Merchants Chamber of Uttar Pradesh, Kanpur V. Commissioner of Income Tax (Exemption), Lucknow

ITA 435/LKW/2015

• Counselvise Citation: 43523714 RSA 2015
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-09-2015
• Assessment Year: misc
• Appeal Filed On: 30-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DR A K SINGH
• Keywords: Rejection of books of accounts; Opportunity of being heard

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 435/LKW/2015 COMMISSIONER OF INCOME-TAX (EXEMPTION), AAYKAR BHAWAN 5-ASHOK MARG, LUCKNOW-226001 VS MERCHANTS CHAMBER OF UTTAR PRADESH, 14/76, CIVIL LINES, KANPUR 208 001 PAN AABTM 3103 H (RESPONDENT) (APPELLANT) SHRI RAKESH GARG, ADVOCATE APPELLANT BY DR. A.K. SINGH, CIT, DR RESPONDENT BY 16/09/2015 DATE OF HEARING 22 /0 9 /2015 DATE OF PRONOUNCEMENT O R D E R PER SUNIL KUMAR YADAV, JM. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF THE CIT(EXEMPTIONS), LUCKNOW DENYING THE REGISTRATION U /S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS ACT) HAVING OBSERVED THAT DESPITE OPPORTUNITIES ASSESSEE SOCIETY HAS NOT PROD UCED THE BOOKS OF ACCOUNTS BILLS AND VOUCHERS FOR THE VERIFICATION. 2. AGGRIEVED THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL WITH THE SUBMISSION THAT ASSESSEE HAS PLACED THE CO MPLETE BOOKS OF ACCOUNTS, BILLS AND VOUCHERS FOR VERIFICATION BUT T HE CIT(EXEMPTIONS) INSTEAD OF EXAMINING THE BOOKS OF ACCOUNTS REJECTED THE APP LICATION FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. IN SUPPORT OF H IS CONTENTION, THE ASSESSEE HAS ALSO INVITED OUR ATTENTION TO ONE LETTER WRITTE N TO CIT AFTER THE DISPOSAL OF THIS APPLICATION FOR GRANT OF APPROVAL U/S 80G(5)(V I) OF THE ACT STATING THEREIN THAT HE HAS PRODUCED THE BOOKS OF ACCOUNTS BEFORE H IM BUT IT WAS NOT 2 EXAMINED BY HIM DURING THE COURSE OF HEARING. THE C IT(EXEMPTIONS) RATHER REJECTED THE REQUEST OF GRANT OF APPROVAL U/S 80G(5 )(VI) OF THE ACT. 3. LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED T HAT IN THE LIGHT OF THESE FACTS, THE APPROVAL MAY KINDLY BE GRANTED. 4. LD. DR ON THE OTHER HAND, SUBMITTED THAT THE CIT (EXEMPTIONS) HAS SPECIFICALLY RECORDED IN HIS ORDER THAT THE BOOKS O F ACCOUNTS, BILLS AND VOUCHERS WERE NOT PRODUCED FOR THE VERIFICATION. IT WAS ALSO CONTENDED THAT THE ASSESSEE SOCIETY WAS FORMED LONG BACK AND THEY MIGHT HAVE INCURRED CERTAIN EXPENDITURE BUT THE NATURE OF ACTIVITIES CA N ONLY BE VERIFIED FROM THE BOOKS OF ACCOUNTS, BILLS AND VOUCHERS ETC. LD. DR F URTHER CONTENDED THAT CIT HAS EVERY RIGHT TO EXAMINE THE BOOKS OF ACCOUNTS BE FORE GRANTING OF APPROVAL U/S 80G(5)(VI) OF THE ACT. HOWEVER, LD. DR SUPPORT THE ORDER OF THE CIT(EXEMPTION). 5. HAVING CAREFULLY EXAMINED THE ORDER OF CIT(EXEMP TION) AND IN THE LIGHT OF RIVAL SUBMISSION, WE FIND THAT THE CIT(EXEMPTION ) HAS RECORDED SPECIFICALLY IN HIS ORDER THAT BOOKS OF ACCOUNTS, BILLS AND VOUC HERS WERE NOT PRODUCED FOR VERIFICATION DESPITE OPPORTUNITIES GRANTED TO THE A SSESSEE. THOUGH THE ASSESSEE HAS CONTENDED THAT IT WAS PRODUCED BEFORE THE CIT(EXEMPTION) BUT NO EVIDENCE WAS FILED IN SUPPORT THEREOF. MOREOVER, THERE IS A LEGAL PRESUMPTION U/S 114(E) OF THE EVIDENCE ACT THAT THE PROCEEDING OR THE FINDING IN THE ORDER ARE DEEMED TO BE CORRECT UNLESS CONTRA RY IS PROVED OTHERWISE. IN THE LIGHT OF LEGAL PROVISION, WE ARE OF THE VIEW TH AT THE BOOKS OF ACCOUNTS WERE NOT PRODUCED BEFORE THE CIT(EXEMPTION). THE CI T(EXEMPTION) HAS EVERY RIGHT TO EXAMINE THE BOOKS OF ACCOUNTS BEFORE GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. IN ORDER TO RESOLVE THE CONT ROVERSY THE ISSUE IS REQUIRED FOR FRESH ADJUDICATION AND WE ACCORDINGLY SET ASIDE THE ORDER OF THE CIT(EXEMPTION) AND RESTORE THE MATTER TO HIS FILE W ITH A DIRECTION TO READJUDICATE THE ISSUE AFRESH OF GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. WE ALSO DIRECT THE 3 ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNTS, BILLS AN D VOUCHERS BEFORE THE CIT(EXEMPTION) ON THE DATE FIXED FOR HEARING. SINCE THE SERIOUS DISPUTE WAS RAISED WITH REGARD TO THE FACTS RECORDED IN THE ORD ER OF THE CIT(EXEMPTION) WE DIRECT THE CIT(EXEMPTION) TO DISPOSE OF THE APPL ICATION OF GRANT OF APPROVAL WITHIN A PERIOD OF TWO MONTHS FROM THE DAT E OF RECEIPT OF THE ORDER OF THE TRIBUNAL AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/- SD/- (A.K. GARODIA ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22/09/2015 AKS 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. R EGISTRAR