M/S MAHARAJA RANJIT SINGH PUNJAB TECNICAL UNIVERSITY , BATHINDA V. COMMISSIONER OF INCOME TAX (EXEMPTION ) , CHANDIGARH

ITA 590/ASR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7055 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-07-2019
• Assessment Year: 2018-2019
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AABHA RANI SINGH
• Assessee Lawyers: R S BANSAL
• Keywords: Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. VIKRAM SINGH YADAV , ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NO. 590/ASR/2018 M/S MAHARAJA RANJIT SINGH PUNJAB TECHNICAL UNIVERSITY, BADAL ROAD, BATHINDA PUNJAB [PAN: AAAGT0124M] VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH (APPELLANT) (RESPONDENT) APPELLANT BY: SH. ASHWANI KALIA & SH. R. S. BANSAL (CA) RESPONDENT BY: SMT. AABHA RANI SINGH (CIT DR) DATE OF HEARING: 23.07.2019 DATE OF PRONOUNCEMENT: 24.07.2019 ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORD ER OF LD. CIT(E), CHANDIGARH DATED 28.09.2018 WHEREIN THE ASSESS EE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIO NS), CHANDIGARH HAS ERRED IN LAW AND ON FACTS IN REJECTING A SSESSEES APPLICATION ON FORM ON FORM NO. 10A FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT 1961. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION S), CHANDIGARH HAS ERRED IN LAW AND ON FACTS IN HOLDING TH AT THE GENUINENESS OF THE CHARITABLE ACTIVITIES IS NOT SATISFIED. 3. THAT THE ORDER IS BAD IN LAW AND ON FACTS. ITA NO. 590 /ASR/2018 M/S MAHARAJA RANJIT SINGH VS. C IT (EXEMPTIONS), CHANDIGARH 2 2. BRIEFLY STATED, THE FACTS OF CASE ARE THAT THE ASSESSEE IS A TECHNICAL UNIVERSITY CREATED BY THE MAHARAJA RANJIT SINGH PUNJA B TECHNICAL UNIVERSITY ACT, 2014 AS NOTIFIED IN THE PUNJAB GOVERNMENT GAZETT E DATED 12 TH FEB, 2015. IT MOVED AN APPLICATION ON 28.03.2018 BEFORE THE LD. CIT(E) SEEKING REGISTRATION U/S 12AA OF THE ACT. THE LD. CIT(E) STAT ED THAT IN ORDER TO EXAMINE THE ACTIVITIES OF THE INSTITUTION AND WHETHER THE SAME WERE IN ACCORDANCE WITH THE STATED OBJECTIVES, CERTAIN INFORMATIO N AND CLARIFICATIONS WERE SOUGHT FROM THE ASSESSEE. IN RESPONSE, THE COUNSEL FO R THE ASSESSEE ATTENDED THE OFFICE OF LD CIT(E) ON 16.08.2018 AND SU BMITTED THE DESIRED INFORMATION/CLARIFICATION. THEREAFTER, CERTAIN FURTHER INFORMATION/ADDITIONAL QUERIES WERE RAISED VIDE LETTER DATED 21.09.2018 IN R ELATION TO SURPLUS WHICH WERE INVESTED FIXED DEPOSIT WHEREIN THE ASSESSEE WAS EARNI NG INTEREST INCOME. IN THIS REGARD, THE LD. CIT(E) STATED THAT NEI THER ANY REPLY HAS BEEN SUBMITTED TO HIS OFFICE NOR HAS ANY ATTEMPT HAS BEEN M ADE BY THE APPLICANT TO PUT FORTH ITS VIEW IN THE MATTER EVEN TILL THE DA TE OF PASSING OF THE ORDER. IN VIEW OF THE SAME, THE LD. CIT(A) STATED THAT NO SAT ISFACTION ABOUT THE GENUINENESS OF THE CHARGEABLE ACTIVITIES CAN BE RECORDED A ND THE APPLICATION SEEKING REGISTRATION U/S 12AA OF THE ACT WAS REJECTED. AG AINST THE SAID ORDER OF THE LD CIT(E), THE ASSESSEE IS NOW IN APPEAL BEFORE U S. 3. DURING THE COURSE OF HEARING, THE LD. AR SUBMITTED THAT IN RESPONSE TO THE INITIAL QUESTIONNAIRE DATED 26.07.2018 ISSUED BY T HE LD. CIT(E), THE ASSESSEES COUNSEL DULY ATTENDED THE OFFICE OF LD. CIT(E) AND FILED DETAILED REPLY TO THE QUESTIONNAIRE SUBMITTING ALL THE REQUIRE D DETAILS VIDE HIS LETTER DATED 16.08.2018. SUBSEQUENTLY, THE DCIT, HQS (EXEMPT IONS), CHANDIGARH REQUIRED SAME MORE DETAILS/INFORMATION VIDE LETTER D ATED 21 ST SEPTEMBER, 2018 EMAILED TO ASSESSEES COUNSEL AT 5:48 PM REQUIRING T O SUBMIT THE DETAILS ON 24.09.2018 AT 11.30 AM. IN THIS REGARD, IT WAS SUBMITTED THAT THE TIME ALLOWED TO SUBMIT THE INFORMATION WAS TOO SHORT A S 22 ND AND 23 RD BEING SATURDAY AND SUNDAY AND THE INFORMATION WAS SOUGHT TO BE FILED ON ITA NO. 590 /ASR/2018 M/S MAHARAJA RANJIT SINGH VS. C IT (EXEMPTIONS), CHANDIGARH 3 24.09.2018 AT 11:30 AM. THE ASSESSEES COUNSEL COLLATED T HE DETAILS AND SUBMITTED HIS REPLY VIDE LETTER DATED 26.09.2018 AND ON PERUSAL THEREOF, IT CAN BE NOTED THAT THE ASSESSEE HAS DULY COMPLIED WITH THE QUESTIONNAIRE DATED 21.09.2018. HOWEVER, LD. CIT(A) HAS PROCEEDED AN D PASSED THE ORDER ON 28.09.2018 STATING THAT NO REPLY HAS BEEN FILED BY THE ASSESSEE WHICH IS FACTUALLY NOT CORRECT. IT WAS FURTHER SUBMITTED THAT IT IS A CASE OF GOVERNMENT UNIVERSITY WHICH HAS BEEN SET UP PURELY FOR THE PROVISION OF TECHNICAL EDUCATION AND THEY CAN BE NO REASON TO DOUBT T HE GENUINENESS OF THE CHARGEABLE ACTIVITIES CARRIED OUT BY THE UNIVERSITY. IT WAS ACCORDINGLY SUBMITTED THAT REJECTION OF APPLICATION BY THE LD CIT( E) IS NOT JUSTIFIED. 4. PER CONTRA, THE LD. DR RELIED ON THE ORDER OF TH E LD. CIT(E) AND SUBMITTED THAT GIVEN THAT THE ASSESSEE HAS FAILED TO SUBM IT THE DESIRE INFORMATION SO SOUGHT BY THE LD. CIT(E) IN ABSENCE OF T HE REQUISITE INFORMATION, THE LD. CIT(E) WAS WELL WITHIN HIS RIGHT IN REJECTING THE ASSESSEE SEEKING REGISTRATION U/S 12AA OF THE ACT. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PURUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD CIT(E) HAS R EJECTED THE APPLICATION OF THE ASSESSEE UNIVERSITY FOR WANT OF CERTAIN INFORMATION SO SOUGHT BY HIM. THE ASSESSEE HAS HOWEVER CONTENDED THAT THE INFORMATION SO SOUGHT BY THE LD. CIT(E) HAS BEEN SUBMITTED FROM TIME TO TIME AND E VEN THE INFORMATION SOUGHT VIDE NOTICE DATED 21.09.2018 HAS BEEN DULY SUBM ITTED ON 26.09.2018. GIVEN THAT THERE IS NO FINDING RECORDED B Y THE LD CIT(E) ON MERITS OF THE APPLICATION SO FILED BY THE ASSESSEE UNIVER SITY AND GIVEN THAT THE ASSESSEE HAS SUBMITTED THE DESIRED INFORMATION SO SOUGH T BY THE LD CIT(E), IT WOULD BE IN FITNESS OF THINGS THAT THE MAT TER IS REMANDED BACK TO THE FILE OF THE LD.CIT(E) TO DECIDE THE SAME AFRESH AF TER CONSIDERATION THE SUBMISSIONS SO FILED BY THE ASSESSEE. WE ACCORDINGLY SET ASIDE THE MATTER TO ITA NO. 590 /ASR/2018 M/S MAHARAJA RANJIT SINGH VS. C IT (EXEMPTIONS), CHANDIGARH 4 THE FILE OF THE LD CIT(E) WHO SHALL DECIDE THE MATTER A FRESH WITHIN PERIOD OF THREE MONTHS AFTER PROVIDING REASONABLE OPPORTUNITY T O THE ASSESSEE. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.07.2019. SD/- SD/- (N.K.CHOUDHRY) ( VIKRAM SINGH YADAV ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 24.07.2019 GANESH KR. PS COPY OF THE ORDER FORWARDED TO: (1) M/S MAHARAJA RANJIT SINGH, BATHINDA (2) THE CIT (EXEMPTIONS), CHANDIGARH (3) THE CIT CONCERNED (4) THE SR DR, I.T.A.T., AMRITSAR TRUE COPY BY ORDER ITA NO. 590 /ASR/2018 M/S MAHARAJA RANJIT SINGH VS. C IT (EXEMPTIONS), CHANDIGARH 5 DATE INITIAL 1 . DRAFT DICTATED ON PS/SR. PS 2. DRAFT PLACED BEFORE AUTHOR PS/SR. PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSE D/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR. PS/PS PS/SR. PS 6. KEPT FOR PRONOUNCEMENT ON PS/SR. PS 7. FILE SENT TO THE BENCH CLERK PS/SR. PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 9. DATE ON WHICH FIL E GOES TO THE AR 10. DATE OF DISPATCH OF ORDER