Shri Nilkantheshwar Mahadev Trust, Mathura V. Commissioner of Income Tax (E), Lucknow

ITA 31/LKW/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5842 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 09-01-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NAMITA
• Keywords: Charitable institution; Reasonable cause
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW [THROUGH VIRTUAL HEARING] BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 31 /LKW/ 2020 ASSESSMENT YEAR: N.A. SHRI NILKANTHESHWAR MAHADEV TRUST MAHADEV MARG, NEAR MOCSHA DHAM VRINDAWAN MARG, MATHURA V. THE CIT (EXEMPTION) LUCKNOW TAN/PAN: AAWTS5660E (APP EL L ANT) (RESPONDENT) APP ELL ANT BY: SHRI SHUBHAM RASTOGI, C.A. RESPONDENT BY: SMT. NAMITA PANDEY, CIT (DR) DATE OF HEARING: 08 09 20 2 1 D ATE OF PRONOUNCEMENT: 16 0 9 20 2 1 O R D E R PER A.D. JAIN, V.P.: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (EXEMPTION), LUCKNOW DATED 5.11.2019, REJECTING THE APPLICATION FOR REGISTRATION, UNDER SECTION 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961, TAKING THE FOLLOWING GROUNDS OF APPEAL:- (1) THE LD. C.I.T. (EXEMPTION) ERRED ON FACTS AND IN LAW IN REJECTING THE REGISTRATION UNDER SECTION 12AA OF I. T. ACT, 1961 WITHOUT APPRECIATING THAT NOTICE DATED 22.10.2019 COULD NOT BE RECEIVED IN TIME. THUS, THERE WAS A REASONABLE CAUSE FOR NOT MAKING COMPLIANCE ON 04.11.2019. (2) THE LD. C.I.T. EXEMPTION DID NOT APPRECIATE THAT THE ASSESSEE TRUST IS SOLELY CHARITABLE INSTITUTION FOR THE BENEFIT OF SOCIETY AT LARGE AS PER SECTION 2(15) OF I.T. ACT, ITA NO.31/LKW/2020 PAGE 2 OF 3 ACCORDINGLY, THE TRUST IS ELIGIBLE FOR REGISTRATION UNDER SECTION 12AA OF I. T. ACT. (3) THAT RELEVANT DETAILS HAD ALSO BEEN FILED ALONG WITH THE APPLICATION UNDER SECTION 12A OF I. T. ACT ON 28.05.2019. (4) THE LD. C.I.T (EXEMPTION) DID NOT PROVIDE SUFFICIENT TIME AND OPPORTUNITY TO HAVE ITS SAY ON THE REASONS RELIED UPON BY HIM FOR REJECTING THE REGISTRATION U/S 12AA OF I. T. ACT; 2. THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE TRUST E-FILED AN APPLICATION, DATED 28.5.2019 FOR REGISTRATION U/S 12A(1) OF THE ACT IN FORM NO.10A WITH THE CIT (EXEMPTIONS). THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 22.10.2019 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING THE APPLICATION FOR REGISTRATION U/S 12A FOR COMPLIANCE ON 4.11.2019. ON THIS DATE, I.E., 4.11.2019, NONE APPEARED NOR ANY ADJOURNMENT APPLICATION WAS FILED, THEREFORE, LD. CIT (EXEMPTIONS) REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A(1) OF THE ACT, OBSERVING THAT THE ASSESSEE HAS CHOSEN NOT TO FILE THE DETAILS REQUIRED AND SO IT IS PRESUMED THAT THE APPLICANT HAS NOTHING TO SAY IN THIS REGARD. 3. HEARD. FROM THE ORDER OF LEARNED CIT (EXEMPTIONS), IT IS APPARENT THAT THE LD. CIT (EXEMPTIONS) HAD ISSUED ONLY ONE LETTER DATED 22.10.2019 CALLING FOR CERTAIN QUERIES. THE ASSESSEE COULD NOT APPEAR BEFORE THE LD. CIT (E) ON THE DATE FIXED FOR AND THE CIT (EXEMPTIONS) PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A(1) OF THE ACT. THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE BEFORE US WAS THAT THE NOTICE DATED 22.10.2019, FIXING THE DATE OF HEARING ON 4.11.2019 HAS NOT BEEN RECEIVED BY THE ASSESSEE IN TIME; AND THAT ALL THE ITA NO.31/LKW/2020 PAGE 3 OF 3 RELEVANT DETAILS AS SOUGHT FOR BY THE LD. CIT(E) HAD ALREADY BEEN FILED ALONG WITH THE APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT. IN THESE FACTS, WE FEEL THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO EXPLAIN ITS CASE BEFORE THE LD. CIT (EXEMPTIONS). WE ARE OF THE VIEW FROM THE FACTS OF THE CASE THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER AND SUFFICIENT OPPORTUNITY BEFORE DISPOSING OF THE APPLICATION OF REGISTRATION BY THE LD. CIT (EXEMPTIONS). 2. IN VIEW OF THE ABOVE, THE MATTER IS REMITTED TO THE LD. CIT (E) TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW, WITHIN A PERIOD OF TWO MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER, ON AFFORDING DUE AND ADEQUATE OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE. THE ASSESSEE, NO DOUBT, SHALL CO-OPERATE IN THE FRESH PROCEEDINGS BEFORE THE LD. CIT (E). 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16/09/2021. SD/ - SD/ - [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT DATED:16/09/2021 JJ: COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR