Jamuna Devi Memorial Sansthan, Orai V. Commissioner of Income Tax (Exemption), Lucknow

ITA 459/LKW/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3595 (ITAT-LUCKNOW)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 23-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K BAR
• Assessee Lawyers: J J MEHROTRA
• Keywords: Charitable institution
• Section: 12A; 12AA

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. 459/LKW/2018 ASSESSMENT YEAR: N.A. JAMUNA DEVI MEMORIAL SANSTHAN 44, MATAPURA ORAI V. CIT (EX EMPTION) LUCKNOW T AN /PAN : AAAAJ6924B (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI J. J. MEHROTRA, FCA RESPONDENT BY: SHRI A. K. BAR, CIT (DR) DATE OF HEARING: 21 0 2 201 9 DATE OF PRONOUNCEMENT: 22 0 2 201 9 O R D E R PER A. D. JAIN, V.P . : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTION), LUCKNOW DATED 23/3/2018 REJECTING THE APPLICATION FOR REGISTRATION , UNDER SECTION 12AA(1)(B)(II) OF THE INCOME - TAX ACT, 1961 , TAKING THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE LEARNED CIT(EXEMPTIONS) HAS ERRED IN LAW AND ON FACTS IN REFUSING TO REGISTER THE SOCIETY UNDER SECTION 12AA OF THE I . T. ACT, 1961. 2. THAT THE LEARNED CIT (EXEMPTIONS) HAS LOST SIGHT OF THE FACT THAT THE APPELLANT SOCIETY IS RUNNING AN EDUCA TIONAL INSTITUTION AND THE IMPARTING OF EDUCATION IS A CHARITABLE PURPOSE WITHIN THE MEANING OF SECTION 2(15) OF TH E I . T. ACT, 1961, 3. THAT THE LEARNED CIT (EXEMPTIONS) IS NOT JUSTIFIED IN DECIDING THE APPLICATION FILED BY THE APPELLANT SOCIETY ON EX - PA RTE BASI S M, MORE PARTICULARLY, WHEN THE PRESIDENT OF THE APPELLANT SOCIETY HAD ITA NO.459/LKW/2018 PAGE 2 OF 4 REQUESTED FOR AN ADJOURNMENT BECAUSE OF ILLNESS FOR WHICH MEDICAL CERTIFICATE WAS ALSO FILED BY THE PRESIDENT OF THE SOCIETY. 4. THAT THE LEARNED CIT (EXEMPTIONS) HAS NOT CORR ECTLY APPRECIATED THE NATURE OF THE OBJECTS OF THE APPELLANT SOCIETY WHICH ARE PRIMARILY THAT OF PROVISION OF EDUCATION AND IS WRONG IN HOLDING THAT THE APPELLANT SOCIETY IS ENGAGED IN BUSINESS OF EDUCATION WITHOUT ANY ELEMENT OF CHARITY. 5. THAT THE VAR IOUS OBSERVATIONS MADE BY THE CIT (EXEMPTIONS) ARE FACTUALLY INCORRECT AND ON WRONG APPRECIATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE ALLEGATIONS MADE ARE TOTALLY IMPROPER AND CONTRARY TO THE NATURE OF THE ACTIVITIES OF THE APPELLANT SOCIETY AND, THEREFORE, CIT (EXEMPTIONS)IS WRONG IN REJECTING THE REGISTRATION APPLICATION OF THE APPELLANT SOCIETY UNDER SECTION 12AA OF THE I . T. ACT, 1961. 6. THAT THE ORDER PASSED BY THE LEARNED CIT (EXEMPTIONS) IS WITHOUT PROPER OPPORTUNITY AND, THEREFORE, I S BAD IN LAW AND DESERVES TO BE VACATED. 7. THAT THE APPELLANT CRAVES LEAVES TO ADD, ALTER, AMEND, AND WITHDRAW ANY OR ALL OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 2 . THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE TRUST APPLIED FO R REGISTRATION U/S 12A(A) OF THE ACT WITH CIT (EXEMPTIONS) VIDE APPLICATION DATED 12/10/2017 . THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 10/2 /2018 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING THE APPLICATION FOR REGISTRATION U/S 12A FOR COMPL IANCE ON 28/2/ 2018. ON THIS DATE, I.E., 28/2/2018, AN APPLICATION FOR ADJOURNMENT HA D BEEN MOVED BY THE ASSESSEE AND SUBSEQUENTLY, THE DATE OF HEARING WAS RE - FIXED FOR 23/3/2018 , WHICH WAS TELEPHONICALLY INFORMED TO THE PRESIDENT OF THE SANSTHAN, SHRI RAKE SH KUMAR AGRAWAL. HOWEVER, NONE APPEARED ON 2 3/3 /2018 NOR ANY ADJOURNMENT APPLICATION WAS FILED, THEREFORE, LD. CIT (EXEMPTIONS) REJECTED THE APPLICATION OF THE ASSESSEE FOR ITA NO.459/LKW/2018 PAGE 3 OF 4 REGISTRATION U/S 12A(A) OF THE ACT ON THE GROUND THAT SUFFICIENT MATERIAL REQUIRE D FOR FORMATION OF SATISFACTION HAS NOT BEEN PRODUCED. 3 . HEARD. FROM THE ORDER OF LEARNED CIT (EXEMPTIONS), IT IS APPARENT THAT THE LD. CIT (EXEMPTIONS) HAD ISSUED ONLY ONE LETTER DATED 10/2/ 2018 CALLING FOR CERTAIN QUERIES, DOCUMENTS/CLARIFICATIONS. THE ASS ESSEE COULD NOT FILE BOOKS OF ACCOUNT AND VOUCHERS AND THE CIT (EXEMPTIONS) PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A OF THE ACT. IN THESE FACTS, WE FEEL THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSE E TO EXPLAIN ITS CASE BEFORE THE LD. CIT (EXEMPTIONS). WE ARE OF THE VIEW FROM THE FACTS OF THE CASE THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER AND SUFFICIENT OPPORTUNITY BEFORE DISPOSING OF THE APPLICATION OF REGISTRATION BY THE LD. CIT (EXEMPTIONS). W E, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTIONS) 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 O PPORTUNITY 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 (EXEMPTIONS). 4 . IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 / 02 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 22 ND FEBRUARY , 201 9 JJ: 2102 ITA NO.459/LKW/2018 PAGE 4 OF 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR BY ORDE R ASSISTANT REGISTRAR