B R B Model School Samiti, Badaun V. Commissioner of Income Tax (Exemption), Lucknow

ITA 257/LKW/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8823 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 24-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S C AGRAWAL
• Keywords: Set aside
• Section: 12A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 257/LKW/2019 ASSESSMENT YEAR: N.A. BRB MODEL SCHOOL SAMITI SHYAM NAGAR BAREILLY ROAD BADAUN V . CIT (EXEMPTION) LUCKNOW T AN /PAN : AABAB3537B (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI S. C. AGRAWAL, ADVOCATE RESPONDENT BY: SMT. ALKA SINGH, D.R. DATE OF HEARING: 13 0 6 201 9 DATE OF PRONOUNCEMENT: 14 0 6 201 9 O R D E R PER A. D. JAIN, V.P . : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW, DATED 20/3/2019. 2 . THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME - TAX ACT, 1961 ON 18/3/2018 WITH THE CIT (EXEMPTIONS), LUCKNOW. THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 12/1/2019 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING THE APPLICATION FOR REGISTRATION U/S 12A OF THE ACT, FOR COMPLIANCE ON 18/2/2019 . ON THIS DATE, I.E., 1 8/2/2019 , THE ASS ESSEE MOVED AN APPLICATION FOR ADJOURNMENT. ACCORDINGLY, THE HEARING WAS ADJOURNED TO 22/2/2019, ON WHICH DATE ALSO THE ASSESSEE MOVED AN APPLICATION FOR ADJOURNMENT TO 6/3/2019. ON THIS DATE, I.E., 6/3/2019, THE LD. A.R. OF THE ASSESSEE APPEARED AND FIL ED PART REPLY AND ALSO SOUGHT FOR ADJOURNMENT, WHICH WAS GRANTED AND THE HEARING WAS ADJOURNED TO 19/3/2019. ON THE FINAL DATE OF HEARING I.E. ON 20/3/2019, THE LD. A.R. OF THE ASSESSEE APPEARED AND FILED PART REPLY, BUT COULD NOT ITA NO.257/LKW/2019 PAGE 2 OF 4 PRODUCE THE BOOKS OF ACC OUNT AND VOUCHERS FOR VERIFICATION. THE LD. CIT (EXEMPTION) REJECTED THE APPLICATION MOVED BY THE ASSESSEE ON THE GROUND THAT THE APPLICANT SOCIETY HAS NOT BEEN ABLE TO PRODUCE THE BOOKS OF ACCOUNT, BANK STATEMENT AND VOUCHERS IN RESPECT OF THE EXPENSES C LAIMED BY THE APPLICANT - ASSESSEE FOR VERIFICATION OF THE OBJECT S AND ACTIVITIES OF THE SOCIETY; AND THAT THE APPLICANT SOCIETY IS NOT CARRYING OUT ANY ACTIVITIES OF CHARITABLE NATURE. 3 . BEFORE US, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT THE LD. CIT (EXEM PTION), LUCKNOW HAD REJECTED THE APPLICATION OF THE ASSESSEE MECHANICALLY, OBSERVING THAT THE BOOKS OF ACCOUNT , BANK STATEMENT AND VOUCHERS, IN RESPECT OF THE EXPENSES CLAIMED BY THE APPLICANT - ASSESSEE, WERE NOT PRODUCED ; AND THAT THE APPLICANT SOCIETY IS NOT CARRYING OUT ANY ACTIVITIES OF CHARITABLE NATURE . THE LD. A.R. OF THE ASSESSEE FURTHER ARGUED THAT AT THE TIME OF GRANTING OF REGISTRATION UNDER SECTION 12A OF THE ACT , THE BOOKS OF ACCOUNT ARE NOT REQUIRED TO BE EXAMINED AND ONLY THE OBJECTS OF THE S OCIETY ARE TO BE LOOKED INTO ; THAT THE LD. CIT (EXEMPTION) HAS WRONGLY DOUBTED THE CHARITABLE CHARACTER OF THE APPLICANT SOCIETY, WHEREAS THE SOCIETY IS