M/s. Khetrapal Charitable & Education Trust, Gurgaon V. CIT, Faridabad

ITA 6461/DEL/2014

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8391 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 27-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA; 11

Judgement Text

ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: D, NEW DELHI) BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, ACCOUNTANT MEMBER ITA NO:- 6461/DEL/2014 ( ASSESSMENT YEAR: 2014-15) KHETRAPAL CHARITABLE & EDUCATION TRUST, C-1292, SUSHANT LOK, PHASE-1, GURGAON-122009 VS. CIT, FARIDABAD. PAN NO. - AABTK7951K APPELLANT RESPONDENT ASSESSEE BY : SMT. RANO JAIN, ADV, SHRI. PRANSHU SINGHAL, CA AND MS. MANSI JAIN, , CA REVENUE BY : SHRI. J.K. MISHRA, CIT, DR DATE OF HEARING : 01.01.2019. DATE OF PRONOUNCEMENT : 01/01/2019. ORDER PER: SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX -FARIDABAD, DATED 29.09.2014 FOR ASSESSM ENT YEAR 2014-15 ON THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORD ER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (CIT) IS BAD BOT H IN THE EYE OF LAW AND ON FACTS. ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 2 OF 6 2. ON THE FACTS AND CIRCUMSTANCES OF CASE, THE LEARNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SECTION 12A OF THE INCOME TAX ACT, 1961. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH EARN ED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN REJECTING THE APPLICATI ON OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SECTION 12A OF THE INCO ME TAX ACT, 1961 WITHOUT GIVING IT A PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD IS CLEAR VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN REJECTING THE APPLICATI ON OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12A DESPITE THE SAME BEI NG COMPLETE AND WAS IN COMPLIANCE TO THE PROVISIONS OF THE ACT. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN COMMENTING ON VARIOUS I SSUES WHICH ARE IN THE DOMAIN OF THE A.O. WHILE GRANTING EXEMPTION UND ER SECTION 11 OF THE ACT, IGNORING THE FACT THAT THE CIT, WHILE GRANTING REGISTRATION HAS TO CONFINE HIMSELF AS TO THE CHARITABLE NATURE OF OBJE CTIVES AND GENUINENESS OF ACTIVITIES ONLY. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN HOLDING THE AIMS AND OB JECTS OF THE SOCIETY NOT BEING CHARITABLE IN NATURE. 7. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN HOLDING THE ACTIVITIES CONDUCTED BY THE ASSESSEE AS NOT BEING GENUINE, DESPITE THE ASSESSEE BRINGING ALL THE MATERIAL AND EVIDENCE ON RECORD TO PROVE THE SAME. 8. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN REJECTING THE REGISTRAT ION UNDER SECTION 12A OF THE ACT HOLDING THAT THE ACTIVITIES OF THE TRUST ARE NOT YET COMMENCED, IGNORING THE FACT THAT THE CIT , WHILE GRANTING REG ISTRATION HAS TO CONFINE HIMSELF AS TO THE CHARITABLE NATURE OF OBJECTIVES A ND GENUINENESS OF ACTIVITIES ONLY. 9. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR AL TER ANY OF THE GROUNDS OF APPEAL. 2. KHETRAPAL CHARITABLE AND EDUCATIONAL TRUST, WHIC H IS A SOCIETY REGISTERED UNDER THE HARYANA REGISTRATION AND REGULATION OF TH E SOCIETIES ACT, 2012 ( HARYANA ACT NO-1 OF 2012) ON 31.05.2013 WITH REGIST RATION NO 710 FILED AN APPLICATION ON 11.03.2014 IN FORM NO. 10A FOR REGIS TRATION OF SOCIETY UNDER CLAUSE (AA) OF SUB-SECTION (1) OF SECTION 12A OF TH E INCOME- TAX ACT, 1961. IN ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 3 OF 6 ORDER TO VERIFY, IF THE CONDITIONS NECESSARY FOR RE GISTRATION U/S 12A WERE MET, LETTER DATED 22.07.2014 ASKING CERTAIN INFORMATION / DETAILS / COPIES OF DOCUMENTS, WAS ISSUED TO THE SOCIETY BY THE COMMISS IONER OF INCOME TAX, FARIDABAD AND THE CASE WAS FIXED FOR HEARING. ON TH E DATE OF HEARING, CHARTERED ACCOUNTANT WHO IS A MEMBER & PRESIDENT OF THE SOCIETY AND A PRACTICING CHARTERED ACCOUNTANT APPEARED IN CAPACIT Y OF AUTHORIZED REPRESENTATIVE OF THE SOCIETY. THE CASE WAS PARTIAL LY DISCUSSED IN REGARDING THE AIMS & OBJECTS OF THE APPLICANT SOCIETY AS WELL AS THE ACTIVITIES UNDERTAKEN SO FAR, BY THE APPLICANT SOCIETY. ON CHANGE OF INCUMBE NT, IT WAS NOTED THAT THE CASE WAS GETTING TIME BARRED ON 30.09.2014. THEREFO RE, TO PROCEED FURTHER, A FRESH NOTICE WAS ISSUED VIDE COMMUNICATION DATED 15 /17.09.20.14, FIXING DATE OF HEARING ON 22.09.2014. AS PER THE SAID COMMUNICA TION, THE APPLICANT SOCIETY WAS ASKED TO FURNISH/PRODUCE CERTAIN INFORMATION/DO CUMENTS INCLUDING THE FOLLOWING:- (I) BOOKS OF ACCOUNTS ALONGWITH BILLS/VOUCHERS (FORM BE GINNING I.E. 31.05.2013) FOR VERIFICATION. (II) A COPY OF PROCEEDINGS/MINUTES REGISTER REORDERING H E MINUTES OF MEETINGS OF GENERAL BODY /GOVERNING MEETINGS. ALSO ORIGINAL (REGISTER) WAS REQUESTED FOR VERIFICATION. (III) OBJECTIVES WISE DETAILS OF ACTIVITIES CARRIED OUT. (IV) COPY OF THE DOCUMENT REGARDING OWNERSHIP OF THE PRO PERTY IN WHICH OFFICE OF THE SOCIETY IS WORKING. ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 4 OF 6 THE COMMISSIONER OF INCOME TAX, FARIDABAD VIDE ORDE R DATED 29.09.2014 PASSED ORDER U/S 12AA(1)(B)(II) OF THE INCOME TAX A CT, 1961 AND HELD THAT THE APPLICANT SOCIETY FAILED TO DISCHARGE ITS ONUS IN T ERMS OF PRODUCING MATERIAL TO SUBSTANTIATE ITS CLAIM THAT SOCIETYS AIMS/OBJECTS AND TERMS OF MEMORANDUM ARE OF THE CHARITABLE NATURE AND THE SAME ARE BEING FOLLOWED. THE COMMISSIONER OF INCOME TAX, FARIDABAD FURTHER HELD THAT THE APPLICANT SOCIETY FAILED TO DISCHARGE ITS ONUS TO PRODUCE CONCRETE EV IDENCE TO SHOW THE GENUINENESS OF THE ACTIVITIES OF THE SOCIETY. CONSE QUENTLY, THE COMMISSIONER OF INCOME TAX REJECTED THE APPLICATION FOR THE REGISTR ATION U/S 12AA OF THE ACT AND REFUSED THE REGISTRATION U/S 12AA(1)(B)(II) OF THE ACT. 3. BEING AGGRIEVED BY THE SAID ORDER DATED 29.09.20 14, THE APPELLANT SOCIETY FILED THE PRESENT APPEAL. 4. DURING THE HEARING, THE LD. AR SUBMITTED THAT DU E TO THE MISUNDERSTANDING THE CHARTERED ACCOUNTANT COULD NOT PROPERLY REPRESENT CASE AND COULD NOT FILE THE RELEVANT DOCUMENTS BEFORE TH E COMMISSIONER OF INCOME TAX, FARIDABAD. THE LD. AR THEREFORE, REQUESTED THA T AN OPPORTUNITY OF FILING THE PROPER DOCUMENTS AS MENTIONED IN THE ORDER DATE D 29.09.2014 BE ALLOWED TO THE APPELLANT SOCIETY AND AFTER HEARING THE APPE LLANT SOCIETY, THE COMMISSIONER OF INCOME TAX, FARIDABAD CAN PASS THE RELEVANT ORDER BY FOLLOWING DUE PROCESS OF LAW. 5. THE LD. DR RELIED UPON THE ORDER OF THE COMMISSI ONER OF INCOME TAX, FARIDABAD. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT RECORDS. FROM THE RECORDS AND THE OBSERVATIONS MADE BY THE C OMMISSIONER OF INCOME TAX, FARIDABAD, IT CAN BE SEEN THAT THE REPRESENTAT IVE OF THE APPELLANT SOCIETY COULD NOT PROPERLY REPRESENT THE CASE OF THE SOCIET Y AND DID NOT FILE THE RELEVANT DOCUMENTS. FOR MISREPRESENTATION OF THE REPRESENTAT IVE OF THE APPELLANT SOCIETY, THE APPELLANT SOCIETY SHOULD NOT SUFFER, T HEREFORE, IT WILL BE APPROPRIATE ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 5 OF 6 IN THE INTEREST OF JUSTICE TO REMAND BACK THIS MATT ER TO THE FILE OF THE COMMISSIONER OF INCOME TAX, FARIDABAD FOR TAKING ON RECORD THE RELEVANT DOCUMENTS WHICH WERE CALLED BY THE COMMISSIONER OF INCOME TAX AND THEN PASS APPROPRIATE ORDER AS REGARDS WHETHER TO GRANT REGISTRATION U/S 12AA(1)(B)(II) OF THE ACT OR NOT. NEEDLESS TO SAY, THE APPELLANT SOCIETY BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF N ATURAL JUSTICE. HENCE, APPEAL OF THE APPELLANT SOCIETY IS PARTLY ALLOWED FOR STAT ISTICAL PURPOSE. 7. IN RESULT, APPEAL OF THE APPELLANT SOCIETY IS PA RTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 01/01/2019. SD/- SD/- (N.K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01.01.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.-6461/DEL/2014. KHETRAPAL CHARITABLE & EDUCATION TRUST. PAGE 6 OF 6 DATE OF DICTATION 01.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER