Shrimati Melo Devi Educational Society, Ludhiana V. The Commissioner of Income Tax (Exemption), Chandigarh

ITA 57/ASR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7833 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-06-2017
• Assessment Year: misc
• Appeal Filed On: 17-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARAM SINGH LD
• Assessee Lawyers: P C GOYAL LD
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. T.S. KAPOOR, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER I.T.A NO.57(ASR)/2017 ASSESSMENT YEAR:..... ...... SMT. MELO DEVI EDUCATIONAL SOCIETY, M.D. PUBLIC SCHOOL, OPPOSITE H. NO.301, URBAN ESTATE DUGRI, PHASE-1, LUDHIANA. PAN:AADAS-4814L VS. CIT (EXEMPTION), CHANDIGARH. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P.C. GOYAL (LD. C.A) RESPONDENT BY: SH. DHARAM SINGH (LD. D.R) DATE OF HEARING:17.08.2017 DATE OF PRONOUNCEMENT:31.08.2017 ORDER PER N.K.CHOUDHRY: THE INSTANT APPEAL HAS BEEN FILED BY THE ASSESSEE, BY FEE LING AGGRIEVED AGAINST THE ORDER DATED 23 TH SEP., 2016 PASSED BY THE LD. CIT (EXEMPTION), U/S 12AA OF THE I. T. ACT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL. 1. THAT ORDER PASSED U/S 12AA OF THE INCOME-TAX A CT, 1961 IS AGAINST LAW AND FACTS ON THE FILE IN AS MUCH AS THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH WAS NOT JUSTIFIED TO ARBITRARILY HOLD THAT THE APPELLANT DI D NOT FULFILL THE CONDITIONS FOR GRANT OF REGISTRATION U/S 12A OF THE INCOME TAX ACT,1961. ITA NO.57 (ASR)/2017 2 2. THAT IT IS WRONGLY STATED IN THE ORDER PASSE D U/S 12AA THAT NO ATTEMPT WAS MADE BY THE ASSESSEE TO PUT FORTH ITS V IEW EVEN TILL DATE OF PASSING OF ORDER. 3. THAT ORDER PASSED U/S 12AA OF THE INCOME-TAX ACT, 1961 IS AGAINST LAW AND FACTS ON THE FILE AS MUCH AS THE RE JECTION OF APPLICATION FOR REGISTRATION IS ON THE GROUNDS WHIC H ARE IRRELEVANT AND UNFOUNDED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE APPLICATION U/S 12A OF THE ACT WAS FILED ON 16.03.2016 BEFORE THE LD. CIT(E) AND UP TO 10.08.2016 THE SAID APPLICATION NEVER CAME FOR HEARIN G AS IT REFLECTS FROM THE DOCUMENTS, THEREFORE, THE LD. AR OF THE ASSESSE E BY FILLING AN APPLICATION, REMINDED , THE LD. CIT(E) FOR DECISION ON APPLICATION U/S 12A DATED 16.03.2016, IT WAS ALSO REMINDED THAT TIL L DATE THE ASSESSEE DID NOT RECEIVE ANY COMMUNICATION/NOTICE IN THIS RE GARD, THEREFORE, IT WAS PRAYED TO DO THE NEEDFUL . AS IT REFLECTS FROM THE ORDER UNDER CHALLENGE THAT THE OPPORTUNITIES OF BEING HEARD WAS ACCORDED TO THE ASSESSEE B Y FIXING THE CASE ON 7 TH SEP.2016 WHICH UNDISPUTEDLY AFTER THE MAKING AWARE THE LD. CIT(E) BY THE ASSESSEE VIDE APPLICATION DATED 1 0-08-2016 AND THEREAFTER, AGAIN THE CASE WAS FIXED ON 19 TH SEP.2016, HOWEVER, IT REFLECTS FROM THE ORDER PASSED BY THE CIT(E) THAT THE N OTICES COULD NOT BE SERVED AND RECEIVED BACK UNDELIVERED WITH REMARKS O F THE POST MAN LEFT ADDRESSEE ' WHICH WAS ALSO CONFIRMED FROM THE POSTAL DEPARTMENT WEBSITE WWW.INDIAPOST.GOV.IN WHERE REMARKS SHOWN AS ITEM DELIVERY ATTEMPTED INSUFFICIENT ADDRESS . FINALLY THE LD. CIT(E) DECLINED TO GRANT REGISTRATIO N BY HOLDING AS UNDER: NO ATTEMPT WAS MADE BY THE ASSESSEE TO PUT FORTH I TS VIEWS EVEN TILL THE DATE OF PASSING OF THE ORDER. IT HAS TO BORNE IN MI ND THAT THIS BEING A BENEFICIAL CLAUSE THE ONUS LIES ENTIRELY ON THE APP LICATION TO PURSUE ITS CASE. GIVEN THE NON-DELIVERY OF OPPORTUNITY LETTERS AT THE ADDRESS PROVIDED BY THE APPLICANT IN ITS APPLICATION FOR GRANT OF RE GISTRATION IN FORM NO.10A IT ITA NO.57 (ASR)/2017 3 BECOMES EVIDENT THAT THE APPLICATION SOCIETY DOES N OT EXIT PHYSICALLY AT THE ADDRESS PROVIDED. IN THE ABSENCE OF SUBMISSIONS REG ARDING THE ACTIVITIES AND RESPONSE TO THE PRESUMPTIONS RAISED IT IS DIFFI CULT TO VERIFY BOTH THE OBJECTS & GENUINENESS OF ACTIVITIES OF THE SOCIETY. 4. ON THE CONTRARY, THE LD. AR SUBMITTED THAT THE AS SESSEE NEVER RECEIVED ANY COMMUNICATION AND EVEN OTHERWISE BY FILING AN APPLICATION ON 16.03.2016, NO ACTION WAS TAKEN ON THE APPLICATION OF THE ASSESSEE AND IN ABSENCE OF NOTICE/COMMUNICATION THE ASSE SSEE WAS UNABLE TO PRESENT ITS CASE. 5. THE LD. DR ON THE OTHER HAND, RELIED UPON THE ORDER PASSED BY THE LD. CIT(E) AND SUBMITTED THAT ORDER DOES NOT REQU IRES TO BE INTERFERED WITH AS THE SAME HAVING BEEN PASSED AS LOGICAL , REASONABLE AND REASONED ORDER. 6. WE HAVE CONSIDERED THE ORDER PASSED BY THE LD. CIT(A) AS IT REFLECTS FROM THE SAME THAT APPLICATION U/S 12AA WAS FILE D BEFORE THE LD. CIT(E) ON 16.03.2016 BUT UP TO 29 TH AUGUST, 2016 NOTHING WAS DONE BY THE LD. CIT(E) AND BY LETTER DATED 10.08.20 16 IT WAS REMINDED BY THE LD. AR TO THE CIT(E) FOR DOING THE NEEDFUL AND IT REFLECTS FROM THE PROCEEDINGS THAT THEREAFTER ONLY THE LD. CIT(E) ACTED, HOWEVER, ALTHOUGH THE LD. CIT(E) TRIED TO COMMUNICATE ABOUT THE PROCEEDINGS BY SENDING THE NOTICES TO THE ASSESSEE BUT COULD NOT GET SUCCESS BECAUSE THE LETTERS COULD NOT BE DELIVERED DUE TO IN -SUFFICIENT ADDRESS ON WHICH THE LD. AR SUBMITTED THAT THE ADDRESS OF THE ASSESSEE IS CORRECT, EVEN OTHERWISE IT REFLECTS FROM THE ITR 2015-16 AS WELL. HOWEVER, THE LD. AR FAILED TO UNDERSTAND HOW TH E COMMUNICATION HAD NOT RECEIVED BY WHEREAS THE ADDRESS OF THE ASSESSEE IS CO RRECT. WE ARE OF THE CONSIDERED OPINION THAT IN ORDER TO GIV E PROPER OPPORTUNITIES OF BEING HEARD, IT WOULD BE IN THE INT EREST OF JUSTICE TO ITA NO.57 (ASR)/2017 4 OFFER PROPER AND REASONABLE OPPORTUNITIES TO THE ASSESSE E TO REPRESENT ITS CASE. HENCE, WE REMIT THE CASE TO THE FILE OF THE LD. CIT(E) TO DECIDE AFRESH. FURTHER WE CLARIFY THAT NOTICES TO BE AGAIN SENT TO THE ADDRESS MENTIONED IN FORM NO.10A OR CORRECT ADDRESS PROVIDED BY THE ASSESSEE AND STILL IF THE NOTICES HAVE NOT BEEN DELIVERED ON T HE AFORESAID THEN THE CIT(E) IS AT LIBERTY TO DRAW ADVERSE INFERENCE AG AINST THE ASSESSEE AND TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW. T HE ASSESSEE IS ALSO DIRECTED TO SUPPLY ITS PROPER AND EFFECTIVE ADDRESS ON WHICH THE NOTICES CAN BE SERVED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31.08.2017. SD/- SD/- (T. S. KAPOOR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:31.08.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER