Brijendra Singh Sahni Educational Trust, Shahjahanpur V. Commissioner of Income Tax (Exemption), Lucknow

ITA 523/LKW/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4405 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-10-2018
• Assessment Year: misc
• Appeal Filed On: 11-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Section: 12A; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI. N .S. SAINI , ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 523/LKW/2017 ASSESSMENT YEAR: N.A. BRIJENDRA SINGH SAHNI EDUCATIONAL TRUST 16, GHOO RAN TALLIYA, GURUDWARE WAL GALI CHOTA CHOWK, SHAHJAHANPUR V. CIT (EXEMPTIONS) LUCKNOW T AN /PAN : AACTB8453G (APP ELL A NT) (RESPONDENT) APP ELL ANT BY: SHRI SANJAY SAXENA, C.A. RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE OF HEARING: 09 10 201 8 DATE O F PRONOUNCEMENT: 10 10 201 8 O R D E R PER N.S. SAINI , A .M : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW DATED 31/5/2017. 2 . THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT (EXEMPTI ONS), LUCKNOW ERRED IN REJECTING REGISTRATION UNDER SECTION 12A(1) OF THE ACT WITHOUT GIVING PROPER OPPORTUNITY. 3 . AT THE TIME OF HEARING, LD. A.R. OF THE ASSESSEE, SHRI SANJAY SAXENA, C. A. SUBMITTED THAT THE CASE WAS FIXED FOR HEARING BEFORE THE LD. CIT (E XEMPTIONS) ON 6/5/2017 BY SENDING A NOTICE THROUGH REGISTERED POST. THEREAFTER NO OPPORTUNITY WAS ALLOWED TO THE ASSESSEE TO PRESENT ITS CASE, BY THE CIT (EXEMPTIONS), LUCKNOW, WHO DISMISSED THE APPLICATION FOR GRANT OF REGISTRATION ON THE GROUND THAT THE SOCIETY WAS UNABLE TO PRODUCE THE BOOKS OF ACCOUNT, BANK STATEMENT S AND ITA NO.523/LKW/2017 PAGE 2 OF 3 VOUCHERS OF EXPENSES CLAIMED BY THE ASSESSEE FOR VERIFICATION OF OBJECTS AND ACTIVITIES OF THE TRUST. 4 . IT WAS ARGUED THAT AT THE TIME OF REGISTRATION, CIT (EXEMPTIONS) IS REQUIRED TO V ERIFY WHETHER ACTIVITIES OF THE TRUST ARE GENUINE AND ARE CHARITABLE IN NATURE. AT THE TIME OF REGISTRATION HE IS NOT REQUIRED TO EXAMINE WHETHER THE ASSESSEE HAS FULFILLED THE CONDITIONS FOR EXEMPTION OF INCOME UNDER SECTION 11 AND 12 OF THE ACT. IT WAS SUBMITTED THAT HAD OPPORTUNITY OF HEARING BEEN GRANTED TO THE ASSESSEE TO EXPLAIN ITS CASE, ASSESSEE WOULD HAVE MADE SUBMISSIONS AND FURNISHED DECISIONS OF HON'BLE HIGH COURTS AND SUPREME COURT IN ITS FAVOUR. HENCE, IT WAS SUBMITTED THAT THE MATTER SHOUL D BE REMANDED BACK TO THE FILE OF CIT (EXEMPTIONS) FOR ALLOWING SUFFICIENT AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE DISPOSING OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12A OF THE ACT. 5 . T HE LD. D.R. HAD NO OBJECTIO N TO THE ABOVE SUBMISSION OF THE LD. A.R. OF THE ASSESSEE. 6 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDER OF CIT (EXEMPTIONS) AND MATERIALS AVAILABLE ON RECORD. IT IS AN UNDISPUTED FACT THAT ONE OPPORTUNITY OF HEARING WAS PROVIDED TO THE ASSESS EE ON 24/5/2017 BY SENDING NOTICE OF HEARING THROUGH SPEED POST. ASSESSEE FILED RELEVANT DETAILS BEFORE CIT (EXEMPTIONS). CIT (EXEMPTIONS) DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNT, BANK STATE MENTS, AND VOUCHERS OF EXPENSES AND, THEREFORE, HE COULD NOT VERIFY THE OBJECTS AND ACTIVITIES OF THE TRUST. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND FORCE IN THE SUBMISSIONS OF THE LD. A.R. OF THE ASSESSEE THAT NO SUFFICIENT OPPORTUNITY O F HEARING WAS ALLOWED TO THE ASSESSEE TO PRESENT ITS CASE, ITA NO.523/LKW/2017 PAGE 3 OF 3 BY THE CIT (EXEMPTIONS), THEREFORE, WE SET ASIDE THE ORDER OF CIT (EXEMPTIONS) AND REMAND THE MATTER BACK TO HIS FILE TO ADJUDICATE THE ISSUE OF REGISTRATION TO THE ASSESSEE TRUST AFRESH AFTER ALLO WING REASONABLE AND SUFFICIENT OPPORTUNITY OF HEARING AND THEREAFTER PASSING A WELL REASONED ORDER. THUS, GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON 10 / 10 / 201 8 . SD/ - SD/ - [PARTHA SARATHI CHAUDHURY] [ N.S. SAINI ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 TH OCTO BER , 201 8 JJ: 0910 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR