Rajput Sewa Sangh, Gwalior V. C.I.T., Gwalior

ITA 19/AGR/2014

• Counselvise Citation: 1920314 RSA 2014
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-02-2014
• Assessment Year: 2014-2015
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH KUMAR
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NO.19/AGRA/2014 RAJPUT SEWA SANGH, VS. COMMISSIONER OF INCOME TA X-1, BH-125, DEEN DAYAL NAGAR, GWALIOR. GWALIOR (M.P.) (PAN AACTR 0837 L). (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI ANIRUDH KUMAR, CIT (D.R.) DATE OF HEARING : 26.02.2014 DATE OF PRONOUNCEMENT : 28.02.2014 ORDER PER PRAMOD KUMAR, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER DATED 29.11.2013 PASSED BY THE LD. CIT, GWALIOR DECLINING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 TO THE ASSESSEE AP PLICANT. 2. GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS :- 1. THAT COMMISSIONER OF INCOME TAX ERRED IN LAW AS WELL AS FACTS OF THE CASE. 2. THAT COMMISSIONER OF INCOME TAX FAILED TO EXAMIN E THE OBJECT OF THE SOCIETY WHICH IS AGAINST THE LAW AND CIRCUMS TANCES OF THE CASE. 3. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE, AO FAILED TO SUBMIT APPROPRIATE REPORT TO THE CIT WHICH IS AGAIN ST THE LAW. 4. ON FACTS AND CIRCUMSTANCES OF THE CASE, CIT FAIL ED TO CONSIDER THE BOOKS OF ACCOUNT SUBMITTED ALONG WITH VOUCHERS AND EVIDENCES ITA NO.19/AGRA/2014 2 REGARDING OBJECTS OF THE SOCIETY AND BELIEVED MEREL Y REPORT OF AO WHICH IS AGAINST THE LAW AND FACTS. 5. THAT OTHER GROUNDS OF APPEAL MAY BE ALLOWED AT T HE TIME OF HEARING. 3. BRIEFLY STATED, THE MATERIAL FACTS ARE LIKE THIS . THE ASSESSEE BEFORE US IS A SOCIETY REGISTERED UNDER M.P. SOCIETY REGISTRATION ACT, 1973 IS STATED TO BE ENGAGED IN CHARITABLE ACTIVITIES. THE ASSESSEE MOV ED AN APPLICATION DATED 31.05.2013 SEEKING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. IT APPEARS THAT THE LD. CIT CALLED FOR A.O.S REPOR T ABOUT ACTIVITIES OF THE APPLICANT AND THIS REPORT STATED THAT THE VOUCHERS MADE BY TH E ASSESSEE WERE SELF-MADE AND THUS EXPENSES CLAIMED TO HAVE BEEN INURED ON VARIOU S PROGRAMMES REMAINED UNVERIFIED. LD. CIT, THEREAFTER, SCHEDULED THE DAT E OF HEARING ON 28.11.2013 TO AFFORD OPPORTUNITY TO THE ASSESSEE TO BE HEARD IN S UPPORT OF THE REGISTRATION APPLICATION. HOWEVER, ONE SHRI V.S. SOLANKI SOUGHT ADJOURNMENT OF HEARING ON THAT DATE. LD. CIT DECLINED THIS ADJOURNMENT REQUE ST AND PROCEEDED TO DECIDE THE MATTER EX-PARTE ENTIRELY BASED ON A.O.S REPORT WIT H HER. SHE REJECTED THE REGISTRATION APPLICATION AND OBSERVED AS FOLLOWS: IN VIEW OF THE ABOVE MENTIONED FACTS IT IS INFERRE D THAT SOCIETY HAS NOT FURNISHED ANY DETAIL ABOUT CHARITABLE ACTIVITY, SOME VOUCHERS FOR F.Y. 2010-11 WERE PRODUCED WHICH ALL WERE FOUND TO BE SELF-MADE, THE EXPENSES CLAIMED TO HAVE BEEN INCURRED ON VARIOUS P ROGRAMMES REMAINED UNVERIFIED, GENUINENESS OF THE SOURCE OF T HE DONATIONS OF THE SOCIETY COULD NOT BE ESTABLISHED AND ALSO NOT FULFI LLED THE CONDITION LAID DOWN IN PROVISIONS OF SECTION 2(15) OF THE IT ACT. ITA NO.19/AGRA/2014 3 IN VIEW OF THE ABOVE MENTIONED FACTS OF THE CASE, T HE SOCIETY DOES NOT FULFILL THE CONDITIONS NECESSARY FOR GRANT OF REGISTRATION. SINCE THE GENUINENESS OF THE CHARITABLE ACTIVITIES OF THE SOCIETY HAS NOT BEEN ESTABLISHED, REGISTRATION U/S 12AA OF THE IT A CT IS ACCORDINGLY NOT GRANTED TO THE SOCIETY. 4. THE ASSESSEE IS NOT SATISFIED AND IS IN APPEAL B EFORE US. 5. HAVING HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND HAVING PERUSED THE MATERIAL ON RECORD, WE ARE OF THE CONSIDERED VIEW T HAT LD. CIT ACTED IN UNDUE HASTE IN DISPOSING OF THE REGISTRATION APPLICATION WITHOU T AFFORDING REASONABLE OPPORTUNITY TO THE ASSESSEE AND BY DECLINING THE RE QUEST FOR ADJOURNMENT MOVED ON ASSESSEES BEHALF. WE HAVE NOTED THAT THIS MATTER CAME UP FOR HEARING BEFORE THE LD. CIT ONLY ONCE AND NO SPECIFIC REASON HAVING BEE N GIVEN BY THE LD. CIT AS TO WAY THE ADJOURNMENT COULD NOT BE GRANTED ON THAT DA TE. WE HAVE ALSO NOTED THAT THERE IS NO DISCUSSION ABOUT THE OBJECT CLAUSE OF T HE SOCIETY. IN VIEW OF THESE DISCUSSIONS AND BEARING IN MIND THE ENTIRETY OF THE CASE, IN OUR CONSIDERED VIEW, THE APPROPRIATE COURSE OF ACTION WILL BE TO REMAND THE MATTER TO THE FILE OF LD. CIT FOR ADJUDICATION DE NOVO AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, IN ACCORDANCE WITH LAW AND BY WAY OF A SP EAKING ORDER. WE DIRECT SO. 6. WE ALSO DIRECT THE ASSESSEE TO FULLY CO-OPERATE IN EXPEDITIOUS DISPOSAL OF THE REGISTRATION APPLICATION AND NOT TO SEEK ADJOURNMEN T ON FRIVOLOUS GROUNDS. WITH ITA NO.19/AGRA/2014 4 THESE OBSERVATIONS, THE MATTER STANDS RESTORED TO T HE FILE OF LD. CIT FOR FRESH ADJUDICATION. 7. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2014) SD/- SD/- (BHAVNESH SAINI) (PRAMOD KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 28 TH FEBRUARY, 2014 PBN/* COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY