Aryavart Rural Development Trust, Lucknow V. Commissioner Of Income Tax (Exemption), Lucknow

ITA 652/LKW/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6358 (ITAT-LUCKNOW)
• Duration Of Justice: 3 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 27-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ABHA KALA CHANDA
• Keywords: Opportunity of being heard; Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI A.D JAIN, VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 652/LKW/2017 A.Y. N.A. CIT(EXEMPTIONS), LUCKNOW VS. ARYAVART RURAL DEVELOPMENT TRUST, A-2/46, VIJAY KHAND, GOMTI NAGAR, LUCKNOW. PAN AAFTA 5006P (RESPONDENT) (APPELLANT) SHRI JITENDRA KUMAR YADAV, ADVOCATE APPELLANT BY SMT. ABHA KALA CHANDA, CIT, DR RESPONDENT BY 18/03/2021 DATE OF HEARING 16/06/2021 DATE OF PRONOUNCEMENT O R D E R PER: T.S. KAPOOR, A.M: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW, DATED 14/06/2017, REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME TAX ACT, 1961. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME TAX ACT, 1961 ON 14/12/2016 WITH THE CIT (EXEMPTION), LUCKNOW. THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 06/05/2017 TO THE ASSESSEE CALLING FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT, FOR COMPLIANCE ON 06/06/2017. ON THIS DATE, 2 ITA NO.652/LKW/2017 I.E., 06/06/2017 ASSESSEES COUNSEL APPEARED AND FILED PART REPLY AND THE CASE WAS ADJOURNED FOR 07.06.2017 FOR FURNISHING THE REMAINING REPLY. ON THAT DATE 07.06.2017, ASSESSEES COUNSEL APPEARED BUT LEARNED CIT(E) OBSERVED THAT ASSESSEE DID NOT PRODUCE ANY BOOKS OF ACCOUNT OR VOUCHERS, THEREFORE, HE REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A(A) OF THE ACT. WHILE REJECTING THE APPLICATION LEARNED CIT(E) FURTHER OBSERVED THAT ASSESSEE HAD NOT CARRIED OUT ANY ACTIVITY. IT WAS SUBMITTED BY LD. A.R. OF THE ASSESSEE THAT THE ORDER OF LD. CIT (EXEMPTION) IS BASED ON THE BASIS THAT THE ASSESSEE SOCIETY WAS NOT ABLE TO PRODUCE THE BOOKS OF ACCOUNT, BANK STATEMENT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE. IN THIS RESPECT HE INVITED OUR ATTENTION TO A REPLY FILED IN RESPONSE TO NOTICE DATED 05.06.2017 BY LD. CIT(E) WHERE IT HAD FILED LAST THREE YEARS BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT, COPY OF TRUST DEED AND ALL THE DOCUMENTS RELATED TO GENUINENESS OF ACTIVITIES. LD. COUNSEL SUBMITTED THAT UNDER THESE FACTS, IT IS NOT CORRECT ON THE PART OF LD. CIT (EXEMPTION) TO STATE THAT ASSESSEE COULD NOT PRODUCE ANY BOOKS OF ACCOUNT, VOUCHERS OR SUFFICIENT MATERIAL FOR FORMATION OF SATISFACTION. HE SUBMITTED THAT COPY OF TRUST DEED WHEREIN THE OBJECTS ARE MENTIONED, WAS SUFFICIENT FOR LEARNED CIT(E) TO GRANT EXEMPTION TO THE SOCIETY. 3. THE LD. D.R. HAS PLACED RELIANCE ON THE ORDER OF THE LD. CIT (EXEMPTION), LUCKNOW. 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT LD. CIT(EXEMPTION) HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE I.T. ACT ON 3 ITA NO.652/LKW/2017 THE GROUND THAT ASSESSEE HAS FAILED TO PROVIDE SUFFICIENT MATERIAL TO CORROBORATE THE CHARITABLE NATURE OF THE OBJECTS AND GENUINENESS OF THE ACTIVITIES. BEFORE US, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT LD. CIT (EXEMPTION) HAS REJECTED THE APPLICATION OF ASSESSEE SOCIETY BY HOLDING THAT ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS, BANK STATEMENT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE WHEREAS THE COPY OF TRUST DEED ITSELF WAS SUFFICIENT TO GRANT EXEMPTION TO THE ASSESSEE. FROM THE ORDER OF LD. CIT (EXEMPTION), IT IS APPARENT THAT THE LD. CIT (EXEMPTION) HAD ISSUED ONLY ONE LETTER DATED 06/05/2017 CALLING FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION. THE ASSESSEE THOUGH FILED PART OF DOCUMENTS BUT IT COULD NOT PRODUCE BOOKS OF ACCOUNT, BANK STATEMENTS AND VOUCHERS AND THEREFORE LD CIT (EXEMPTION) PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A OF THE ACT. WHILE REJECTING THE APPLICATION, THE LEARNED CIT(E) HAS NOT COMMENTED ON THE OBJECTS CLAUSE OF THE SOCIETY AS TO WHETHER THESE ARE CHARITABLE IN NATURE OR NOT AND FURTHER HE HAS MENTIONED THAT ASSESSEE HAD NOT CARRIED OUT ANY ACTIVITY. WE FURTHER FIND THAT SUFFICIENT OPPORTUNITY HAS NOT BEEN PROVIDED TO ASSESSEE TO EXPLAIN ITS CASE AS THE FIRST DATE OF HEARING WAS FIXED FOR 06/06/2017 AND THE DATE OF PASSING OF ORDER IS 14/07/2017. THEREFORE, UNDER THESE FACTS, WE FEEL THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO EXPLAIN ITS CASE BEFORE THE LD. CIT (EXEMPTION). WE, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTION) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO CONSIDER THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A AFRESH AFTER GIVING PROPER AND SUFFICIENT 4 ITA NO.652/LKW/2017 OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO BE PRESENT ON THE DATE OF HEARING AND PROVIDE THE MATERIAL / CLARIFICATION AS ASKED FOR BY THE LD. CIT (EXEMPTION). 5. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 16/06/2021) SD/- SD/- (A.D. JAIN) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER AKS/ DTD. 16/06/2021 COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR