Saraswati Shiksha Parishad, Bahraich V. Commissioner of Income Tax (Exemption), Lucknow

ITA 436/LKW/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6811 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-03-2021
• Assessment Year: misc
• Appeal Filed On: 08-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ABHA KALA CHANDA
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 12A; 12AA; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI A.D JAIN, VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 436/LKW/2019 A.Y. N.A. CIT(EXEMPTIONS), LUCKNOW VS. SARASWATI SHIKSHA PARISHAD, MADHAVPURI, BAHRAICH- 271801 PAN AAJAS 6992D (RESPONDENT) (APPELLANT) SHRI RAKESH GARG, ADVOCATE APPELLANT BY SMT. ABHA KALA CHANDA, CIT, DR RESPONDENT BY 17/03/2021 DATE OF HEARING 04/06/2021 DATE OF PRONOUNCEMENT O R D E R PER: T.S. KAPOOR, A.M: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW, DATED 07/05/2019, REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME TAX ACT, 1961. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME TAX ACT, 1961 ON 26/11/2018 WITH THE CIT (EXEMPTION), LUCKNOW. THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 25/03/2019 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT, FOR COMPLIANCE ON 07/05/2019. ON THAT DATE, I.E., 07/05/2019 NONE APPEARED NOR FILED ANY APPLICATION FOR ADJOURNMENT, THEREFORE, LD. CIT (EXEMPTION) REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 2 ITA NO.436/LKW/2019 12A(A) OF THE ACT ON THE GROUND THAT ASSESSEE HAS FAILED TO PROVIDE SUFFICIENT MATERIAL TO CORROBORATE THE CHARITABLE NATURE OF THE OBJECTS AND GENUINENESS OF THE ACTIVITIES. BEFORE US, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT LD. CIT (EXEMPTION) HAS REJECTED THE APPLICATION OF ASSESSEE SOCIETY BY HOLDING THAT ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS, BANK STATEMENT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE WHEREAS THE FACT REMAINS THAT NO NOTICE WAS SERVED ON THE ASSESSEE FOR ITS APPEARANCE BEFORE THE LD. CIT(EXEMPTION). IT WAS SUBMITTED THAT RATHER IT WAS RETURNED BACK BY POSTAL AUTHORITIES. HE FURTHER SUBMITTED THAT LD. CIT(EXEMPTION) HAS PASSED THE ORDER ON 07.05.2019 WHICH WAS THE DATE OF FIRST HEARING AND WITHOUT GIVING THE ASSESSEE AN OPPORTUNITY OF HEARING HAS REJECTED THE APPLICATION OF ASSESSEE WHICH IS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. THEREFORE, IT WAS PRAYED THAT ORDER OF LD CIT BE QUASHED AND ASSESSE BE GRANTED REGISTRATION U/S 12A OF THE ACT AS THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE. 3. THE LD. D.R. HAS PLACED RELIANCE ON THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW. 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT LD. CIT(EXEMPTION) HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE I.T. ACT ON THE GROUND THAT ASSESSEE HAS FAILED TO PROVIDE SUFFICIENT MATERIAL TO CORROBORATE THE CHARITABLE NATURE OF THE OBJECTS AND GENUINENESS OF THE ACTIVITIES. FROM THE ORDER OF LD. CIT (EXEMPTION), IT IS APPARENT THAT THE LD. CIT (EXEMPTION) HAD ISSUED ONLY ONE LETTER DATED 25/03/2019 CALLING FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION. THE LD. AR HAS CLAIMED THAT SUCH NOTICE WAS NOT SERVED ON THE ASSESSEE. WE FURTHER FIND 3 ITA NO.436/LKW/2019 THAT THE DATE OF HEARING WAS FIXED FOR 07.05.2019 AND ON THE SAME DATE THE LD. CIT(EXEMPTION) PASSED THE ORDER AND REJECTED THE APPLICATION OF ASSESSEE. UNDER THESE FACTS, WE FEEL THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO EXPLAIN ITS CASE BEFORE THE LD. CIT (EXEMPTION) AS THE ASSESSEE HAS NOT BEEN GIVEN PROPER AND SUFFICIENT OPPORTUNITY BEFORE DISPOSING OF THE APPLICATION OF REGISTRATION BY THE LD. CIT (EXEMPTION). WE, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTION) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO CONSIDER THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO BE PRESENT ON THE DATE OF HEARING AND PROVIDE THE MATERIAL / CLARIFICATION AS ASKED FOR BY THE LD. CIT (EXEMPTION). 5. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 04/06/2021) SD/- SD/- (A.D. JAIN) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER AKS/ DTD. 04/06/2021 COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR