K.N.Memorial Educational Trust, Kanpur V. Commissioner of Income Tax -1, Kanpur

ITA 315/LKW/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70579 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-11-2013
• Assessment Year: misc
• Appeal Filed On: 31-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKN BENCH B : LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA , ACCOUNTANT MEMBER I.T.A. NO. 315 /LKW/201 2 ASSESSMENT YEAR : N.A. K. N. MEMORIAL EDUCATIONAL TRUST, VS. C.I.T. - 1, KANPUR. KANPUR. PAN:AABTK8838R (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI VIVEK MISHRA, CIT, D.R. DATE OF HEARING : 28 / 11 /2013 DATE OF PRONOUNCEMENT : 18/12/2013 ORDER PER SUNIL KUMAR YADAV: TH IS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT PASSED U/S 12AA(1) OF THE ACT DENYING REGISTRATION U/S 12AA(1) OF THE I.T. ACT. 2. NONE ATTENDED ON BEHALF OF THE ASSESSEE. HOWEVER, AN APPLICATION SEEKING ADJOURNMENT HAS BEEN FILED . FROM THE RECORDS IT IS NOTICED THAT THIS APPEAL CAN EVEN BE DISPOSED IN THE ABSENCE OF THE ASSESSEE. ACCORDINGLY, THE APPEAL WAS HEARD AFTER REJECTING THE APPLICATION FOR ADJOURNMENT. DURING THE COURSE OF HEARING OF THE APPEAL IT WAS FOUND THAT THE ASSESSEE THROUGH ITS W RITTEN SUBMISSIONS HAS INVITED OUR ATTENTION TO 2 THE ORDER OF THE CIT THAT IN THE ENTIRE ORDER HE HAS DISCUSSED THE SCOPE OF JURISDICTION OF CIT WHILE ADJUDICATING THE APPLICATION FILED FOR REGISTRATION U/S 12AA(1) OF THE ACT. HE HAS NOT DISCUSSED ANYWHERE WITH REGARD TO THE NATURE OF THE OBJECT OF THE ASSESSEE TRUST WHETHER IT IS CHARITABLE OR NOT. IT IS ALSO SUBMITTED THROUGH ITS WRITTEN SUBMISSIONS THAT WHILE GRANTING REGISTRATION THE CIT IS REQUIRED TO EXAMINE THE NATURE OF OBJECT OF THE ASSESSEE TRUST AS TO WHETHER THE TRSUT IS CREATED TO UNDERTAKE THE CHARITABLE ACTIVITIES , BUT THE CIT HAS EXAMINED THE LEGAL ASPECT AND SCOPE OF JURISDICTION TO ADJUDICATE THE APPLICATION FOR REGISTRATION. THE CIT HAS NOT EXAMINED THE NATURE OF THE OBJECT OF THE ASSESS EE TRUST, THEREFORE, IN THE INTEREST OF JUSTICE , THE MATTER MAY BE SENT BACK TO CIT WITH THE DIRECTION TO ADJUDICATE THE APPLICATION FOR GRANT OF REGISTRATION U/S 12AA(1) OF THE ACT ON MERIT IN THE LIGHT OF THE RELEVANT PROVISIONS OF THE ACT. 3. LEARNED D .R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF CIT. 4. WE HAVE HEARD LEARNED D.R. AND PERUSED THE WRITTEN SUBMISSIONS OF THE ASSESSEE AND THE MATERIAL ON RECORD. WE FIND THAT IN THE ENTIRE ORDER, THE CIT HAS DISCUSSED THE SCOPE OF JURISDIC TION WHILE ENTERTAINING THE APPLICATION FOR REGISTRATION U/S 12AA(1) OF THE ACT IN THE LIGHT OF VARIOUS JUDICIAL PRONOUNCEMENT BUT HE HAS NOT EXAMINED THE NATURE OF OBJECT OF THE ASSESSEE TRUST. WHILE GRANTING REGISTRATION U/S 12AA(1) OF THE ACT, THE CIT IS REQUIRED TO EXAMINE THE NATURE OF OBJECT OF THE ASSESSEE TRUST AND IF HE IS SATISFIED THAT THE NATURE OF THE OBJECT OF THE ASSESSEE TRUST ARE FOR CHARITABLE PURPOSES, THE REGISTRATION SHOULD BE GRANTED BUT IN THE INSTANT CASE THIS ASPECT HAS NOT BEEN EX AMINED BY THE CIT. WE ACCORDINGLY ARE OF THE VIEW THAT THE CIT HAS NOT APPLIED HIS MIND JUDICIOUSLY TO THE ISSUE IN 3 DISPUTE. WE, THEREFORE, SET ASIDE HIS ORDER AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO READJUDICATE THE MATTER ON MERIT AFTE R AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WHILE DOING SO, HE SHOULD EXAMINE THE NATURE OF OBJECT OF THE ASSESSEE TRUST. ACCORDINGLY, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 18/12/2013 ) SD/. SD/. (A. K. GARODIA) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18/12/2013 *CL SINGH COPY FORWARDED TO THE: 1. APPELLANT. 2. RESPONDENT. 3. CIT (A) 4. CIT 5. DR. ASSISTANT REGISTRAR