Wali Gromdhyog Sansthan, Haridwar V. CIT, Dehradun

ITA 5753/DEL/2012

• Counselvise Citation: 575320114 RSA 2012
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 12-08-2013
• Assessment Year: misc
• Appeal Filed On: 09-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S MEENA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Capital expenditure
• Section: 12AA

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H: NEW DELHI BEFORE SHRI R. P. TOLANI, JUDICIAL MEMBER AND SHRI B. C. MEENA , ACCOUNTANT MEMBER ITA NO. 5753 /DEL/2012 ASSESSMENT YEAR: 2009 - 10 WALI GROMDHYOG SANTHAN, MAUJA SIMIANI GRAM PANCHAYAT, TANDA BHANEDA, NEAR - AMBATALKIES, G. T. ROAD, MANGALORE, HARIDWAR PAN AAAW1501B VS. CIT DEHRADUN (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINOD KUMAR GOEL , ADVOCATE RESPONDENT BY: R. S. MEENA, CIT DR O R D E R PER B. C. MEENA, AM THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT, DEHRADUN UNDER SECTION 12AA (1)(B)(II) DATED 06.09.2012 . 2. THE ASSESSEE TRUST CAME IN EXISTENCE ON 20.04.1992. 3. AN APPLICATION UNDER SECTION 12A(A) DATED 19 - 03 - 2012 WAS FILED WITH ENCLOSURES IN THE OFFICE OF CIT, DEHRADUN. CIT DEHRADUN HAD REJECTED THIS APPLICATION BY OBSERVING AS UNDER: - PAGE NO. 2 ITA NO. 5753/DEL/2012 THE ABOVE ACCOUNT OF LOANS, RECEIPTS AND CAPITAL EXPENDITURE ARE ENOUGH TO DENY IT REGISTRATION UNDER SECTION. 12A/12AA OF I. T. ACT, 1961 EVEN THOUGH A DEEPER PERUSAL OF ITS ACCOUNTS WOULD BRING OUT MANY OTHER DISQUALIFICATIONS WHICH WOULD PROVE THAT THE SOCIETY IS OUT OF THE PURVIEW OF CHARITABLE PURPOSE AS ENVISAGES UNDER SEC. 2(15) OF I. T. ACT, 1961. THE ACTIVITIES OF TH E SOCIETY ARE COMMERCIAL IN CHARACTER AND NOT CHARITABLE. ACCORDINGLY, THE APPLICATION FOR REGISTRATION UNDER SEC. 12A/12AA OF THE INCOME TAX ACT 1961 IS BEING REJECTED. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE US BY TAKING THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT LD. CIT HAS NOT CONSIDERED THAT OBJECTS OF THE TRUST WAS CHARITABLE IN NATURE THEREFORE, LD. CIT HAS NOT JUSTIFIED IN REJECTING THE APPLICATION U/S 12AA OF IT ACT. 2. THAT THE CONSTRUCTION OF SCHOOL BUILDING IS JUSTIFIED THE INTENTION TO WORK IN EDUCATION FIELD, WHICH ARE CHARITABLE PURPOSE AS DEFINE IN SECTION 2(15) OF I.T. ACT. 3. THAT PROPER AND REASONABLE OPPORTUNITY BEING HEARD WAS NOT ALLOWED BY THE LD. CIT. HENCE, REJECTION ORDER OF APPLICATION U/S 12AA IS AGAINST THE PRINCIPLE OF NATURAL JUSTICE. 4. THAT THE ASSESSEE HAS RIGHT TO ADD/DELETE OR MODIFY ANY GROUNDS DURING THE APPEAL PROCEEDING . 5. IN THE GROUND NO. 3 THE ASSESSEE HAS TAKEN THE ISSUE THAT NO PROPER AND REASONABLE OPPORTUNITY OF BEING HEARD WAS ALLOWED BY THE CIT PRIOR TO RE JECTING THE APPLICATION OF REGISTRATION AND IT IS AGAINST THE NATURAL JUSTICE. THUS NO PROPER OPPORTUNITY WAS PROVIDED TO ASSESSEE. HE PLEADED TO RESTORE THE ISSUE TO THE FILE OF CIT. ASSESSEE HAD FILED ALL RELEVANT DOCUMENTS ASKED FOR ON 30.04.2012. NO FU RTHER QUERY WAS RAISED BY CIT. CIT REJECTED ASSESSEES APPLICATION 06.09.2012. NOTHING WAS ASKED FOR AFTER SUBMISSION ON 30.04.2012. PAGE NO. 3 ITA NO. 5753/DEL/2012 6. WE HAVE HEARD BOTH THE SIDES ON THIS ISSUE OF PROPER AND REASONABLE OPPORTUNITY OF BEING HEARD. WE FIND THAT THE ASSESS EE WHILE ASKED TO FURNISH THE INFORMATION/DETAILS ON 11.04.2012 AND THE ASSESSEE HAS FILED THE DETAILS AS ASKED FOR ON 30.04.2012. NO FURTHER QUERY RAISED BY CIT PRIOR REJECTION OF APPLICATION. THIS FACT SHOWS THAT THE ASSESSEE HAD NOT BEEN PROVIDED PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD BY THE CIT. 7. KEEPING THESE FACTS IN VIEW AND IN THE INTEREST OF JUSTICE AND EQUITY WE RESTORE THE ISSUE BACK TO THE FILE OF LD. CIT, DEHRADUN TO DECIDE THE ISSUE DE NOVO AFTER PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 4 .08.2013 . - S D / - - S D / - (R. P. TOLANI ) ( SHRI B. C. MEENA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED 1 4 /08/2013 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI