M/s Shree Sanatan Dharam Mandir Welfare Society, Mohali V. CIT(E), Chandigarh

ITA 1613/CHANDI/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0445 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VEENA JOSHI
• Keywords: Principle of natural justice
• Section: 12A; 12AA

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. 1613/CHD/2017 ( UNDER SECTION 12AA ) M/S SHREE SANATAN DHARAM MANDIR WELFARE SOCIETY, # 1661,SECTOR 80, SAS NAGAR,MOHALI. VS THE CIT (EXEMPTIONS), CHANDIGARH. ./ PAN NO: AAABS7825H / APPELLANT / RESPONDENT / REVENUE BY : SHRI TEJ MOHAN SINGH ! / ASSESSEE BY : SMT. VEENA JOSHI, CIT-DR ' # !$/ DATE OF HEARING : 16.10.2018 %&'()* !$/ D ATE OF PRONOUNCEMENT : 28.11.2018 ')/ ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 27/09/2017 OF CIT (EXE MPTIONS) CHANDIGARH UNDER SECTION 12AA (1)(B)(II) OF THE INCOME TAX AC T ON THE FOLLOWING GROUNDS : 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N LAW AS WELL AS ON FACTS IN REJECTING REGISTRATION UNDER SECTION 12AA OF THE AC T WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE REGISTRATION HAS BEEN REFUSED ONLY ON THE BASIS OF SUSPICION, CONJECTURES AND SURMISES AS IS EVIDENT FROM THE VARIOUS UNFOUNDED F INDINGS AS ENUMERATED IN THE BODY OF THE ORDER WHICH IS NOT PERMITTED UNDER THE LAW A ND AS SUCH THE ORDER REFUSING REGISTRATION IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. A PERUSAL OF THE RECORD SHOWS THAT THE ASSESSEE H AD MOVED AN APPLICATION IN FORM NO. 10 A SEEKING REGISTRATION U/S 12A OF THE INCOME TAX ACT, 1961. THE APPLICATION REVEALS THAT THE SOCIETY IS AN ONGOING ENTITY THAT HAS BEEN IN OPERATION SINCE 12.11.2014. THE CIT (EXEMPTIONS) NOTED THAT THE STATED AIMS AND OBJECTS OF THE SOCIE TY ARE TO TAKE ALL NECESSARY AND SUITABLE STEPS FOR THE DEVELOPMENT AN D PROMOTION OF THE SOCIETY; TO BUILD/CONSTRUCT THE TEMPLE/MANDIR A ND OTHER RELIGIOUS, EDUCATIONAL INSTITUTIONS AND DHARAMSHALA AT SECTOR 8 0 & SURROUNDING AREA OF S.A.S. NAGAR, MOHALI; TO CELEBRATE RELIGIOUS UTSAVS & FESTIVALS; ITA 1613/CHD/2017 PAGE 2 OF 3 TO CO-OPERATE AND FORM ALLIANCE WITH OTHER RELIGIOUS, C HARITABLE AND WELFARE BODIES, HAVING SIMILAR OBJECTS; TO WORK FOR T HE POOR SECTIONS OF THE SOCIETY AND WORK FOR THEIR DEVELOPMENT I.E. PROVIDING TH EM THE BASIC NECESSITIES OF LIFE SUCH AS FOOD, CLOTHING, SHELTER, EDUCATION E TC.; TO WORK FOR WOMEN & CHILDREN WELFARE, TO GIVE FINANCIAL & OTHER ASSISTANCE TO WIDOWS & ORPHANS; TO PROMOTE EDUCATION AND CULTURE IN THE SOCIETY BY PROVIDING FREE EDUCATION TO NEEDY CHILDREN'S & OTHER PE OPLE AND PROVIDE THEM WITH FREE BOOKS, UNIFORMS, SHOES, BAGS ETC.; T O ELIMINATE SOCIAL MORAL EVILS AND TO TAKE UP AND PROMOTE ACTIVITIES T HAT PROMOTE GENERAL WELL-BEING AMONG (HE SOCIETY; TO WORK ON OTHER MATTER S OF SOCIAL WELFARE AS DECIDED BY SOCIETY FROM TIME TO TIME; TO COLLECT FUNDS/ ARTICLES/DONATIONS AND SUBSCRIPTIONS AS MAY BE DECI DED BY THE SOCIETY FROM TIME TO TIME AND TO ARRANGE & RECEIVE AIDS AND GRANTS FROM THE GOVT., MUNICIPAL COMMITTEE, FIRMS, COMPANIES & ALL O THER ORGANIZATIONS. CONSIDERING THE FACTS, THE CIT(E) REJECTED THE APPLICATION FOR THE REASONS SET OUT IN PARA 6 TO 9 OF THE ORDER TH E ORDER. THE CORRECTNESS OF THE SAID ORDER IS UNDER CHALLENGE IN THE P ROCEEDINGS. THE ASSESSEE HAS FILED A PAPER BOOK RUNNING INTO 153 PAGES. 3. THE LD. CITDR MS. VEENA JOSHI MADE AN ORAL REQUEST SEEKING TIME TO GO THROUGH THE PAPER BOOK FILED. 4. THE LD. AR ADDRESSING THE PAPER BOOK FILED SUBMITTED THAT THE RELEVANT FACTS AND EVIDENCES MADE AVAILABLE TO THE CIT (EX EMPTIONS) WHICH HAVE NOT BEEN TAKEN INTO CONSIDERATION BY THE SAID AUTHORITY WHILE PASSING THE ORDER HAVE BEEN FILED. REFERRING TO THE ORDER , IT WAS SUBMITTED, THAT THE CIT (E) HAS TAKEN NOTE OF THE FACT T HAT ON THE DATE OF HEARING THE ASSESSEE NEITHER APPEARED NOR SOUGHT ANY ADJOURNMENT AND ACCORDINGLY TIME WAS GRANTED AND ON THE NEXT DATE SOM E WRITTEN SUBMISSIONS, HE NOTED, WERE FILED ON BEHALF OF THE ASSESSEE B Y SH. KAMAL KAUSHIK SR. VICE PRESIDENT OF THE SOCIETY. THUS, THE ORDER PASSED WITHOUT REFERRING TO FACTS, IT WAS SUBMITTED, IS CHALLENGED. CONSIDE RING THE RECORD, THE CIT-DR STATED THAT THE MATTER MAY BE REM ANDED AS OTHERWISE, SHE HAS NOT BEEN ABLE TO GO THROUGH THE PAPER BOOK. 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE RECO RD. IT IS SEEN THAT THE CIT (E) REJECTED THE APPLICATION HOLDING AS UNDER : 6. NEITHER DID ANY ONE ATTEND ON THE DATE FIXED NO R WAS ANY REQUEST FOR ADJOURNMENT RECEIVED. IN ORDER TO FOLLOW THE PRINCI PLE OF NATURAL JUSTICE ANOTHER OPPORTUNITY WAS ACCORDED TO THE APPLICANT A ND MATTER WAS FIXED FOR 12.09.2017. ON THIS DATE SH. KAMAL KAUSHIK, S ENIOR VICE PRESIDENT OF THE SOCIETY ATTENDED AND FILED WRITTEN SUBMISSION I N RESPONSE TO ABOVE ITA 1613/CHD/2017 PAGE 3 OF 3 NOTED QUERIES. SUBSEQUENTLY BASED ON THE MATERIAL O N RECORD THE FOLLOWING ADDITIONAL QUERY WERE RAISED AND WAS RE QUESTED TO SUBMIT THE REPLY ON 22.09.2017 : (I) DETAILS OF PAYMENTS MADE FOR THE ALLOTTED PIECE OF LAND FROM GMADA. (II) COPY OF ALLOTMENT ORDER REVEALS THAT THE ALLOTTED L AND IS FOR MANDIR. EXPLANATION REGARDING THE SCOPE FOR PURSUANCE OF OT HER STATED OBJECTS LIKE BUILDING OF EDUCATIONAL INSTITUTIONS AND DHARA MSHALA ETC. WHICH IN THAT CASE REMAINS MERELY OSTENSIBLE OBJECTS THAT HAVE BEEN INCORPORATED IN THE 'AIMS & OBJECTS OF THE SOCIETY '. 7. IN THE CONTEXT OF THE ARGUMENTS OF THE PARTIES RAISE D AND ADDRESSING THE DEPARTMENTAL REQUEST WE NOTE THAT THE IMPUGNED ORDER HAS BEEN PASSED ON THE BASIS OF WRITTEN SUBMISSIONS AND DOCUMENTS FILED BEFORE THE SAID AUTHORITY AND THE ASSESSEE DID NOT P ARTICIPATE IN THE PROCEEDINGS BY WAY OF ANY PERSONAL APPEARANCE. ACCORDIN GLY, EVIDENCES AND FACTS RELEVANT FOR DETERMINING THE ISSUE, IT APPEARS, MAY NOT HAVE BEEN TAKEN COGNIZANCE OF. AT THIS STAGE WE DO NOT DEEM IT APPROPRIATE TO COMMENT UPON THE CORRECTNESS OF THE ORDER OR THE SUFFIC IENCY OF EVIDENCES FILED AS THE ISSUE IS BEING RESTORED BACK. IN VIEW THEREOF AFTER HEARING THE SUBMISSIONS OF THE PARTIES BEFORE THE BENCH IT IS DEEMED APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER BACK TO TH E FILE OF THE CIT (EXEMPTIONS) WITH THE DIRECTION TO PASS A SPEAKING ORDER I N ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNIT Y. WHILE SO DIRECTING, THE ASSESSEE IN ITS OWN INTEREST IS ADVISED TO E NSURE FULL AND PROPER PARTICIPATION BEFORE THE SAID AUTHORITY AND NOT TO ABUSE THE TRUST REPOSED. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT A T THE TIME OF HEARING ITSELF. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.11.2018. 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. ' 0!/ CIT 4. ' 0! ()/ THE CIT(A) 5. .34 !5, $ 5*, 7894:/ DR, ITAT, CHANDIGARH 6. 49 ;#/ GUARD FILE &, ' / BY ORDER, < / ASSISTANT REGISTRAR ITAT,CHANDIGARH.