Improvement Trust, Fazilka V. The Commissioner of Income Tax (Exemption), Chandigarh

ITA 269/ASR/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0528 (ITAT-AMRITSAR)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-07-2016
• Assessment Year: misc
• Appeal Filed On: 05-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KANWAL
• Assessee Lawyers: P N ARORA
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.269(ASR)/2016 ASSESSMENT YEAR: PAN: AAAL10094G IMPROVEMENT TRUST VS. COMMISSIONER OF INCOME TAX FAZILKA. (EXEMPTIONS), CHANDIGARH. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P.N.ARORA, ADVOCATE RESPONDENT BY: SH.S.S.KANWAL, DR DATE OF HEARING: 12/07/2016 DATE OF PRONOUNCEMENT: 18/07/2016 ORDER PER A.D. JAIN, JM: THIS IS THE ASSESSEES APPEAL AGAINST THE ACTION O F THE LD. CIT(E) IN NOT GRANTING REGISTRATION TO THE ASSESSEE UNDER SEC TION 12AA OF THE INCOME TAX ACT, 1961. 2. THE LD. CIT(E) WHILE REJECTING THE ASSESSEES AP PLICATION FILED U/S 12AA OF THE ACT, HAS CONCLUDED IN PARA -7 OF THE I MPUGNED ORDER, AS FOLLOWS: 7. IN RESPONSE TO THE ABOVE SHOW CAUSE, NOBODY ATT ENDED ON THE SAID DATE NOR WAS ANY REPLY RECEIVED EVEN TILL THE DATE OF PASSING IF THIS ORDER. THE QUERIES THAT AROSE IN THE CASE APAR T FROM PRESUMPTIONS THEREUPON REMAINED UNANSWERED. IN THE ABSENCE OF RELEVANT DOCUMENTS & SUBMISSIONS REGARDING THE ACTI VITIES, IT IS DIFFICULT TO VERIFY BOTH THE GENUINENESS OF THE OBJ ECTS & ACTIVITIES OF THE TRUST. THE APPLICANT ASSESSEE HAS FAILED TO DIS CHARGE THE ONUS, AS LAID DOWN BY JUDICIAL PRECEDENTS IN CASE OF BEN EFICIARY CLAUSES IN THE TAXATION STATUTE, TO PROVE THAT ITS INCOME IS FREE FROM THE ITA NO.269(ASR)/2016 2 EXIGIBILITY OF TAXES. KEEPING IN VIEW THE AFORESAID FACTS OF THE CASE AND THE AMENDED PROVISIONS OF THE SECTION 2(15), TH E APPLICATION OF THE ASSESSEE U/S 12AA IS HEREBY REJECTED. 3. FROM THE ABOVE, IT IS EVIDENT THAT THE ASSESSEE DID NOT RESPOND TO THE SHOW CAUSE NOTICE DATED 15.03.2016 SERVED ON T HE ASSESSEE ON 18.03.2016 (PARA-6 OF THE IMPUGNED ORDER). THE LD. COUNSEL FOR THE ASSESSEE HAS STATED AT THE BAR THAT IN CASE AN OPP ORTUNITY IS GRANTED TO THE ASSESSEE, THE ASSESSEE SHALL PRODUCE ALL THE RE LEVANT MATERIAL IN RESPONSE TO THE SHOW CAUSE NOTICE, WHICH COULD NOT BE DONE IN THE EARLIER PROCEEDINGS BEFORE THE LD. CIT(EXEMPTIONS). IN THIS REGARD, A LETTER HAS BEEN FILED, WHICH READS AS FOLLOWS: SIR, WE HEREBY UNDERTAKE TO APPEAR BEFORE THE COMMISSI ONER OF INCOME TAX (EXEMPTIONS) IN CONNECTION WITH THE TRUS T REGISTRATION AND TO REPLY THE NOTICES WHICH WILL BE ISSUED DURING THE COURSE OF PROCEEDINGS BEFORE COMMISSIONE R OF INCOME TAX (EXEMPTIONS) AND WE WILL COMPLY WITH ALL THE NOTICES. THANKING YOU, 12.07.2016 YOURS FAITHFULLY, SD/- COUNSEL FOR THE ASSESSEE 4. THE LD. DR VEHEMENTLY OPPOSED THE PROPOSAL PUT-F ORTH BY THE LD. COUNSEL FOR THE ASSESSEE, RELYING ON THE IMPUGNED O RDER AND CONTENDED THAT SINCE THE ASSESSEE, AT THE RELEVANT TIME, CHOS E NOT TO RESPOND TO THE SHOW CAUSE NOTICE ISSUED, HE IS NOT ENTITLED TO RAI SE THIS MATTER AT THIS STAGE. ITA NO.269(ASR)/2016 3 5. HAVING HEARD THE PARTIES AND HAVING PERUSED THE MATERIAL AVAILABLE ON RECORD, IN THE INTEREST OF JUSTICE, WE DEEM IT APPROPRIATE TO REMIT THIS MATTER TO THE FILE OF THE LD. CIT (EXEMPTIONS), TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW, ON CONSIDERING THE ASSESSEES REPLY TO THE SHOW CAUSE NOTICE (SUPRA) DATED 15.03.2016, IF ONE IS FI LED BY THE ASSESSEE EXPEDITIOUSLY AND, PREFERABLY, WITHIN TWO MONTHS FR OM THE DATE OF RECEIPT OF COPY OF THIS ORDER. THE ASSESSEE SHALL ALSO BE A LLOWED DUE AND ADEQUATE OPPORTUNITY TO SUPPORT ITS CASE AND THE AS SESSEE SHALL, NO DOUBT, COOPERATE IN THE FRESH PROCEEDING BEFORE TH E LD. CIT(EXEMPTIONS). 6. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/07/ 2016. SD/- SD/- (T.S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER /SKR/ DATED: 18/07/2016 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: IMPROVEMENT TRUST, FAZILKA. 2. THE CIT (EXEMPTIONS), CHANDIGARH. 3. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR. ITA NO.269(ASR)/2016 4