Jan Sewa Khadi Grmodyog, Etawah V. CIT-II, Agra

ITA 44/AGR/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7015 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-05-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 26-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SRIVASTAVA
• Assessee Lawyers: NAVIN GARGH
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 44/AGRA/2010 U/S. 12AA JAN SEWA KHADI GRAMODYOG SEVA SANSTHAN, VS. COMMIS SIONER OF INCOME-TAX-II, 64, KATRA SEWA KALI, ETAWAH. AGRA. (PAN : AAAAJ 6502 B) (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI NAVIN GARGH, ADVOCATE. FOR RESPONDENT : SHRI A.K. SRIVASTAVA, JR. D.R. ORDER PER BENCH: THIS APPEAL HAS BEEN FILED AGAINST THE ORDER OF C IT-II, AGRA DATED 29.12.2009 REFUSING TO GRANT REGISTRATION TO THE ASSESSEE U/S. 12AA OF THE INCOME-TAX ACT ON THE GROUND THAT ON GOING THROUGH THE NIYAMAVALI OF THE SOCIETY, IT WAS FOUND THAT ON DISSOLUTION OF THE SOCIETY, IT CAN TRANSFER THE BALANCE FUNDS TO ANY PERSON OR PERSONS OR ANY AGENCY. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAR EFULLY CONSIDERED THE SAME. WE HAVE ALSO GONE THROUGH THE MEMORANDUM AND ARTICLE OF ASS OCIATION OF SOCIETY. RULE 32 OF THE NIYAMAVALI (ENGLISH VERSION) STATES AS UNDER : IN CASE OF DISSOLUTION OF SOCIETY, THE BALANCE ASS ETS AFTER PAYMENT OF ALL DUES ETC. WILL BE TRANSFERRED TO ANOTHER SOCIETY HA VING SAME OBJECTS AFTER APPROVAL FROM THE BOARD CENTRAL CERTIFIED SAMITEE. 3. FROM THE PERUSAL OF THE SAID NIYAMAVALI, IT IS A PPARENT THAT THE NIYAMAVALI OF THE SOCIETY NOWHERE PERMITS THE SOCIETY TO TRANSFER THE BALANCE FUNDS TO ANY PERSON OR PERSONS OR ANY AGENCY, RATHER RULE 32 IS SPECIFIC AND STATES THAT IN CASE OF DISSOLUTION, THE BALANCE OF THE ASSETS AFTER 2 PAYMENT OF ALL THE DUES BELONGING TO THE SOCIETY, W ILL BE TRANSFERRED TO ANOTHER SOCIETY HAVING THE SIMILAR OBJECTS. THUS, THE OBJECTION RAISED BY THE CIT, IN OUR OPINION, IS NOT TENABLE ON FACTS AND IN LAW. EVEN THE LEARNED DR COULD NOT POINT OUT ANY SPECIFIC PROVISION IN THE NIYAMAVALI WHICH STATES AS HAS BEEN OBSERVED BY THE CIT. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT THE CIT TO GRANT THE REGISTRATION TO THE ASSESSEE SOCIETY U/S. 12AA OF THE INCOME-TAX ACT IN ACCORDAN CE WITH LAW. 4. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.05.2011. SD/- SD/- (H.S. SIDHU) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 ST MAY, 2011 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY