Kirti Foundation of Nursing and Para Medical Sciences, Sonebhadra V. Commissioner of Income Tax (E), Lucknow

ITA 525/LKW/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9439 (ITAT-LUCKNOW)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 17-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MADHUK
• Assessee Lawyers: P K KAPOOR
• Keywords: Set aside
• Section: 80G; 12A; 12AA

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. 52 5 /LKW/2019 ASSESSMENT YEAR: N.A. KIRTI FOUNDATION OF NURSING AND PARA MEDICAL SCIENCES DEEP NAGAR, ROBERTSGANJ SONEBHADRA V. CIT (EXEMPTION) LUCKNOW TAN/PAN: AAFCK8955Q (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI P. K. KAPOOR, C.A. RESPONDENT BY: SHRI S.K. MADHUK, CIT (DR) DATE OF HEARING: 07 01 20 20 DATE OF PRONOUNCEMENT: 07 01 20 20 O R D E R PER A. D. JAIN, V.P.: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT (EXEMPTION), LUCKNOW, DATED 29/8/2019, PASSED UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961, REJECTING THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY FILED AN APPLICATION FOR APPROVAL UNDER SECTION 80G(5) OF THE ACT ON 23/2/2019 WITH THE CIT (EXEMPTIONS), LUCKNOW. THE LD. CIT (EXEMPTIONS) REJECTED THE APPLICATION, OBSERVING THAT AS PER THE PROVISIONS OF RULE 11AA OF THE INCOME TAX RULES, THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT, SHOULD HAVE BEEN ACCOMPANIED BY THE COPIES OF REGISTRATION CERTIFICATE GRANTED UNDER SECTION 12A OF THE ACT, NOTES ON THE ACTIVITIES OF THE INSTITUTION AND ALSO THE ACCOUNT OF THE INSTITUTION. ITA NO.527/LKW/2019 PAGE 2 OF 3 3. THE MAIN ARGUMENT OF THE LD. A.R. OF THE ASSESSEE BEFORE US WAS THAT THE ASSESSEE, VIDE LETTER DATED 23/8/2019, IN REPLY TO THE QUERIES RAISED BY THE LD. CIT (EXEMPTIONS), VIDE LETTER DATED 6/8/2019, HAD CLARIFIED THE QUERIES RAISED AND FURNISHED ALL THE DOCUMENTS SOUGHT FOR BY THE LD. CIT (EXEMPTIONS), INCLUDING THE COPY OF REGISTRATION CERTIFICATE ISSUED TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT; AND THAT THEREFORE, THE REJECTION OF THE APPLICATION OF THE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT, ON THE BASIS OF NON-SUBMISSION OF COPY OF THE REGISTRATION CERTIFICATE UNDER SECTION 12AA, ETC., IS NOT JUSTIFIED. THE LD. COUNSEL FOR THE ASSESSEE PRAYED THAT AS SUCHG THE LD. CIT (EXEMPTIONS) MAY BE DIRECTED TO GRANT APPROVAL TO THE ASSESSEE SOCIETY UNDER SECTION 80G(5) OF THE ACT. 4. THE LD. D.R., ON THE OTHER HAND, HAS PLACED STRONG RELIANCE ON THE ORDER OF THE LD. CIT (EXEMPTIONS), LUCKNOW. 5. HEARD. WE FIND THAT THE LD. CIT (EXEMPTIONS) HAD REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT, OBSERVING THAT AS PER THE PROVISIONS OF RULE 11AA OF THE INCOME TAX RULES, THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT, SHOULD HAVE BEEN ACCOMPANIED BY THE COPIES OF REGISTRATION CERTIFICATE GRANTED UNDER SECTION 12A OF THE ACT, NOTES ON THE ACTIVITIES OF THE INSTITUTION AND ALSO THE ACCOUNT OF THE INSTITUTION. FROM A PERUSAL OF THE COPY OF THE LETTER/WRITTEN SUBMISSIONS DATED 23/8/2019 OF THE ASSESSEE, IN REPLY TO THE QUERIES RAISED BY THE LD. CIT (EXEMPTIONS), LUCKNOW, VIDE NOTICE DATED 6/8/2019, WE FIND THAT THE ASSESSEE HAD, SERIAL-WISE, REPLIED TO THE QUERIES RAISED BY THE LD. CIT (EXEMPTIONS) AND FURNISHED ALL THE DOCUMENTS SOUGHT FOR BY HIM, SUCH AS, COPY OF REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT (AS APPEARING AT APB:111-113, WITH REFERENCE SL. NO.19 OF THE REPLY DATED ITA NO.527/LKW/2019 PAGE 3 OF 3 23/8/2019), NOTE SPECIFYING THE ACTIVITIES (AS APPEARING AT APB:27, WITH REFERENCE TO SL. NO.3 OF THE REPLY DATED 23/8/2019) AND COPIES OF AUDIT REPORT, AUDITED BALANCE SHEET AND INCOME & EXPENDITURE ACCOUNT (AS APPEARING AT APB:48-81, WITH REFERENCE TO SL. NO.5 OF THE REPLY DATED 23/8/2019). THEREFORE, ALL SUCH DOCUMENTS, WHICH ARE REQUIRED TO BE ACCOMPANIED WITH THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT, WERE ALREADY BEFORE THE LD. CIT (EXEMPTIONS). HOWEVER, HE REJECTED THE APPLICATION OF THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTIONS) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO PASS AN ORDER GRANTING APPROVAL TO THE ASSESSEE SOCIETY UNDER SECTION 80G(5) OF THE ACT, PREFERABLY WITHIN TWO MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER, ON AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/01/2020. SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED:07/01/2020 JJ:0701 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR