Samadhanchal Sewa Samiti, Karnal V. CIT (Exemptions), Chandigarh

ITA 546/CHANDI/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95539 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-09-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 19-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: PERMIL GOEL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO. 546/CHD/2015 ASSESSMENT YEAR: 2014-15 SAMADHANCHAL SEWA SAMITI, V THE CIT(EXEMPTIONS), PHOOSGARH, CHANDIGARH. KARNAL. PAN: AAKAS5647N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PERMIL GOEL RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 09.09.2015 DATE OF PRONOUNCEMENT : 14.09.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS) CHANDIGARH DATED 20.03.2015 REJECTING THE APPLICATI ON UNDER SECTION 12AA OF THE INCOME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE FILED APPLICATION IN PRESCRIBED FORM FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. THE LD . COMMISSIONER OF INCOME TAX GAVE OPPORTUNITY OF BEIN G HEARD TO THE ASSESSEE AND ISSUED NOTICE FOR 12.03.2 015 IN RESPONSE TO WHICH, NONE APPEARED IN PERSON BEFORE L D. COMMISSIONER OF INCOME TAX. THE ASSESSEE HAS FAILE D TO FURNISH THE COMPLETE BOOKS OF ACCOUNT AND VOUCHERS FOR 2 VERIFICATION. HOWEVER, A REPLY HAS BEEN FILED IN D AK ON 09.03.2015 ENCLOSING A COPY OF THE MEMO OF ASSOCIAT ION, COPY OF REGISTRATION, COPY OF ITR, COPY OF BALANCE SHEET AND INCOME & EXPENDITURE ACCOUNT ETC. THE LD. COMMISSIONER OF INCOME TAX REPRODUCED THE AIMS AND OBJECTS OF THE ASSESSEE IN PARA 3 OF THE IMPUGNED O RDER AND NOTED THAT ALL THE AIMS AND OBJECTS OF THE SOCI ETY ARE GENERAL IN NATURE AND DID NOT SPECIFY ANY CHARITABL E PURPOSES. THE LD. COMMISSIONER OF INCOME TAX ALSO NOTED THAT SINCE ASSESSEE HAS FAILED TO FURNISH THE COMPLETE BOOKS OF ACCOUNT AND VOUCHERS, THEREFORE, GENUINENESS OF THE ACTIVITIES OF THE SOCIETY CANNOT BE VERIFIED AND ACCORDINGLY, DENIED REGISTRATION UNDER SECTION 12AA OF THE ACT. 3. WE HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECOR D. THE LD. COUNSEL FOR THE ASSESSEE REFERRED TO PB-63 WHICH IS REPLY FILED BEFORE LD. COMMISSIONER OF INCOME TA X THROUGH WHICH THE COPY OF THE BY LAWS, TRUST DEED, PROOF OF REGISTRATION, COPY OF ALL BANK ACCOUNTS, ALL VOU CHERS AND COPY OF THE BOOKS OF ACCOUNT WERE FURNISHED. T HE LD. COUNSEL FOR THE ASSESSEE ALSO SUBMITTED THAT HE HAS PERSONALLY INSPECTED THE RECORD OF THE ASSESSING OF FICER AND LD. COMMISSIONER OF INCOME TAX AND AFTER INSPEC TION FOUND THAT THE LD. COMMISSIONER OF INCOME TAX IN OR DER TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF ASSE SSEE CALLED FOR THE REPORT FROM ASSESSING OFFICER. THE 3 ASSESSING OFFICER VISITED THE OFFICE OF THE SOCIETY AND MADE ENQUIRIES AND RECOMMENDED FOR GRANT OF REGISTRATION IN HIS REPORT SENT VIDE DISPATCH NO. 2 34 DATED 09.12.2014 WHICH WAS RECEIVED BY LD. COMMISSIONER OF INCOME TAX ON 05.02.2015. THE LD. COUNSEL FOR THE ASSESSEE ALSO SUBMITTED THAT HE FOU ND FROM THE REPORT MENTIONED ABOVE THAT WITH REGARD TO GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE, IT W AS SUBMITTED IN THE REPORT THAT SAMITI IS NOT ENGAGED IN ANY BUSINESS. IT WAS ALSO NOTED IN THE REPORT AS NOTED DURING INSPECTION OF RECORD THAT THE ASSESSEE SOCIETY MAIN TAINED REGULAR BOOKS OF ACCOUNT AND BALANCE SHEET ETC., THEREFORE REGISTRATION WAS RECOMMENDED BY THE ASSES SING OFFICER. 4. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT O F THESE SUBMISSIONS, WE ARE OF THE VIEW THE MATTER RE QUIRES RE-CONSIDERATION AT THE LEVEL OF THE LD. COMMISSION ER OF INCOME TAX (EXEMPTION). IT IS ADMITTED FACT THAT T HE ASSESSEE FILED A REPLY AT THE DAK COUNTER THROUGH W HICH NECESSARY DOCUMENTS WERE FILED FOR INSPECTION OF TH E CIT. THE SUBMISSIONS OF LD. COUNSEL FOR THE ASSESSEE ALS O EXPLAIN THAT THE CIT CALLED FOR THE REPORT FROM THE ASSESSING OFFICER WITH REGARD TO ACTIVITIES OF THE ASSESSEE AND THE ASSESSING OFFICER IN HIS REPORT RECOMMENDED FOR GRANT OF REGISTRATION AFTER VERIFYING THE GENUINENE SS OF THE ACTIVITIES OF THE ASSESSEE. HOWEVER, SUCH REPO RT OF THE ASSESSING OFFICER DATED 09.12.2014 DID NOT FIND ANY 4 MENTION IN THE IMPUGNED ORDER. IT IS, THEREFORE, C LEAR THAT EVEN REPORT OF THE ASSESSING OFFICER SUBMITTED BEFORE CIT (EXEMPTIONS) WAS NOT SUPPLIED TO THE ASSESSEE F OR ITS COMMENTS. SINCE SUFFICIENT MATERIAL WAS AVAILABLE ON RECORD BEFORE CIT (EXEMPTION) THEREFORE, MERELY BEC AUSE BOOKS OF ACCOUNT HAVE NOT BEEN PRODUCED, WOULD NOT BE THE SOLE REASON FOR REJECTING THE APPLICATION FOR REGISTRATION. 4(I) FURTHER, ON GOING THROUGH THE AIMS AND OBJE CTS OF THE ASSESSEE AS REPRODUCED IN THE IMPUGNED ORDER, W E FIND THAT THE SAME PRIMA-FACIE DISCLOSES THE CHARIT ABLE PURPOSES AS DEFINED UNDER SECTION 2(15) OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE UNDERTOOK BEFORE US TH AT HE WOULD PRODUCE BOOKS OF ACCOUNT AND ALL OTHER DOCUME NTS AS MAY BE REQUIRED BY CIT FOR FINAL DISPOSAL OF THE MATTER. THEREFORE, CONSIDERING THE ABOVE DISCUSSIO N, WE FIND IT APPROPRIATE TO RESTORE THIS MATTER TO THE C IT (EXEMPTION) FOR RE-CONSIDERATION BECAUSE SUFFICIENT MATERIAL WAS BEFORE CIT TO GIVE FINDING OF FACT IN DETAIL IN THE IMPUGNED ORDER INSTEAD OF REJECTING THE APPLICA TION OF THE ASSESSEE SUMMARILY. WE, ACCORDINGLY, SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER IN ISSUE TO C IT (EXEMPTIONS) CHANDIGARH WITH DIRECTION TO RE-DECIDE REGISTRATION APPLICATION STRICTLY IN ACCORDANCE WIT H LAW GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COO PERATE WITH THE CIT (EXEMPTIONS) AND SHALL PRODUCE ALL 5 NECESSARY DOCUMENTS AS MAY BE REQUIRED BY THE CIT (EXEMPTIONS). 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( RANO JAIN) (BHAVNESH SAIN I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14 TH SEPTEMBER,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH