Manav Sewa Kunj, Lucknow V. Commissioner of Income Tax (Exemption), Lucknow

ITA 197/LKW/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1074 (ITAT-LUCKNOW)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-03-2018
• Assessment Year: misc
• Appeal Filed On: 23-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

I.T.A. NO.197/LKW/2017 ASSESSMENT YEAR:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO.197/LKW/2017 ASSESSMENT YEAR:N.A. MANAV SEWA KUNJ, FLAT NO. 408-B, PASHUPATI APARTMENT 1, RAJA RAM MOHAN RAI MARG, LUCKNOW. PAN:AAETM 3599 A VS. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT (EXEMPTIONS) DATED 20/01/2017 REFUSING THE REGISTRA TION U/S 12AA OF THE ACT. 2. THE BRIEF FACTS, AS NOTED IN THE ORDER PASSED BY LEARNED CIT (EXEMPTIONS), ARE THAT THE ASSESSEE FILED APPLICATI ON FOR REGISTRATION U/S 12A OF THE ACT ON 04/08/2016. THE ASSESSEE SOCIETY WAS AFFORDED AN OPPORTUNITY OF BEING HEARD VIDE CIT (EXEMPTIONS) LE TTER DATED 28/12/2016 AND AGAINST THE QUERIES RAISED BY LEARNED CIT (EXEM PTIONS), THE ASSESSEE FILED LETTER DATED 20/01/2017. LEARNED A. R. AT TH E OUTSET, SUBMITTED THAT THE ASSESSEE SOCIETY WAS FORMED FOR THE PURPOSE OF PROVIDING MEDICAL RELIEF APPELLANT BY SHRI YOGESH AGRAWAL, ADVOCATE RESPONDENT BY DR. A. K. SINGH, D.R. DATE OF HEARING 20/03/2018 DATE OF PRONOUNCEMENT 21 / 03 /201 8 I.T.A. NO.197/LKW/2017 ASSESSMENT YEAR:N.A. 2 AND SPREADING OF MEDICAL AND HEALTH SCIENCES AND HE LPING PROMOTION OF EDUCATION AND IN THIS REGARD OUR ATTENTION WAS INVI TED TO TRUST DEED AVAILABLE AT PAGES 7 TO 31 OF THE PAPER BOOK. IT WAS SUBMITT ED THAT THE TRUST WAS FORMED ON 01/01/2016 AND APPLICATION FOR REGISTRATI ON U/S 12A WAS FILED ON 04/08/2016 AND THEREFORE, BETWEEN THE DATE OF SETTI NG UP OF TRUST AND FILING OF APPLICATION, NO SIGNIFICANT ACTIVITIES HAPPENED AS THE ASSESSEE WAS IN THE PROCESS OF CARRYING OUT ITS CHARITABLE ACTIVITIES. LEARNED A. R. SUBMITTED THAT THE REPLY TO QUERY RAISED BY LEARNED CIT (EXEMPTION S) WAS DULY FILED AND IN THIS REGARD OUR ATTENTION WAS INVITED TO PAGES 2 TO 5 OF THE PAPER BOOK WHERE COPY OF THE LETTER REPLYING TO THE QUERIES RA ISED BY LEARNED CIT (EXEMPTIONS) WERE PLACED. LEARNED A. R. SUBMITTED THAT ON THE SAME DATE OF FILING THE REPLY OF THE ASSESSEE ON 20/01/2017, LEARNED CIT (EXEMPTIONS) PASSED THE ORDER U/S 12A AND REJECTED THE APPLICATI ON OF THE ASSESSEE HOLDING THAT NO ACTIVITY HAS TAKEN PLACE SO FAR AND NO BOOKS OF ACCOUNT OR VOUCHERS CAN BE PROVIDED BY THE APPELLANT. LEARNED A. R. IN THIS RESPECT SUBMITTED THAT THE ASSESSEE WAS A NEW TRUST AND THE REFORE, IT WAS IN THE PROCESS OF CARRYING OUT THE OBJECTS OF THE SOCIETY AND AT THE TIME OF GRANTING REGISTRATION LEARNED CIT (EXEMPTIONS) IS REQUIRED T O EXAMINE THE OBJECTS OF THE ASSESSEE AND ALSO THE GENUINENESS OF THE ACTIVI TIES OF THE TRUST. RELIANCE IN THIS RESPECT WAS PLACED ON A NUMBER OF CASE LAWS, COPIES OF WHICH ARE AVAILABLE AT PAGES 61 TO 84 OF THE PAPER BOOK. 3. LEARNED D. R., ON THE OTHER HAND, SUPPORTED THE ORDER PASSED BY LEARNED CIT (EXEMPTIONS). 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE T HROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSEE FILED ITS APPLICATION FOR REGISTRATION ON 04/08/2016 AND VIDE LETTER DATED 28 /12/2016 LEARNED CIT (EXEMPTIONS) RAISED CERTAIN QUERIES AND IN RESPONSE TO THAT LETTER THE I.T.A. NO.197/LKW/2017 ASSESSMENT YEAR:N.A. 3 ASSESSEE FILED REPLY DATED 20/01/2017. LEARNED CIT (EXEMPTIONS), WITHOUT CONFRONTING THE ASSESSEE WITH THE REPLIES FILED BY IT, PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE. THE REJE CTION OF APPLICATION FOR GRANT OF REGISTRATION U/S 12A WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSEE IS AGAINST THE RULES OF NATURAL JUSTICE. THE ASSESSEE VIDE GROUND NO. 1 HAS SPECIFICALLY TAKEN A GROUND THAT NO DUE A ND PROPER OPPORTUNITY OF HEARING WAS AFFORDED BEFORE PASSING OF THE IMPUGNED ORDER. THE ASSESSEE HAS RELIED ON A NUMBER OF JUDGMENTS PASSED BY LUCKN OW BENCH OF THE TRIBUNAL WHEREIN HON'BLE TRIBUNAL HAS DIRECTED THE CIT (EXEMPTIONS) TO GRANT REGISTRATION AS AT THE TIME OF GRANTING REGIS TRATION THE CIT (EXEMPTIONS) IS REQUIRED TO EXAMINE ONLY THE OBJECT S AND GENUINENESS OF ITS ACTIVITIES. LEARNED CIT (EXEMPTIONS) HAS NOT RAISE D ANY OBJECTION WITH RESPECT TO THE OBJECTS OF THE ASSESSEE AND HAS DISM ISSED THE APPLICATION OF THE ASSESSEE BY HOLDING THAT NO ACTIVITIES WERE CAR RIED OUT. IN THIS RESPECT WE FIND THAT THE ASSESSEE IS A NEW TRUST WHICH WAS FORMED ON 01/01/2016 AND ON 04/08/2016 IT FILED THE APPLICATION FOR REGI STRATION AND THEREFORE, BETWEEN THIS PERIOD, THE ASSESSEE MAY NOT HAVE CARR IED OUT ANY SIGNIFICANT ACTIVITY BUT LEARNED CIT (EXEMPTIONS) AT THE TIME O F GRANTING REGISTRATION IS ONLY REQUIRED TO EXAMINE THE OBJECTS OF THE ASSESSE E. THE LEARNED CIT (EXEMPTIONS) HAS ALSO HELD THAT NO BOOKS OF ACCOUNT WERE PRODUCED. IN THIS RESPECT WE FIND THAT VIDE QUERY NO. XII, THE LEARNE D CIT (EXEMPTIONS) DIRECTED ASSESSEE TO PRODUCE BOOKS OF ACCOUNT AND I N REPLY THE ASSESSEE MENTIONED N.A. WE DO NOT UNDERSTAND AS TO WHY ASSE SSEE MENTIONED N.A. EXCEPT THE FACT THAT THERE MAY BE FEW ENTRIES. WHA TEVER BOOKS OF ACCOUNT OR VOUCHERS THE ASSESSEE WAS HAVING IN HIS POSSESSI ON, SHOULD HAVE BEEN PRODUCED BEFORE HIM FOR HIS VERIFICATION. THEREFOR E, WE DEEM IT APPROPRIATE TO REMIT THE ISSUE BACK TO CIT (EXEMPTIONS) WHO SHO ULD PASS A SPEAKING ORDER AFTER TAKING INTO ACCOUNT THE REPLY FILED BY THE ASSESSEE AND CIT (EXEMPTIONS) SHOULD DECIDE THE ISSUE KEEPING IN VIE W THE DECISIONS RELIED ON I.T.A. NO.197/LKW/2017 ASSESSMENT YEAR:N.A. 4 BY THE ASSESSEE. HE IS FURTHER DIRECTED TO PASS TH E ORDER WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF PASSING OF THIS ORDER . THE ASSESSEE IS ALSO DIRECTED TO CO-OPERATE WITH THE PROCEEDINGS AND SHO ULD PRODUCE BOOKS OF ACCOUNT, VOUCHERS ETC. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 21/03/2018) SD/. SD/. (PARTHA SARATHI CHAUDHURY) ( T. S. KAPOOR ) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED:21/03/2018 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR