SHRI NARAYAN TRUST, SRINAGAR V. CIT(EXEMPTION), LUCKNOW

ITA 4874/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0423 (ITAT-DEHRADUN)
• Duration Of Justice: 2 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S RANA
• Assessee Lawyers: ANUBHAV JAIN
• Keywords: Charitable institution; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 4874/DEL/2018 (THROUGH VIDEO CONFERENCING) SHRI NARAYAN TRUST NEAR BASE HOSPITAL, SRIKOT GANGANALI, SRINAGAR (GWL), 246174 UTTARAKHAND (APPELLANT) VS CIT (EXEMPTION), LUCKNOW GOMTI NAGAR, LUCKNOW, UP 226010 (RESPONDENT) APPELLANT BY SH. ANUBHAV JAIN, ADVOCATE RESPONDENT BY SH. A. S. RANA, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE APPELLANT TRUST/SOCIETY AGAINST THE ORDER DATED 25/04/2018 PASSED BY CIT(EXEMPTION), LUCKNOW UNDER SECTION 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- I. THAT THE LD. CIT(EXEMPTIONS) HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT 1961 (THE ACT) II. THAT THE LD. CIT(EXEMPTIONS) ERRED IN LAW AND ON FACTS IN PASSING AN ORDER, MERELY ON THE NON-APPEARANCE BY THE APPELLANT ON THE VERY FIRST DATE OF THE HEARING WITHOUT GIVING PROPER OPPORTUNITY TO THE APPELLANT TO EXPLAIN THE DATE OF HEARING 18.12.2020 DATE OF PRONOUNCEMENT 18.12.2020 CIRCUMSTANCES UNDER WHICH NON-COMPLIANCE OCCURRED. III. THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT (EXEMPTIONS), DATED 25 APRIL 2018 U/S 12AA OF THE ACT IS CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY AND DESERVES TO BE QUASHED. IV. THAT THE LD. CIT(EXEMPTIONS) WHILE REJECTING THE APPLICATION FOR GRANT OF REGISTRATION SOUGHT BY THE APPELLANT VIDE ORDER DATED 25 APRIL 2018 HAS MIS- DIRECTED HIMSELF IN NOT CONSIDERING THE FACTS ON RECORD AND FAILED TO APPRECIATE THAT THE OBJECTS OF THE SOCIETY ARE ONLY TOWARDS CHARITABLE PURPOSES AS DEFINED IN SECTION 2(15) OF THE ACT. V. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 3. THE APPLICANT SOCIETY/TRUST FILED AN APPLICATION FOR REGISTRATION U/S 12A(A) OF THE INCOME TAX ACT, 1961 ON 11. 12.2017 WITH THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), LUCKNOW. THE CIT(EXEMPTION) VIDE LETTER DATED 22.03.2018 CALLED FOR SPECIFIC QUERIES REGARDING THE APPLICATION FOR REGISTRATION U/S 12A FOR COMPLIANCE ON 25.04.2018 WHICH WAS DELIVERED TO THE APPLICANT SOCIETY/TRUST ON 27.03.2018 AS CONFIRMED BY THE INDIA POST. HOWEVER, THE APPLICANT COULD NOT APPEAR ON THE DATE I.E. 25.04.2018 AND COULD NOT COMPLY WITH THE QUERIES PUT UP BY THE CIT(EXEMPTIONS). THE CIT(EXEMPTIONS) VIDE ORDER DATED 25.04.2018 REJECTED THE APPLICATION FOR REGISTRATION U/S 12A(1) OF THE ACT. 4. BEING AGGRIEVED BY THE ORDER OF THE CIT(EXEMPTIONS), THE ASSESSEE HAS FILED PRESENT APPEAL BEFORE US. 5. THE LD. AR SUBMITTED THAT REASONABLE OPPORTUNITY WAS NOT GRANTED BY THE CIT(EXEMPTIONS) TO THE APPLICANT SOCIETY/TRUST BY THE CIT(EXEMPTIONS). THEREFORE, THE LD. AR SUBMITTED THAT THE SAID ORDER HAS PASSED WITHOUT FOLLOWING PRINCIPLES OF NATURAL JUSTICE. HENCE, THE LD. AR PRAYED THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE CIT(EXEMPTIONS) FOR GIVING OPPORTUNITY TO THE APPLICANT SOCIETY/TRUST TO PLEAD THE CASE FOR GRANTING OF REGISTRATION U/S12A OF THE ACT. 6. THE LD. DR RELIED UPON THE ORDER OF THE CIT(EXEMPTIONS). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ORDER OF THE CIT(EXEMPTIONS), IT CAN BE SEEN THAT THE CIT(EXEMPTIONS) HAS NOT GRANTED PROPER OPPORTUNITY TO THE APPLICANT SOCIETY/ TRUST FOR SATISFYING THE RELEVANT QUERIES RAISED BY HIM. THEREFORE, IT WILL BE APPROPRIATE TO RESTORE THIS MATTER TO THE FILE OF THE CIT (EXEMPTIONS) FOR GIVING PROPER OPPORTUNITY OF HEARING AND ALLOWING THE APPLICANT SOCIETY/TRUST TO PLACE THE EVIDENCE BEFORE HIM FOR GRANTING REGISTRATION UNDER SECTION 12A OF THE ACT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THE APPLICANT SOCIETY/TRUST IS ALSO DIRECTED TO CO- OPERATE THE PROCEEDINGS BEFORE THE CIT(EXEMPTIONS). HENCE, APPEAL OF THE APPLICANT SOCIETY/TRUST IS ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, APPEAL OF THE APPLICANT SOCIETY/TRUST IS ALLOWED FOR STATISTICAL PURPOSE. 9. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH DECEMBER, 2020 IN PRESENCE OF BOTH THE PARTIES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF DECEMBER, 2020 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18/12/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 18.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 18.12.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 18.12.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 18.12.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 18.12.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 18.12.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 18.12.2020 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER