Lakshya Educational Trust, Ghaziabad V. CIT, Ghaziabad

ITA 5050/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0577 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 16-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA
• Assessee Lawyers: VIKAS VATS
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : D : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.5050 & 5049/DEL/2010 ASSESSMENT YEAR : 2010-2011 & ONWARDS LAKSHYA EDUCATIONAL TRUST, C/O VIKAS VATS, ADVOCATE, KE-79, KAVI NAGAR, GHAZIABAD. PAN: AAATL6943M VS. CIT, GHAZIABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIKAS VATS, ADVOCATE REVENUE BY : SHRI A.K. MONGA, DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THESE ARE APPEALS FILED BY THE ASSESSEE. THEY ARE DIREC TED AGAINST THE ORDERS OF THE CIT, GHAZIABAD PASSED U/S 12A/ 12AA OF THE IT ACT, 1961 AND U/S 80-G(5)(VI) OF THE IT ACT, 1961 RE AD WITH RULE 11AA(5) OF IT RULES, 1962 RESPECTIVELY DATED 21 ST MAY, 2010 FOR ASSESSMENT YEAR 2010-2011 & ONWARDS. GROUNDS OF APPEAL R EAD AS UNDER:- ITA NO.5050/DEL/2010. 1. THAT THE LD. COMMISSIONER OF INCOME TAX ERRED IN LAW AS WELL AS ON FACTS IN REFUSING TO GRANT REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 WITHOUT GIVING PROPER OPPORTUNITY FOR HEARING IN TH E CIRCUMSTANCES OF THE CASE. 2. THAT ORDER OF LD. COMMISSIONER OF INCOME TAX IS PASSED BEYOND THE LIMITATION PROVIDED U/S 12AA (2) ITA NOS.5050 & 5049/DEL/2010 2 PASSED BEYOND THE LIMITATION PROVIDED U/S 12AA (2) AND HENCE ORDER REFUSING TO GRANT REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 IS ILLEGAL. 3. THAT THE SUBMISSIONS AND/OR EXPLANATION OF THE APPELLANT ARE NOT PROPERLY APPRECIATED BY THE LD. COMMISSIONER OF INCOME TAX WHILE APPELLANT HAS COMPLIED WITH ALL THE CONDITIONS LAID DOWN U/S 12AA O F THE INCOME TAX ACT, 1961 AND AS SUCH TRUST IS ENTITLED FOR REGISTRATION U/S 12AA. 4. THAT WITHOUT PREJUDICE TO ABOVE BUT IN ADDITION , LD. COMMISSIONER OF INCOME TAX ERRED IN HOLDING THAT ACTIVITY OF THE TRUST COULD NOT BE EXAMINED, WITHOUT ASSIGNING ANY REASON AND/OR WITHOUT FINDING ANY MATERIAL AGAINST THE ASSESSEE ON THE RECORD. IT IS THEREFORE PRAYED THAT THE LD. COMMISSIONER OF INCOME TAX MAY KINDLY BE DIRECTED TO GRANT THE REGISTRATION U/S 12AA OF THE INCOME TAX AT, 1961. ITA NO.5049/DEL/2010 THAT THE IMPUGNED ORDER OF ASSESSMENT IS BAD, ARBITRARY AND ERRONEOUS IN LAW. 2. THAT THE LD. COMMISSIONER OF INCOME TAX ERRED IN LAW AS WELL AS ON FACTS IN REFUSING TO GRANT APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961 WITHOUT GIVING PROPER OPPORTUNITY FOR HEARING IN THE CIRCUMSTANCES O F THE CASE. 3. THAT THE SUBMISSIONS AND/OR EXPLANATION OF THE APPELLANT ARE NOT PROPERLY APPRECIATED BY THE LD. COMMISSIONER OF INCOME TAX WHILE ASSESSEE HAS COMPLIED WITH ALL THE CONDITIONS LAID DOWN IN SUB- SECTION (5) OF SECTION 80G OF THE INCOME TAX ACT, 19 61 AND AS SUCH TRUST IS ENTITLED FOR APPROVAL U/S 80G. 4. THAT WITHOUT PREJUDICE TO ABOVE BUT IN ADDITION , LD. COMMISSIONER OF INCOME TAX ERRED IN HOLDING THAT ACTIVITY OF THE TRUST COULD NOT BE EXAMINED, WITHOUT ASSIGNING ANY REASON AND/OR WITHOUT FINDING ANY MATERIAL AGAINST THE ASSESSEE ON THE RECORD. IT IS THEREFORE PRAYED THAT THE LD. COMMISSIONER OF INCOME TAX MAY KINDLY BE DIRECTED TO GRANT THE REGISTRATION U/S 80G OF THE INCOME TAX AT, 1961. ITA NOS.5050 & 5049/DEL/2010 3 REGISTRATION U/S 80G OF THE INCOME TAX AT, 1961. 2. THE REGISTRATION SOUGHT BY THE ASSESSEE U/S 12AA AND 80 G HAVE BEEN DENIED TO THE ASSESSEE BY THE IMPUGNED ORDERS PASSED BY THE LEARNED CIT, GHAZIABAD DATED 21 ST MAY, 2010 PASSED U/S 12A/12AA OF THE IT ACT, 1961 AND U/S 80-G(5)(VI) OF THE IT ACT, 1961 READ WITH RULE 11AA(5) OF IT RULES, 1962 RESPECTIVELY. THESE REGISTRA TIONS HAVE BEEN DENIED TO THE ASSESSEE ON THE GROUND THAT THE ASSESSEE WAS R EQUIRED TO FILE CERTAIN DETAILS WHICH WERE NOT FILED BY THE ASSESSEE AND, THEREFORE, IT WAS PRESUMED THAT THE ASSESSEE IS NOT INTERE STED IN GETTING ITS CLAIM APPROVED. IT WAS SUBMITTED BY LD. A R THAT VARIOUS DETAILS WERE SUBMITTED BEFORE THE CIT, HOWEVER, ON TH E LAST DATE OF HEARING THE ASSESSEE COULD NOT ATTEND, THEREFORE, THE C LAIM OF THE ASSESSEE HAS WRONGLY BEEN REJECTED. HE SUBMITTED THAT TH E ASSESSEE IS FULFILLING ALL THE CONDITIONS LAID DOWN IN THE RESP ECTIVE SECTIONS AND THE INTEREST OF JUSTICE WILL BE FULFILLED IF THE MATT ER IS RESTORED BACK TO THE FILE OF LEARNED CIT WITH A DIRECTION TO GIVE FR ESH OPPORTUNITY OF HEARING TO THE ASSESSEE AND AFTER PROVIDING SUCH OPPORTU NITY RE- ADJUDICATE THE MATTER. 3. ON THE OTHER HAND, LD. DR SUBMITTED THAT THE ASSESSEE DID NOT FURNISH THE REQUIRED DETAILS, HENCE, LEARNED CIT WAS R IGHT IN REJECTING THE CLAIMS OF THE ASSESSEE. 4. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. IT IS MENTIONED IN THE ORDER OF LD. CIT THAT COPIES OF ITRS IN SOME OF TH E CASES FROM WHERE THE ASSESSEE HAS RECEIVED DONATION WERE FILED, BUT THE A SSESSEE DID NOT PRODUCE THE COPIES OF BANK PASSBOOKS TO SUBSTANTIATE ITS CLAIM REGARDING AVAILABILITY OF FUNDS WITH THE DONORS. THE REFORE, IT IS CLEAR THAT CERTAIN DETAILS WERE FILED WITH THE LEARNED CIT , HOWEVER, THE REMAINING DETAILS WERE NOT FURNISHED. IT IS THE CASE OF THE LEARNED AR THAT ONLY ON ONE DATE THE ASSESSEE COULD NOT ATTEND BEF ORE THE CIT. ITA NOS.5050 & 5049/DEL/2010 4 KEEPING IN VIEW THE ENTIRETY OF FACTS, WE ARE OF THE OPINION THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF CIT WIT H A DIRECTION TO GIVE THE ASSESSEE A FRESH OPPORTUNITY OF HEARING TO FILE ALL THESE DETAILS AND, THEREAFTER DECIDE THE ISSUES RAISED IN BOTH THESE APPEAL S AS PER THE PROVISIONS OF LAW. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES IN THE MANNER AFORESAID. 6. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.01. 2011. SD/- SD/- [A.K. GARODIA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 21.01.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES ITA NOS.5050 & 5049/DEL/2010 5 DATE OF DICTATION 18.01.2011 DATE OF PRESENTATION OF THE DRAFT ORDER TO THE MEMBER 19.01.2011 DATE OF RETURN FROM THE BENCH AFTER PRONOUNCEMENT &SIGNING DATE OF DISPATCH OF THE ORDER TO THE BENCH