Police Suvidha Centre Welfare Society, Amritsar. V. The Commissioner of Income Tax II, Amritsar.

ITA 680/ASR/2013

• Counselvise Citation: 68020914 RSA 2013
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-02-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 22-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Section: 12AA; 10; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 679(ASR)/2013 ASSESSMENT YEAR: 2013-14 PAN: AACAP3482G POLICE SUVIDHA CENTRE WELFARE VS. COMMISSIONER O F INCOME SOCIETY, SUB-DIVISION, BABA TAX-II, AMRITSAR BAKALA, OFFICE OF DY. SUPERINTENDENT BABA BAKALA, AMRITSAR (RURAL) (APPELLANT) (RESPONDENT) WITH I.T.A. NO. 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 PAN: AACAP3593Q POLICE SUVIDHA CENTRE WELFARE VS. COMMISSIONER O F INCOME SOCIETY, SUB-DIVISION, JANDIALA TAX-II, AMRI TSAR GURU, OFFICE OF DY. SUPERINTENDENT JANDIALA GURU, AMRITSAR (RURAL) (APPELLANT) (RESPONDENT) APPELLANT BY: SH. AJAY JAGGA, ADVOCATE RESPONDENT BY: SH. AMRIK CHAND, DR DATE OF HEARING: 24.02.2014 DATE OF PRONOUNCEMENT: 24.02.2014 ORDER PER BENCH 1. THE ASSESSEE HAVE FILED PRESENT TWO APPEALS AGAI NST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX-II, AMRITSAR, EA CH DATED 26 TH SEPTEMBER, 2013. IN BOTH THE PRESENT APPEALS SIMILA R GROUNDS OF APPEAL 2 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 HAVE BEEN TAKEN, THEREFORE THE GROUNDS OF APPEAL TA KEN IN I.T.A. NO. 679(ASR)/2013, IS AS UNDER: I. AS PER FACTS, THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (CIT) HAS ERRED IN REJEC TING THE APPLICATION OF THE APPELLANT FILED FOR REGISTRATION U/S 12AA OF THE I.T. ACT, 1961 WITHOUT APPRECIATING AND ACKNOWLEDGI NG THE FACTS OF THE CASE. II. AS PER FACTS, THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT HAS ERRED IN REJECTING THE APPLICATION ON THE B ASIS OF SOLE GROUND OF THE NON-PRODUCTION OF BOOKS OF ACCOUNTS W HICH IS NOT TRUE AND AGAINST THE FACTS. THE IMPUGNED ORDER IS T HE RESULT OF NON- PROVIDING PROPER OPPORTUNITY TO THE APPELLANT SOCIE TY TO PRODUCE ALL THE ACCOUNT BOOKS WHICH ARE BEING MAINTAINED PROPER LY AND AS PER SECTION 2(12A) OF THE INCOME TAX ACT, 1961 . III. IT IS HUMBLY PRAYED THAT THE ORDER OF THE LEARNED C IT-II, AMRITSAR, BE SET ASIDE AND THE APPLICATION OF THE APPELLANT F OR REGISTRATION BE ALLOWED IN THE INTEREST OF JUSTICE. IV. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROU NDS OF APPEAL BEFORE IS APPEAL IS HEARD OR IS DISPOSED OFF. 2. IN THE AFORESAID APPEALS, ALMOST IDENTICAL ISSU ES ARE INVOLVED IN THE IMPUGNED ORDERS AND LEARNED CIT-II, AMRITSAR, H AS ALSO PASSED ALMOST SIMILAR ORDERS. THEREFORE, WE HAVE ALSO HEARD THE P RESENT APPEALS TOGETHER AND PROCEED TO DECIDE THE ISSUES INVOLVED IN BOTH T HE APPEALS TOGETHER BY PASSING A CONSOLIDATED ORDER. 3. THE FACTS NARRATED BY LEARNED CIT-II, AMRITSAR, IS NOT DISPUTED BY BOTH THE PARTIES; THEREFORE THERE IS NO NEED TO REPEAT THE SAME. 4. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT LEARNED CIT-II, AMRITSAR, HAS PASSED THE IMPUG NED ORDERS WITHOUT APPRECIATING THE FACTS OF THE CASES ON HAND AND WIT HOUT GIVING PROPER 3 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 OPPORTUNITY TO THE APPELLANT-SOCIETY TO PRODUCE ALL THE ACCOUNT BOOKS WHICH ARE BEING MAINTAINED PROPERTY AND AS PER SECT ION 2(12A) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). HE REQUE STED THAT THE IMPUGNED ORDER BE SET ASIDE BY ACCEPTING THE APPEAL FILED BY THE ASSESSEE. 5. ON THE CONTRARY, LEARNED DR STATED THAT THE ASSE SSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT BEFORE LEARNED CIT-II , AMRITSAR, ALONG WITH OTHER RELEVANT DOCUMENTARY EVIDENCE AS REQUIRE D AND THE LEARNED CIT-II, AMRITSAR, HAS RIGHTLY REJECTED THE APPLICAT ION FOR REGISTRATION FILED UNDER SECTION 12AA OF THE ACT BY PASSING THE IMPUGN ED ORDER. HE STATED THAT THE APPEALS FILED BY THE ASSESSEE MAY BE DISMI SSED. 6. ON ASKING BY THE BENCH TO LEARNED COUNSEL FOR TH E ASSESSEE SH. AJAY JAGGA, ADVOCATE, THAT WHY THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT ALONG WITH OTHER DOCUMENTARY EVIDENCE BE FORE LEARNED CIT-II, AMRITSAR, THEN AT THE TIME OF HEARING, HE FILED TWO PAPER BOOKS IN THESE TWO APPEALS. IN THE FIRST PAPER BOOK FILED IN I.T.A . NO. 679(ASR)/2013, CONTAINING PAGES FROM 1 TO 98, HE HAS ATTACHED THE FOLLOWING DOCUMENTS: SL. NO. DATE PARTICULARS PAGE NO. 1 31.03.2013 FORM NO. 10 U/S 12A(1) CLAUSE(AA) OF THE INCOME TAX ACT 1.1 COVERING LETTER 1.2 FORM 10A 1.3 LIST OF FIRST MEMBERS OF SOCIETY 1.4 CERTIFICATE OF REGISTRATION OF SOCIETY 1.5 CERTIFIED COPY OF MEMORANDUM OF ASSOCIATION 1 2-3 4 5 6-7 4 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 1.6 CERTIFIED COPY OF RULES & REGULATION 1.7 COPY OF BALANCE SHEET, RECEIPT AND PAYMENT ACCOUNT (F.Y. 2010-11, 2011-12) 1.8 COPY OF PAN CARD DULY CERTIFIED 1.9 CERTIFIED COPY OF REVISED LIST OF MEMBERS OF THE SOCIETY 1.10 TRUE COPY OF RESOLUTION OF SOCIETY 1.11 AUTHORIZATION LETTER 8-10 11-12 13 15-16 14 17 2 07.08.2013 19.08.2013 22.08.2013 REPLIES FILED WITH THE ASSESSING OFFICER (DCIT) COPY OF REPLY ANNEXURE A- CERTIFICATE OF REGISTRATION OF SOCIETY ANNEXURE B- COPY OF ORDER FOR STARTING COLLECTION ANNEXURE C- BALANCE SHEET & RECEIPT & PAYMENT A/C FOR F.Y. 2010-2011. ANNEXURE D- BALANCE SHEET & RECEIPT & PAYMENT A/C FOR F.Y. 2011-12 ANNEXURE E- COPY OF NOTIFICATION OF HOME SECRETARY ANNEXURE F- MEMBERS LIST COPY OF REPLY ANNEXURE A- INCOME & EXPENDITURE, RECEIPT & PAYMENT A/C AND BALANCE SHEET OF F.Y. 2012-13 ANNEXURE B- COPY OF NOTIFICATION REGARDING SERVICES & FACILITATION CHARGES. COPIES OF ORDERS OF OTHER COMMISSIONER OF INCOME TAX(CIT) COPY OF REPLY ANNEXURE A- INCOME & EXPENDITURE, RECEIPT & PAYMENT A/C AND BALANCE SHEET OF F.Y. 2012-13 ANNEXURE B- STANDING ORDER FOR FORMATION OF COMMITTEE & SELECTION OF MEMBERS 18-20 21 22 23 24 25-26 27 28-30 31-36 37-38 39-44 45-46 47-52 53-54 3. 23.09.2013 25.09.2013 COPY OF REPLIES FILED WITH THE HON'BLE CIT, AMRITSAR NOT ACCEPTED COVERING LETTER ALONG WITH COPY OF REPLY DATED 23.09.2013 57-58 59-63 4. 26.09.2013 REJECTION ORDER PASSED BY THE HON'BLE CIT, AMRITSAR 64-65 5. 08.11.2013 COPY OF APPLICATION U/S 154 FOR RECTIFICATION FILED WITH CIT, AMRITSAR 66-68 6. 26.11.2013 ORDER FOR REJECTING THE APPLICATION U/S 154 PASSED BY CIT AMRITSAR 69 5 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 7. 15.10.2013 INCOME TAX RETURN FOR A.Y. 2013- 14(REVISED) 70-85 8. 07.05.2013 BALANCE SHEET 86-97 9. 22.01.2014 NOTICE OF HEARING FROM I.T.A.T. AMRITSAR 98 LEARNED COUNSEL FOR THE ASSESSEE CERTIFIED THAT ALL PAGES/DOCUMENTS ARE TRUE AND CORRECT COPIES OF ORIG INAL AND EACH PAGE IS CERTIFIED. HE HAS ALSO CERTIFIED THAT ALL THE DOCUM ENTS WERE FILED AS UNDER: 1. S. NO. 1 (PAGES 1 TO 17) WERE FILED IN THE OFFI CE OF CIT-II, AMRITSAR, AGAINST ACKNOWLEDGMENT. 2. S. NO. 2 (PAGES 13 TO 54) WERE FILED DURING THE PROCEEDINGS BEFORE THE ASSESSING OFFICER/DCIT AN THERE IS NO ACKNOWLEDGEME NT 3. S. NO. 3 (PAGES 57 TO 63) WERE FILED IN OFFICE OF COMMISSIONER OF INCOME TAX-II, AMRITSAR. 4. S. NO. 4 (PAGES 64-65) IS IMPUGNED ORDER. 5. S. NO. 5 (PAGES 66-68) FIELD IN THE OFFICE OF C IT-II, AMRITSAR, AGAINST ACKNOWLEDGEMENT. 6. S. NO. 7 & 8 (FOR REFERENCE) AND NOT FILED IN T HIS CASE BUT FILED WITH INCOME TAX DEPARTMENT 7. S. NO. 9 COPY OF I.T.A.T. NOTICE. 7. SIMILARLY, THE ASSESSEE HAS ALSO FILED ANOTHER P APER BOOK, CONTAINING PAGES FROM 1 TO 96 IN I.T.A. NO. 680(ASR )/2013, IN WHICH, HE HAS ATTACHED THE FOLLOWING DOCUMENTS: SL. NO. DATE PARTICULARS PAGE NO. RELEVANCE 1 31.03.2013 FORM NO. 10 U/S 12A(1) CLAUSE(AA) OF THE INCOME TAX ACT 1.1 COVERING LETTER 1.2 FORM 10A 1.3 LIST OF FIRST MEMBERS OF SOCIETY 1.4 CERTIFICATE OF REGISTRATION OF SOCIETY 1.5 CERTIFIED COPY OF MEMORANDUM OF ASSOCIATION 1.6 CERTIFIED COPY OF RULES & REGULATION 1 2-3 5 4 6-7 8-10 FILED IN THE OFFICE OF C.I.T-II, AMRITSAR, AGAINST ACKNOWLEDGEMENT 6 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 1.7 COPY OF BALANCE SHEET, RECEIPT AND PAYMENT ACCOUNT (F.Y. 2010-11, 2011- 12) 1.8 COPY OF PAN CARD DULY CERTIFIED 1.9 CERTIFIED COPY OF REVISED LIST OF MEMBERS OF THE SOCIETY 1.10 TRUE COPY OF RESOLUTION OF SOCIETY 1.11 AUTHORIZATION LETTER 11-14 18 16 15 17 2 07.08.2013 19.08.2013 22.08.2013 REPLIES FILED WITH THE ASSESSING OFFICER (DCIT) COPY OF REPLY ANNEXURE A- CERTIFICATE OF REGISTRATION OF SOCIETY ANNEXURE B- COPY OF ORDER FOR STARTING COLLECTION ANNEXURE C- BALANCE SHEET & RECEIPT & PAYMENT A/C FOR F.Y. 2010-2011. ANNEXURE D- BALANCE SHEET & RECEIPT & PAYMENT A/C FOR F.Y. 2011-12 ANNEXURE E-COPY OF NOTIFICATION OF HOME SECRETARY ANNEXURE F- MEMBERS LIST COPY OF REPLY ANNEXURE- INCOME & EXPENDITURE, RECEIPT & PAYMENT A/C AND BALANCE SHEET OF F.Y. 2012-13 ANNEXURE B- COPY OF NOTIFICATION REGARDING SERVICES & FACILITATION CHARGES. COPIES OF ORDERS OF OTHER COMMISSIONER OF INCOME TAX(CIT) COPY OF REPLY ANNEXURE A- INCOME & EXPENDITURE, RECEIPT & PAYMENT A/C AND BALANCE SHEET OF F.Y. 2012-13 ANNEXURE B- STANDING ORDER FOR FORMATION OF COMMITTEE & SELECTION OF MEMBERS 19-20 22 23 24-25 26-27 28-29 30 28-30 31-33 34-38 39-40 41-46 47-48 49-53 54-55 FILED WITH THE ASSESSING OFFICER (DCIT) DURING PROCEEDING AND THERE IS NO ACKNOWLEDGMENT FILED WITH ASSESSING OFFICER(DCIT) DURING THE PROCEEDING AND THERE IS NO ACKNOWLEDGMENT 3. 23.09.2013 25.09.2013 COPY OF REPLIES FILED WITH THE HON'BLE CIT, AMRITSAR NOT ACCEPTED. COVERING LETTER ALONG WITH COPY OF REPLY DATED 23.09.2013 56-58 59-62 FILED IN THE OFFICER OF CIT-II, AMRITSAR 4. 26.09.2013 REJECTION ORDER PASSED BY THE HON'BLE CIT, AMRITSAR 63-64 RECEIVED ON 30.09.2013 5. 08.11.2013 COPY OF APPLICATION U/S 154 FOR 65-67 FILED IN THE OFFICE 7 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 RECTIFICATION FILED WITH CIT, AMRITSAR OF CIT-II 6. 26.11.2013 ORDER FOR REJECTING THE APPLICATION U/S 154 PASSED BY CIT AMRITSAR 68 ASSESSEE RECEIVED 7. 15.10.2013 INCOME TAX RETURN FOR A.Y. 2013- 14(REVISED) 69-84 FILED WITH THE INCOME TAX DEPT. 8. 07.05.2013 BALANCE SHEET 85-95 9. 22.01.2014 NOTICE OF HEARING FROM I.T.A.T. AMRITSAR 96 RECEIVED BY THE ASSESSEE. 8. WE HAVE PERUSED THE IMPUGNED ORDER ALONG WITH TH E DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE IN THE S HAPE OF PAPER BOOKS BEFORE THIS BENCH AT THE TIME OF HEARING AND WE ARE OF THE CONSIDERED VIEW THAT IT IS AN ADMITTED FACT THAT AS PER RECORD AVAILABLE WITH US, THE ASSESSEE HAS NOT PRODUCE THE COMPLETE BOOKS OF ACCO UNT ALONG WITH OTHER DOCUMENTARY EVIDENCE BEFORE THE LEARNED CIT-II, AMR ITSAR, WHICH HE HAS PRODUCED BEFORE US IN THE SHAPE OF TWO PAPER BOOKS IN THESE APPEALS. 9. WE HAVE THOROUGHLY GONE THROUGH THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE AS WELL AS THE IMPUGNED ORDER PASSED BY CIT-II, AMRITSAR. IN THE INTEREST OF JUSTICE, WE ARE NOT CO MMENTING UPON ANY DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE BEFORE U S, WHICH HE HAS ALREADY FILED BEFORE LEARNED CIT-II, AMRITSAR, BUT KEEPING IN VIEW THE ISSUES IN DISPUTE, BEING IN THE LATEST ATMOSPHERE I NITIATED BY THE POLICE DEPARTMENT, REQUIRE THOROUGH RECONSIDERATION AS WEL L AS APPRECIATION OF EVIDENCE AT THE LEVEL OF CIT-II, AMRITSAR. THEREFOR E, IN THE INTEREST OF JUSTICE, WE DIRECT LEARNED CIT-II, AMRITSAR, TO DEC IDE THE ISSUES IN DISPUTE 8 I.T.A. NO. 679 & 680(ASR)/2013 ASSESSMENT YEAR: 2013-14 AFRESH UNDER THE LAW AFTER APPRECIATING THE EVIDENC E FILED BY THE ASSESSEE AND PASS A SPEAKING ORDER, AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE. 10. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORDER ON THE ISSUE IN DISPUTE, AS INDICATED ABOVE, BY ACCEPTING THE APPEA LS FILED BY THE ASSESSEE FOR STATISTICAL PURPOSES. 11. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH FEBRUARY, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH FEBRUARY, 2014 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEES: POLICE SUVIDHA CENTRE WELFARE SOCIE TY, SUB- DIVISION, BABA BAKALA, OFFICE OF DY. SUPERINTENDENT BABA BAKALA, AMRITSAR (RURAL) 2. POLICE SUVIDHA CENTRE WELFARE SOCIETY, SUB-DIVISION , JANDIALA GURU, OFFICE OF DY. SUPERINTENDENT JANDIALA GURU, AMRITSA R (RURAL) 3. THE CIT-II, AMRITSAR 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.