Deen Arsi Farah Education & Welfare Trust, Basti V. Commissioner of Income Tax (Exemption), Lucknow

ITA 282/LKW/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4318 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-07-2016
• Assessment Year: misc
• Appeal Filed On: 17-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Non compliance
• 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.282/LKW/2016 CIT(EXEMPTIONS) LUCKNOW VS DEENI ARSI FARAH EDUCATION & WELFARE TRUST, VILLAGE KARANPUR KALA PO-PEDAR TEHSIL-HARYANA DISTRICT BASTI U.P. PAN AACTD 2806 K (RESPONDENT) (APPELLANT) SHRI S.C. AGARWAL, ADVOCATE APPELLANT BY SHRI AMIT NIGAM, DR RESPONDENT BY 25 /0 7 /201 6 DATE OF HEARING 27 / 0 7 /201 6 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 27.04.2016 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 APP LICATION FOR REGISTRATION U/S 12AA OF THE ACT. IT WAS NOTED IN THE IMPUGNED O RDER THAT THE ASSESSEE TRUST HAS FAILED TO PRODUCE/FURNISH ITS BILLS AND V OUCHERS TO SUBSTANTIATE ITS ELIGIBILITY FOR GRANT OF REGISTRATION U/S 12AA. THE REFORE, CIT(EXEMPTION) WAS REJECTED HIS APPLICATION 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 24/1 1/2015 IN THE OFFICE OF 2 COMMISSIONER OF INCOME TAX(EXEMPTIONS), LUCKNOW SEE KING GRANT OF REGISTRATION U/S 12AA OF THE ACT. 4. IT WAS NOTED IN THE GROUND OF APPEAL THAT REAS ONABLE OPPORTUNITY OF HEARING WAS NOT PROVIDED BY LD. CIT (EXEMPTIONS) AN D THEREFORE, THE MATTER MAY BE RESTORED BACK TO HIS FILE FOR A FRESH DECISI ON AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 5. LD. CIT(EXEMPTIONS) HAS MENTIONED IN HIS ORDER T HAT HE HAS PERUSED THE DETAILS AVAILABLE ON RECORDS. THE ASSESSEE TRUS T HAS NEITHER FILED ANY DETAILS NOR PRODUCED BOOKS OF ACCOUNTS, BANK STATEM ENT AND VOUCHERS FOR VERIFICATION OF ACTIVITIES OF THE TRUST. CIT(EXEMPT IONS) HAS MENTIONED THAT ASSESSEE SOCIETY IS NOT CARRYING OUT ANY CHARITABLE ACTIVITIES. DUE TO NON COMPLIANCE OF ASSESSEE, THE GENUINENESS OF ACTIVITI ES COULD NOT BE VERIFIED. AS PER PROVISIONS OF SECTION 12AA(1) OF THE ACT, TW O FACTORS NAMELY THE OBJECTS OF CHARITABLE PURPOSE AND THE GENUINENESS O F ACTIVITIES HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION. HOWEVER, T HE ASSESSEE FAILED TO PROVE THE SAME AS THE APPLICATION FOR GRANT OF REGI STRATION 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 PROPER THAT THE MATTER SHOULD GO BACK TO CIT (EXEMPTIONS) FOR FRESH DECISION AFTER ALLOWI NG THE ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDI NGLY, WE SET ASIDE THE ORDER OF LD. CIT (EXEMPTIONS) AND RESTORE THE MATTE R BACK TO HIS FILE FOR A FRESH DECISION AFTER ALLOWING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FILE BOO KS OF ACCOUNTS/VOUCHERS AND NECESSARY DOCUMENTS ETC. BEFORE THE CIT(A) WHO WILL CONSIDER THESE DOCUMENTS BEFORE DECIDING THE APPLICATION OF THE AS SESSEE. 3 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (P.K. BANSAL) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27/07/2016 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. REG ISTRAR