Saraswati Devi Educational & Charitable Trust, Sonepat V. CIT, Rohtak

ITA 4641/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61705 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 11-06-2012
• Assessment Year: misc
• Appeal Filed On: 20-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P BASIA
• Assessee Lawyers: S K UPADHYAYA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Non compliance
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA ITA NOS. 4641 & 4642/DEL/11 U/S 12AA(1)(B) & 80-G OF THE I.T. ACT. SARASWATI DEVI EDUCATIONAL & VS. COMMISSIONER OF INCOME-TAX, CHARITABLE TRUST, 34, ANAJ MANDI, ROHTAK. SONEPAT. PAN/ GIR NO.AAKTS 2846L ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI R.P. BASIA CA ASSESSEE BY : SHRI S.K. UPADHYAYA SR. DR O R D E R PER R.P. TOLANI, J.M: : THESE ARE TWO APPEALS BY THE ASSESSEE ASSAILING REFUSAL OF REGISTRATION U/S 12AA AND 80-G OF THE INCOME-TAX AC T. RESPECTIVE GROUNDS RAISED IN THESE APPEALS ARE AS UNDER: ITA 4641/DEL/11 : 1. THAT THE CIT HAS WRONGLY DISMISSED THE APPLICAT ION FOR REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 1961, WITHOUT GIVING APPROPRIATE OPPORTUNITY AND IGNORING ALL MER ITS OF THE CASE. 2. THAT THE LD. CIT HAS ALSO WRONGLY CONCLUDED THAT THE AIMS & OBJECTS OF THE TRUST ARE NOT OF CHARITABLE N ATURE. 3. THAT THE LD. CIT HAS ALSO WRONGLY CONCLUDED THAT THE ACTIVITIES OF THE TRUST CANNOT BE PUT TO THE TEST O F GENUINENESS. 4. THAT THE LD. CIT HAD WRONGLY IGNORED THE FACT TH AT THE APPELLANT TRUST EXISTS SOLELY FOR EDUCATIONAL AND C HARITABLE PURPOSE AND NOT FOR THE PURPOSE OF PROFIT AS EVIDEN T FROM ITS AIMS AND OBJECTS. 2 5. THAT THE LD. CIT HAS PASSED THE ORDER IN HASTE A ND IS AGAINST THE FACTS, LAW AND PROVISIONS OF THE INCOME TAX ACT, 1961 AND RULES MADE THERE UNDER. 6. THE APPELLANT TRUST CRAVES TO ADD, MODIFY, DELET E, AND WITHDRAW ANY FURTHER GROUND ON OR BEFORE THE DATE O F HEARING. ITA 4642/DEL/11 : 1. THAT THE CIT HAS WRONGLY DISMISSED THE APPLICATI ON FOR REGISTRATION U/S 80G OF THE INCOME-TAX ACT, 1961, W ITHOUT GIVING APPROPRIATE OPPORTUNITY AND IGNORING ALL MER ITS OF THE CASE. 2. THAT THE LD. CIT HAS ALSO WRONGLY CONCLUDED THAT THE AIMS & OBJECTS OF THE TRUST ARE NOT OF CHARITABLE N ATURE, MAKING IT A GROUND OF REJECTION OF REGISTRATION U/S 12A AN D THEREBY REJECTING APPROVAL U/S 80G. 3. THAT THE LD. CIT HAD WRONGLY IGNORED THE FACT TH AT THE APPELLANT TRUST EXISTS SOLELY FOR EDUCATIONAL AND C HARITABLE PURPOSE AND NOT FOR THE PURPOSE OF PROFIT AS EVIDEN T FROM ITS AIMS AND OBJECTS. 4. THAT THE LD. CIT HAS PASSED THE ORDER IN HASTE A ND IS AGAINST THE FACTS, LAW AND PROVISIONS OF THE INCOME TAX ACT, 1961 AND RULES MADE THERE UNDER. 5. THE APPELLANT TRUST CRAVES TO ADD, MODIFY, DELET E, AND WITHDRAW ANY FURTHER GROUND ON OR BEFORE THE DATE O F HEARING. 2. BRIEF FACTS ARE: THE ASSESSEE MOVED APPLICATIONS U/S 12A(1)(AA) AND U/S 80G(5)(VI) OF THE INCOME TAX ACT. THE APPLICATI ONS WERE ACCOMPANIED BY A COPY OF TRUST DEED DATED 27-12-2010 TO THE CIT , ROHTAK ON 9-3-2011. CIT CALLED FOR REPORT FROM THE AO CONCERNED AS TO W HETHER THE APPLICANT FULFILLED THE CONDITIONS REQUIRED FOR GRANT OF REGI STRATION U/S 12AA AND U/S 80G. ASSESSEE SUBMITTED THE REQUIRED DOCUMENTS, AUD ITED ACCOUNTS ALONG 3 WITH COPIES. JCIT VIDE LETTER F.NO. 1419 DATED 19-7 -2011, HOWEVER, DID NOT RECOMMEND THE CASE FOR REGISTRATION. THEREAFTER, CI T REQUIRED THE APPELLANT TO SUBMIT INFORMATION, AS MENTIONED IN PARA 3 OF T HE ORDER. ACCORDING TO CIT THE APPLICANT COULD NOT FURNISH MOST OF THE INF ORMATIONS/ DOCUMENTS TO SUBSTANTIATE THE CHARITABLENESS OF THE OBJECTS AND GENUINENESS OF THE ACTIVITIES OF THE APPLICANT SOCIETY, HOWEVER, THE S PECIFIC NON COMPLIANCE IS NOT MENTIONED. CIT, FOR WANT OF INFORMATION, REJECT ED THE APPLICATIONS OF THE APPLICANT FOR REGISTRATION U/S 12AA AS WELL AS U/S 80G OF THE I.T. ACT. AGGRIEVED, THE APPELLANT IS BEFORE US IN THESE APPE ALS. 3. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT ALL DOCUMENTS, CALLED FOR, WERE DULY FURNISHED ALONG W ITH AUDITED ACCOUNTS, BEFORE THE CIT. THE CIT ERRONEOUSLY HELD THAT INFOR MATION WAS NOT FILED AND WITHOUT PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND WITHOUT CONSIDERING THE MATERIAL FURNISHED, REJECTED APPLIC ATIONS OF THE APPELLANT FOR REGISTRATION U/S 12AA AND 80G OF THE I.T. ACT. IT I S PLEADED THAT SH. B.B. MITTAL, THE COUNSEL OF THE APPLICANT TRUST APPEARED BEFORE THE LD. CIT ON 19- 8-2011 AND ALL REQUISITE INFORMATION/ EXPLANATIONS VIS--VIS THE BOOKS OF ACCOUNTS OF THE TRUST, THE ACTIVITIES OF THE TRUST FOR THE LIMITED PERIOD OF EXISTENCE, DOCUMENTS IN SUPPORT OF THE ABOVE, DETAI LS OF THE OFFICERS OF THE TRUST, THE CLARIFICATIONS REGARDING OBJECT OF THE T RUST ETC. WERE DULY SUBMITTED/ PRODUCED BEFORE THE LD. CIT. 3.1. LD. COUNSEL SUBMITTED THAT TRUST BEING CHARITA BLE IN NATURE, IN THE INTEREST OF NATURAL JUSTICE, THE REGISTRATION MAY BE GRANTED OR THE MATTER MAY BE REMANDED, RESTORED BACK TO THE FILE OF DIT TO DE CIDE THE ISSUE OF REGISTRATION U/S 12AA AND U/S 80G ON MERITS, AFTER PERUSING THE INFORMATION AND AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT. 4. LD. D.R. IS HEARD. 4 5. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE CIT HAS NOT INDIC ATED THE NATURE OF INFORMATION NOT FURNISHED AND WITHOUT CONSIDERING T HE DOCUMENTS FILED BY THE APPLICANT ALONG WITH APPLICATIONS FOR REGISTRA TION U/S 12AA/80G HAS REJECTED ASSESSEES CLAIM SOLELY ON THE GROUND THAT APPLICANT COULD NOT FILE MOST OF THE INFORMATIONS CALL FOR. WE FIND FORCE IN THE ARGUMENT OF LD. COUNSEL THAT CIT FAILED TO CONSIDER THE CLAIM OF T HE APPLICANT ON MERIT, WITHOUT CONSIDERING THE RECORD AND AFFORDING OPPORT UNITY OF BEING HEARD TO THE APPLICANT ON ALLEGED NON COMPLIANCE. IN THE INT EREST OF NATURAL JUSTICE WE DEEM IT FIT AND PROPER TO RESTORE THE ISSUES IN QUE STION I.E. REGISTRATION U/S 12AA/80G, BACK TO THE FILE OF CIT FOR DECISION AFR ESH ON MERIT IN ACCORDANCE WITH LAW, AFTER AFFORDING REASONABLE OPP ORTUNITY OF BEING HEARD TO THE APPELLANT. WE ORDER ACCORDINGLY. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE APP ELLANT ARE ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN OPEN COURT ON 11-6-2012. SD/- SD/- ( SHAMIM YAHYA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11-6-2012. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 5