Gurunanak Charitable Educational Trust, Bijnor V. CIT(Exemption), Lucknow

ITA 2440/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3376 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 03-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER AND SH. L. P. SAHU, ACCOUNTANT MEMBER ITA NO. 2440/DEL/2016 U/S 12AA OF IT ACT. ASSESSEE BY : NONE. DEPARTMENT BY : SMT. RACHNA SINGH, CIT DR DATE OF HEARING : 16.11.2017 DATE OF PRONOUNCEMENT : 20.11.2017 O R D E R PER BHAVNESH SAINI, J.M: 1. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(EXEMPTIONS), LUCKNOW, DATED 24.02.2016 R EJECTING THE APPLICATION U/S 12AA OF THE IT ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY FILED APPLICATION FOR REGISTRATION U/S 12AA OF THE IT ACT . LD. CIT(EXEMPTION) ISSUED NOTICE FOR DISPOSAL OF THE AP PLICATION FOR REGISTRATION. IT WAS ADJOURNED ON THE REQUEST OF TH E ASSESSEES COUNSEL. ON 24.02.2016 SOME DOCUMENTS WERE FILED BY THE REPRESENTATIVE OF THE ASSESSEE HAVING NO POWER OF A TTORNEY. LD. CIT(EXEMPTIONS) IN THE ABSENCE OF REPRESENTATION F ROM THE SIDE OF THE ASSESSEE DISCUSSED THE ISSUE ON MERIT AND FOUND THAT THE GURUNANAK CHARITABLE EDUCATION TRUST C/O GURDEEP SINGH, MOHALLAH CHANCHAL PURVYAN, KASBA & PARGANA SEOHARA BIJNOR VS D CIT (TDS) ROOM NO. 503, AYAKAR BHAWAN A-2D, SECTOR-24 NOIDA GIR/PAN: AA C TG1323L / (APPELLANT) /(RESPONDENT) 2 ITA NO. 2440/DEL/2016 BOOKS OF ACCOUNT AND OTHER DETAILS HAVE NOT BEEN FI LED FOR HIS CONSIDERATION. THEREFORE, GENUINENESS OF THE ACTIVI TIES OF THE ASSESSEE SOCIETY COULD NOT BE VERIFIED. THE APPLICA TION WAS ACCORDINGLY REJECTED. 3. AFTER CONSIDERING THE SUBMISSION OF LD. DR, WE ARE OF THE VIEW THE MATTER REQUIRES RE-CONSIDERATION AT THE LE VEL OF THE LD. CIT(EXEMPTIONS). LD. CIT (EXEMPTIONS) NOTED THAT ON THE LAST DATE OF HEARING ON 24.02.2016 SOME DOCUMENTS HAVE BEEN F ILED BY REPRESENTATIVE OF THE ASSESSEE HAVING NO POWER OF A TTORNEY. SINCE, THE BOOKS ACCOUNT AND OTHER DOCUMENTS WERE NOT FILE D, THEREFORE, LD. CIT(E) WAS OF THE VIEW THAT GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED. IF REPRESENTATIVE OF THE ASSESSEE WAS HAVING NO AUTHORITY TO APPEAR BEFORE LD. CIT(E), THE INTEREST OF JUSTICE REQUIRES THAT NOTICE BE GIVEN TO THE ASSESSEE TO AP PEAR BEFORE HIMSELF AND TO PRODUCE THE BOOKS OF ACCOUNT AND OTH ER RECORDS IN ORDER TO SATISFY THE REQUIREMENT OF LAW. MERELY BEC AUSE THE REPRESENTATIVE OF THE ASSESSEE WAS HOLDING NO POWER OF ATTORNEY MAY NOT BE REASON TO REJECT APPLICATION FOR REGISTR ATION. LD. CIT(E) ALSO NOTED THAT ASSESSEE SOCIETY IS NOT CARRYING OU T CHARITABLE ACTIVITY. IN THAT EVENT ONLY THE OBJECTS HAVE TO BE EXAMINED AND CONSIDERED IF IT IS AT THE STAGE OF ESTABLISHMENT A ND FORMATION. 4. LD. DR STATED THAT MATTER COULD BE REMANDED TO THE LD. CIT (EXEMPTION) FOR RECONSIDERATION. 5. IN VIEW OF THE ABOVE, DISCUSSION, WE SET ASIDE THE IMPUGNED ORDER AND RESTORED THE APPEAL OF ASSESSEE TO THE FI LE OF LD. CIT(EXEMPTION)- LUCKNOW, WITH DIRECTION TO RE-DECID E THE REGISTRATION APPLICATION IN ACCORDANCE WITH LAW BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS DIRECTED TO COOPERATE WITH LD. CIT(EXEM PTION) AND 3 ITA NO. 2440/DEL/2016 PRODUCE ENTIRE EVIDENCE FOR HIS SATISFACTION FOR DI SPOSAL OF THE MATTER. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20.11.2017. SD/- SD/- (L. P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 20.11.2017