UTTRAKHAND POORV SAINIK KALYAN NIGAM LTD., DEHRADUN V. Commissioner of Income Tax (Exemption), LUCKNOW

ITA 692/LKW/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 8890 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 02-11-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Assessee Lawyers: DHARMENDRA KUMAR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 692/LKW/2017 ASSESSMENT YEAR: N.A. UTTARAKHAND PURV SAINIK KALYAN NIGAM LIMITED ST ATION SUB AREA CANTEEN COMPLEX GARHI CANTT. , DEHRADUN V. CIT (EXEMPTIONS) LUCKNOW T AN /PAN : AAACU7129D (APP LICA NT) (RESPONDENT) APP LIC ANT BY: SHRI DHARMENDRA KUMAR, C.A. RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE OF HEARING: 27 0 9 201 8 DATE OF PRONOUNCEMENT: 28 0 9 201 8 O R D E R PER P ARTHA SARATHI CHAUDHURY, J.M : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF LD. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), LUCKNOW DATED 21/8/2017 AS PER THE FOLLOWING GROUNDS OF APPEAL: - 1. TH AT LEARNED CIT ERRED IN FACTS AND LEGAL ASPECTS OF THE CASE IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. THAT THE OBJECTS OF APPELLANT ARE CHARITABLE IN NATURE AND APPELLANT WAS ENGAGED IN CHARITABLE AC TIVITIES, PARTICULARLY FOR THE BENEFIT OF EX - ARMY MEN, THEIR FAMILIES AND FAMILIES OF ARMY PERSON DIED DURING WAR, CAS U ALTY ETC. IN THE SERVICE OF NATION. 3. THAT DURING REGISTRATION PROCEEDINGS, APPELLANT PRODUCED FINANCIAL STATEMENTS, BANK STATEMENTS, COPIES OF ACCOUNT OF ITA NO.692/LKW/2017 PAGE 2 OF 4 EXPENSES ALONG WITH VOUCHERS AND OTHER DOCUMENTS AS REQUIRED BY LD.CIT FROM TIME TO TIME, ACCORDINGLY, AVERMENTS OF LD.CIT IN THE ORDER THAT APPELLANT FAILED TO FURNISH BOOKS OF ACCOUNT AND DOCUMENTS BEFORE HIM IS INCORRECT, AGAINST TH E FACTS AND ARBITRARY. 4. THAT APPELLANT PAID HUGE FUNDS FOR REPAIR AND MAINTENANCE OF DILAPIDATED SCHOOL BUILDINGS ETC., ACCORDINGLY, CONTENTION OF LD.CIT THAT APPELLANT HAD NOT DONE ANY CHARITABLE ACTIVITY IS INCORRECT AND WITHOUT ANY BASIS. 5. THAT THE APPELLANT SEEKS PERMISSION TO MODIFY ARID/OR ADD ANY OTHER GROUNDS OR GROUNDS OF APPEAL AS THE CIRCUMSTANCES OF THE CASE MIGHT REQUIRE OR JUSTIFY. 2 . THE CRUX OF GRIEVANCE OF THE ASSESSEE IS REJECTION OF APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 3 . THE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) ON 21/2/2017 WITH CIT (EXEMPTIONS), LUCKNOW . APPLICANT - ASSESSEE WAS PROVIDED AN OPPORTUNITY OF BEING HEARD VIDE OFFICE LETTER DATED 05.0 7.2017 OF CIT (EXEMPTIONS), LUCKNOW SENT TO THE APPLICANT - ASSESSEE ON THE ADDRESS PROVIDED BY IT IN FORM NO. 10A VIA SPEED POST CALLING FOR SPECIFIC QUERIES REGARDING ITS APPLICATION FOR REGISTRATION UNDER SECTION 12A FOR COMPLIANCE ON 08.08.2017. ON THAT DATE I.E. 08.08.2017 LD. A.R. OF THE ASSESSEE APPEARED AND FILED LETTER WITH ANNEXURE BUT COULD NOT PRODUCE THE INCOME AND EXPENDITURE ACCOUNTS, RECEIPT AND PAYMENTS ACCOUNTS AND BALANCE SHEET FOR THE FINANCIAL YEAR 2015 - 16. ON PERUSAL OF THE MATERIAL AVAI LABLE ON RECORD, IT WAS FOUND THAT THE APPLICANT - ASSESSEE IS NOT REGISTERED UNDER S ECTION 8 OF THE C OMPANIES A CT, INSTEAD IT IS REGISTERED UNDER SECTION 617 OF THE COMPANIES ACT. ON PERUSAL OF THE MATERIAL AVAILABLE ON RECORD, IT WAS FOUND THAT AS PER ITR FOR THE ASSESSMENT YEAR 2015 - 16, EXEMPTION UNDER SECTION 10(26BBB) OF THE ITA NO.692/LKW/2017 PAGE 3 OF 4 ACT HAS BEEN CLAIMED BY THE APPLICANT - ASSESSEE . NO BOOKS OF ACCOUNTS OR VOUCHERS PERTAINING TO THE FINANCIAL YEARS 2013 - 14, 2014 - 15 AND 2015 - 16 COULD BE PRODUCED. BUT ON THAT DATE I. E. ON 17/8/2017 LD. A.R. OF THE ASSESSEE APPEARED AND FILED A LETTER. THEREAFTER CIT (EXEMPTIONS), LUCKNOW PERUSED THE MATERIALS AVAILABLE ON RECORD AND PASSED ORDER ON 21/8/2017 REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SE CTION 12AA OF THE ACT AS PER REASONS AND GROUNDS MENTIONED IN THE ORDER OF CIT (EXEMPTIONS), LUCKNOW. 4 . DURING THE COURSE OF HEARING BEFORE US LD. A.R. OF THE ASSESSEE VEHEMENTLY ARGUED THAT SUFFICIENT OPPORTUNITY WAS NOT PROVIDED TO THE ASSESSEE TO SUBSTA NTIATE THE REASONING OF THE CASE AND TH E ME RITS COULD NOT BE EXPLAINED AS THE ORDER WAS PASSED FINALLY REJECTING THE APPLICATION OF THE ASSESSEE UNDER SECTION 12AA OF THE ACT ON 21/8/2017. LD. A.R. OF THE ASSESSEE SUBMITTED THAT THE OBJECTS OF THE ASSESSE E - SOCIETY ARE CHARITABLE / FOR THE WELFARE OF THE PEOPLE AS PER OBJECT CLAUSE OF THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE ASSESSEE - SOCIETY. 5 . THE LD. D.R. PER CONTRA SUBMITTED THAT BASIC PROCEDURES ARE REQUIRED TO BE FOLLOWED FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AS ENVISAGED IN THE ACT AND ASSESSEE HAS NOT FURNISHED BOOKS OF ACCOUNT, VOUCHERS RELATING TO FINANCIAL YEAR 2013 - 14, 2014 - 15 AND 2015 - 16 AS IS EVIDENT ON RECORD. LD. D.R. VEHEMENTLY PRAYED THAT THE ORDER OF CIT (EXEMPTIONS) , LUCKNOW SHOULD BE UPHELD. 6 . WE HAVE PERUSED THE CASE RECORD AND HEARD THE RIVAL CONTENTIONS AND WE OBSERVE THAT LAST DATE OF HEARING WAS 17/8/2017 AND IMMEDIATELY THEREAFTER ON 21/8/2017 ORDER WAS PASSED BY CIT (EXEMPTIONS), LUCKNOW DENYING REGISTRATION TO THE ASSESSEE - SOCIETY UNDER SECTION 12AA OF THE ACT. REASONABLENESS AS ENSHRINED IN THE PRINCIPLES OF NATURAL JUSTICE , WHICH COVERS THE AREA OF FREE AND FAIR TRIAL ITA NO.692/LKW/2017 PAGE 4 OF 4 BY BOTH THE JUDICIAL AND QUASI JUDICIAL AUTHORITIES THROUGH REASONABLE OPPORTUNITY OF HEARI NG , WAS NOT ARRIVED AT IN THIS CASE AND WE STRONGLY BELIEVE THAT WHATEVER DOCUMENT ASSESSEE HAS SUBMITTED , CIT (EXEMPTIONS), LUCKNOW SHOULD HAVE ANALYSED IT IN A MANNER SO AS TO COME OUT WITH A SPEAKING ORDER. THERE ARE SHORTCOMINGS ON THE PART OF THE ASS ESSEE AS REGARDS NON - PRODUCTION OF RELEVANT DOCUMENTARY EVIDENCES . FURTHERMORE , LD. A.R. OF THE ASSESSEE WANTED TO SUBSTANTIATE REGARDING REGISTRATION UNDER SECTION 8 OF THE COMPANIES ACT BEFORE CIT (EXEMPTIONS), LUCKNOW. THEREFORE, IN THE INTEREST OF JU STICE, WE SET ASIDE THE ORDER OF CIT (EXEMPTIONS), LUCKNOW AND RESTORE THE MATTER BACK TO HIS FILE TO ADJUDICATE THE ISSUE AFRESH TAKING INTO CONSIDERATION AFORESAID DOCUMENTS AND EXAMINATIONS OF FACTS OF THE CASE A ND ALSO AFTER PROVIDING REASONABLE OPPORT UNITY OF HEARING TO THE ASSESSEE. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 0 9 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DAT ED: 28 TH SEPTEMBER , 201 8 JJ: 2709 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR