Uttar Pradesh Avas Evam Vikas Parishad, Lucknow V. Commissioner of Income Tax-I, Lucknow

ITA 405/LKW/2012

• Counselvise Citation: 40523714 RSA 2012
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-01-2014
• Assessment Year: misc
• Appeal Filed On: 20-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K GARG SHRI P K KAPOOR
• Section: 12A; 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.405/LKW/2012 ASSESSMENT YEAR:N.A. UTTAR PRADESH AVAS EVAM VIKAS PARISHAD, 104, M.G. MARG, LUCKNOW. PAN:AAAJU0103A VS. C.I.T. - I, LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. GARG, ADVOCATE SHRI P. K. KAPOOR, C.A. RESPONDENT BY SHRI MANOJ KUMAR GUPTA, CIT, D.R. DATE OF HEARING 06/01/2014 DATE OF PRONOUNCEMENT 3 0 /01/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT - I, LUCKNOW U/S 12A OF THE I.T. ACT DATED 29/05/2012. 2. THE ASSESSEE HAS RAISED AS MANY AS 9 GROUNDS BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING CANCELLATION OF THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12A BY PASSING THIS ORDER U/S 12AA(3) OF THE ACT. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE PROVISIONS OF SECTION 12AA(3) ARE NOT APPLICABLE IN THE PRESENT CASE. HE SUBMITTED THAT THESE PROVISIONS ARE APPLICABLE ONLY IF IT IS FOUND THAT THE ACTIVITIES OF THE TRUST ARE NOT GENUINE OR THE SAME ARE NOT BEING CARRIED IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. HE FURTHER SUBMITTED THAT IN THE PRESENT C ASE, THE ACTIVITIES ARE GENUINE AND BY NO STRETCH OF LOGIC, THE ACTIVITIES OF THE ASSESSEE 2 CAN BE SAID TO BE NOT GENUINE . HE FURTHER SUBMITTED THAT IN VIEW OF THE AMENDMENT IN SECTION 2(15) OF THE ACT, THE CLAIM OF THE ASSESSEE CAN BE EXAMINED WHILE ALLOW ING EXEMPTION TO THE ASSESSEE IN COURSE OF ASSESSMENT PROCEEDINGS AND IF THE ASSESSEE IS NOT ABLE TO EXPLAIN THE ALLOWABILITY OF EXEMPTION, THE SAME MAY BE DISALLOWED BUT THE REGISTRATION CANNOT BE CANCELLED. HE ALSO DRAWN OUR ATTENTION TO CBDT CIRCULAR NO. 11 OF 2008 DATED 19/12/2008, THE CONTENTS OF WHICH ARE AVAILABLE ON PAGES 12 TO 14 OF THE PAPER BOOK. HE SUBMITTED THAT AS PER THIS CIRCULAR ALSO, THE EXEMPTION AVAILABLE U/S 11 CAN BE DISALLOWED BECAUSE OF THIS AMENDMENT TO SECTION 2(15) BUT THERE IS NO REFERENCE I N THE CIRCULAR TO CANCEL THE REGISTRATION. 4. ON THE OTHER HAND, THE LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER PASSED BY LEARNED CIT U/S 12 A A(3) OF THE ACT. THE PROVISIONS OF SUB SECTION 3 OF SECTION 12AA ARE REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE: 12AA (3) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTED REGISTRATION UNDER CLAUSE (B) OF SUB - SECTION (1) ***OR HAS OBTAINED REGISTRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANCE (NO. 2) ACT, 1996 (33 OF 1996)] ]AND SUBSEQUENTLY THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION, AS THE CASE MAY BE, HE SHALL PASS AN ORDER IN WRITING CANCELLING THE REGISTRATION OF SUCH TRUST OR INSTITUTION . 5.1 FROM THE ABOVE PROVISION S , WE FIND THAT IF THE CIT IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION, AS THE CASE MAY BE, THE CIT SHALL PASS AN ORDER IN WRITING CANCELLING THE REGISTRATION OF SUCH TRUST OR INSTITUTION. HENCE, IN OUR CONSIDERED OPINION, FOR INVOKING THE 3 PROVISIONS OF THIS SUB SECTION, IT IS ESSENTIAL THAT ONE OF THESE TWO CONDITIONS MUST BE SATISFIED THAT EITHER THE ACTIVITIES OF SUCH TRUST ARE NO T GENUINE OR THE ACTIVITIES ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. IN THE PRESENT CASE, IT IS NOT THE CASE OF THE CIT THAT ANY OF THESE CONDITIONS ARE BEING SATISFIED AND HENCE, WE FIND FORCE IN THE SUBMISSIONS OF LEARNED A .R. OF THE ASSESSEE THAT THIS ASPECT MAY BE EXAMINED WHILE DECIDING THE ALLOWABILITY OF EXEMPTION TO THE ASSESSEE U/S 11 IN COURSE OF ASSESSMENT PROCEEDINGS BUT THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12A CANNOT BE CANCELLED ON THIS BASIS. WE HOLD AC CORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN THE TERMS INDICATED ABOVE. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 3 0 T H JANUARY, 2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR