Bandhalal Mitanlal Education Welfare Society, Shajahanpur V. Commissioner of Income Tax ( Exemption), Lucknow

ITA 43/LKW/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1769 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 19-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST TH E DATED PASSED
• Section: 12AA

Judgement Text

I.T.A. NO.43/LKW/2018 ASSESSMENT YEAR:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO.43/LKW/2018 ASSESSMENT YEAR:N.A. BANDHALAL MITANLAL EDUCATIONAL, WELFARE SOCIETY, NEAR SINGH NURSING HOME, LOKVIHAR COLONY, SHAHJAHANPUR. PAN:AADAB 1598 E VS. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER DATED 09/11/2017 PASSED BY LEARNED CIT (EXEMPTIONS) REJEC TING THE REGISTRATION U/S 12AA OF THE I.T. ACT. 2. AT THE OUTSET, LEARNED A. R. SUBMITTED THAT ASSE SSEE IS A CHARITABLE SOCIETY REGISTERED UNDER SOCIETIES ACT AND ITS MAIN OBJECTS ARE PROVIDING EDUCATION WHICH IS A CHARITABLE OBJECT UNDER THE PR OVISIONS OF LAW. IT WAS SUBMITTED THAT THE CIT (EXEMPTIONS) REJECTED THE AP PLICATION OF THE ASSESSEE MERELY ON THE GROUND THAT 50% OF THE LAND, ON WHICH BUILDING OF THE SCHOOL WAS CONSTRUCTED, BELONGS TO ONE OF THE M EMBERS SHRI M. P. SINGH AND LEARNED CIT (EXEMPTIONS) APPREHENDED THAT LATER ON THE ASSESSEE MAY APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY SHRI AJAY KUMAR, D.R. DATE OF HEARING 28 / 08 /201 8 DATE OF PRONOUNCEMENT 31 / 08 /201 8 I.T.A. NO.43/LKW/2018 ASSESSMENT YEAR:N.A. 2 TRANSFER BACK THE LAND TO M. P. SINGH AFTER CONSTRU CTION OF THE BUILDING. LEARNED A. R. SUBMITTED THAT THIS FINDING OF LEARNE D CIT (EXEMPTIONS) IS NOT CORRECT AS THERE WERE TWO SEPARATE LANDS; ONE BELON GING TO THE MEMBER AND ONE BELONGING TO THE SOCIETY. IT WAS SUBMITTED THA T CIT (EXEMPTIONS) HAS EXCEEDED HIS JURISDICTION BY RELYING ON THE PROVISI ONS OF SECTION 13(1)(C) OF THE ACT. 3. LEARNED D. R., ON THE OTHER HAND SUBMITTED THAT THE ASSESSEE WAS ASKED TO PRODUCE BOOKS OF ACCOUNT BUT IT DID NOT PR ODUCE THE SAME AND ALSO THE ASSESSEE DID NOT CLARIFY ITS POSITION REGARDING 50% SHARE OF LAND WHICH BELONGED TO ONE OF THE MEMBERS AND THEREFORE, LEARN ED CIT (EXEMPTIONS) HAS RIGHTLY REJECTED THE APPLICATION OF THE ASSESSE E FOR REGISTRATION. 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE T HROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE FIRST HEARING W AS PROVIDED TO THE ASSESSEE ON 23/08/2017, THE NOTICE OF WHICH WAS RET URNED UNDELIVERED AND THEREFORE, FURTHER NOTICE WAS ISSUED TO THE ASSESSE E TO MAKE COMPLIANCE ON 06/09/2017 ON WHICH DATE THE LEARNED COUNSEL FOR TH E ASSESSEE APPEARED AND SOUGHT ADJOURNMENT FOR 24/10/2017. ON 24/10/20 17, THE LEARNED COUNSEL FOR THE ASSESSEE APPEARED AND FILED PROJECT ED BALANCE SHEET AND INCOME & EXPENDITURE ACCOUNT FOR CURRENT YEAR. LEA RNED CIT (EXEMPTIONS) OBSERVED THAT 50% OF THE LAND ON WHICH BUILDING WAS CONSTRUCTED BELONGED TO ONE OF THE MEMBERS AND THEREFORE, ASSESSEE WAS S HOW CAUSED FOR WHICH LEARNED COUNSEL FOR THE ASSESSEE TOOK ADJOURNMENT F OR 02/11/2017. ON 02/11/2017, THE LEARNED COUNSEL FOR THE ASSESSEE AP PEARED BUT COULD NOT PRODUCE BOOKS OF ACCOUNT OR VOUCHERS OR EXPLANATION FOR THE 50% SHARE OF THE LAND WHICH BELONGED TO ONE OF THE MEMBERS OF TH E SOCIETY. THEREFORE, LEARNED CIT (EXEMPTIONS), WITHOUT GIVING FURTHER OP PORTUNITY TO EXPLAIN, PASSED ORDER ON 09/11/2017 AND REJECTED THE APPLICA TION OF THE ASSESSEE. I.T.A. NO.43/LKW/2018 ASSESSMENT YEAR:N.A. 3 THE ASSESSEE HAS ALSO TAKEN THIS GRIEVANCE VIDE GRO UND NO. 1 THAT THE ASSESSEE WAS NOT PROVIDED SUFFICIENT OPPORTUNITY TO PRESENT ITS CASE. FROM THE ORDER OF LEARNED CIT (EXEMPTIONS) WE ALSO OBSER VE THAT THE ASSESSEE WAS NOT PROVIDED SUFFICIENT OPPORTUNITY TO EXPLAIN ITS CASE REGARDING 50% SHARE OF THE LAND OF THE MEMBER. FURTHER WE FIND T HAT THE ASSESSEE VIDE ADJOURNMENT LETTER DATED 06/09/2017, AVAILABLE AT P AGE NO. 1 OF THE PAPER BOOK, HAD SOUGHT ADJOURNMENT OF 15 DAYS TO PRODUCE BILLS AND VOUCHERS BUT FROM THE ORDER OF LEARNED CIT (EXEMPTIONS) WE FIND THAT THESE WERE NOT PRODUCED. THEREFORE, WE DEEM IT APPROPRIATE TO REM IT THE ISSUE BACK TO THE FILE OF LEARNED CIT (EXEMPTIONS) WHO SHOULD DECIDE THE ISSUE AFRESH AFTER PROVIDING AN OPPORTUNITY TO ASSESSEE OF BEING HEARD . THE ASSESSEE IS ALSO DIRECTED TO PRODUCE RELEVANT BOOKS OF ACCOUNT AND V OUCHERS AND OTHER MATERIAL REQUIRED BY LEARNED CIT (EXEMPTIONS) TO DE CIDE THE APPLICATION OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 31/08/2018) SD/. SD/. (PARTHA SARATHI CHAUDHURY) ( T. S. KAPOOR ) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED:31/08/2018 *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.,