Shri Panchmukhi Balaji Charitable Trust, Bathinda V. The Commissioner of Income Tax (Exemption), Chandigarh

ITA 451/ASR/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7837 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-07-2017
• Assessment Year: misc
• Appeal Filed On: 19-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL DHAWANLD
• Assessee Lawyers: P N ARORA LD
• Keywords: Charitable institution
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TR IBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH.T.S. KAPOOR, ACCOUNTANT MEMBER AND SH.N.K.CHOUDHRY, JUDICIAL MEMBER I.T.A. NO.451(ASR)/2015 ASSESSMENT YEAR:........ SHRI PANCHMUKHI BALAJI CHARITABLE TRUST, LAL SINGH BASTI, NARUANA ROAD, BATHINDA. PAN:AALTS-8574J VS. CIT, (EXEMPTION), CHANDIGARH (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P.N.ARORA (LD. AD V.) RESPONDENT BY: SH. RAHUL DHAWAN (LD. DR) DATE OF HEARING: 22.08.2017 DATE OF PRONOU NCEMENT: 23.08.2017 ORDER PER N. K. CHOUDHRY : THE INSTANT APPEAL HAS BEEN FILED BY THE ASSESSEE, BY FEE LING AGGRIEVED AGAINST THE ORDER PASSED UNDER SEC.80G(5)(VI ) DATED 17.03.2015, WHEREBY THE CIT(EXEMPTION) DECLINED TO G IVE APPROVAL TO THE ASSESSEE SOCIETY AND THE ASSESSEE CHALLENGED THE SAID ORDE R ON THE FOLLOWING GROUNDS OF APPEAL. 1. THAT THE LD. COMMISSIONER OF INCOME TAX(EXEMPTI ONS), CHANDIGARH ERRED ON FACTS AND LAW IN PASSING ORDER U/S 80G(5)(VI) IN WHICH APPLICATION FOR APPROVAL U/S 80G(5) HAS BE EN REJECTED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTI ONS) CHANDIGARH REJECTED THE APPLICATION OF APPROVAL U/S 80G(5)(VI) WITHOUT PROVIDING ADEQUATE OPPORTUNITY OF HEARING. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD OR A MEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DIS POSED OFF. 2. IN THE INSTANT CASE, AS IT REFLECTS FROM THE ORDER OF LD. CIT(E) THAT COPY OF REGISTRATION U/S 12A WAS NOT PROVIDED TO THE LD. CIT(E) AND NO I TA NO.451(ASR)/2015 2 NOTE ON ACTIVITIES CARRIED OUT BY THE TRUST HAVE BEEN SUBMITTED AND EVEN OTHERWISE, THE INCOME AND EXPENDITURE STATEMENT O F THE TRUST ALSO SHOWS THAT NO CHARITABLE ACTIVITY HAS BEEN CARRIED OU T BY THE TRUST WHICH QUALIFIES U/S 2(15) OF THE ACT. THEREFORE, THE CIT(E) WAS HAVING NO OPTION BUT TO CONSIDER THE CASE OF THE ASSESSEE SOCIETY ON THE BASIS OF MERIT AND THEREFORE, DECLINED THE REGISTRATION U/S 80G(5)(VI) OF THE ACT. THE ASSESSEE HAS FILED AN AFFIDAVIT OF ONE OF THE T RUSTEE OF THE ASSESSEE SOCIETY AND IN WHICH IT WAS SUBMITTED THAT SOCIETY IS ALREADY REGISTERED U/S 12A OF THE I.T. ACT AND THE APPLICATION FOR APPROVAL U/S 80G(5) WAS FILED BY THE ASSESSEE SOCIETY BEFORE THE LD. CI T(E), BATHINDA ON 23 RD SEP.2014 AND THEREAFTER, THE APPLICATION WAS TRANSFERRED TO THE CIT(E), CHANDIGARH AND INFORMATIO N AS REQUIRED WAS FILED ON 21 ST MAY, 2015, HOWEVER, IT CAME TO THE KNOWLEDGE OF THE ASSESSEE SOCIETY LATER ON 7 TH AUGUST, 2015 THAT THE APPLICATION OF THE ASSESSEE SOCIETY HAS ALREADY BEEN REJECTED VIDE ORDER DATED 17 TH MARCH, 2015, THEREAFTER, THE ASSESSEE PREFERRED THE INSTA NT APPEAL. 3. THE LD. DR, ON THE OTHER HAND, RELIED UPON THE ORD ER PASSED BY THE LD. CIT(E). 4. WE HAVE GONE THROUGH WITH THE FACTS AND CIRCUMSTANCES OF THE CASE AS IT REFLECTS FROM THE DOCUMENTS THAT SOCIETY IS REGIST ERED U/S 12A OF THE ACT AND TILL DATE THE SAID REGISTRATION HAS NOT BEEN WITHDRAWN, HOWEVER, IT REFLECTS FROM THE ORDER UNDER CHALLENGE THAT THE ASSESSEE SOCIETY HAS FAILED TO BRING ON RECORD THE COP Y OF I TA NO.451(ASR)/2015 3 REGISTRATION U/S 12A AND NO NOTE ON ACTIVITIES CARRIED O UT BY THE TRUST HAVE BEEN SUBMITTED, HOWEVER, FROM THE RECORD AN D AFFIDAVIT, IT SEEMS THAT THE INFORMATION AS REQUIRED BY THE LD. CIT (E) WAS FILED ON 21 ST MAY, 2015 WHEREAS, THE ORDER WAS ALREADY PASSED ON 17 TH MARCH, 2015 WHICH ACCORDING TO THE ASSESSEE AFFIDAVIT RECEIVED ON 7 TH AUGUST, 2015. CONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE , WE FEEL IT APPROPRIATE TO REMIT THE CASE TO THE FILE OF THE LD. CIT(E) TO DECIDE AFRESH AFTER AFFORDING PROPER AND REASONABLE OP PORTUNITY OF BEING HEARD TO THE ASSESSEE SOCIETY. THE ASSESSEE SOCIETY IS AL SO DIRECTED TO CO-OPERATE WITH THE PROCEEDINGS OF THE LD. CIT(E) IN CASE THEY FAIL TO DO SO THEN THEIR RIGHT SHALL BE SUBJECTED TO THE ORDER PASSED IN THE SAID CIRCUMSTANCES. 5. IN THE RESULT, THE ORDER PASSED BY THE LD. CIT(E ) IS SET ASIDE AND THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICA L PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 .08.2017. SD/- SD/- (T. S. KAPOOR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED:23.08.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER