Vyapar Mandal Shiksa Samiti, HANUMANGARH TOWN V. CIT, BIKANER

ITA 433/JODH/2013

• Counselvise Citation: 43323314 RSA 2013
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 12-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR DEEPAK SEHGAL
• Assessee Lawyers: RAJENDRA JOSHI
• Keywords: Opportunity of being heard; Competent authority
• Section: 12A; 12AA; 2

Judgement Text

1 IN THE INCOME TAX APPELALTE TRIBUNAL : JODHPUR BENC H : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 433/JODH/2013 (A.Y. 2013-14) VYAPAR MANDAL SHIKSA SAMITI, VS. CIT, C/O SHRI S.K. GOYAL, ADVOCATE, BIKANER. NAI MANDI, HANUMANGARH TOWN. PAN NO. AAAAV 9073 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJENDRA JOSHI DEPARTMENT BY : DR. DEEPAK SEHGAL, CIT- DR DATE OF HEARING : 12/11/2013. DATE OF PRONOUNCEMENT : 13/11/2013. O R D E R PER N.K.SAINI, A.M THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R DATED 30/07/2013 OF LD. CIT, BIKANER. THE FOLLOWING GROU NDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT LD. CIT ERRED IN LAW AND IN FACTS IN REJEC TING CLAIM FOR GRANTING REGISTRATION U/S 12AA 2. THAT LD. EARNED CIT WAS NOT JUSTIFIED IN HOLDING THAT APPELLANT- INSTITUTE WAS OBLIGED TO APPLY FOR APPROVAL FROM CC IT, JODHPUR U/S. 2 10(23C)(VI) WHEN ITS GROSS RECEIPTS WERE MORE THAN RS. 1 CRORE BUT IT HAD FAILED THEREBY THERE HAS BEEN BREACH OF SECTION 10(23C)(VI) WHEN REGISTRATION U/S 12AA HAS BEEN SOUGHT. 3. THAT LD. CIT ERRED IN LAW AND IN FACTS IN IGNORI NG THE PATIENT FACTS THAT APPELLANT-INSTITUTE BEING PUBLIC CHARITABLE INSTITU TE SOLELY FOR IMPARTING EDUCATION WITHOUT ANY PROFIT MOTIVE WAS E LIGIBLE FOR REGISTRATION U/S 12AA HOWEVER APPROVAL FROM RELEVAN T COMPETENT AUTHORITY WHERE GROSS RECEIPTS EXCEED RS. 1 CRORE W AS FOR AVAILING BLANKET EXEMPTION U/S. 10(23). 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE REJECTION OF APPLICATION FOR REGISTRATION UNDER SEC TION12AA OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS ACT, IN SHORT). 3. FACTS OF THIS CASE IN BRIEF ARE THAT THE ASSESSEE FILED AN APPLICATION DATED 31/03/2013 FOR REGISTRATION UNDER SECTION 12A OF THE ACT. THE ASSESSING OFFICER AND THE JCIT RECOMMENDED FOR REGI STRATION OF THE SAME. HOWEVER, LEARNED CIT REJECTED THE APPLICATION BY ST ATING THAT THE RECEIPTS OF THE ASSESSEE WERE MORE THAN RS.1 CRORE, THEREFORE, IT SHOULD HAVE APPLIED FOR EXEMPTION UNDER SECTION 10(23C)(VI ) OF THE ACT TO THE CHIEF-COMMISSIONER OF INCOME TAX, JODHPUR. NOW THE ASSESSEE IS IN APPEAL. 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ASSESSEE IS AN EDUCATIONAL INSTITUTE AND FUNCTIONING FOR THE LAST SEVERAL YEARS WITH SOLITARY OBJECTS OF IMPARTING EDUCATION. IT WAS FU RTHER STATED THAT THE 3 JCIT AFTER CONDUCTING NECESSARY ENQUIRIES/VERIFICAT ION, RECOMMENDED IN HIS REPORT FOR GRANTING REGISTRATION, BUT THE LEARN ED CIT REJECTED THE APPLICATION WITHOUT ASSIGNING ANY REASON. 5. IN HIS RIVAL SUBMISSIONS, LEARNED C.I.T - D.R. SUP PORTED THE ORDER OF THE LEARNED CIT. 6 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RE CORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LEARNED CIT REJECTED T HE APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT MOVED BY THE ASSESSEE BY STATING THAT IT SHOULD HAVE OBTAINED APPROVAL FROM THE CHIEF- COMMISSIONER OF INCOME-TAX, JODHPUR UNDER SECTION 1 0(23C)(VI) OF THE ACT. IN OUR OPINION, THE REASON GIVEN BY THE LEAR NED CIT IS NOT SUFFICIENT TO REJECT THE APPLICATION BECAUSE HE HAS NOT COMMEN TED ON THE ISSUE THAT AS TO WHETHER THE OBJECTS OF THE ASSESSEE ARE CHARI TABLE IN NATURE OR NOT? WE, THEREFORE, CONSIDERING THE TOTALITY OF THE FACT S, DEEM IT PROPER TO SET ASIDE THIS ISSUE BACK TO THE FILE OF LEARNED CIT TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSE. (ORDER PRONOUNCED IN THE COURT ON 13 TH NOVEMBER, 2013). SD/- SD/- (HARI OM MARATHA) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 13 TH NOVEMBER , 2013. VR/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE LD.CIT 4. THE CIT(A) 5. THE D.R ASSISTANT REGISTRAR, ITAT, JODHPUR.