APPEAL BEFORE THE DI SPOSAL OF THE SAME IN THE INTEREST OF SUBSTANTIAL JUSTICE TO THE ASSESSEE. (EMPHASIS SUPPLIED BY US ) 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BEHALF O F THE ASSESSEE, HOWEVER CONSIDERING THE MATERIAL AVAILABLE ON REC ORD AND THE SUBMISSIONS OF THE LD. CIT-DR MR. G.S.PHANI KISHORE ON BEHALF OF THE REVENUE, IT WAS DEEMED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL EX-PARTE QUA THE ASSESSEE APPELLANT ON MERITS. A PERUS AL OF THE RECORD SHOWS THAT THE ASSESSEE BY WAY OF AN APPLICATION U/S 1 0A DATED 05.03.2018 SOUGHT REGISTRATION U/S 12A OF THE ACT OF THE ASSESSEE TRUST CREATED ON 24.07.2009. THE STATED AIMS AND OBJECTS OF THE TRUST AS PER PARA 2 OF THE IMPUGNED ORDER WERE SET OUT AS UNDER : 2. THE STATED AIMS AND OBJECTS OF THE.TRUST DEED ARE TO PROVIDE EDUCATION AT ALL LEVELS ENCOURAGE TO AIL CLASSES OR PEOPLE AND LEVELS IRRESPECTIVE OF CASTE, CREED & RELIGION AND OTHER LIKE OBJECTS A T VARIOUS PLACES IN THE COUNTRY AND ABROAD, TO PROVIDE KNOWLEDGE ABOUT MODERN & ANC IENT EDUCATION SYSTEM TO THE PUBLIC WORKING IN ALL WALKS OF LIFE AND TO INCR EASE CO-OPERATION, WELFARE, TRUST, RELIGIOUS FEELING AMONG THE PEOPLE, TO PROVI DE AND SUPPORT TO IMPROVE ENVIRONMENT AND TO PRESERVE HISTORICAL MONUMENTS/ P LACES/ HISTORICAL ARTISTIC WORK/ART ETC DIRECTLY OR INDIRECTLY IRRESPECTIVE OF ANY RELIGIOUS BELIEF ASSOCIATED WITH IT/THESE IN ANY MANNER WHATSOEVER MAY BE. 3. THE CIT(EXEMPTION) IN ORDER TO DETERMINE THE ALLOWABILITY OF ASSESSEE'S CLAIM REQUIRED THE ASSESSEE TRUST TO PLACE C ERTAIN NECESSARY DETAILS AS SET OUT IN THE IMPUGNED ORDER. IN THE ABSENC E OF ANY REPLY, HE REJECTED THE APPLICATION. A PERUSAL OF THE GROUNDS RAISED BY THE A SSESSEE SPECIFICALLY GROUND NO. 3 SET OUT HEREIN ABOVE AND ON RE ADING OF THE IMPUGNED ORDER, IT WAS DISCERNABLE THAT APPARENTLY SUFFICIEN T OPPORTUNITY WAS NOT PROVIDED TO THE ASSESSEE. ACCORDIN GLY, IN TERMS OF THE PRAYER MADE VIDE THE SAID GROUND WHICH WE NOTICE WA S NOT OPPOSED BY THE LD. CIT-DR IN ALL FAIRNESS ALSO, IT WAS DEEMED APPROPR IATE TO SET ASIDE THE IMPUGNED ORDER BACK TO THE FILE OF THE CIT (EXE MPTION) WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WIT H LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEA RD. WHILE SO DIRECTING, IT IS HOPED THAT THE ASSESSEE UTILIZES THE OPPOR TUNITY SO PROVIDED IN GOOD FAITH BY PARTICIPATING IN THE PROCEEDINGS FULLY AND FAIRL Y AND DOES NOT ABUSE THE TRUST REPOSED AS IN THE EVENT UALITY OF ABUSE OF ITA 1508/CHD/2018 A.Y. 2018-19 PAGE 3 OF 3 THE SAME, LD. CIT (EXEMPTION) WOULD BE AT LIBERTY TO PASS AN ORDER ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD. SAID OR DER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH MAY, 2019. SD/- SD/- ( . . . . # ) ( ) (DR. B.R.R. KUMAR) (DIVA SINGH) $% ! / ACCOUNTANT MEMBER ! / JUDICIAL MEMBER ' ( %( )* +* / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ! , / CIT 4. ! , )/ THE CIT(A) 5. *-. / , # / , 012.3 / DR, ITAT, CHANDIGARH 6. .2 4' / GUARD FILE %( ! / BY ORDER, 5 / ASSISTANT REGISTRAR