Maharaj Paramhans Gramoday Vikas Sansthan, Gonda V. CIT (E), Lucknow

ITA 323/LKW/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8478 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 09-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ABHA KALA CHANDA
• Keywords: Charitable institution; Opportunity of being heard; Benefit of exemption
• Section: 12A

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.323/LKW/2020 ASSESSMENT YEAR N.A. CIT (EXEMPTIONS), LUCKNOW VS. MAHARAJ PARAMHANS GRAMODAY VIKAS SEWA SANSTHAN, RAMPUR, TARABGANJ, GONDA - 271309 PAN AAHAM 5749C (RESPONDENT) (APPELLANT) SHRI S.C. AGARWAL, ADVOCATE APPELLANT BY SMT. ABHA KALA CHANDA, CIT, DR RESPONDENT BY 12/08/2021 DATE OF HEARING 17/08/2021 DATE OF PRONOUNCEMENT O R D E R PER T.S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(EXEMPTION), LUCKNOW DATED 05.08.2012. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT IMPUGNED ORDER IS BAD IN LAW INASMUCH AS AT THE TIME OF GRANT OF REGISTRATION WHAT IS TO BE LOOKED INTO IS WHETHER TRUST IS A GENUINE ONE OR IT IS A SHAM INSTITUTION FLOATED ONLY TO AVAIL BENEFIT OF EXEMPTION UNDER THE ACT WHICH WAS PROVED BY THE DOCUMENTS SUBMITTED ALONG WITH APPLICATION AND THERE IS NO INDICATION IN THE ORDER AS TO THE EVIDENCE NOT AVAILABLE ON RECORD REGARDING THE GENUINENESS OF THE ACTIVITIES SUCH AS COPY OF BALANCE SHEET AND INCOME AND EXPENDITURE 2 ACCOUNT DULY AUDITED ALONG WITH OBJECTS OF SOCIETY AND REGISTRATION CERTIFICATE UNDER SOCIETIES ACT. 2. THAT THERE WAS ENOUGH MATERIAL BEFORE THE LD. COMMISSIONER SO AS TO PROVE THAT THE SOCIETY IS GENUINE AND ITS OBJECTS ARE CHARITABLE IN NATURE AND THE LD. CIT (E) WAS WRONG IN REJECTING APPLICATION FOR GRANT OF REGISTRATION AS A CHARITABLE INSTITUTION. 3. THAT THE LD. CIT WAS WRONG IN REJECTING THE APPLICATION ON THE PRESUMPTION WHICH IS NOT PERMITTED UNDER THE LAW INASMUCH AS THE GENUINENESS OF THE SOCIETY AND ITS OBJECTS WERE CLEARLY ESTABLISHED AS REQUIRED UNDER THE LAW AS PER THE DOCUMENTS ON RECORD AND THE ID. CIT(E) FAILED TO DISPROVE SUCH EVIDENCE ON RECORD. 4. THAT THE LD. CIT WAS WRONG IN REJECTING THE APPLICATION WITHOUT INDICATING AS TO THE EVIDENCE REQUIRED FOR REGISTRATION WAS NOT AVAIL ABLE ON RECORD RESULTING GROSS INJUSTICE. 5. THAT THE APPELLANT SOCIETY IS GENUINE AND ESTABLISHED BY LAW CARRYING OUT CHARITABLE ACTIVITIES AS PER THE OBJECTS OF THE SOCIETY DESERVES REGISTRATION AS A CHARITABLE INSTITUTION WHICH WAS WRONGLY DENIED. 6. THAT THE HON'BLE TRIBUNAL BE PLEASED TO GRANT REGISTRATION INASMUCH AS THE REQUIREMENT OF LAW FOR GRANT OF REGISTRATION IS FULFILLED. 7. THAT ANY OTHER RELIEF WHICH THE HON'BLE TRIBUNAL DEEMED APPROPRIATE BE GRANTED. 