FORMED TO ESTABLISH EDUCATIONAL INSTITUTIONS AND ACCORDINGLY A SCHOOL, NAMED BRB MODEL SCHOOL WAS ESTAB LISHED, WHICH IS AFFILIATED TO THE CBSE, DELHI ; AND THAT T HEREFORE, HE PRAYED THAT THE LD. CIT (EXEMPTIONS) MAY BE DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE SOCIETY , UNDER SECTION 12A OF THE ACT. 4 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE ON THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW. 5 . HEARD. WE FIND THAT THE ASSESSEE IS RUNNING A SCHOOL, NAMED BRB MODEL SCHOOL, WHICH IS AFFILIATED TO CBSE, NEW DELHI. THE ASSESSEE HAD APPLIED FOR REGISTRATION UNDER SECTION 12A OF THE ACT, WHICH WAS REJECT ED BY THE LD. CIT (EXEMPTIONS), OBSERVING THAT THE BOOKS OF ACCOUNT, BANK STATEMENT AND VOUCHERS, IN RESPECT OF THE EXPENSES CLAIMED BY THE APPLICANT - ASSESSEE, WERE NOT PRODUCED FOR VERIFICATION OF THE OBJECTS AND ACTIVITIES OF THE SOCIETY ; AND THAT THE AP PLICANT SOCIETY IS ITA NO.257/LKW/2019 PAGE 3 OF 4 NOT CARRYING OUT ANY ACTIVITIES OF CHARITABLE NATURE . BUT THE LD. CIT (EXEMPTION), LUCKNOW HAS NOT EXAMINED THE OBJECTS OF THE ASSESSEE - SOCIETY , WHETHER THE SOCIETY WAS FORMED TO UNDERTAKE CHARITABLE ACTIVITIES OR NOT. MOREOVER, THE LD . CIT (EXEMPTION), LUCKNOW HAS NOT POINTED OUT ANY SPECIFIC ACTIVITY , WHICH CAN BE CALLED TO BE NON - CHARITABLE ACTIVITY. HE HAS MADE GENERAL COMMENTS THAT THE APPLICANT SOCIETY IS NOT CARRYING OUT ANY ACTIVITIES OF CHARITABLE NATURE . IT IS SETTLED POSITI ON OF LAW THAT WHILE GRANTING REGISTRATION UNDER SECTION 12A OF THE ACT, THE LD. CIT (EXEMPTION) IS REQUIRED TO EXAMINE THE OBJECTS OF THE ASSESSEE. IF THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE, REGISTRATION SHOULD BE GRANTED TO THE ASSESSEE. IT CAN ONLY BE DENIED , IF THE LD. CIT (EXEMPTION) HAS BROUGHT SOMETHING ON RECORD TO ESTABLISH THAT THE ASSESSEE WAS ENGAGED IN THE ACTIVITIES OTHER THAN CHARITABLE. THIS ASPECT WAS EXAMINED BY THIS BENCH OF THE TRIBUNAL IN VARIOUS CASES WHEREIN THE TRIBU NAL HAD HELD THAT WHILE GRANTING REGISTRATION UND ER SECTION 12A OF THE ACT, THE LD. CIT (EXEMPTION) IS REQUIRED TO EXAMINE , AS TO WHETHER THE OBJECTS OF THE APPLICANT ARE OF CHARITABLE NATURE OR NOT. IN THE INSTANT CASE, THE LD. CIT (EXEMPTION) HAS NOT EX AMINED THE NATURE OF THE OBJECTS OF THE SOCIETY, BUT HE HAS DENIED THE REGISTRATION ON DIFFERENT COUNTS. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTION) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE - ADJUDICATE THE ISSUE OF GRANT O F REGISTRATION UND ER SECTION 12A OF THE ACT IN THE LIGHT OF THE OBJECTS OF THE ASSESSEE - SOCIETY , AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE, PREFERABLY WITHIN THREE MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 / 0 6 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 14 /0 6 / 201 9 JJ: 1306 ITA NO.257/LKW/2019 PAGE 4 OF 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CI T 5 . DR BY ORDER ASSISTANT REGISTRAR