Krishna Naresh Agarwal Memorial Trust, Pilibhit V. Commissioner of Income Tax (Exemption), Lucknow

ITA 666/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4802 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 26-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Opportunity of being heard
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.666/LKW/2015 COMMISSIONER OF INCOME- TAX(EXEMPTIONS), LUCKNOW VS. KRISHNA NARESH AGARWAL MEMORIAL TRUST, OPP. SATSANGBHAWAN MOH. SAHUKARA, BILSANDA, DISTT. PILIBHIT PAN AACTK 4029 P (RESPONDENT) (APPELLANT) SHRI RAVINDRA KUMAR AGARWAL, CA APPELLANT BY SHRI A.K. SINGH, CIT DR RESPONDENT BY 12/01/2016 DATE OF HEARING 20/01/2016 DATE OF PRONOUNCEMENT O R D E R PER SUNIL KUMAR YADAV, JM. 1. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(EXEMPTIONS), DENYING THE REGISTRATION SOUGHT U/ S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT) ON A SOLIT ARY GROUND THAT THE CIT(EXEMPTIONS) HAS NOT APPRECIATED THE FACTS OF TH E CASE AND REJECTED THE APPLICATION FOR REGISTRATION. 2. DURING THE COURSE OF HEARING, LD. COUNSEL FOR TH E ASSESSEE HAS INVITED OUR ATTENTION TO THE TRUST DEED, GIFT DEED, PURCHASE DE ED, BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT WITH THE SUBMISSION THAT ALL TH ESE EVIDENCES WERE FILED BEFORE THE CIT(EXEMPTIONS) TO DEMONSTRATE THAT THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES AND HAS ACQUIRED A LAND FOR S ETTING UP OF THE EDUCATIONAL INSTITUTION. BUT, THE CIT(EXEMPTIONS) REJECTED THE APPLICATION FOR REGISTRATION ON FLIMSY GROUND THAT THE ASSESSEE HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES. LD. 2 COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT IN THE LIGHT OF THESE EVIDENCES, IT HAS BEEN CLEARLY DEMONSTRATED THAT THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES, THEREFORE THE REGISTRATION U/S 12AA OF THE ACT SHOULD BE GRANTED. 3. LD. DR ON THE OTHER HAS INVITED OUR ATTENTION TO THE ORDER OF THE CIT(EXEMPTIONS) WITH THE SUBMISSION THAT WHENEVER T HE MATTER WAS LISTED FOR HEARING BEFORE THE CIT(EXEMPTIONS), ASSESSEE SOUGHT ADJOURNMENTS AND DID NOT PLACE ALL THE EVIDENCES BEFORE THE CIT(EXEMPTIONS). ON 13 TH AUGUST, 2015, THE LD. COUNSEL FOR THE ASSESSEE APPEARED AND SOUGHT AD JOURNMENT FOR 21.08.2015 AND ON THAT DATE COUNSEL FOR THE ASSESSEE APPEARED BUT THE GIFT DEEDS WHICH ARE BEING FILED BEFORE THE TRIBUNAL WERE NOT FILED BEFO RE THE CIT(EXEMPTIONS). IN SUPPORT OF HIS CONTENTION, LD. DR HAS INVITED OUR A TTENTION TO THE WRITTEN SUBMISSIONS FILED ON 03.08.2015 BEFORE THE CIT(EXEM PTIONS) TO DEMONSTRATE THAT THE TRUST HAS RECEIVED DONATION OF RS.2,15,000/- AN D ALSO RECEIVED LAND ON DONATIONS FROM THE TRUSTEES BUT THE TRUST DEEDS WER E NOT FILED BEFORE THE CIT(EXEMPTIONS). LD. DR HAS FURTHER INVITED OUR ATT ENTION TO CLAUSE 18 OF THE TRUST DEED ACCORDING TO WHICH AT THE TIME OF DISSOL UTION, TRUSTEES MAY DISSOLVE THE TRUST AND AFTER MEETING ALL LIABILITIES, DONATE THE REMAINING TRUST AND CORPUS FUND IN ACCORDANCE WITH THE WISHES OF THE TRUSTEES. THEREFORE, THIS CLAUSE OF THE TRUST DEED VIOLATES TO THE PROVISIONS OF SECTION 13 OF THE ACT. LD. DR HAS FURTHER CONTENDED THAT SINCE THE DOCUMENTS FILED BEFORE THE TRIBUNAL WAS NOT AVAILABLE BEFORE THE CIT(EXEMPTIONS) WHILE ADJUDICATING THE A PPLICATION FOR REGISTRATION U/S 12AA OF THE ACT, THE MATTER MAY BE RESTORED BACK TO HIS FILE FOR READJUDICATION OF THE APPLICATION AFRESH. 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(E XEMPTIONS) AND THE DOCUMENTS PLACED ON RECORD, WE FIND THAT ONLY ON ON E DATE I.E. ON 21.08.2015 LD. COUNSEL FOR THE ASSESSEE, SHRI R.K. AGARWAL ATT ENDED THE HEARING AND DISCUSS THE CASE WITH THE CIT(EXEMPTIONS)AND ON OTHER DATES ADJOURNMENT WAS SOUGHT. THE CIT(EXEMPTIONS) HAS ALSO PASSED THE ORDER ON 21 .08.2015. FROM THE WRITTEN SUBMISSION FILED BEFORE THE CIT(EXEMPTIONS), IT APP EARS TO US THAT ALL THE 3 DOCUMENTS FILED BEFORE THE TRIBUNAL WERE NOT FILED BEFORE THE CIT(EXEMPTIONS). IT IS NOT CLEAR FROM THE WRITTEN SUBMISSION WHETHER THE COPY OF THE GIFT DEED AND THE PURCHASE DEED WERE FILED BEFORE THE CIT(EXEMPTI ONS). SINCE ALL THE DOCUMENTS WERE NOT AVAILABLE BEFORE THE CIT(EXEMPTI ONS) WHILE ADJUDICATING THE APPLICATION FOR REGISTRATION, WE ARE OF THE VIEW TH AT LET THE MATTER MAY BE GO BACK TO THE CIT(EXEMPTIONS) FOR READJUDICATION OF T HE APPLICATION FOR REGISTRATION AFRESH. WE ACCORDINGLY SET ASIDE THE ORDER OF THE C IT(EXEMPTIONS) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO READJU DICATE THE APPLICATION FOR REGISTRATION AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 20/01 /2016 AKS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR