Sh. Hari Hareshwar Mahdev Ji, Mathura V. C.I.T.-1, Agra

ITA 314/AGR/2013

• Counselvise Citation: 31420314 RSA 2013
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-10-2013
• Assessment Year: misc
• Appeal Filed On: 26-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH KUMAR
• Assessee Lawyers: M M AGARWAL
• Keywords: Charitable institution; Principle of natural justice
• Section: 12; 2; 12AA

Judgement Text

I.T.A. NO.: 314/AGRA/2013 ASSESSMENT YEAR: NOT APPLICABLE PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA [ CORAM : BHAVNESH SAINI, JM, AND PRAMOD KUMAR, AM] I.T.A. NO.: 314/AGRA/2013 ASSESSMENT YEAR: - NOT APPLICABLE SHRI HARI HARESHWAR MAHADEVJI CHARITABLE TRUST .......APPELLANT TEHSIL MAHAVAN, DISTRICT MATHURA 281 303 [ PAN : AAALTS4136L] VS. COMMISSIONER OF INCOME TAX- 1, AGRA RESPONDENT APPEARANCES BY: M M AGARWAL, FOR THE APPELLANT ANIRUDH KUMAR, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : OCTOBER 28,2013 DATE OF PRONOUNCING THE ORDER : NOVEMBER 29,2013 O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE APPELLANT HAS CALLE D INTO QUESTION CORRECTNESS OF THE ORDER DATED 30 TH AUGUST 2013, PASSED BY THE LEARNED CIT-I, AGRA, DECLINING REGISTRATION UNDER SECTION 1 2 AA(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT). GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS: 1. BECAUSE LEARNED CIT HAS ERRED IN LAW AS WELL AS IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN REJECTING THE APPLICAT ION FILED BY THE APPELLANT FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. BECAUSE ON A DUE CONSIDERATION OF FACTS AND CIRC UMSTANCES OF THE CASE AND MORE PARTICULARLY IN VIEW OF THE FINDING THAT T HE OBJECTS OF THE APPELLANT I.T.A. NO.: 314/AGRA/2013 ASSESSMENT YEAR: NOT APPLICABLE PAGE 2 OF 3 WERE CHARITABLE IN NATURE, LEARNED CIT HAS ERRED IN DENYING IT REGISTRATION UNDER SECTION 12AA OF THE ACT BY HOLDING THAT NO AC TIVITIES WERE CARRIED OUT BY THE TRUST. 3. BECAUSE WHILE TAKING THE ADVERSE VIEW, LEARNED C IT FAILED TO APPRECIATE THAT THE PARTICULARS ACTIVITIES OF THE A PPELLANT WERE WELL PLACED ON RECORD DURING THE COURSE OF HEARING BEFORE HIM. 4. BECAUSE THE ORDER DATED 20.06.2013 PASSED BY TH E CIT IS WRONG, ILLEGAL, AGAINST PRINCIPAL OF NATURAL JUSTICE AND BAD IN LAW . 2. WHEN THIS MATTER WAS CALLED OUT FOR HEARING, LEA RNED REPRESENTATIVES FAIRLY AGREED THAT THIS ISSUE IS CO VERED BY HONBLE JURISDICTIONAL HIGH COURTS JUDGMENT IN THE CASE OF HARDAYAL CHARITABLE AND EDUCATIONAL TRUST VS CIT (214 TAXMAN N 655) INASMUCH AS WHILE LEARNED COMMISSIONER HAS REJECTED THE REGI STRATION UNDER SECTION 12AA ON THE GROUND THAT THE ASSESSEE HAS NO T CARRIED OUT ANY ACTIVITY AND AS SUCH ITS GENUINENESS COULD NOT BE V ERIFIED, IN THE ESTEEMED VIEWS OF HONBLE JURISDICTIONAL HIGH COURT , IN THE CASE OF AN INSTITUTION AT THE PRELIMINARY STAGE OF ITS FUNCTIO NING, ENQUIRY OF THE COMMISSIONER OF INCOME TAX AT SUCH PRELIMINARY STAG E SHOULD BE RESTRICTED TO ITS OBJECTS AND NOT THE ACTIVITIES. NONE OF THE PARTIES DISPUTE THAT SUCH AN EXERCISE, I.E. EXAMINING THE O BJECTS OF THE APPELLANT, HAS NOT BEEN CARRIED OUT IN THE PRESENT CASE. 3. IN VIEW OF THE ABOVE DISCUSSIONS, AND WITH THE C ONSENT OF THE PARTIES, THE MATTER IS RESTORED TO THE FILE OF THE CIT FOR FRESH ADJUDICATION IN THE LIGHT OF THE ABOVE OBSERVATIONS AND IN ACCORDANCE WITH THE BINDING LEGAL POSITION AS SET OUT BY HONB LE JURISDICTIONAL HIGH COURT. WHILE DOING SO, LEARNED COMMISSIONER WI LL GIVE DUE AND FAIR OPPORTUNITY OF HEARING TO THE ASSESSEE AND DIS POSE OF THE MATTER BY WAY OF A SPEAKING ORDER. I.T.A. NO.: 314/AGRA/2013 ASSESSMENT YEAR: NOT APPLICABLE PAGE 3 OF 3 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT TODAY ON 29TH DAY OF NOVEMBER, 2013 SD/- SD/- BHAVNESH SAINI PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEM BER) AGRA, THE 29 DAY OF NOVEMBER, 2013 COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC SR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA