Mahor Vaisya (Mahajan), Agra V. C.I.T.-II, Agra

ITA 417/AGR/2011

• Counselvise Citation: 41720314 RSA 2011
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-05-2012
• Assessment Year: misc
• Appeal Filed On: 03-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH KUMAR JAIN
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 417/AGRA/2011 MAHOR VAISYA (MAHAJAN) SEVA SANSTHAN, VS. COMMISSI ONER OF B-786, KAMLA NAGAR, AGRA. INCOME-TAX-II, AGRA. (PAN : AACTM 8743 N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAKESH KUMAR JAIN, C.A. RESPONDENT BY : SHRI PRADEEP SINGH GAUTAM, JR. D.R . DATE OF HEARING : 21.05.2012 DATE OF PRONOUNCEMENT OF ORDER : 21.05.2012 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT-II, AGRA DATED 07.09.2011, REFUSING TO GRANT REGISTRATION TO THE ASSESSEE U/S. 12AA OF THE IT ACT. 2. THE LD. CIT NOTED IN THE IMPUGNED ORDER THAT THE ASSESSEE FILED APPLICATION IN PRESCRIBED FORM FOR REGISTRATION TO THE ASSESSEE U/S. 12AA OF THE IT ACT AND THE ASSESSEE WAS DIRECTED TO PRODUCE EVIDENCE IN SUPPOR T OF THEIR CLAIM AND CHARITABLE ACTIVITIES CONDUCTED BY THE ASSESSEE. AFTER DISCUSS ING THE CASE WITH THE REPRESENTATIVE OF THE ASSESSEE, THE LD. CIT REJECTE D THE APPLICATION U/S. 12AA OF THE IT ACT. THE OPERATIVE PORTION OF HIS ORDER READS AS UNDER : ITA NO. 417/AGRA/2011 2 A PERUSAL OF THE AIMS OF THE SOCIETY SHOWS THAT TH E SOCIETY HAS BEEN FORMED TO PROPAGATE THE TENETS OF A PARTICULAR RELIGION/COMMUNITY AND THEREFORE, IS SPECIFICALLY B ARRED BY SECTION 80G(5)(III). 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT HAS NOT GIVEN ANY REASONS FOR DECISION IN THE ORDER AND HAS NOT CONDU CTED ANY ENQUIRIES AS PER SECTION 12AA OF THE IT ACT AND THE REASONS GIVEN FOR REJECT ING THE APPLICATION WERE IRRELEVANT BY REFERRING TO SECTION 80G(5)(III) OF T HE IT ACT, WHICH IS A DIFFERENT PROCEEDING. ON THE OTHER HAND, THE LD. DR RELIED UP ON THE IMPUGNED ORDER. 4. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE LD. CI T-II, AGRA. SECTION 12AA OF THE IT ACT REQUIRES THE LD. COMMISSIONER TO HOLD AN ENQUIR Y ON THE BASIS OF DOCUMENTS AND MATERIAL BEFORE HIM AND SATISFY HIMSELF ABOUT T HE OBJECTS AND THE GENUINENESS OF THE ACTIVITIES OF THE APPLICANT. THE LD. CIT HAS NOT GIVEN ANY FINDING IN THE IMPUGNED ORDER AND EVEN HAS FAILED TO DISCUSS THE O BJECTS AND ACTIVITIES OF THE ASSESSEE IN THE IMPUGNED ORDER. WHATEVER SOLE REASO N WAS GIVEN FOR REJECTING THE APPLICATION WAS WITH REGARD TO PROPAGATE THE TENETS OF A PARTICULAR RELIGION / COMMUNITY AS BARRED BY SECTION 80G(5)(III) OF THE I T ACT. THEREFORE, SUCH A REASON WOULD NOT BE VALID FOR REJECTING THE APPLICATION OF THE ASSESSEE. THUS, CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE LD. CIT FAILED ITA NO. 417/AGRA/2011 3 TO HOLD PROPER ENQUIRY INTO THE MATTER AS PER LAW A ND ALSO FAILED TO PASS A REASONED ORDER ON THE EVIDENCE AND MATERIAL FILED BEFORE HIM INCLUDING THE OBJECTS OF THE ASSESSEE AND ITS ACTIVITIES. THEREFORE, WE SET ASID E THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE OF THE LD. CIT-II, AGRA WITH DIRECTION TO RE-DECIDE THE ISSUE BY PASSING THE REASONED ORDER AND BY GIVING FINDINGS O N THE OBJECTS AND GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE. THE LD. CIT SHAL L GRANT REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE PASSING THE ORDE R IN THE MATTER. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21.05.2012. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY