Search Talent League , Noida V. CIT(E), Lucknow

ITA 4676/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8084 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M P RASTOGI SHRI S S RA
• Assessee Lawyers: HAD NOT
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

~ 1 ~ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.4676/DEL/2018 ASSESSMENT YEAR:N.A. SEARCH TALENT LEAGUE, A-108, SECTOR-4, NOIDA. PAN:AAUTS 4133 J VS. C.I.T. (EXEMPTION), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LEARNED CIT(EXEMPTION), LUCKNOW DATED 14/05/2018. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THAT THE CIT (EXEMPTION) OUGHT NOT TO HAVE REFU SED THE REGISTRATION TO A NEWLY CREATED SOCIETY, WITHOUT PO INTING OUT ANY OBJECT OF THE SOCIETY AS NON-CHARITABLE ON THE GROUND OF NON-GENUINENESS OF THE ACTIVITIES AND CONSEQUENTLY THE ORDER OF CIT (EXEMPTION) U/S 12AA OF THE IT ACT IS ARBITR ARY AND BAD IN LAW. 2. THAT THE CIT (EXEMPTION) OUGHT NOT TO HAVE DENIE D THE REGISTRATION U/S 12AA OF THE IT ACT TO THE NEWLY CR EATED ASSESSEE-SOCIETY, THE ACTIVITIES HAVE YET TO BE UND ERTAKEN, ON THE GROUND OF NONGENUINENESS OF THE ACTIVITIES. 2. AT THE OUTSET, LEARNED A.R. SUBMITTED THAT ASSES SEE HAD APPLIED FOR REGISTRATION U/S 12AA OF THE ACT ON 28/12/2017 AND THE ASSESSEE HAD NOT APPELLANT BY SHRI M. P. RASTOGI, ADVOCATE RESPONDENT BY SHRI S. S. RANA, CIT, (DR) DATE OF HEARING 10/04/2019 DATE OF PRONOUNCEMENT 12/04/2019 ~ 2 ~ CARRIED OUT ANY ACTIVITIES AS YET AND AT THE TIME O F GRANTING REGISTRATION U/S 12A OF THE ACT THE LEARNED C.I.T. (EXEMPTION) IS EN TITLED TO EXAMINE ONLY THE OBJECTS OF THE ASSESSEE WHICH UNDISPUTEDLY ARE CHARITABLE IN NATURE WHICH IS APPARENT FROM THE COPY OF TRUST DEED PLACE D AT PAGES 23 TO 32 OF THE PAPER BOOK. LEARNED A.R. SUBMITTED THAT ASSESS EE WAS ISSUED NOTICE FOR HEARING WHICH WAS FIXED FOR 14/05/2018 AND ON 1 4/05/2018 LEARNED C.I.T. (EXEMPTION) PASSED ORDER AGAINST THE ASSESSE E. IT WAS AGAIN SUBMITTED THAT AT THE TIME OF GRANTING REGISTRATION U/S 12A THE C.I.T. (EXEMPTION) WOULD ONLY EXAMINE THE OBJECTS AND GENU INENESS OF THE ACTIVITIES. THE RELIANCE WAS PLACED ON THE ORDER O F HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF HARDAYAL CHARITABLE AND EDUCAT IONAL TRUST VS. CIT [2013] 355 ITR 534 (ALL). FURTHER THE RELIANCE WAS PLACED ON AN ORDER OF HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF FIFTH G ENERATION EDUCATION SOCIETY VS. CIT 185 ITR 634 (ALL). 3. LEARNED D.R., ON THE OTHER HAND, SUBMITTED THAT DESPITE HAVING GIVEN ADEQUATE OPPORTUNITY, NO BOOKS OF ACCOUNT, VOUCHERS , BANK STATEMENT OR FINANCIAL STATEMENTS WERE PRODUCED AND THEREFORE, I N THE ABSENCE OF ABOVE DOCUMENTS, LEARNED CIT (EXEMPTION) WAS NOT ABLE TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. IT WAS SUBMITTED THAT LEARNED CIT (EXEMPTION) HAS RELIED ON VARIOUS DECISIONS FOR REJ ECTING THE APPLICATION OF THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE T HROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT UNDISPUTEDLY THE A SSESSEE WAS GIVEN OPPORTUNITY OF BEING HEARD AND THE DATE WAS FIXED O N 14/05/2018. THE ASSESSEE WAS REQUIRED TO COMPLY TO THE QUESTIONNAIR E DATED 02/04/2018 PLACED AT PAGES 32 TO 34 OF THE PAPER BOOK. THE AS SESSEE PART REPLIED TO THE QUESTIONNAIRE, A COPY OF WHICH IS PLACED AT PAG ES 35 TO 48 OF THE PAPER BOOK. LEARNED CIT (EXEMPTION), WITHOUT CONFRONTING THE ASSESSEE WITH HIS OBJECTIONS, PASSED THE ORDER AGAINST THE ASSESSEE W HICH IS NOT JUSTIFIABLE AS RULES OF NATURAL JUSTICE REQUIRES THAT BEFORE PASSI NG AN ORDER THE ASSESSEE ~ 3 ~ SHOULD HAVE BEEN HEARD ON HIS OBJECTIONS. MOREOVER , WE FIND THAT THE CASE LAW RELIED ON BY LEARNED A.R. STATES THAT AT THE TI ME OF GRANTING REGISTRATION, THE LEARNED CIT (EXEMPTION) IS ONLY ENTITLED TO EXA MINE THE OBJECTS AND GENUINENESS OF THE ACTIVITIES. IN THE PRESENT CASE WE FIND THAT THE ASSESSEE WAS NOT GIVEN PROPER OPPORTUNITY THEREFORE, WE DEEM IT APPROPRIATE TO REMIT THE ISSUE BACK TO THE FILE OF LEARNED CIT (EXEMPTIO N) WHO SHOULD PASS ORDER AFRESH AFTER HEARING THE ASSESSEE AND AFTER G OING THROUGH THE JUDGMENTS RELIED ON BY LEARNED A.R. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 12/04/2019) SD/. SD/. (SUCHITRA KAMBLE) ( T. S. KAPOOR ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:12/04/2019 *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.,