Aggarsain Public Educational Society, Samana V. CIT (Exemptions), Chandigarh

ITA 485/CHANDI/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9739 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2016-2017
• Appeal Filed On: 04-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI C.M. GARG, JUDICIAL MEMBER ITA NO.485/CHD/2016 (UNDER SECTION 12AA OF THE ACT) AGGARSAIN PUBLIC EDUCATIONAL SOCIETY, VS. THE CIT (EXEMPTIONS), MAIN ROAD, SAMANA (PUNJAB). CHANDIGARH. PAN: AACAA0363P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GURJEET SINGH RESPONDENT BY : SHRI SUSHIL KUMAR, CIT DR DATE OF HEARING : 24.01.2017 DATE OF PRONOUNCEMENT : 25.01.2017 O R D E R PER N.K. SAINI, A.M . : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 31.3.2016 OF LEARNED COMMISSIONER O F INCOME TAX (EXEMPTIONS), CHANDIGARH. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPE AL RELATES TO REJECTION OF APPLICATION FOR GRANTING RE GISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE FILE D AN APPLICATION IN FORM NO.10A OF THE ACT. THE ASSESSE E IS IN OPERATION SINCE 21.3.2011 AND IS ONGOING ENTITY. T HE 2 OBJECTS OF ASSESSEE SOCIETY ARE TO PROVIDE ACCESSIB LE, AFFORDABLE AND CONTEMPORARY EDUCATION, TO STIMULATE AND NURTURE YOUNG MINDS, TO PROVIDE LIBRARY, READING RO OM, PLAYGROUND AND OTHER BUILDING FACILITY, ETC. THE L D. CIT REJECTED THE APPLICATION MOVED BY THE ASSESSEE FOR THE REGISTRATION BY OBSERVING IN PARA 7 IN THE IMPUGNED ORDER AS UNDER : 7. IN THE INSTANT CASE, THERE ARE DOUBTS ABOUT THE INDEPENDENCE OF THE SOCIETY AS THE CONTROL VESTS WI TH ANOTHER SOCIETY ON WHOSE LAND THE EDUCATIONAL INSTI TUTION IS RUNNING AND ALSO BECAUSE OF CLAUSES BUILT IN THE MEMORANDUM(DISCUSSED EARLIER).THE DISSOLUTION CLAUSE HAS ALSO BEEN CONSTRUED AS RESTRICTIVE AND NOT ENURING TO THE BENEFIT OF GENERAL PUBLIC. IN THE LIGHT OF ABOVE, THE GENUINENESS OF ACTIVITIES COMPARED TO THE STATED OS TENSIBLE OBJECTS CAN'T BE CORROBORATED. ACCORDINGLY, THE APPL ICATION FOR REGISTRATION U/S 12AA OF INCOME TAX ACT, 1961 IS DENIE D. 4. NOW THE ASSESSEE IS IN APPEAL. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE OBJECTS OF THE ASSESSEE ARE CHAR ITABLE IN NATURE BUT THE LD. CIT WITHOUT GOING THROUGH THE OBJECTS OF THE ASSESSEE WRONGLY HELD THAT THE GENUI NENESS OF THE ACTIVITIES COMPARED TO THE STATED OSTENSIBLE OBJECTS COULD NOT BE CORROBORATED. IN HIS RIVAL SUBMISSIONS THE LD. DR SUPPORTED THE ORDER OF THE LD. CIT. 4.1 WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES. IN THE PRESENT CASE, FROM THE ORDER OF TH E LD. CIT IT IS NOT CLEAR HOW THE GENUINENESS OF THE ACTIVITI ES COULD NOT BE CORROBORATED. 5. WE, THEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THIS ISSUE BACK TO THE FILE OF THE LD. CIT (APPEALS ) TO BE 3 DECIDED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDI NG DUE AND REASONABLE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.01.2017. SD/- SD/- (C.M.GARG) (N.K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 25 TH JANUARY, 2017 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH