M/s Dayal Bagh Soami Nagar Residents Society (Delhi), New Delhi V. CIT(E), New Delhi

ITA 342/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4623 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 22-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

1 ITA NO. 342/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUN AL DELHI BENCH: A NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER ITA NO. 342/DEL/2016 ( A.Y 00) DAYAL BAGH SOAMI NAGAR RESIDENTS SOCIETY (DELHI) D-45, SOAMI NAGAR, NEW DELHI AABAD8835E (APPELLANT) VS CIT (E) NEW DELHI (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SMT. APARNA KARAN, CIT DR ORDER PER R. K. PANDA , AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE CIT- EXEMPTION, NEW DELHI, REFUSING GRANT OF REGISTRATIO N U/S 12AA OF THE INCOME TAX ACT. 2. NON-APPEARED ON BEHALF OF THE ASSESSEE DESPITE S ERVICE OF NOTICE. THEREFORE, THIS MATTER IS BEING DISPOSED OF ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A SOCIETY REGISTERED UNDER THE SOCIETY REGISTRATION ACT, 1860 ON 28 TH AUGUST, 1985. IT FILED AN APPLICATION ON 21 ST MAY 2015 IN FORM NO. 10A SEEKING REGISTRATION U/S 12AA OF THE INCOME TAX ACT. A LETTER DATED 21 ST MAY 2015 WAS ISSUED BY THE OFFICE OF DATE OF HEARING 19.09.2017 DATE OF PRONOUNCEMENT 19.09.2017 2 ITA NO. 342/DEL/2016 THE CIT(A) ASKING THE ASSESSEE TO FURNISH CERTAIN DETAILS, DOCUMENT/EXPLANATION IN SUPPORT OF ITS CLAIM TO REG ISTRATION U/S 12AA. 4. THE APPLICANT SOCIETY FILED PART DETAILS BUT IT FAILED TO FILE THE ORIGINAL REGISTRATION CERTIFICATE, MEMORANDUM OF ASSOCITION AND RULES AND REGULATION OF THE SOCIETY FOR VERIFICATION. SINCE, THERE WAS FAI LURE ON THE PART OF THE ASSESSEE TO FURNISH THE ABOVE DETAILS, THE LD.CIT HELD THAT THE APPLICATION FILED BY THE APPLICANT IS INCOMPLETE. HE FURTHER OBSERVED FROM THE MEMORANDUM OF ASSOCIATION OF THE SOCIETY THAT ALL THE OBJECTS ARE FOR THE BENEFIT OF THE COLONY RESIDENTS AND NOT FOR GENERAL PUBLIC AT LARGE AND, THEREFORE, FOUND TO BE NON CHARITABLE. IN VIEW OF THE ABOVE AND RELYING ON V ARIOUS DECISIONS, THE LD.CIT HELD THAT THE APPLICANT SOCIETY HAS NOT SATISFIED T HE CONDITIONS/REQUIREMENTS FOR GRANT OF REGISTRATION U/S 12AA OF THE I.T ACT. HE ACCORDINGLY REJECTED THE APPLICATION SEEKING GRANT OF REGISTRATION 12AA OF T HE IT ACT. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT, THE ASSESS EE FILED APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS:- 1. THAT THE ORDER OF THE COMMISSIONER OF INCOME-TAX (E XEMPTIONS), NEW DELHI, DATED 19.11.2015, PASSED UNDER SECTION 1 2AA OF THE ACT IS WRONG ON FACTS AND BAD IN LAW; 2. THAT THE COMMISSIONER (EXEMPTIONS) ERRED IN NOT GRA NTING REGISTRATION TO THE APPELLANT; 3. THAT THE COMMISSIONER (EXEMPTIONS) FAILED TO APPREC IATE THAT THE APPELLANT COULD NOT PRODUCE THE ORIGINAL / CERTIFIE D COPIES OF THE DOCUMENTS SOUGHT FOR BECAUSE OF BONAFIDE REASONS; 4. THAT THE COMMISSIONER (EXEMPTIONS) ERRED IN HOLDING THE APPELLANT IS NOT A CHARITABLE SOCIETY; 5. THAT THE CONCLUSIONS AND INFERENCES OF THE COMMISSI ONER 3 ITA NO. 342/DEL/2016 (EXEMPTIONS) ARE BASED ON SUSPICIONS, CONJECTURES, SURMISES, EXTRANEOUS AND IRRELEVANT CONSIDERATIONS; 6. THAT THE AFORESAID GROUNDS OF APPEAL ARE WITHOUT PR EJUDICE TO EACH OTHER; 7. THAT THE RELIEFS PRAYED FOR MAY KINDLY BE ALLOWED A ND THE ORDER OF THE COMMISSIONER (EXEMPTIONS) MAY KINDLY BE QUASHED, SE T ASIDE, ANNULLED OR MODIFIED; 8. THAT THE APPELLANT CRAVES LEAVE TO VARY, ALTER, AME ND OR ADD TO THE AFORESAID GROUNDS OF APPEAL BEFORE OR AT THE TIME O F HEARING OF THE ABOVE APPEAL. 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. WE FIND THE LD.CIT REFUSED GRANT OF REGISTRATION U/ S 12AA ON THE GROUND THAT THE ASSESSEE DID NOT FURNISH THE ORIGINAL REGISTRAT ION CERTIFICATE AND MEMORANDUM OF ASSOCIATION. FURTHER, ACCORDING TO H IM THE OBJECTS OF THE SOCIETY ARE FOR THE BENEFIT OF THE COLONY RESIDENT S AND NOT FOR GENERAL PUBLIC AT LARGE, AND, THEREFORE ARE NON CHARITABLE IN NATURE. A PERUSAL OF THE ORDER OF THE CIT SHOWS THAT HE HAS NOT GIVEN ADEQUATE OPPORTUNIT Y TO THE ASSESSEE TO SUBSTANTIATE AS TO HOW SUCH OBJECTS ARE NON CHARITA BLE IN NATURE . CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE IN TEREST OF JUSTICE WE DEEM IT PROPER TO RESORT THE ISSUE TO THE FILE OF THE LD.CI T WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO FILE THE ORIGIN AL REGISTRATION CERTIFICATE ALONG WITH THE MEMORANDUM OF ASSOCIATION AND RULES AND REGULATIONS OF THE SOCIETY. HE SHALL ALSO GIVE ADEQUATE OPPORTUNITY T O THE ASSESSEE SOCIETY TO SUBSTANTIATE THAT THE OBJECTS OF THE SOCIETY WHICH ARE FOR THE BENEFIT OF THE COLONY RESIDENTS, ARE CHARITABLE IN NATURE AND ARE NOT NON-CHARITABLE. THE LD.CIT SHALL DECIDE THE ISSUE AFRESH AND IN ACCORD ANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. WE HOLD AS DIRECT 4 ITA NO. 342/DEL/2016 ACCORDINGLY. THE APPEAL FILED BY THE ASSESSEE IS A CCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 7. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF, I.E. ON 19 TH SEPTEMBER, 2017. SD/- SD/- (SUCHITRA KAMBLE) (R. K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 19/09/2017 R. NAHEED * COPY FORWARDED TO: SUCHITRA KAMBLE) 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 5 ITA NO. 342/DEL/2016 DATE 1. DRAFT DICTATED ON 19/08/2017 PS 2. DRAFT PLACED BEFORE AUTHOR 19/08/2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 20.09. 2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 2 0 .09.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 6 ITA NO. 342/DEL/2016