M/s Tajinder Singh Memorial & Escorts, Faridabad V. CIT(Exem), Chandigarh

ITA 2494/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3619 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 04-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R M MEHTA
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SMT BEENA A. PILLAI, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMB ER ITA NO. 2494//DEL/2016 ASSESSMENT YEAR: NO TAJINDER SINGH MEMORIAL & ESCORTS MEDICARE FOUNDATION, C/O ESCORTS LTD., 15/5, MATHURA ROAD, FARIDABAD PAN: AACTT5374Q VS CIT(E), CHANDIGARH (APPELLANT) (RESPONDENT) APPELLANT BY SHRI R.M.MEHTA, ADVOCATE RESPONDENT BY SMT. SIMRAN BHULLAR, CIT DR DATE OF HEARING: 29/0 1/2018 DATE OF PRONOUNCEMENT: 31/01/2018 ORDER PER, DR. MITHA LAL MEENA, AM: PRESENT APPEAL FILED BY THE ASSESSEE AGAINST THE OR DER OF THE CIT (EXEMPTION), CHANDIGARH, [(THE CIT(E) IN SHORT)] REJECTING THE APPLICATION FILED UNDER U/S 80G(5)(VI) OF THE I. T. ACT, 1961, [HEREINAFTER REFERRED TO AS THE ACT] CONSEQUENT TO HIS DECLINI NG TO GRANT REGISTRATION U/S 12AA OF THE INCOME-TAX ACT TO THE APPELLANT TRU ST. ITA NO.2494/DEL/2016 2 2. THE ASSESSEE HAS SUBMITTED THAT LEARNED 'CIT(E) IS NOT JUSTIFIED IN REJECTING THE APPLICATION FILED BEFORE HIM FOR GRAN T OF APPROVAL UNDER SECTION 80G(5)(VI) OF THE 'ACT'. THE IMPUGNED ORDER IS MISDIRECTED IN AS MUCH AS THE FINDING ARE NOT RECORDED ON MERITS BY L EARNED 'CIT'. IT WAS APART FROM BEING WRONG ON FACTS AND HAS NOT ADDRESS ED THE ISSUE OF DECLINING REGISTRATION TO THE 'ASSESSEE TRUST' UNDE R SECTION 12AA OF THE 'ACT'. THE COUNSEL FOR THE ASSESSEE CONTENDED THAT THE CIT IS NOT JUSTIFIED IN REJECTING THE APPLICATION U/S 80G MERE LY IN CONSEQUENCE TO REJECTION OF APPLICATION FOR REGISTRATION U/S 12A. THE LD COUNSEL FOR THE ASSESSEE REQUESTED THAT THE MATTER MAY BE RESTORED BACK TO THE LD. CIT(E) TO BE TAKEN UP ALONG WITH APPLICATION FOR RE GISTRATION U/S 12AA, FOR DECIDING ON MERITS. 3. LD. DR ON THE OTHER HAND, PLACED STRONG RELIANCE ON THE IMPUGNED ORDER. 4. IT IS NOT DISPUTED THAT THE ASSESSEE SOCIETY HAS SIMULTANEOUSLY FILED AN APPLICATION FOR REGISTRATION U/S 12AA AND 80G(5)(VI). THE 12AA REGISTRATION HAS BEEN DECLINED TO THE ASSESSEE BY R EJECTING ITS APPLICATION FILED U/S 12A. IT IS NOTED THAT CIT(E) HAS REJECTED THE APPLICATION OF THE ASSESSEE TRUST FILED U/S 80G(5)( VI) OF THE INCOME TAX ITA NO.2494/DEL/2016 3 ACT, 1961, IN CONSEQUENT. TO HIS DECLINING TO GRANT REGISTRATION U/S 12AA OF THE INCOME TAX ACT TO THE ASSESSEE. 6. THE CIT(E) HAS MENTIONED THE FACTUM OF DATE OF F IXATION OF HEARING BUT HE DID NOT MENTION THE FACTUM OF THE DA TE OF ISSUE AND SERVICE OF NOTICE ON THE ASSESSEE TRUST, SO AS TO A SCERTAIN THE EFFECTIVE SERVICE OF NOTICE AND COMPLIANCE THEREOF. 7. IT IS SEEN THAT THE LD.CIT(E) HAS REJECTED THE A SSESSEES APPLICATION U/S 80G(5)(VI) WITHOUT CONSIDERING THE FACTS AND GOING IN TO THE MERITS OF THE CASE AND THEREFORE MERELY REJECTI NG THE APPLICATION ON THE GROUND OF DECLINING REGISTRATION U/S 12AA BASED ON REJECTION OF 12A APPLICATION WITHOUT DECIDING THE ISSUE ON MERITS CA N NOT BE JUSTIFIED. AT THE SAME TIME, THE REQUEST OF THE LD. COUNSEL TO RE STORE THE MATTER TO THE CIT(E) TO BE DECIDED ON MERITS ALONG WITH DECIDING THE APPLICATION FOR REGISTRATION U/S 12AA IS FOUND JUSTIFIED WHICH IS N OT OPPOSED BY THE LD. DR. 8. WE FIND MERIT AND SUBSTANCE, IN THE CONTENTION O F THE LD COUNSEL AND ACCORDINGLY, THE CASE IS RESTORED TO THE LD. CI T(E), FOR AFRESH CONSIDERATION AND EXAMINATION OF THE APPLICATION OF THE ASSESSEE U/S 80G(5)(VI) ALONG WITH THE APPLICATION FOR REGISTRAT ION FILED U/S 12A FOR GRANT OF REGISTRATION U/S 12AA OF THE IT ACT. NO DO UBT THE ASSESSEE SHALL ITA NO.2494/DEL/2016 4 CO-OPERATE IN THE FRESH PROCEEDINGS BEFORE THE CIT( E). ALL PLEAS, AVAILABLE UNDER THE LAW, SHALL REMAIN SO, AVAILABLE TO THE ASSESSEE IN FRESH PROCEEDINGS BEFORE THE LD. CIT(E). 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 31/01/2018). SD/- SD/- (MS. BEENA A. PILLAI) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNT ANT MEMBER DATED: 31/01/2018 *NEHA/DOC* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGIST RAR ITA NO.2494/DEL/2016 5 DATE INITIAL 1. DRAFT DICTATED ON 29.01.2018 2. DRAFT PLACED BEFORE AUTHOR 30.01.2018 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.