M/s Kalgidhar International Society, Hoshiarpur V. The Commissioner of Income Tax (Exemption), Chandigarh

ITA 516/ASR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9746 (ITAT-AMRITSAR)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Amritsar
• Assessment Year: misc
• Appeal Filed On: 17-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKAR
• Section: 12A; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH: (CIRCUIT BENCH AT JALANDHAR) BEFORE SHRI A. D. JAIN, JUDICIAL MEMBER, AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO. 516/ASR/2016 (ASSESSMENT YEAR-2016-17) M/S KALGIDHAR INTERNATIONAL SOCIETY VILLAGE GURU TEG BAHADUR COLONY MUKERIAN, DISTT HOSHIARPUR. PAN NO.AAPTK2499N (ASSESSEE) VS .. CIT, (EXEMPTIONS) CHANDIGARH. (REVENUE) ASSESSEE BY SHRI SURINDER MAHAJAN, AR. REVENUE BY SHRI BHAWANI SHANKAR,DR. ORDER PER, A. D. JAIN, JUDICIAL MEMBER: THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 3 1.08.2016 PASSED BY THE LD. CIT(EXEMPTION), REJECTING CONFIRMATION OF ADDITION OF RS.7,48,400/- MADE U/S 69A OF THE INCOME TAX ACT. 2. THE LD. CIT(EXEMPTION) REJECTED THE APPLICATION OF THE ASSESSEE ON THE FOLLOWING BASIS: THE APPLICATION IN FORM 10A HAS BEEN FILED IN THE NAME OF KALGIDHAR INTERNATIONAL SCHOOL BUT THE SOCIETY WAS FORMED TO DATE OF HEARING 16.01.2017 DATE OF PRONOUNCEMENT 18.01.2017 I.T.A NO. 516/ASR/2015 2 RUN A SCHOOL IN THE NAME OF GURU TEG BAHADUR INTERN ATIONAL SOCIETY. THE CONTENT OF MOA OF SOCIETY ARE UNVERIFI ABLE TO THIS EXTENT (PARA 1OF ORDER U/S 12A OF THE ACT DATED 31. 08.2016). IN SUPPORT OF THE APPLICATION COPIES OF RETURNS OF KALGIDHAR INTERNATIONAL SOCIETY (PAN-AAPTK2499N) HAVE BEEN FI LED. HOWEVER THE BALANCE SHEETS OF KALGIDHAR INTERNATION AL SCHOOL INSTEAD OF KALGIDHAR INTERNATIONAL SOCIETY HAVE BEE N FILED. THE SOCIETY AND SCHOOL ARE DIFFERENT ENTITIES AND THEIR FINANCIAL STATEMENTS ARE BOUND TO BE DISTINCT. THEREFORE, THE CLAIM FOR EXEMPTION IS NOT TENABLE (PARA 2 OF ORDER U/S 12A O F THE ACT DATED 31.08.2016). THERE IS NO REASONABLE EXPLANATION PROVIDED REGARDI NG FILING OF APPLICATION BY THE SCHOOL AND NOT BY THE SOCIETY (P ARA 3 OF ORDER U/S 12A OF THE ACT DATED 31.08.2016). CLAIM FOR REGISTRATION U/S 12A IN CONTINUATION TO S ECTION 10(23C)(IIIAD) IS NOT TENABLE. (PARA 4 OF ORDER U/S 12A OF THE ACT DATED 31.08.2016). 3. THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED T HAT THE ASSESSEE HAD RECEIVED A LETTER (APB-27-28) DATED 09.06.2016 AND ANOTHER LETTER (APB-31-32) DATED 04.08.2016 FROM THE OFFICE OF THE LD. CIT(EXE MPTION), WHEREIN, VARIOUS QUERIES WERE RAISED; THAT HOWEVER, IN NEITHER OF TH ESE NOTICES WAS ANY QUERY RAISED WITH REGARD TO THE DIFFERENCE IN THE NAME OF THE SC HOOL AND THE SOCIETY; THAT MOREOVER, NO DEFECT WHATSOEVER WAS POINTED OUT EITH ER IN THE APPLICATION, OR IN THE SUPPORTING DOCUMENTS FILED BY THE ASSESSEE; AND THA T THEREFORE, THE LD. CIT(A) HAS ERRED IN REJECTING THE APPLICATION OF THE ASSESSEE. I.T.A NO. 516/ASR/2015 3 4. ON THE OTHER HAND, THE LD. DR HAS STRONGLY RELIE D ON THE IMPUGNED ORDER. 5. IT IS SEEN THAT THE APPLICATION OF THE ASSESSEE HAS BEEN REJECTED BASICALLY FOR THE REASON THAT THERE IS NO REASONABLE EXPLANATION PROVIDED BY THE ASSESSEE REGARDING FILING OF THE APPLICATION BY THE SCHOOL A ND NOT BY THE SOCIETY. WE HAVE PERUSED THE NOTICES DATED 09.06.2016 AND 04.08.2016 ISSUED BY THE LD. CIT(EXEMPTION) TO THE ASSESSEE. COPIES OF THESE NOT ICES ARE PLACED ON PAGES 27-28 AND 31-32 OF THE ASSESSEES PAPER BOOK. A PERUSAL T HEREOF SHOWS THAT INDEED, NO QUESTION HAS BEEN RAISED IN EITHER OF THESE NOTICES WITH REGARD TO THE DIFFERENCE IN THE NAME OF THE SCHOOL AND THE SOCIETY. IT IS PERTI NENT TO NOTE THAT THE REPLIES TO BOTH THESE NOTICES ALSO MENTIONED KALGIDHAR INTERNATIONA L SOCIETY AND NOT SCHOOL. THESE REPLIES ARE TO BE FOUND AT APB-29-30 AND 33-3 5, RESPECTIVELY. IN VIEW OF THE ABOVE, IN THE INTEREST OF JUSTICE, WE DEEM IT APPRO PRIATE TO REMIT THIS MATTER TO THE FILE OF THE LD. CIT(EXEMPTION), TO BE DECIDED AFRES H IN ACCORDANCE WITH LAW, ON ALLOWING ADEQUATE OPPORTUNITY OF HEARING TO THE ASS ESSEE. THE ASSESSEE, NO DOBUT, SHALL CO-OPERATE IN THE FRESH PROCEEDINGS BEFORE TH E LD. CIT(EXEMPTION). 6. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/01/2017. SD/- SD/- (T. S. KAPOOR) (A.D. JAIN) ACCOUTANT MEMBER JUDICIAL MEMBER DATED 18 /01/2017 *AKV* ON TOUR COPY FORWARDED TO: I.T.A NO. 516/ASR/2015 4 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT BY ORDER AR/SR.P.S./P.S.