BHAI KANHAIYA WELFARE & RESEARCH TRUST, LUDHIANA V. COMMISSIONER OF INCOME TAX ( EXEMPTION), CHANDIGARH

ITA 547/ASR/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6652 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE SH. MAHAVIR PRASAD, JUDICIAL MEMBER AND DR. M. L. MEENA, ACCOUNTANT MEMBER I.T.A. No. 547/Asr/2019 Assessment Year: 2019-20 Bhai Kanhaiya Welfare & Research Trust, 333-A, Aggar Nagar, Ludhiana, Punjab [PAN: AADTB 4302M] (Appellant) Vs. Commissioner of Income Tax, Exemption), Chandigarh (Respendent) Appellant by Sh. Subhash Jain & Kartik Jain, C.A. Respondent by Smt. Abha Rani Singh, CIT-DR Date of Hearing 08.12.2021 Date of Pronouncement 10.12.2021 ORDER Per Dr. M. L. Meena, AM: In the captioned appeal, the assessee has challenged the order of Ld. CIT(E), Chandigarh dated 21.06.2019 rejection its application to grant registration sought for u/s section 12AA of the Act. 2. At the outset, the ld. Counsel argued that the CIT(E) has arbitrarily hold that the genuineness of the activities of the appellant cannot be corroborated with the stated aims and objects in the absence of any documentary proof of expenses in the form of bills & vouchers regarding activity of the society. The ld. Counsel has filed a details of compilation of statements inclusive of copies of purchase deed of the land and bills of the construction of building to corroborate the genuineness of the activities of the trust in consonance to it aims and object. He requested for remanding the matter to the Ld. CIT(E ) to adjudicate afresh in the light of the documentary evidences placed on record by according adequate opportunity of being heard. The Ld. DR has no objection to the same. 3. Having heard both the sides and perusing the record and documents filed before us, it is seen that the assessee could not produce the details called for by the Ld. CIT(E ), so in absence of documentary information he has rejected the assess trust application by observing vide para 7, as under: “7. In the absence of any documentary proof of expenses in the form of bills & vouchers regarding activity of the society, there is no way the genuineness of activities of the society can be corroborated with the stated aims and objects. Accordingly the present application for grant of registration u/s 12AA is hereby rejected.” 4. The assessee has submitted index copy with details documents on the aims and the corresponding activities carried by the assessee trust (APB, Pg. 1 to 73). Considering the principles of natural Justice, and in our view, one more opportunity is required to be given to the assessee trust to prove its case before the Ld. CIT(E). Accordingly, we remand back the matter to the file of the CIT(E ) to adjudicate the issue afresh by passing a speaking order as per law after considering the documentary evidences filed by the assessee trust and of course by affording due opportunity of being heard to it. No doubt, the assessee shall cooperate in the fresh proceedings. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 10.12.2021 Sd/- Sd/- (Mahavir Prasad) (Dr. M. L. Meena) Judicial Member Accountant Member Dated: 10/12/2021 *GP/Sr./P.S.* Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order