Azad Shiksha Kendra, Jaunpur V. CIT(Exemption), Lucknow

ITA 478/LKW/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 8892 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 27-07-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Assessee Lawyers: SHAILENDRA MISHRA
• Keywords: Principle of natural justice
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 478/LKW/2017 ASSESSMENT YEAR: 2017 - 18 AZAD SHIKSHA KENDRA SIPAH SADAR JAUNPUR V. C IT (EXEMPTIONS) LUCKNOW T AN /PAN : AABTA1701B (APP LICA NT) (RESPONDENT) APP LIC ANT BY: SHRI SHAILENDRA MISHRA, ADVOCATE RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE OF HEARING: 26 0 9 201 8 DATE OF PRONOUNCEMENT: 28 0 9 201 8 O R D E R PER P ARTHA SARA THI CHAUDHURY, J.M : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW DATED 25/5/2017 AS PER THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMP TION) HAS ERRED IN LAW AND ON FACTS IN REFUSING TO RENEW THE APPROVAL OF THE TRUST U/S 80G OF THE I . T ACT, 1961, FAILING THEREBY TO APPRECIATE THAT THE TRUST WAS REGISTERED U/S 12AA OF THE I . T ACT, 1961, (AND HAS BEEN FILING REGULAR RETURNS OF INCOME) AND THE IMPUGNED ORDER IS BASED ON PRESUMPTIONS , SURMISES AND CONJECTURES ONLY . 2. THAT THE APPELLANT CRAVES PERMISSION FOR AMENDING THE AFORESAID GROUNDS OF APPEAL AND / OR RAISING FRESH GROUNDS OF APPEAL. 2 . THE CRUX OF THE GRIEVANCE OF THE ASSESSEE IS REJ ECTION OF RENEWAL OF EXEMPTION OF THE TRUST UNDER SECTION 80G OF THE ACT. ITA NO.478/LKW/2017 PAGE 2 OF 4 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE - TRUST HAS BEEN CONSTITUTED WITH REGISTERED DEED ON THE 03 - 01 - 2004 IN THE OFFICE OF SUB - REGISTRAR, JAUNPUR. THE TRUST WAS REGISTERED VIDE ORDER UNDER SECTION 12AA OF THE ACT, DATED 23 - 04 - 2007 OF CIT, FAIZABAD. THE TRUST ENJOYED EXEMPTION UNDER SECTION 80G OF THE ACT AS WELL WHICH WAS EFFECTIVE FROM 01 - 04 - 2007 TO 31 - 03 - 2009. THE REAFTER APPLICATION FOR RENEWAL OF EXEMPTION UNDER SECTION 80G OF THE ACT WAS FILED BEFORE CIT (EXEMPTION), LUCKNOW ON 21 - 11 - 2016, WHO ISSUED NOTICE DATED 15 - 04 - 2017 FIXING THE DATE OF HEARING ON 11 - 05 - 2017. IN RESPONSE TO AFORESAID NOTICE , MANAGING TRUSTEE OF THE TRUST ATTENDED PERSONALLY AND FURNISHED WRITTEN S UBMISSION DATED 11 - 05 - 2017 AND PRODUCED THE BOOKS OF ACCOUNT AND VOUCHERS, ETC. MAINTAINED BY THE TRUST. THE CIT (EXEMPTION) , LUCKNOW HAS HOWEVER REFUSED TO RENEW EXEMPTION UNDER SECTION 80G OF THE ACT FOR THE ASSESSEE - TRUST. 4 . THE LD. A.R. OF THE ASSESSE E AT THE TIME OF HEARING BEFORE US SUBMITTED THAT SUFFICIENT OPPORTUNITY WAS NOT PROVIDED TO THE ASSESSEE - TRUST IN THIS CASE AND LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) HAD SUMMARILY DISMISSED THE PETITION FOR RENEWAL OF EXEMPTION UNDER SECTION 80G OF THE ACT WHICH IS EVIDENT FROM PARA 2 OF THE ORDER OF LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW. LD. A.R. OF THE ASSESSEE PRAYED THAT AN OPPORTUNITY MAY BE AFFORDED TO THE ASSESSEE BEFORE THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW TO PRESENT ASSESSEE - TRUSTS CASE EFFECTIVELY. 5 . THE LD. D.R., ON THE OTHER HAND, RELIED ON THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW. 6 . WE HAVE PERUSED THE CASE RECORD AND HEARD THE RIVAL CONTENTIONS AND ON A PERUSAL OF PARA 2 OF TH E ORDER OF LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW IT IS EVIDENT THAT REASONABLE OPPORTUNITY WAS NOT PROVIDED TO ASSESSEE - TRUST FOR PROPER PRESENTATION ITA NO.478/LKW/2017 PAGE 3 OF 4 OF THE CASE BEFORE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS). THERE WAS A NOTICE DATED 1 5/4/2017 FIXING THE DATE OF HEARING ON 11/5/2017. ON THAT DATE I.E. 11/5/2017 MANAGING TRUSTEE HAD FILED PART REPLY AND SOUGHT ADJOURNMENT FOR PRODUCING REMAINING REPLY, BOOKS OF ACCOUNT AND VOUCHERS. ON THAT DATE I.E. ON 22/5/2017 MANAGING TRUSTEE APPEA RED BUT COULD NOT PRODUCE ANY BOOKS OF ACCOUNT OR VOUCHERS OR ANY OTHER EVIDENCE OF CHARITY. AT THE TIME OF HEARING, LD. A.R. OF THE ASSESSEE STATED THAT THE BOOKS OF ACCOUNT WERE PRODUCED, HOWEVER, SINCE PROPER OPPORTUNITY OF HEARING WAS NOT ACCORDED TO THE ASSESSEE, THE CASE COULD NOT BE EXPLAINED BEFORE THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) IN AN APPROPRIATE MANNER, THAT IS THE REASON LD. A.R. OF THE ASSESSEE HAD ASKED FOR AN OPPORTUNITY AND PROPER HEARING BEFORE LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS). IN THE INTEREST OF JUSTI CE, WE SET ASIDE THE ORDER OF LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) AND RESTORE THE MATTER BACK TO HIS FILE TO PROVIDE PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND DECIDE THE MATTER AFRESH IN ACCORDANCE WI TH THE PRINCIPLES OF NATURAL JUSTICE. SIMILARLY, ASSESSEE IS ALSO DIRECTED TO PRODUCE NECESSARY DOCUMENTARY EVIDENCE TO EXPLAIN THE CASE ON MERITS. WITH THESE OBSERVATIONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, AP PEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 0 9 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28 TH SEPTEMBER , 201 8 JJ: 2609 ITA NO.478/LKW/2017 PAGE 4 OF 4 COPY FORWARDED T O: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR