Rajasthan Association, Kanpur V. CIT -I, Kanpur

ITA 665/LKW/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70534 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-05-2013
• Assessment Year: misc
• Appeal Filed On: 09-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Section: 80G; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A : LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER I.T.A. NO. 665 /LKW/ 2011 ASSESSMENT YEAR: N.A. M/S RAJASTHAN ASSOCIATION, VS. C.I.T. - 1, RAJASTHAN BHAWAN, KANPUR. 25/27, MARACHI KHANA, KANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ABHINAV MEHROTRA, ADVOCATE RESPONDENT BY : SHRI ALOK MITRA, CIT, D.R. DATE OF HEARING : 31 /0 5 /201 3 DATE OF PRONOUNCEMENT :07 /08/2013 ORDER PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT CANCELLING THE RENEWAL CERTIFICATE FOR GRANT OF EXEMPTION U/S 80 G(5) OF THE I.T. ACT, 1961 (HEREINAFTER CALLED AS AN ACT). 2. THE FACTS, IN BRIEF, BORNE OUT FROM THE RECORD, ARE THAT THE ASSESSEE HAS APPLIED VIDE APPLICATION DATED 17/06/2009 FOR RENEWAL OF EXEMPTION U/S 80G(5) OF THE ACT ALONG WITH THE FORM NO. 10G. THE ASSESSEE SOCIETY HAS FURNISHED THE RENEWAL CERTIFICATE OF THE SOCIETY BEARING NO.11/12/08/7205 MENTIONING THAT THE SOCIETY HAS BEEN REGISTERED FOR FIVE YEARS W.E.F. 11/12/2008 ON THE BASIS OF WHICH THE RENEWAL OF EXEMPTION 2 U/S 80G WAS GRANTED ON 30/11/2009. THEREAFTER A LETTER FROM SHRI VIVEK CHAUDHARY, DY. REGI STRAR OF FIRMS SOCIETIES AND CHITS, KANPUR WAS RECEIVED IN THE OFFICE OF CIT STATING THEREIN THAT THE ASSESSEE SOCIETY WAS NOT RENEWED W.E.F. 11/12/2008 BUT RENEWAL CERTIFICATE WAS FAKE AND INVALID. WHILE ADJUDICATING THE ISSUE OF RENEWAL OF EXEMPTION U/S 80G(5) OF THE ACT, THE RELIANCE WAS PLACED UPON THE PHOTOCOPY OF THE CERTIFICATE ALLEGEDLY SIGNED BY SHRI VIVEK CHAUDHARY, DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR DULY ATTESTED BY TREASURER OF THE ASSESSEE SOCIETY DATED 30/09/2009 BUT THE CERTIF ICATE IS STATED TO BE FAKE BY SHRI VIVEK CHAUDHARY, DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR VIDE LETTER DATED 17/08/2010. IN THE LIGHT OF THESE FACTS, A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE AS TO WHY THE RENEWAL OF EXEMPTION U/S 80G(5) OF THE ACT SHOULD NOT BE CANCELLED. IN RESPONSE THERETO, THE ASSESSEE HAS FILED A REPLY WHICH WAS NOT APPRECIATED BY THE CIT AND HE ACCORDINGLY CANCELLED THE RENEWAL CERTIFICATE HAVING OBSERVED THAT THE POWERS CONFERRED AS AN AUTHORITY EMPOWERS TO ISS UE OR DERS INCLUDING THE POWER OF RESCIND SUCH ORDERS ON THE GROUND THAT THE EXEMPTION CERTIFICATE U/S 80G HAS BEEN OBTAINED BY PRACTICING FRAUD OR FORGERY. 3. NOW THE ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL WITH THE SUBMISSIONS THAT AS SOON AS THE SE FACTS WERE BROUGHT TO THE NOTICE OF THE ASSESSEE, IT IMMEDIATELY APPROACHED DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR WITH THE SUBMISSIONS THAT THE CERTIFICATE WAS FILED BY SHRI MADAN GOPAL TAPARIA, MEMBER EXECUTIVE, WHO WAS IMMEDIATELY TERMIN ATED FOR HIS ACT. THE CASHIER SHRI PREM NARAIN SOMANI HAS ALSO RESIGNED AND IN PLACE OF HIM THE ASSESSEE APPOINTED SHRI ARUN KUMAR JAJOO. THROUGH THIS LETTER SOCIETY HAS APPLIED AFRESH TO THE DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR FOR THE REN EWAL OF ITS REGISTRATION. 3 AFTER FULFILLING THE REQUISITE REQUIREMENT, THE REGISTRATION WAS FINALLY GRANTED TO THE ASSESSEE ON 24/12/2010 FOR FIVE YEARS W.E.F. 10/10/2010. THOUGH THIS CERTIFICATE WAS FILED BEFORE THE CIT BUT IT WAS NOT LOOKED INTO BY HIM AND HE CANCELLED THE RENEWAL CERTIFICATE SOLELY ON THE GROUND THAT EARLIER CERTIFICATE FILED WAS FAKE AND INVALID. THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE CIT HAS PASSED THIS ORDER FOR CANCELLATION WITHOUT LOOKING TO THE CERTIFICATE IS SUED BY DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR ON 24/12/2010. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT IN THE LIGHT OF THESE FACTS, THE MATTER MAY BE RESTORED TO THE CIT WITH THE DIRECTION TO READJUDICATE THE ISSUE IN THE LIGHT OF THE CERTIFICATE DATED 24/12/2010. 4. THE LEARNED D.R. , STRONGLY OBJECTED THE CONTENTION OF THE ASSESSEE WITH THE SUBMISSION THAT CIT HAS CANCELLED THE RENEWAL CERTIFICATE WHICH WAS OBTAINED ON THE BASIS OF FAKE DOCUMENTS. THEREFORE, THERE IS NO ILLEGALITY IN THE ORDER OF THE CIT. 5. HAVING GIVEN A THOUG HTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE RECORD, WE FIND THAT UNDISPUTEDLY THE CIT HAS INITIALLY GRANTED RENEWAL CERTIFICATE ON THE BASIS OF FAKE RENEWAL CERTIFICATE OF THE SOCIETY FILED BEFORE HIM. THIS CERTIFICATE W AS STATED TO BE FAKE BY THE DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR AND THE CIT HAS CANCELLED THE RENEWAL CERTIFICATE. BUT FROM THE DOCUMENTS AVAILABLE BEFORE US, IT IS EVIDENT THAT ON RECEIPT OF THIS INFORMATION THE ASSESSEE HAS APPROACHED THE DY. REGISTRAR OF FIRMS SOCIETIES AND CHITS, KANPUR WITH THE REQUEST FOR THE ISSUANCE OF NEW RENEWAL CERTIFICATE AND CONSEQUENTLY RENEWAL CERTIFICATE WAS ISSUED ON 24/1 2 /2010 BEFORE PASSING OF THE ORDER OF CIT AS THE CIT HAS CANCELLED THE RENEWAL CERTIFICA TE VIDE ITS ORDER DATED 4 29/08/2011. ACCORDING TO THE ASSESSEE, THIS RENEWAL CERTIFICATE WAS FILED BEFORE THE CIT BUT IT WAS NOT LOOKED INTO. IN SUPPORT THEREOF SHE HAS FILED A CERTIFICATE WHICH IS AVAILABLE AT PAGE NO. 28 OF THE COMPILATION OF THE ASSESS EE. SINCE THE CIT HAS CANCELLED THE RENEWAL CERTIFICATE WITHOUT LOOKING TO THIS NEW RENEWAL CERTIFICATE, WE ARE OF THE CONSIDERED VIEW THAT THE ORDER OF THE CIT SUFFERS FROM DEFECT. WE, THEREFORE, ARE OF THE VIEW THAT THE MATTER MAY BE RESTORED TO THE CI T FOR READJUDICATION OF THE ISSUE IN THE LIGHT OF NEW RENEWAL CERTIFICATE DATED 24/12/2010 APPEARING AT PAGE 28 OF THE COMPILATION OF THE ASSESSEE. ACCORDINGLY WE SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO READUDIC ATE THE ISSUE AFRESH IN THE LIGHT OF RENEWAL CERTIFICATE DATED 2 4 /12/2010. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/08/2013 ) SD/. SD/. ( PRAMOD KUMAR) ( SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07/08/2013 *SINGH COPY FORWARDED TO THE: 1. APPELLANT. 2. RESPONDENT. 3. CIT (A) 4. CIT 5. DR. ASSISTANT REGISTRAR