Riddhima Chairitable and Educational Trust, V. Commissioner of Income Tax (Exemption), Lucknow

ITA 637/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4694 (ITAT-LUCKNOW)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-02-2016
• Assessment Year: misc
• Appeal Filed On: 28-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K KAPOOR
• Keywords: Charitable institution; Opportunity of being heard
• Section: 80G; 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 637 & 638/LKW.2015 RIDDHIMA CHARITABLE AND EDUCATIONAL TRUST ALLAHABAD V. CIT (EXEM PTION) LUCKNOW T AN /PAN : AACTR3473J (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. P. K. KAPOOR, C.A. RESPONDENT BY: SHRI. A. K. SINGH, CIT (DR) DATE OF HEARING: 09 02 201 6 DATE OF PRONOUNCEMENT: 19 02 201 6 O R D E R PER SUNIL KUMAR YADAV: THES E APPEALS ARE PREFERRED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE LD. COMMISSIONER OF INCOME - TAX DENYING REGISTRATION UNDER SECTION 12AA OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT') AND REJECTING THE APPLICATION OF THE ASS ESSEE FILED UNDER SECTION 80G OF THE ACT. 2 . THE FACTS IN BRIEF BORNE OUT FROM THE RECORD ARE THAT THE ASSESSEE HAS FILED AN APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. BESIDES, HE HAS ALSO FILED AN APPLICATION UNDER SECTION 80G OF T HE ACT. THE APPLICATION FILED UNDER SECTION 12AA OF THE ACT WAS TAKEN UP BY THE LD. COMMISSIONER OF INCOME - TAX AND VIDE LETTER DATED 16.7.2015 CALLED FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT AND TO APPEA R ON 24.8.2015. : - 2 - : BUT ON THE DATE FIXED NONE APPEARED ON BE HALF OF THE ASSESSEE BEFORE THE LD. COMMISSIONER OF INCOME TAX AND THE LD. COMMISSIONER OF INCOME - TAX HAS DISPOSED OF THE APPLICATION FILED UNDER SECTION 12AA OF THE ACT BY DISMISSING THE SAME. 3 . TH E LD. COUNSEL FOR THE ASSESSEE APPEARED BEFORE US AND HAS CONTENDED THAT THE LD. COMMISSIONER OF INCOME TAX HAS AFFORDED ONLY ONE DATE FOR APPEARANCE AND HAS REJECTED THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. THEREFORE, IN T HE INTEREST OF JUSTICE, THE MATER MAY BE RESTORED BACK TO THE FILE OF THE LD. COMMISSIONER OF INCOME - TAX WITH A DIRECTION TO RE - EXAMINE THE CLAIM OF THE ASSESSEE IN THE LIGHT OF EVIDENCE AVAILABLE WITH HIM. 4 . THE LD. D.R. DID NOT DISPUTE THE REQUEST MADE BY THE LD. COUNSEL FOR THE ASSESSEE. 5 . HAVING CAREFULLY EXAMINED THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX, WE FIND THAT THE LD. COMMISSIONER OF INCOME TAX HAS AFFORDED ONLY ONE OPPORTUNITY TO THE ASSESSEE. THE LD. COMMISSIONER OF INCOME TAX HAS OBSERVED THAT TWO FACTORS NAMELY THE OBJECT OF CHARITABLE PURPOSE AND THE GENUINENESS OF ACTIVITIES HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION. SINCE THE LD. COMMISSIONER OF INCOME TAX HAS NOT AFFORDED PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO P ROVE THE OBJECT OF CHARITABLE PURPOSE AND THE GENUINENESS OF THE ACTIVITES , WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY SHOULD BE AFFORDED TO THE ASSESSEE AND ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX PASSED UNDER SECTION 12 AA OF THE ACT WITH A DIRECTION TO RE - ADJUDICATE THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO PRODUCE THE RELEVANT RECORD BEFORE THE LD. COM MISSIONER OF INCOME - TAX ON HIS DEMAND. : - 3 - : 6 . THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 80G OF THE ACT WAS ALSO REJECTED BY THE LD. COMMISSIONER OF INCOME - TAX HAVING RELIED UPON HIS ORDER PASSED ON THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. SINCE THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX PASSED UNDER SECTION 12AA OF THE ACT HAS BEEN SET ASIDE AND THE MATTER IS RESTORED BACK TO HIS FILE, THE ORDER PASSED ON APPLICATION UNDER SECTION 80G OF THE ACT IS ALSO SET ASIDE AND THE MATTER IS RESTORED TO HIS FILE FOR ADJUDICATING THE SAME IN THE LIGHT OF THE ORDER PASSED UNDER SECTION 12AA OF THE ACT. 7 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION ED PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19 TH 1 . APPELLANT FEBR UARY, 2016 JJ: 0902 COPY FORWARDED TO: 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR