Ithaee Sewa Samiti, Lucknow V. Commissioner of Income Tax (Exemption), Lucknow

ITA 25/LKW/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4157 (ITAT-LUCKNOW)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-06-2016
• Assessment Year: misc
• Appeal Filed On: 21-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.25/LKW/2016 CIT(EXEMPTIONS), LUCKNOW VS ITHAEE SEWA SAMITI, 2/242, SEC. P, MANASROVER YOJANA, AURANGABAD, BIJNOR ROAD, LUCKNOW PAN AAAAI 5490 B (RESPONDENT) (APPELLANT) SHRI ABHINAV MEHROTRA, ADVOCATE APPELLANT BY SHRI SANJAY KUMAR, CIT DR RESPONDENT BY 2 7 /0 6 /2016 DATE OF HEARING 29 / 0 7/ 2016 DATE OF PRONOUNCEMENT O R D E R PER MAHAVIR PRASAD, JM. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE O RDER OF LD. CIT (EXEMPTIONS), LUCKNOW DATED 27.11.2015 PASSED BY HI M U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING REJECTION OF THE ASSESSEE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. I T WAS NOTED IN THE IMPUGNED ORDER THAT THE ASSESSEE TRUST HAS FAILED T O PRODUCE/FURNISH ITS BOOKS OF ACCOUNTS, BANK STATEMENT AND VOUCHERS TO SUBSTANTIATE ITS ELIGIBILITY FOR GRANT OF REGISTRATION U/S 12AA. THEREFORE, CIT(EXEMPTION) WAS REJECTED HIS APPLICATION 2 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E TRUST HAS FILED AN APPLICATION UNDER SECTION 12A(A) OF THE ACT ON 1 0/06/2015 IN THE OFFICE OF COMMISSIONER OF INCOME TAX(EXEMPTIONS), L UCKNOW SEEKING GRANT OF REGISTRATION U/S 12AA OF THE ACT. 4. LD. AR OF THE ASSESSEE STATED THAT REASONABLE O PPORTUNITY OF HEARING WAS NOT PROVIDED BY LD. CIT (EXEMPTIONS) AN D THEREFORE, THE MATTER MAY BE RESTORED BACK TO HIS FILE FOR A F RESH DECISION AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO T HE ASSESSEE. 5. LD. CIT(EXEMPTIONS) HAS MENTIONED IN HIS ORDER T HAT HE HAS PERUSED THE DETAILS AVAILABLE ON RECORDS. THE ASSES SEE TRUST HAS NEITHER FILED ANY DETAILS NOR PRODUCED BOOKS OF ACC OUNTS, BANK STATEMENT AND VOUCHERS FOR VERIFICATION OF ACTIVITI ES OF THE TRUST. CIT(EXEMPTIONS) HAS MENTIONED THAT ASSESSEE TRUST I S NOT CARRYING OUT ANY CHARITABLE ACTIVITIES. DUE TO NON COMPLIANC E OF ASSESSEE, THE GENUINENESS OF ACTIVITIES COULD NOT BE VERIFIED. AS PER PROVISIONS OF SECTION 12AA(1) OF THE ACT, TWO FACTORS NAMELY THE OBJECTS OF CHARITABLE PURPOSE AND THE GENUINENESS OF ACTIVITIE S HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION. HOWEVER, T HE ASSESSEE FAILED TO PROVE THE SAME AS THE APPLICATION FOR GRA NT OF REGISTRATION UNDER SECTION 12AA(1)(B) WAS REJECTED. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND IN THE FACTS AND CIRCUMSTANCES OF PRESENT CASE, THE ASSESSEE HAS STA TED THAT HE HAS NOT BEEN PROPERLY HEARD, THEREFORE, WE THINK IT PRO PER THAT THE MATTER SHOULD GO BACK TO CIT (EXEMPTIONS) FOR FRESH DECISION AFTER ALLOWING THE ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF LD. CIT (EXE MPTIONS) AND RESTORE THE MATTER BACK TO HIS FILE FOR A FRESH DEC ISION AFTER ALLOWING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . THE ASSESSEE IS ALSO DIRECTED TO FILE BOOKS OF ACCOUNTS/VOUCHERS AND NECESSARY 3 DOCUMENTS ETC. BEFORE THE CIT(A) WHO WILL CONSIDER THESE DOCUMENTS BEFORE DECIDING THE APPEAL OF THE ASSESSE E. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED ON THE CAPTION PAGE) SD/- SD/- (P.K. BANSAL) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29 /07/2016 AKS 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