2. THE CRUX OF GROUNDS OF APPEAL IS THE ACTION OF LD. CIT(E) BY WHICH HE HAS REJECTED THE APPLICATION OF ASSESSEE FILED U/S 12A OF THE ACT. THE LD. AR ALSO INVITED OUR ATTENTION TO COPY OF ADDITIONAL GROUNDS OF APPEAL RAISED VIDE LETTER DATED 16.11.2020 AND ALSO INVITED OUR ATTENTION TO LETTER DATED 10.08.2021 WHEREBY SUCH ADDITIONAL GROUNDS OF APPEAL WERE WITHDRAWN AND THEREFORE IT WAS SUBMITTED THAT THE ADDITIONAL GROUNDS OF APPEAL MAY BE DISMISSED AS NOT PRESSED. 3. INVITING OUR ATTENTION TO THE FACTS OF THE CASE, THE LD. AR SUBMITTED THAT ASSESSEE HAD FILED APPLICATION FOR REGISTRATION U/S 12A OF THE ACT AND HAD FILED THE COMPLETE DOCUMENT INCLUDING BYELAWS OF THE SOCIETY AS WELL AS 3 BALANCE SHEET AND INCOME AND EXPENDITURE ACCOUNTS OF THE ASSESSEE AND THE LD. CIT(E) HAS REJECTED THE APPLICATION OF THE ASSESSEE. THEREFORE, IT WAS PRAYED THAT THE ASSESSEE ON FURNISHING THE DOCUMENTS IS ENTITLED TO GET REGISTRATION AND THEREFORE IT WAS PRAYED THAT THE APPEAL OF THE ASSESSEE MAY BE ALLOWED. 4. LD. DR ON THE OTHER HAND SUBMITTED THAT MERELY BY FILING THE DOCUMENTS THE ASSESSEE DOES NOT GET ENTITLED TO REGISTRATION U/S. 12A OF THE ACT. IT WAS SUBMITTED THAT LD. CIT(E) IS EMPOWERED TO CALL FOR FURTHER INFORMATION AND THEREFORE, HE ISSUED NOTICES TO WHICH ASSESSEE DID NOT RESPOND AND THEREFORE, THE APPEAL FILED BY ASSESSEE BE DISMISSED. 5. WE HAVE HEARD BOTH THE PARTIES AND HAVE GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSEE HAD RAISED ADDITIONAL GROUNDS OF APPEAL VIDE LETTER DATED 16.11.2020 WHEREIN THE ASSESSEE HAD RAISED THE ISSUE OF DEEMED REGISTRATION AND HAS ARGUED THAT SINCE A PERIOD OF SIX MONTHS HAD EXPIRED FROM THE END OF THE MONTH IN WHICH THE APPLICATION WAS FILED THEREFORE THE ASSESSEE WAS ENTITLED FOR DEEMED REGISTRATION U/S 12A OF THE ACT. HOWEVER, AT THE TIME OF HEARING, OUR ATTENTION WAS INVITED TO LETTER DATED 10.08.2021 BY WHICH THE SAID ADDITIONAL GROUNDS RAISED BY THE ASSESSEE WERE WITHDRAWN THEREFORE, THE ADDITIONAL GROUNDS OF APPEAL ARE DISMISSED AS WITHDRAWN. 4 6. COMING TO THE FACTS OF THE CASE, WE FIND THAT THOUGH THE ASSESSEE HAD FILED THE COPY OF MEMORANDUM OF ASSOCIATION AND HAD ALSO FILED THE COPY OF BALANCE SHEET ALONG WITH NOTE ON ACTIVITIES BEING UNDER TAKEN BY IT BUT DESPITE THE TWO OPPORTUNITIES AFFORDED BY LD. CIT(E), THE ASSESSEE DID NOT MAKE ANY COMPLIANCE AND THEREFORE, THE LD. CIT(E) ON THE BASIS OF MATERIAL ON RECORD WITHOUT CONFRONTING THE ASSESSEE PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE. WE FIND THAT UNDER THESE CIRCUMSTANCES IT IS APPROPRIATE THAT THE ASSESSEE BE GRANTED ANOTHER OPPORTUNITY OF BEING HEARD BY LD. CIT(E) AND LD. CIT(E) SHALL PASS A FRESH ORDER WITHIN TWO MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER AFTER HEARING THE ASSESSEE AND THE ASSESSEE IS ALSO DIRECTED TO COOPERATE IN THE PROCEEDINGS AND APPEAR BEFORE LD. CIT(E) SO THAT THE LD. CIT(E) COULD PASS A FRESH ORDER ON THE APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 17/08/2021) SD/- SD/- (A.D. JAIN) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER AKS DTD. 17/08/2021 5 COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR