M/s Aage Hath Badhao Sewa Trust, Lucknow V. Commissioner of Income Tax-I, Lucknow

ITA 274/LKW/2014

• Counselvise Citation: 27423714 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-06-2015
• Assessment Year: misc
• Appeal Filed On: 07-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ANANT KUMAR AGRAWAL
• Assessee Lawyers: A P SINHA
• Keywords: Opportunity of being heard
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.274&275/LKW/2014 M/S AAGE HATH BADHAO SEWA TRUST ED-238, SECTOR Q, ALIGANJ LUCKNOW V. CIT-I LUCKNOW TAN/PAN:AADTA5894P (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. A. P. SINHA, ADVOCATE RESPONDENT BY: DR. ANANT KUMAR AGRAWAL, CIT (DR) DATE OF HEARING: 15 06 2015 DATE OF PRONOUNCEMENT: 19 06 2015 O R D E R PER SUNIL KUMAR YADAV: THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX DENYING REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT') AND APPROVAL UNDER SECTION 80G OF THE ACT. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME-TAX UNDER SECTION 12AA OF THE ACT WITH THE SUBMISSION THAT THE LD. COMMISSIONER OF INCOME-TAX HAS EXAMINED THE ACCOUNTS OF THE ASSESSEE AND FOUND FAULT THEREIN WHEREAS AT THE TIME OF GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT, THE LD. COMMISSIONER OF INCOME-TAX IS REQUIRED TO EXAMINE THE OBJECTS OF THE APPLICANT TRUST/SOCIETY AND IF THE OBJECTS OF THE SOCIETY/TRUST ARE CHARITABLE IN NATURE, REGISTRATION UNDER SECTION 12AA OF THE :- 2 -: ACT SHOULD BE GRANTED. BUT IN THE INSTANT CASE, THE LD. COMMISSIONER OF INCOME-TAX HAS MADE HIS COMMENTS WITH REGARD TO THE MAINTENANCE OF THE BOOKS OF ACCOUNT AND FAULTS THEREIN. HE HAS NOT RATHER EXAMINED THE OBJECTS OF THE ASSESSEE SOCIETY. THEREFORE, THE REASONS FOR DENYING THE REGISTRATION UNDER SECTION 12AA OF THE ACT ARE NOT IN ACCORDANCE WITH THE LAW. THEREFORE, IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. COMMISSIONER OF INCOME-TAX FOR ADJUDICATING THE APPLICATION FOR REGISTRATION. 3. SIMILAR IS THE POSITION WHILE DENYING APPROVAL UNDER SECTION 80G OF THE ACT. 4. THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDERS OF THE LD. COMMISSIONER OF INCOME-TAX. 5. HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT WHILE GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT, THE LD. COMMISSIONER OF INCOME- TAX IS REQUIRED TO EXAMINE THE OBJECTS OF THE ASSESSEE-SOCIETY ALONG WITH OTHER ACTIVITIES OF THE ASSESSEE. BUT IN THE INSTANT CASE, THE LD. COMMISSIONER OF INCOME-TAX HAS NOT EXAMINED THE OBJECTS OF THE SOCIETY AND HAS SIMPLY MADE HIS COMMENTS WITH RESPECT TO THE MAINTENANCE OF ACCOUNTS AND FAULT NOTICED THEREIN. WE ARE, THEREFORE, OF THE VIEW THAT THE LD. COMMISSIONER OF INCOME-TAX HAS NOT PROPERLY ADJUDICATED THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. 6. SIMILAR IS THE POSITION WHILE DENYING APPROVAL UNDER SECTION 80G OF THE ACT. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO ADJUDICATE BOTH THE APPLICATIONS AFRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH THE LAW. ACCORDINGLY, APPEALS OF THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. :- 3 -: 7. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19 TH JUNE, 2015 JJ:1606 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR