Late Ashok Chand Maloo Sikshan Sansthan, V. Commissioner Of Income Tax -I, Jabalpur

ITA 221/JAB/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5610 (ITAT-JABALPUR)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 12-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K UPADHYAY
• Assessee Lawyers: P C BARDIA
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.221/JAB/2013 LATE ASHOK CHAND MALOO SIKSHAN VS. COMMISSIONER OF INCOME TAX-I, SANSTHAN, JABALPUR. MAHAVIR WARD, SEONI (M.P.) (PAN AAAAI 3209 P) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.C. BARDIA, C.A. RESPONDENT BY : SHRI K.K. UPADHYAY, D.R. DATE OF HEARING : 26.03.2014 DATE OF PRONOUNCEMENT : 28.03.2014 ORDER PER T.S. KAPOOR, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT DATED 28.06.2013 REFUSING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. AT THE OUTSET, THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE LD. CIT DID NOT HEAR THE ASSESSEE PROPERLY AND WHEN THE ASS ESSEE VISITED ON 24.06.2013 THE 2 ITA NO.221/JAB/2013 LD. CIT TOLD THEM TO APPEAR ON 26.06.2013 AND KEPT ALL BOOKS OF ACCOUNT WITH HIM AND ON 26.06.2013 THE ASSESSEE AGAIN APPEARED ALONG WITH ALL VOUCHERS. HOWEVER, THE LD CIT WITHOUT CONSIDERING THE WRITTEN SUBMISSI ON FILED ON 26.06.2013 HAS REJECTED THE REGISTRATION HOLDING CERTAIN EXPENSES AS NON-VERIFIABLE. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT AT THE STA GE OF REGISTRATION THE LD. CIT HAS TO CONSIDER ONLY GENUINENESS OF THE OBJECT OF THE S OCIETY AND, THEREFORE, ACTION OF THE LD. CIT IS NOT JUSTIFIED. IN VIEW OF THE ABOVE , IT WAS PRAYED THAT THE CASE BE REMANDED BACK TO THE LD. CIT FOR CONSIDERATION OF W RITTEN SUBMISSION. 3. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER PASSED UNDER SECTION 12AA OF THE ACT. 4. WE HAVE HEARD THE RIVAL PARTIES AND GONE THROUGH THE MATERIAL PLACED ON RECORD. THE LD. CIT BASICALLY REJECTED THE REGISTR ATION UNDER SECTION 12A OF THE ACT HOLDING THE ASSESSEE TO HAVE INCURRED BOGUS EXPENDI TURE IN BUILDING ON THE BASIS OF A RECEIPT ISSUED BY MUNICIPAL CORPORATION DATED 20. 04.2010 AND, THEREFORE, HELD THAT ASSESSEE COULD NOT HAVE CONSTRUCTED THE BUILDI NG BEFORE 20.04.2010. THE LD. CIT FURTHER HELD THAT IN THE ABSENCE OF BILLS AND V OUCHERS, VERIFICATION OF EXPENDITURES COULD NOT BE DONE. WE FIND THAT THE A SSESSEE HAS BEEN DENIED IMPORTANT RIGHT OF HEARING WHICH IS AN IMPORTANT EL EMENT OF RULES OF NATURAL 3 ITA NO.221/JAB/2013 JUSTICE. THE LD. CIT SHOULD PASS THE ORDER AFTER C ONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND AFTER TAKING INTO ACCOUNT THE CBDT CIR CULAR NO.762 AND 779 AS MENTIONED BY THE ASSESSEE IN ITS GROUNDS OF APPEAL. IN VIEW OF THE ABOVE, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 28.03.2014) SD/- SD/- (BHAVNESH SAINI) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 28 TH MARCH, 2014 PBN/* COPY OF THE ORDER FORWARDED TO :- 1) APPELLANT 2) RESPONDENT 3) CIT (APPEALS) CONCERNED 4) CIT CONCERNED 5) D.R., ITAT, JABALPUR BENCH, JABALPUR 6) GUARD FILE. BY ORDER, SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, CAMP AT JABALPUR