Patel Laljidas Laxmidas Sadavrut Sansthan , Patan V. CIT (Exemptions), Ahmedabad

ITA 2238/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5131 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 05-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice; Set aside
• Section: 12AA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ITA NO. 2238/AHD/2018 ( / ASSESSMENT YEAR : - ) PATEL LALJIDAS LAXMIDAS SADAVRUT SANSTHA AT CHANASMA TA CHANASMA, PATAN GUJARAT 384 220 / VS. THECIT (EXEMPTIONS) AHMEDABAD ./ ./ PAN/GIR NO. : AAATP 2560 J ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.N. DIVATIA, AR / RESPONDENT BY : SHRI VIDHYUT TRIVEDI, SR.DR / DATE OF HEARING 06/02/2020 !'# / DATE OF PRONOUNCEMENT 19/02/2020 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF THE LD.COMMISSIONER OF INCOME TAX (EXEMPTIONS)AHME DABAD [CIT(E) IN SHORT] VIDE APPEAL NO.CIT(E)-/AHD/12AA /173/2017-18/409 DATED 24/08/2018, WHEREIN ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE HON'BLE CIT(E) HAS GROSSLY ERRED IN REJECTI NG THE APPLICATION FOR REGISTRATION U/S. 12AA OF THE APPELLANT ON THE GROU ND OF GENUINENESS OF THE ACTIVITIES, WHICH IS WHOLLY ILLEGAL, UNLAWFUL AND A GAINST THE PRINCIPLES OF NATURAL JUSTICE. ITA NO.2238/AHD/2018 PATEL LALJIDAS LAXMIDAS SADAVRUT SANSTHA VS.CIT(E ) - 2 - 2. THE HON'BLE CIT(E) HAS GROSSLY ERRED IN REJECTIN G THE APPLICATION WITHOUT VERIFYING THE DETAILS SUBMITTED BY THE APPELLANT VI DE LETTER DATED 17.05.2018, WHICH INCLUDES CERTIFIED COPY OF TRUST DEED, REGIST RATION CERTIFICATE OF CHARITY COMMISSIONER, COPY OF AUDITED ANNUAL ACCOUNTS OF LA ST THREE YEARS ETC. HENCE, THE CONTENTION OF THE ID. CIT(E) VIDE STATED IN PAR A 5 OF THE ORDER FOR REJECTION OF THE APPLICATION IN RELATION TO NON-SUBMISSION OF REQUISITE DETAILS, IS TOTALLY INCORRECT AND BASELESS. 3. THE HON'BLE CIT(E), AHMEDABAD HAS GROSSLY ERRED IN LAW AND OR ON FACTS IN NOT CONSIDERING THE LETTER FILED BY THE APPELLANT W ITHDRAWING THE APPLICATION FOR REGISTRATION U/S. 12AA OF THE I. T. ACT DATED 07.08 .2018. 4. THE HON'BLE CIT(E), AHMEDABAD HAS GROSSLY ERRED IN PASSING ORDER U/S. 12AA OF THE I.T. ACT DATED 24/08/2018 WITHOUT PROVI DING SUFFICIENT OPPORTUNITIES OF BEING HEARD. IT IS, THEREFORE, PRAYED THAT THE REJECTION OF THE APPLICATION FOR REGISTRATION U/S. 12AA OF THE I.T. ACT BY THE HON'BLE CIT(E), AHMEDAB AD MAY KINDLY BE DELETED. 2. FACTS OF THE CASE ARE THAT ASSESSEE IS A TRUST R EGISTERED U/S.12AA OF THE INCOME TAX ACT, 1961 DATED 03/07/1975. AS PER LD.AR REGISTRATION DATED 03/07/1975 GOT MIXED UP WITH SOME OTHER PAPER S, THEN ASSESSEE THOUGHT IT PROPER TO APPLY A FRESH FOR REGISTRATION U/S.12AA OF THE ACT. FOR FRESH REGISTRATION, LD.CIT(E) ASKED FOR AROUND 33 DETAILS OUT OF WHICH SOME DETAILS WERE PROVIDED AND SOME DETAILS R EMAINED UNCOMPLIED WITH. HOWEVER, IN THE MEANWHILE ASSESSEE FOUND ITS OLD REGISTRATION DATED 03/07/1975 AND ON 07/08/2018 ASSESSEE MOVED A N APPLICATION FOR WITHDRAWAL OF NEW APPLICATION MADE FOR REGISTRATION . ITA NO.2238/AHD/2018 PATEL LALJIDAS LAXMIDAS SADAVRUT SANSTHA VS.CIT(E ) - 3 - 3. THE LD.CIT(E) DECLINED THE WITHDRAWAL APPLICATIO N AS WELL AS DISMISSED THE APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT ON 24/08/2018. 4. NOW THE ASSESSEE HAS COME UP BEFORE US AGAINST T HE ORDER OF THE CIT(E). 5. THE LD.DR RELIED ON THE IMPUGNED ORDER. 6. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER AND HEARD BOTH THE PARTIES. UNDOUBTEDLY, ASSESSEE WAS REGISTERED U/S.12AA ON 03/07/1975 AND COPY OF THE SAID REGISTRATION CER TIFICATE HAS BEEN PERUSED AND ASSESSEE ALSO PLACED ON RECORD APPLICAT ION FOR WITHDRAWAL OF APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT DA TED 07/08/2018. AFTER HEARING BOTH THE PARTIES, WE SET ASIDE THE ORDER O F THE CIT(E) AS THE SAME IS NON EST . IN OUR CONSIDERED OPINION, WITHDRAWAL APPLICATIO N FILED BY THE ASSESSEE OUGHT TO HAVE CONSIDERED BY THE DEPARTMENT WHILE NOT ALLOWING THE WITHDRAWAL APPLICATION. IN OUR OPINION, THE SA ME IS AMOUNT TO MISCARRIAGE OF JUSTICE. WE MAKE IT CLEAR THAT REGI STRATION ORDER DATED 03/07/1975 WILL REMAIN IN FORCE. ITA NO.2238/AHD/2018 PATEL LALJIDAS LAXMIDAS SADAVRUT SANSTHA VS.CIT(E ) - 4 - 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 19/02/2020 SD/- SD/- ( WASEEM AHMED ) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD; DATED 19/ 02 /2020 &.., .(.. / T.C. NAIR, SR. PS !'#' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(EXEMPTIONS)-AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION 6.2.20 ( DICTATION-PAD 5- PAGES ATTACHED AT THE END OF THI S FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 6.2.20/18.2.20 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.19.2.20 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.2.20 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER