M/s C.R. Rural Education Society, Rewari V. CIT (E), Chandigarh

ITA 1630/DEL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4376 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 20-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Opportunity of being heard
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: B , NEW DELHI BEFORE SHRI N.K.BILLAIYA, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 1630 /DEL/201 7 AY: ............... C.R.RURAL EDUCATION SOCIETY VILL. TIHARA P.O. BAWAL REWARI PAN:AAAAC8029Q VS . CIT (E) CHANDIGARH (APPELLANT) (RESPONDENT) ASSESSEE BY : : SH. GAUTAM JAIN, ADV. DEPARTMENT BY : MS. NIDHI SRIVASTAVA, CIT , D.R. DATE OF HEARING : 07 /02/2019 DATE OF PRONOUNCEMENT : 12 /02/2019 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER P RESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 27/02/17 PASSED BY LD. CIT ( E XEMPTION) ON FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS GROSSLY ERRED BOTH IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE SOCIETY U/S 12AA OF THE ACT. 1.1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) HAS FAILED TO APPRECIATE THAT, WHILE EXAMINING THE APPLICATION UNDER SECTION 12AA OF THE ACT, THE SCOPE WAS TO MERELY EXAMINE THE ITA NO.1630/DEL/2017 C.R.RURAL EDUCATION SOCIETY 2 OBJECTS OF THE SOCIETY AND, WHETHER INCOME RECEIVED BY THE ASSESSEE SO CIETY IS LIABLE TO BE CONSIDERED UNDER SECTION 11 AND 12 OF THE ACT AND, NOT WHETHER THE INCOME IS ACTUALLY EXEMPT UNDER SECTION 1 1 AND 12 OF THE ACT AND THEREFORE REJECTION OF APPLICATION OF THE ASSESSEE SOCIETY IS WHOLLY MISCONCEIVED. 1.2. THAT THE LEA RNED COMMISSIONER OF INCOME TAX (EXEMPTION) HAS MADE A GROSS ERROR IN MAINLY RELYING UPON THE PREVIOUS ORDER DATED 25.06.2014 WITHOUT APPRECIATING THAT A FRESH APPLICATION U/S 12AA OF THE ACT WAS TO BE EXAMINED INDEPENDENTLY. 1.3. THAT VARIOUS ADVERSE FIN DINGS RECORDED IN THE IMPUGNED ORDER ARE FACTUALLY INCORRECT, LEGALLY MISCONCEIVED AND UNTENABLE. 1.4. THAT THE FINDING THAT APPLICANT HAS RESORTED TO THE SAME CONTENTION AS BEFORE AND THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES THAT COULD HAVE WAR RANTED FRESH EXAMINATION IS FACTUALLY INCORRECT AND IS NOT IN ACCORDANCE WITH LAW. 1.5. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) HAS FAILED TO APPRECIATE THAT ASSESSEE SOCIETY IS ENGAGED IN PROVIDING EDUCATION TO THE POOR AND ALSO VARIOUS AWARENESS PROGRAMMES AND THEREFORE, ASSESSEE SOCIETY COULD NOT BE HELD TO BE ENGAGED IN ADVANCEMENT OF ANY OTHER OBJECTS OF CHARITABLE GENERAL PUBLIC UTILITY AND AS SUCH, DENIAL OF REGISTRATION IS BASED ON MISCONCEPTION AND HENCE UNWARRANTED. 2. THAT EVEN OTHERWISE THE IMPUGNED ORDER HAS BEEN MADE IN AN ARBITRARY AND WHIMSICAL MANNER AND THAT TOO WITHOUT GIVING ANY OPPORTUNITY OF BEING HEARD MUCH LESS A FAIR OPPORTUNITY AND AS SUCH THE ORDER REJECTING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE SOCIET Y U/S 12AA OF THE ACT IS A NULLITY. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD.CIT BE QUASHED AND, HE BE FURTHER DIRECTED TO GRANT REGISTRATION TO THE APPELLANT SOCIETY U/S 12AA OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: A SSESSEE FILED AP PLICATION IN F ORM 10 A , ON 19.08.2016 SEEKING REGISTRATION UNDER SECTION 12 AA OF THE INCOME TAX ACT, 1961 (THE A CT ) . IT HAS BEEN SUBMITTED THAT ASSESSEE WAS CARRYING ON WITH ITA NO.1630/DEL/2017 C.R.RURAL EDUCATION SOCIETY 3 ITS ACTIVITIES SINCE 27/02/07. LD. CIT(E) CALLED FOR VARIOUS DETAILS IN ORDER TO EXAMINE BASIC CONDITIONS FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE A CT. IT IS OBSERVED FRO M PARA 8 OF ORDER PASSED BY LD. CIT(E) THAT SUBMISSIONS FILED BY ASSESSEE W ERE REJECTED AS IT CAME TO THE NO TICE OF LD. CIT(E) REGARDING REJECTION OF EARLIER APPLICATION V IDE ORDER DATED 25/06/ 14. IT HAS BEEN RECORDED BY LD. CIT (E) THAT REJECTION WAS ON GROUND THAT ASSESSEE THOUGH IMPARTING EDUCATION ARE CHARGING HIGHER RATES OF FEES AND SAME IS BEING DONE WIT H A VIEW TO EARN PROFITS AND NOT TO UNDERTAKE EDUCATION A S A CHARITY. 2.1. LD.CIT(E) REJECTED PRESENT APPLICATION FILED BY ASSESSEE DATED 19/08/16 BY SIMPLY RELYING UPON EARLIER ORDER OF REJECTION DA TED 25/06/14 WITHOUT ANALYSING CONDITIONS FOR GRAN T OF REGISTRATION UNDER SECTION 12 AA OF THE A CT AS ON DATE OF APPLICATION. 3 . AT THE OUTSET , THE B ENCH SUGGESTED BOTH SIDES FOR ISSUE TO BE SET - ASIDE TO LD. CIT(E) FOR CONSIDERING SUBSEQUENT APPLICATION FILED DATED 19/08/16 INDEPENDENTLY ON BASIS OF DE TAILS FURNISHED AS ON THAT DATE AND EXAMINING THEM ON TOUCHSTONE OF BASIC CONDITIONS REQUIRED FOR GRANTING REGISTRATION UNDER SECTION 12 AA OF THE A CT. 3.1 . BOTH PARTIES AGREED TO THE PROPOSAL . 3.2. WE ARE ACCORDINGLY SETTING ASIDE THIS ISSUE BACK TO L D.CIT (E) TO RECONSIDER APPLICATION DATED 19/08/16 AFRESH. ASSESSEE IS DIRECTED TO FILE ALL REQUISITE DETAILS IN ORDER TO ASSIST LD.CIT (E) TO VERIFY SAME. LD.CIT(E) SHALL, THEN UPON SATISFACTION , DECIDE ISSUE AS PER LAW. ITA NO.1630/DEL/2017 C.R.RURAL EDUCATION SOCIETY 4 3.3. ACCORDINGLY WE ALLOW GROUNDS RAISED BY ASSESSEE FOR STATISTICAL PURPOSES. 4. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H FEBRUARY, 2019. S D / - S D / - (N.K.BILLAIYA) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. 1 2 T H FEBRUARY, 2019 GMV COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES ITA NO.1630/DEL/2017 C.R.RURAL EDUCATION SOCIETY 5 DATE DRAFT DICTATED ON 08.02.19 DRAFT PLACED BEFORE AUTHOR 08.02.19 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON & ORDER UPLOADED ON : 1 2 . 0 2 . 1 9 FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.