Arogyam Educational Trust, V. Commissioner of Income Tax (Exemption), Lucknow

ITA 657/LKW/2015

• Counselvise Citation: [2016] 128 COUNSELVISE.COM (IT) 9760 (ITAT-LUCKNOW)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-06-2016
• Assessment Year: 2015-2016
• Appeal Filed On: 15-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 2; 12AA

Judgement Text

I.T.A. NO.657/LKW/15 ASSESSMENT YEAR:2015-16 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.657/LKW/2015 ASSESSMENT YEAR:2015-16 AROGYA EDUCATIONAL TRUST, SANJAY BAZAR 180/156 SYAD MOHALLA, CHAKRATA ROAD, DEHRADUN PAN:AADTA5498H VS. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER P. K. BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT (EXEMPTIONS), LUCKNOW DATED 03/09/2015 PASSED UNDER SECTION 80G(5)(VI) OF THE I.T. ACT. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL R ELATES TO THE REJECTION OF APPLICATION MOVED BY THE ASSESSEE FOR RECOGNITION U/S 80G(5) OF THE I.T. ACT, 1961. 3. THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE AS SESSEE TRUST WAS EARLIER GRANTED REGISTRATION U/S 12AA OF THE I.T. ACT VIDE ORDER DATED 05/05/2014. SUBSEQUENT TO THAT THE ASSESSEE FILED APPLICATION S EEKING APPROVAL U/S 80G(5) OF THE ACT. THE CIT REJECTED THE APPLICATIO N OF THE ASSESSEE SEEKING APPELLANT BY SHRI SHUBHAM RASTOGI, C.A. RESPONDENT BY SHRI O. P. MEENA, CIT, D.R. DATE OF HEARING 07/06/2016 DATE OF PRONOUNCEMENT 27 / 07 /2016 I.T.A. NO.657/LKW/15 ASSESSMENT YEAR:2015-16 2 APPROVAL U/S 80G(5) OF THE ACT AND PASSED ORDER BY OBSERVING THAT THE ASSESSEE SOCIETY COULD NOT PRODUCE THE BOOKS OF ACC OUNT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE FOR VER IFICATION OF ACTIVITIES OF THE TRUST AND ON THIS BASIS HE CAME TO THE CONCLUSI ON THAT THE ASSESSEE TRUST IS NOT ENGAGED IN ANY CHARITABLE PURPOSES AND THERE FORE, THE ASSESSEE TRUST FAILED TO FULFILL THE CONDITIONS FOR APPROVAL U/S 8 0G OF THE ACT. NOW THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE LEARNED CIT. HE FURTHER SUBMITTED THAT LEARNED CIT (EXEMPTIONS) HAS REJECTED THE APPLICATION OF THE ASSESSEE MOVED U/S 80G(5) OF THE ACT WITHOUT PROPERLY APPRECIATING THE MATERIAL ON RECORD. 5. IN HIS RIVAL SUBMISSIONS, THE LEARNED D.R. STRON GLY SUPPORTED THE IMPUGNED ORDER PASSED BY THE LEARNED CIT (EXEMPTIONS). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND CAR EFULLY GONE THROUGH THE MATERIALS AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT APPEARS THAT THE LEARNED CIT, WITHOUT APPRECIATING THE DOCUMENTS FURNISHED B Y THE ASSESSEE IN SUPPORT OF ITS CLAIM OF CHARITABLE ACTIVITIES, REJECTED THE AP PLICATION SIMPLY ON THE BASIS THAT THE ASSESSEE SOCIETY COULD NOT PRODUCE THE BOOKS OF ACCOUNT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE FOR VER IFICATION OF ACTIVITIES OF THE TRUST. ALTHOUGH LEARNED CIT HAS MENTIONED IN PARA 2 OF HIS ORDER THAT SHRI M.K. AGGARWAL, CA ATTENDED BEFORE HIM AND FILED REPLY AN D CASE WAS DISCUSSED WITH HIM. IN PARA 3 OF HIS ORDER LEARNED CIT HAS MENTIO NED THAT MERE FILING OF DOCUMENTS IS NOT BY ITSELF ENOUGH TO FULFILL THE CO NDITIONS PRESCRIBED FOR APPROVAL U/S 80G(5) OF THE ACT. HOWEVER, HE NOWHERE DISCUS SED IN THE IMPUGNED ORDER ABOUT THE MATERIAL BROUGHT ON RECORD BY THE ASSESSE E AND HOW IT WAS NOT SUFFICIENT TO SHOW THAT THE ASSESSEE WAS NOT ENGAGE D IN THE CHARITABLE ACTIVITIES. THE FACT IS THAT THE ASSESSEE WAS NOT EFFECTIVELY B EEN HEARD. WE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY TO BOTH THE PARTI ES SET ASIDE THE ORDER OF THE CIT I.T.A. NO.657/LKW/15 ASSESSMENT YEAR:2015-16 3 (EXEMPTIONS) AND RESTORE THE MATTER TO THE FILE OF THE CIT (EXEMPTIONS) WITH THE DIRECTION THAT HE SHALL DECIDE THE APPEAL AFRESH AF TER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASS ESSEE IS ALSO DIRECTED TO CO- OPERATE WITH THE CIT (EXEMPTIONS) AND PROVIDE ALL T HE NECESSARY INFORMATION AND DOCUMENT ASKED FOR BY CIT (EXEMPTIONS). 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 27/07/2016) SD/. SD/. ( MAHAVIR PRASAD ) ( P. K. BANSAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:27/07/2016 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR