Divyang Development Society, Kanpur V. Commissioner of Income Tax (E), Lucknow

ITA 496/LKW/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8530 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 06-09-2019
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 496/LKW/2019 ASSESSMENT YEAR: N.A. DIVYANG DEVELOPMENT SO CIETY 119/530, DARSHAN PURWA KANPUR V. CIT (EXEMPTIONS) LUCKNOW T AN /PAN : AACTD5039N (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI ASHISH AGRAWAL, ADVOCATE RESPONDENT BY: SHRI A. K. BAR, CIT (DR) DATE OF HEARING: 10 10 201 9 DATE OF PRONOUNCEMENT: 11 10 201 9 O R D E R PER A. D. JAIN, V.P.: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW, REJECTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12A(1) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS TAKEN AS MANY AS SIX GROUNDS OF APPEAL, BUT THE MAIN ISSUE RAISED, VIDE GROUND NO.2, IS THAT THE LD. CIT(A) WAS WRONG IN REJECTING THE APPLICATION UNDER SECTION 12A OF THE ACT, WITHOUT AFFORDING REASONABLE OPPORTUNITY TO THE APPELLANT SOCIETY TO PRESENT ITS CASE. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME-TAX ACT, 1961 IN FORM 10A, ON 1/2/2019 WITH THE CIT (EXEMPTIONS), LUCKNOW. THE LD. CIT (EXEMPTIONS) ISSUED A LETTER, DATED 26/7/2019 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING THE APPLICATION FOR REGISTRATION U/S ITA NO.496/LKW/2019 PAGE 2 OF 3 12A OF THE ACT, FOR COMPLIANCE ON 7/8/2019. ON THIS DATE, I.E., 7/8/2019, NONE APPEARED ON BEHALF OF THE ASSESSEE. THE LD. CIT (EXEMPTION) REJECTED THE APPLICATION MOVED BY THE ASSESSEE ON THE GROUND THAT THE APPLICANT HAD FAILED TO PROVIDE REQUIRED DETAILS, SUCH AS ORIGINAL TRUST DEED & OTHER RELEVANT DOCUMENTS REQUIRED FOR VERIFICATION TO PROVE THE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES; PROOF/DOCUMENTS REGARDING ACTIVITIES; BOOKS OF ACCOUNT AND DETAILS OF EXPENDITURE TO CORROBORATE THE CHARITABLE NATURE OF ITS OBJECTS AND THE GENUINENESS OF ITS ACTIVITIES. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT ON THE DATE FIXED FOR HEARING, I.E., ON 7/8/2019, THE ASSESSEE SOCIETY THROUGH EMAIL REQUESTED TO ADJOURN THE HEARING FOR 15 DAYS, AS THE ASSESSEE WAS IN THE PROCESS OF PREPARATION OF REPLY AND COLLECTION OF REQUIRED DOCUMENTS, IN ORDER TO ENSURE PROPER REPRESENTATION BEFORE THE CIT (EXEMPTIONS). THE ASSESSEE HAS FILED THE TRUE COPY OF THE EMAIL DATED 7/8/2019 BEFORE US. THE LD. COUNSEL FOR THE ASSESSEE, ACCORDINGLY PRAYED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED TO THE FILE OF THE LD. CIT (EXEMPTIONS), LUCKNOW FOR DECIDING THE MATTER AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE, SO THAT THE ASSESSEE CAN FURNISH THE REQUIRED DOCUMENTS BEFORE THE LD. CIT (EXEMPTIONS). 5. THE LD. D.R. HAS PLACED RELIANCE ON THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW. 6. HEARD. WE FIND THAT THE ASSESSEE HAD APPLIED FOR REGISTRATION UNDER SECTION 12A OF THE ACT, WHICH WAS REJECTED BY THE LD. CIT (EXEMPTIONS), OBSERVING THAT THAT THE APPLICANT HAD FAILED TO PROVIDE REQUIRED DETAILS, SUCH AS ORIGINAL TRUST DEED & OTHER RELEVANT DOCUMENTS REQUIRED FOR VERIFICATION TO PROVE THE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES; PROOF/DOCUMENTS REGARDING ACTIVITIES; ITA NO.496/LKW/2019 PAGE 3 OF 3 BOOKS OF ACCOUNT AND DETAILS OF EXPENDITURE TO CORROBORATE THE CHARITABLE NATURE OF ITS OBJECTS AND THE GENUINENESS OF ITS ACTIVITIES. THE CIT (EXEMPTION) HAS ISSUED ONLY ONE NOTICE TO THE ASSESSEE AND HAS PASSED AN EX-PARTE ORDER, REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A OF THE ACT. FROM THE FACTS OF THE CASE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER AND SUFFICIENT OPPORTUNITY BEFORE DISPOSING OF THE APPLICATION FOR REGISTRATION, BY THE LD. CIT (EXEMPTIONS). WE, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTIONS) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO CONSIDER THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A AFRESH AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO BE PRESENT ON THE DATE OF HEARING AND PROVIDE THE MATERIAL / CLARIFICATION AS ASKED FOR BY THE LD. CIT (EXEMPTIONS). 7. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/10/2019. SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED:11/10/2019 JJ:1010 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR