Jukshan Education Trust, Lucknow V. Commissioner of Income Tax (Exemption), Lucknow

ITA 536/LKW/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0246 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 27-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 27-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K BAR
• Assessee Lawyers: ANANDI RAM MISHRA
• Keywords: Charitable institution; Set aside
• Section: 12A; 12AA; 201

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. 536/LKW/2018 ASSESSMENT YEAR: N.A. JUKSHAN EDUCATION TRUST 10/711, INDIRA NAGAR NEAR ARVINDO PARK MUNSHIPULIA, LUCKNOW V. CIT (EXEMPTIONS) LUCKNOW T AN /PAN : AACTJ5091Q (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI ANANDI RAM MISHRA, ADVOCATE RESPONDENT BY: SHRI A. K. BAR, CIT (DR) DATE OF HEARING: 17 0 5 201 9 DATE OF PRONOUNCEMENT: 17 0 5 201 9 O R D E R PER A. D. JAIN, V.P . : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTIONS), LUCKNOW DATED 1/5/2018, REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE ACT. 2 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE SOCIETY HAS FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE ACT ON 4/12/2017 WITH THE CIT (EXEMPTIONS), LUCKNOW. THE APPLICATION FILED UNDER SECTION 12A(A) OF THE ACT WAS TAKEN UP BY THE LD. C IT (EXEMPTION S ) AND VIDE LETTER DATED 30/ 3/2018 , CALLED FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT AND FIXED 1/5/2018 FOR COMPLIANCE . THE NOTICE SO ISSUED BY THE LD. CIT (EXEMPTIONS) HA D BEEN RETURNED BY THE POSTAL AUTHORITIES. THE LD. CIT (EXEM PTIONS) , THEREAFTER, REJECTED THE APPLICATION OF THE ASSESSEE OBSERVING THAT NO BOOKS OF ACCOUNT OR VOUCHERS COULD BE PRODUCED BY THE APPLICANT; AND THAT THE APPLICANT HAS ALSO FAILED TO FURNISH THE ITA NO.536/LKW/2018 PAGE 2 OF 3 FINANCIAL STATEMENTS , NAMELY INCOME AND EXPENDITURE ACCOU NTS, RECEIPTS AND PAYMENTS ACCOUNT AND BALANCE SHEET. 3 . THE LD. COUNSEL FOR THE ASSESSEE APPEARED BEFORE US AND HAS CONTENDED THAT THE LD. CIT (EXEMPTIONS) HAS ISSUED ONLY ONE NOTICE, WHICH WAS NOT RECEIVED BY THE ASSESSEE. THE LD. CIT (EXEMPTIONS) HAS RE JECTED THE APPLICATION OF THE ASSESSEE WITHOUT AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE AND WITHOUT CONFRONTING THE CASE LAWS , ON WHICH RELIANCE HAS BEEN PLACED BY HIM WHILE DECIDING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE AC T . THEREFORE, IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT (EXEMPTIONS) , WITH A DIRECTION TO RE - EXAMINE THE CLAIM OF THE ASSESSEE AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 4 . THE LD. D.R. DID NOT DIS PUTE THE REQUEST MADE BY THE LD. COUNSEL FOR THE ASSESSEE. 5 . HAVING CAREFULLY EXAMINED THE ORDER OF THE LD. CIT (EXEMPTIONS) , WE FIND THAT THE LD. CIT (EXEMPTIONS) HAS ISSUED ONLY ONE NOTICE, WHICH HAS NOT BEEN SERVED ON THE ASSESSEE AND RETURNED BY THE POST AL AUTHORITIES . THE LD. CIT (EXEMPTIONS) HAS OBSERVED THAT THE APPLICANT - SOCIETY COULD NOT PRODUCE THE BOOKS OF ACCOUNT AND FINANCIAL STATEMENTS FOR VERIFICATION OF THE ACTIVITIES OF THE TRUST AND DUE TO THE FACT OF NOT PRODUCING THE BOOKS OF ACCOUNT AND F INANCIAL STATEMENTS BY THE APPLICANT, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED. SINCE THE LD. CIT (EXEMPTIONS) HAS NOT AFFORDED PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE TO PROVE THE OBJECT OF CHARITABLE PURPOSE AND THE GENUINENESS OF T HE ACTIVITIES, WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY SHOULD BE AFFORDED TO THE ASSESSEE AND ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTIONS) PAS SED UNDER SECTION 12AA(1)(B)(II ) OF THE ACT , WITH A DIRECTION TO RE - ADJUDICATE THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT , AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO ITA NO.536/LKW/2018 PAGE 3 OF 3 PRODUCE THE RELEVANT RECORD BEFORE THE LD. CIT (EXEMPTIONS) ON HIS DEMAND. 6 . IN THE RESULT, THE APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 / 0 5 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 17 /0 5 / 201 9 JJ: 1705 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR BY ORDER ASSISTANT REGISTRAR