Gurudwara Shri Bauli Sahib, Zirakpur V. CIT(Exemption), Chandigarh

ITA 328/CHANDI/2020

AI Insights

The case involves Gurdwara Shri Bauli Sahib, Dhakoli, Zirakpur, Mohali, which appealed against the order of the CIT (Exemptions), Chandigarh, denying them registration under Section 12AA of the Income Tax Act, 1961. The tribunal found that the CIT (E) had not adequately considered the submissions and documents provided by the assessee, particularly regarding the aims and objects of the trust and its activities. The tribunal noted that the CIT (E) had arbitrarily rejected the application based on non-filing of returns for the last six years, despite the requirement being only for the last three years as per their own order. The tribunal directed a re-examination of the case, emphasizing the need for a reasoned decision.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 133728 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-11-2022
• Assessment Year: misc
• Appeal Filed On: 26-10-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA; 201

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ , च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 328/CHD/2020 (Order u/s 12AA) Gurdwara Shri Bauli Sahib, Dhakoli, Zirakpur, Mohali (Punjab). बनाम VS The CIT (Exemptions), Chandigarh. 瀡थायी लेखा सं./PAN /TAN No: AACAG4748E अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent िनधा榁琇रती क琉 ओर से/Assessee by : Shri Parikshit Aggarwal, C.A. राज瀡व क琉 ओर से/ Revenue by : Shri Vivek Nangia, CIT-DR तारीख/Date of Hearing : 10.11.2022 उदघोषणा क琉 तारीख/Date of Pronouncement : 30.11.2022 आदेश आदेशआदेश आदेश/ORDER PER DIVA SINGH The pre se nt a ppe al has be en filed by the a sse ssee whe rein the corre ctne ss of the or de r dated 16 .09 .2 020 of CIT (Exe mption s) Cha ndigarh is assai le d on the f ollowing gro und s : 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(E) in its order dated 16.09.2020 has erred in passing that order in contravention of the provisions of Section 12AA of the Income Tax Act, 1961. 2. That on law, facts and circumstances of the case, the Worthy CIT(E) has erred in not granting registration u/s 12AA to the appellant even when the objects as well as activities of the appellant clearly fell in the definition of "charitable purpose" propounded u/s 2(15) of the Income Tax Act, 1961. 3. That on law, facts and circumstances of the case, the Worthy CIT(E) has erred in not granting registration u/s 12AA of the Act to the appellant by erroneously holding that the activities carried out by the appellant are not genuine as proper books of accounts are not maintained by the appellant and due to non-production of ITRs by the appellant and that too without considering the submissions made by the appellant. 4. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.” 2. The l d. A R inv iting atte ntion to the impugned orde r sub mitte d tha t the assesse e is a n ongoing e nti ty since 20 06 ITA 328 /CHD/2020 Page 2 of 4 whic h fa ct has b ee n noticed by th e C I T(E) an d the assessee file d an applica ti on se e king 12AA regis tration b y e-filing For m N o.1 0 on 11. 11. 201 9. Re ading from the or de r, i t w as sub mitte d, that the ld. C I T( E) issued a q ue stio nn aire to the asse ssee requiring certain details whic h h ave been se t ou t i n the order itse lf . Specifi c a tte ntion wa s invite d to Question No.16 where in re turns for the la st three years were req ui r ed to be f ile d. 2.1 Referring to the f indi ng ar rive d at in the impug ne d orde r, it was s ub mitted th at the registra tion has be en de nie d on va rious grounds w hich d o no t consti tute a re levant crite ria. Apa rt fr o m that, t he gr oun d for reje ction h as bee n not fili ng re turns f or la st six yea rs. The rejection wa s stated to be ar bitr ary as the req uire me nts spe lt out b y the ld. C I T (E) itse lf i n t he order was three ye ars’ retur ns to be file d. H e nce, the re ason for de ni al, it was sub mitte d, b ased on thi s fact alone is a n ar bitrary exe rcise. Even otherwi se, i t wa s his sub mi ssion that a discussion on the fina nci al sta teme nts and ob servati ons tha t the FDs e tc. we re not reconci led wa s a n ir re le va nt discussi on. The only issues in te rms of the settled legal pos iti on whic h the ld. CI T (E) w as req uired to a ddre ss i n the order w as the obje cts of the Tru st an d the activi tie s. 2.2 Considerin g the lack of dis cuss ion o r su ppor ting docume nts, the ld. AR was req uir ed to add ress the Be nch on the state d Aims an d Objects of the e ntity. The ld. AR sub mitted tha t ITA 328 /CHD/2020 Page 3 of 4 he would be in a positio n to fi le the sa me and readily it is n ot avai lab le . As noticed on a re ading of the or der, it is see n that there is no discussion on the objects of the Tr ust or i ts activi ties. Accordingl y, af te r he aring the ld. CI T-DR and the ld. AR, i t was dee med a pp ropri ate to se t as ide the orde r b ack t o the file of the CI T(E) wi th a dir e ction to pass a spe akin g or der in acc ord ance with law af ter giving the a sse ssee a re asona ble o ppor tunity of being hear d. 3. While so di recting, it is made cle ar tha t it is hoped that the opportunity s o provided to the ass esse e in good faith i s utili ze d full y an d fa irly by the asse ssee by participat ing be fore the C I T (E) and is not a buse d. I n the eventuality of abuse, it i s ma de clea r that t he Ld. CI T( E) would be at li berty to pa ss a speaking orde r in a ccorda nce with l aw on the b asis of ma terial availa ble on record. Sai d orde r was pronounced in the ope n Cou r t on the date of he ar ing itself. 4. In the result , the appe al of th e a ssessee is al lowed for statistica l purp os es. Orde r pronou nced in the Open C ourt on 30 t h Nove mber, 2022 . Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा लेखालेखा लेखा सद瀡य सद瀡यसद瀡य सद瀡य/ Accountant Member 瀈याियक 瀈याियक瀈याियक 瀈याियक सद瀡य सद瀡यसद瀡य सद瀡य/ Judicial Member “Poonam” ITA 328 /CHD/2020 Page 4 of 4 आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. आयकर आयु猴 (अपील)/ The CIT(A) 5. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar