M/s Manoj Gramodyog Sansthan, Faizabad V. Commissioner of Income Tax, Faizabad

ITA 453/LKW/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 5177 (ITAT-LUCKNOW)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-12-2013
• Assessment Year: 2010-2011
• Appeal Filed On: 18-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DHARMENDRA PANDEY
• Keywords: Deemed Gift on Purchase of immovable Property below Jantri value; Gift
• Section: 80G; 12A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.453/LKW/2013 A.Y.:2010 - 11 M/S MANOJ GRAMODYOG SANSTHAN, VILL. PARUWA (PURE PANDIT), SHAHGANJ, FAIZABAD. PAN:AAABM0406E VS. C.I.T., FAIZABAD. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI DHARMENDRA PANDEY RESPONDENT BY SHRI RAJIV JAIN, CIT, D.R. DATE OF HEARING 17/12/2013 DATE OF PRONOUNCEMENT 2 7 /12/2013 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT, FAIZABAD DATED 27/12/2011 PASSED BY HIM U/S 80G ( 5) OF THE ACT. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. THE LEARNED CIT IS NOT JUSTIFIED IN NOT ALLOWING OPPORTUNITY BEFORE REFUSING REGISTRATION TO THE APPELLANT. 2. THAT ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT IS NOT LEGALLY JUSTIFIED APPROVAL 80(5) TO THE APPELLANT. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12A OF THE ACT AND THE SAME IS NOT 2 WITHDRAWN EVEN TILL DATE. HE FURTHER SUBMITTED THAT SINCE THE REGISTRATION IS GRANTED TO THE ASSESSEE, IT IS NOT PROPER FOR THE CIT TO DENY APPROVAL U/S 80G ( 5) OF THE ACT. 4. AS AGAINST THIS, LEARNED D.R. OF THE REVENUE HAS SUPPORTED THE ORDER OF LEARNED CIT. 5 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF LEARNED CIT , FAIZABAD. WE FIND THAT IT IS NOTED BY HIM ALSO IN PARA 7 OF HIS ORDER THAT THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12A MAY REQUIRE TO BE REVIEWED. THIS MEANS THAT THE REGISTRATION IS ALREADY GRANTED TO THE ASSESSEE U/S 12A OF THE AC T AND TILL THIS IMPUGNED ORDER WAS PASSED, THE SAME WAS NOT WITHDRAWN. THE CLAIM OF THE ASSESSEE BEFORE US IS THAT THE REGISTRATION IS STILL VALID AND THE SAME HAS NOT BEEN WITHDRAWN EVEN TILL DATE. INSPITE OF THIS CONTENTION OF LEARNED A.R. OF THE ASSES SEE, NOTHING COULD BE BROUGHT ON RECORD BY THE REVENUE TO SHOW THAT THE REGISTRATION GRANTED TO THE ASSESSEE HAS BEEN WITHDRAWN. REGARDING THIS OBJECTION OF CIT IN PARA 7 OF HIS ORDER THAT THE PROPERTY IN DISPUTE HAS BEEN STATED TO BE GIVEN IN DONATION OR GIFT AND IT WAS SO STATED BEFORE HIM BY MEANS OF NOTARIZED AFFIDAVIT BUT THE SAME IS NEGATED BECAUSE OF SUBSEQUENT EXECUTION OF SALE DEED. IN THE STATEMENT OF FACTS FILED BY THE ASSESSEE BEFORE US, IT HAS BEEN STATED THAT FOR THE PURPOSE OF MAKING GIFT OF IMMOVABLE PROPERTY , THE TRANSFER MUST BE EFFECTED BY REGIST ERED INSTRUMENT. THIS IS SETTLED POSITION THAT EVEN FOR GIFT OF IMMOVABLE PROPERTY; THE GIFT HAS TO BE BY WAY OF PROPER REGISTERED GIFT DEED ON WHICH STAMP DUTY IS ALSO PAYABLE. HENCE, THIS OB JECTION OF CIT IS 3 NOT VALID IN REFUSING THE REQUEST OF THE ASSESSEE FOR APPROVAL U/S 80G ( 5) OF THE ACT. CONSIDERING THESE FACTS, WE DIRECT CIT, FAIZABAD TO GRANT APPROVAL U/S 80G ( 5) TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS A LLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) (A . K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 T H DECEMBER, 2013. *C.L.SINGH 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. REGISTRAR