M/S SWAMI BHAGWAN GIRI WELFERE SOCIETY, ABHOR V. COMMISSIONER OF INCOME TAX (EXEMPTION ), CHANDIGARH

ITA 578/ASR/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7082 (ITAT-AMRITSAR)
• Duration Of Justice: 3 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 26-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJI T SINGH
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH: AMRITSAR BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER I.T.A No. 578/ASR/2018 (ASSESSMENT YEAR: 2018-19) M/s Swami Bhagwan Giri Welfare Society VPO Jandawala, Hanwanta Teh. Abohar, Fazilka, Punjab [PAN: AAPAS 3151A] (Assessee) Vs. C.I.T. (Exemptions), C.R. Building, 5 th Floor, Sector 17-E, Chandigarh (Revenue) Assessee by None Revenue by Sh. Inderjit Singh, CIT-DR Date of Hearing 01.12.2021 Date of Pronouncement 03.12.2021 ORDER Per Manish Borad, A. M.: This appeal is filed by the assessee feeling aggrieved by the order of Ld. CIT(Exemptions), Chandigarh dated 25.09.2018 for Assessment Year 2018-19. 2. The case was called. None appeared on behalf of the assessee. Case heard with the assistance of the Ld. Departmental Representative and the records available. Grounds raised by the assessee are as follows: I.T.A No. 578/ASR/2018 2 “1. That the Ld. CIT is not justified in not giving the proper opportunity of hearing, which is against the natural justice and the case be set aside. 2. That the Ld. CIT is not justified in rejecting the approval u/s 80G of the Act. 3. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.” 3. Brief facts of the case are that the assessee is a society created on 27.05.2016. An applicaton on Form 10G was filed on 01.03.2018 for the approval u/s 80G of the Act. The assessee is also said to have filed an application for registration u/s 12AA of the Act. Before us the impugned order is passed u/s 80G(5)(VI) of the Act. Status of the application for registration u/s 12AA of the Act is not available on record. Perusal of the impugned order shows that a detailed query letter dated 24.07.2018 was issued containing 24 points and to give in response reply was submitted by the assessee society but the contents of such reply are not available on record. Ld. CIT(Exemptions) rejected the assessee’s application given for approval u/s 80G of the Act solely on the ground that the objects of the society are religious in nature. The assessee society has challenged this finding of the Ld. CIT(E) before this Tribunal. 4. We have heard the Ld. Departmental Representative and persued the record placed before us. We find that the assessee has moved an applicaton in Form 10G for approval u/s 80G of the Act. Though the Ld. CIT(E) has stated that the assessee I.T.A No. 578/ASR/2018 3 has filed application for registration u/s 12AA of the Act, there is no information available on record about the status of such application. Approval u/s 80G can be granted only if the assessee holds registration u/s 12AA of the Act and the objects for which activities of such society are carried are of charitable in nature. Apart from this deficiency the status of assessee registration u/s 12AA of the Act is not known. We futher notice that the Ld.CIT(E) has rejected the assessee’s application u/s 80G solely on the ground that the object of the assessee society are religious in nature. There is no finding about the details of other objects or clauses of the society as to whether they are in the nature of providing benefit to public at large by way of imparting charitable activity in the field of medical, education and relief to poor. 5. Under these given facts and circumstances of the case, we are of the considered view that the issues raised in the instant appeal needs to be restored to the file of Ld. CIT(E) for fresh adjudication. We therefore direct Ld. CIT(E) to reconsider the application of assessee for grant of approval u/s 80G of the Act along with the application filed u/s 12AA of the Act for registration as a charitable society. Assessee society is also directed to supply necessary documents and replies before Ld. CIT(E) for getting necessary approval u/s 80G of the Act. Needless to mention that proper opportunity of being heard should be provided to the assessee in order to comply to the requirements made by Ld. CIT(E). I.T.A No. 578/ASR/2018 4 6. In the result, appeal of the assesse is allowed for statistical purposes. Order pronounced in the open court on 03/12/2021. Sd/- Sd/- (MAHAVIR PRASAD) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 03/12/2021 *GP/Sr. P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT True Copy By Order