Shree Shiv Krishna Sewa Trust, New Delhi V. DIT (Exemption), New Delhi

ITA 4801/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58420 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 03-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: PANKAJ JAIN; GURMEET SINGH
• Keywords: Opportunity of being heard
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI. BEFORE SHRI A.D. JAIN AND SHRI K.G. BANSAL I.T.A. NOS. 4801 & 4802(DEL)/2011 ASSESSMENT YEAR: N.A. SHREE SHIV KRISHNA SEWA TRUST, DI RECTOR OF INCOME-TAX, 4117, SECOND FLOOR, VS. (EXEMPTION), NEW DELHI. NAYA BAZAR, DELHI. PAN: AAKTS5775J (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI PANKAJ JAIN, ADVOCATE & SHRI GURMEET SINGH, C.A. RESPONDENT BY: SH RI R.S. NEGI, D.R. DATE OF HEARIN G: 05.01.2012 DATE OF PRONOUN CEMENT: 05.01.2012. ORDER PER BENCH THE FACTS OF THE CASE ARE THAT THE ASSESSEE M OVED TWO APPLICATIONS ON 16.09.2010 FOR SEEKING REGISTRATI ON U/S 12AA AND APPROVAL U/S 80G OF THE INCOME-TAX ACT, 1961. IN THE COURS E OF HEARING, THE LD. DIRECTOR OF INCOME-TAX (E) REQUIRED EVIDENCE O R CLARIFICATIONS, AS THE CASE MAY BE, ON 12 POINTS. THEREAFTER, HE REJECT ED THE APPLICATION FOR REGISTRATION BY MENTIONING THAT THE ASSESSEE HAS FAILED TO ESTABLISH ITS GENUINENESS. AS REGISTRATION WAS NOT GRANTED, APPROVAL U/S 80G WAS ALSO DENIED. ITA NOS. 4801 & 4802(DEL)/2011 2 2. BEFORE US, THE LD. COUNSEL REFERRED TO THE FIN DINGS OF THE LD. DIT(E) AND SUBMITTED THAT SEVEN REASONS WERE MENTIONED FOR NOT REGISTERING THE TRUST. ON PERUSAL THEREOF, WE FIND THAT AT LEA ST TWO OBJECTIONS ARE SERIOUS IN NATURE-(I) NO EVIDENCE WAS FILED REGARDING CO NTRIBUTION OF THE AMOUNT MADE BY THE SETTLER TO THE TRUST, AND (II) ON E OF THE OBJECTS REGARDING CONSTRUCTION OF RESORTS IS NOT A CHARITABLE PURP OSE AS IT IS A BUSINESS PURPOSE. THE LD. COUNSEL, IN ALL FAIRNESS, SUBMIT TED THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE LD. DIT(E) SO AS TO E NABLE THE TRUST TO CARRY OUT MODIFICATION ETC. IN THE TRUST DEED IF REQUIRED . THE LD. DR HAD NO OBJECTION TO ADOPTION OF THIS COURSE OF ACTION. ACCORDINGLY, THE MATTER REGARDING GRANT OF REGISTRATION IS RESTORED TO TH E FILE OF THE LD. DIT(E) WITH A DIRECTION TO PASS A FRESH ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. BOTH THE PARTIES WILL BE FREE TO BRING ANY EVIDENCE ON RECORD TO SUPPORT THE RESPECTIVE CASES. 3. THE REFUSAL OF THE APPROVAL U/S 80G IS BASED UPON NON-GRANT OF REGISTRATION. WE HAVE RESTORED THE MATTER OF RE GISTRATION TO THE FILE OF THE LD. DIT(E). CONSEQUENTLY, THIS MATTER IS ALSO RESTORED TO HIS FILE WITH DIRECTION TO PASS A FRESH ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ITA NOS. 4801 & 4802(DEL)/2011 3 ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD . AGAIN BOTH THE PARTIES WILL BE FREE TO BRING ANY EVIDENCE ON RECORD TO SUPPORT THEIR RESPECTIVE CASES. 4. IN THE RESULT, BOTH THE APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. SD/- SD/- (A.D. JAIN) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER SP SATIA COPY OF THE ORDER FORWARDED TO:- (I) SHREE SHIV KRISHNA SEWA TRUST, DELHI. (II) A.O. (III) DIT(E), NEW DELHI. (IV) CIT (V) THE D.R., ITAT, NEW DELHI. ASSISTANT REGISTRAR.