M/s. Kashyap Charitable & Educational Trust, Jammu V. Commissioner of Income-tax, Jammu

ITA 484/ASR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4412 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-09-2013
• Assessment Year: misc
• Appeal Filed On: 31-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 484 (ASR)/2012 ASSESSMENT YEAR: NIL PAN: AABTK8767B M/S KASHYAP CHARITABLE & VS. COMMISSIONER OF INCO ME EDUCATIONAL TRUST, JAGTI TAX, J & K, JAMMU TOWNSHIP, NAGROTA, JAMMU (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P.N. ARORA, ADVOCATE RESPONDENT BY: SH. MAHAVIR SINGH, SR. DR DATE OF HEARING: 04.09.2013 DATE OF PRONOUNCEMENT: 04.09.2013 ORDER PER BENCH 1) THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 30.11.2012 PASSED BY LEARNED COMMISSION ER OF INCOME TAX (J&K), JAMMU, ON THE FOLLOWING GROUNDS: I. THAT THE ORDER UNDER SECTION 12AA(B)(II) OF THE INC OME-TAX ACT, 1961, PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX, JAMMU, 2 I.T.A. NO. 484 (ASR)/2012 THEREBY REFUSING TO REGISTER THE SOCIETY IS ILLEGAL , INVALID AND VOID AUTHORITIES BELOW INITIO AND THE SAME IS LIABLE TO BE CANCELLED. II. THAT NO REASONABLE OPPORTUNITY OF BEING HEARD HAS B EEN ALLOWED BEFORE REFUSING TO REGISTER THE SOCIETY. THE LEARNE D CIT EITHER SHOULD HAVE DISCLOSED HIS MIND OR HE SHOULD HAVE AL LOWED REASONABLE OPPORTUNITY OF BEING HEARD BEFORE REFUSI NG TO REGISTER THE SOCIETY. AS SUCH THE ORDER OF THE LEARNED CIT, IS ILLEGAL, INVALID AND THE SAME IS LIABLE TO BE CANCELLED. III. THAT THE LEARNED CIT DID NOT APPRECIATE THAT THE CO NDITIONS LAID DOWN UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 , WERE DULY FULFILLED AND AS SUCH THE REGISTRATION AS CLAIMED S HOULD HAVE BEEN ALLOWED. IV. THAT THE LEARNED CIT DID NOT APPRECIATE THAT THE CO NDITIONS LAID DOWN UNDER THE LAW ARE FULFILLED AND AS SUCH THERE WAS NO REASON TO REFUSE GRANT OF REGISTRATION TO THE TRUST. AS SUCH, IT IS PRAYED THAT THE REGISTRATION MAY KINDLY BE GRANTED. V. THAT THE LEARNED CIT, REFERRED THE REPORT DATED 28. 06.2012, OF THE ASSESSING OFFICER WHICH WAS NEVER CONFRONTED TO THE ASSESSEE AND AS SUCH THE REGISTRATION SHOULD HAVE BEEN ALLOWED. VI. THAT THE LEARNED CIT, DID NOT APPRECIATE THAT SHRI AJAY THAKUR, PRESIDENT OF THE TRUST ALONGWITH SHRI DEVINDER SING H, CHAIRMAN OF THE TRUST APPEARED BEFORE THE CIT AND FILED INFORMA TION WITH BOOKS OF ACCOUNTS AND OTHER DOCUMENTS AND THIS FACT DO FI ND PLACE IN THE ORDER OF THE LEARNED CIT, IN PARA-3 OF HIS ORDER. VII. THAT THE BOOKS OF ACCOUNTS WERE ALSO DULY MAINTAINE D AND THE WORTHY CIT HAS GONE BEYOND HIS JURISDICTION TO EXAM INE THE BOOKS OF ACCOUNTS INSTEAD OF COMMENTING ON THE AIMS & OBJ ECTS OF THE INSTITUTION/TRUST. THE LEARNED CIT MISERABLY FAILED TO PIN POINT OUT ANY AIMS & OBJECTS WHICH DO NOT FALL WITHIN SECTION 12AA OF THE INCOME TAX ACT, 1961. AS SUCH THE REGISTRATION AS C LAIMED SHOULD HAVE BEEN ALLOWED. 3 I.T.A. NO. 484 (ASR)/2012 VIII. ANY OTHER GROUND OF APPEAL WHICH MAY BE URGED AT TH E TIME OF HEARING OF THE APPEAL. 2) THE FACTS NARRATED BY THE REVENUE AUTHORITY ARE NOT DISPUTED BY BOTH THE PARTIES; THEREFORE, THERE IS NO NEED TO RE PEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3) AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THE ASSESSEE HAS FILED APPLICATION IN FORM NO. 10-A ON 21.05.2012 FOR REGISTRATION OF THE ASSESSEE-TRUST UNDER SECTIO N 12AA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) BUT THE LEARNED COMMISSIONER OF INCOME TAX (J&K), JAMMU, ISSUED NOTICE TO THE ASSES SEE FIRST TIME ONLY ON 02.11.2012 AND PASSED THE IMPUGNED ORDER ON 30.1 1.2012, THIS SHOWS THAT LEARNED COMMISSIONER OF INCOME TAX (J&K), JAMM U, HAS NOT GIVEN SUFFICIENT TIME TO THE ASSESSEE FOR SUBSTANTIATING ITS CLAIM AND REJECTED THE APPLICATION FOR REGISTRATION OF THE ASSESSEE IN A HURRY MANNER. HE FURTHER STATED THAT INQUIRY REPORT AS MENTIONED IN PARA NO. 1 OF THE IMPUGNED ORDER HAS NOT BEEN GIVEN TO THE ASSESSEE AND THE AP PLICATION FOR REGISTRATION UNDER SECTION 12-AA OF THE ACT HAS BEE N REJECTED ON THE BASIS OF INQUIRY REPORT, WHICH IS CONTRARY TO THE P RINCIPLES OF NATURAL JUSTICE. AT LAST, HE REQUESTED THAT THE IMPUGNED OR DER DATED 30.11.2012 4 I.T.A. NO. 484 (ASR)/2012 PASSED BY LEARNED COMMISSIONER OF INCOME TAX, (J&K) , JAMMU MAY BE CANCELLED. 4) ON THE CONTRARY, LEARNED DR RELIED UPON THE IMPU GNED ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX, ( J&K), JAMMU. 5) WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE ISSUE RAISED BY T HE ASSESSEE IN THE GROUNDS OF APPEAL. WE ARE OF THE CONSIDERED OPINION THAT THE ARGUMENTS ADVANCED BY LEARNED COUNSEL FOR THE ASSESSEE APPEAR S TO BE REASONABLE AND DESERVES TO BE ACCEPTED TO THE EXTENT THAT LEAR NED COMMISSIONER OF INCOME TAX, (J&K), JAMMU, HAS PASSED THE IMPUGNED O RDER IN A HURRY MANNER AS THE CASE OF THE ASSESSEE WAS GOING TO BE TIME BARRED. THE ASSESSEE FILED ITS APPLICATION FOR GRANT OF THE REG ISTRATION ON 21.05.2012. THE LEARNED COMMISSIONER OF INCOME TAX, (J&K), JAMM U, HAD ISSUED NOTICE ONLY ON 02.11.2012 AND HE HAD TO DECIDE THE CASE ON OR BEFORE 30.11.2012, WHICH HE DECIDED ON 30.11.2012 BY PASSI NG THE IMPUGNED ORDER, AND THIS IS CONTRARY TO THE PRINCIPLES OF NA TURAL JUSTICE. IN THE INTEREST OF JUSTICE, WE HEREBY SET ASIDE THE ISSUE IN DISPUTE TO THE FILE OF LEARNED COMMISSIONER OF INCOME TAX, (J&K), JAMMU, W ITH THE DIRECTION TO DECIDE THE ISSUE IN DISPUTE AFRESH UNDER THE LAW AFTER AFFORDING FULL OPPORTUNITY TO THE ASSESSEE. 5 I.T.A. NO. 484 (ASR)/2012 6) IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 4TH SEPTEMBE R, 2013 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 4 TH SEPTEMBER, 2013 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S KASHYAP CHARITABLE & EDUCATIONAL TRUST, JAGTI TOWNSHIP, NAGROTA, JAMMU 2. THE CIT, J & K, JAMMU 3. THE SR DR, I.T.A.T., ASR TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.