SAINT JOHNS SHIKSHAN SANSTHAN, Jaipur V. CIT-3, Jaipur

ITA 703/JPR/2014

• Counselvise Citation: 70323114 RSA 2014
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 16-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROLEE AGARWAL DHK
• Assessee Lawyers: FAZUL REHMAN
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH VH-VKJ-EHUK] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 703/JP/2014 UNDER SECTION 12AA OF I.T. ACT, 1961 M/S. SAINT JOHNS SHIKSHAN SANSTHAN, SAVED BARI, SALASAR ROAD, DHOD, SIKAR CUKE VS. THE CIT-III JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAMTS 8785 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA & SHRI FAZUL REHMAN, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY :SMT. ROLEE AGARWAL, CIT-DR . LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/12/2014 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 13/02/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT-III, JAIPUR DATED 10-09-2014 U/S 12AA OF THE A CT PRAYING THEREIN FOLLOWING GROUNDS. 1. THE LD. CIT III, JAIPUR ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN DENYING REGISTRATION SOUGHT U/ S 12AA(1)(A) OF THE ACT. SUCH DENIAL BEING CONTRARY T O THE LAW PROVISIONS OF LAW AND FACTS, THE REGISTRATION AS PR AYED, KINDLY BE GRANTED. 2. THE LD. CIT III, JAIPUR ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN NOT PROVIDING ADEQUATE OPPORTU NITY OF BEING HEARD AND THE ALLEGATION LABELED IN THE IMPUG NED ORDER ON THIS COURT, ARE CONTRARY TO THE FACTS AVAILABLE ON RECORD. ITA NO. 703/JP/2014 M/S. SAINT JOHNS SHIKSHAN SANSTHAN VS. CIT III, JA IPUR . 2 THE IMPUGNED ORDER SUFFERS FROM INCURABLE ILLEGALIT Y AND HENCE, REGISTRATION AS PRAYED, KINDLY BE GRANTED. 3. THE LD. CIT III, JAIPUR ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN DENYING REGISTRATION SOUGHT U/ S 12AA(1)(A) OF THE ACT ON THE GROUND THAT THE APPELL ANT FAILED TO SATISFY ABOUT THE GENUINENESS OF THE ACTIVITY AN D THAT DID NOT FULFILL THE CONDITIONS UNDER THE PROVISION. SUC H FINDING IS CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON RECO RD HENCE, THE LD. CIT III JAIPUR KINDLY BE DIRECTED TO GRANT REGISTRATION AS PRAYED FOR. 2.1 ADVERTING TO GROUND NO. 2 OF THE ASSESSEE, THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT LD. CIT PASSED THE ORDER DEN YING REGISTRATION U/S 12AA OF THE ACT IN EX-PARTE MANNER BY FOLLOWING OBS ERVATIONS. 4. DESPITE ABOVE FACTS AND NEGATIVE REPORTING BY THE ACIT, CIRCLE- JHUNJHUNU, THE APPLICANT SOCIETY WAS GIVEN ANOTHER OPPORTUNITY OF BEING HEARD VIDE THIS OFFICE LETTER NO. 1430 DATED 02-0902014 FIXING THE DATE ON 10-09-2014 AT 3.30 PM FOR FURNISHING OF EXPLANATION/ JUSTIFICATIO N ON THE OBSERVATION OF THE ACIT, CIRCLE- JHUNJHUNU AND THE REASON FOR NON-PRODUCTION OF BOOKS OF ACCOUNT AND BILLS/ V OUCHERS. IT WAS ALSO ASKED TO SUBMIT A NOTE ON CHARITABLE AC TIVITIES AND PRODUCTION OF BOOKS OF ACCOUNT ALONGWITH NECESSARY SUPPORTING DOCUMENTS AND MINUTES BOOK OF THE SOCIET Y. THIS NOTICE WAS SENT THROUGH SPEED POST ON 03-09-2014 AN D AS THE STATUS OF SPEED POST ASCERTAINED FROM WEBSITE OF IN DIA POST SHOWS THAT THE ITEM WAS DELIVERED ON 06-09-2014. HO WEVER, ON THIS DAY NEITHER ANYBODY ATTENDED THIS OFFICE NO R EVEN ANY ADJOURNMENT LETTER WAS FILED. I FACT, TILL THE TIM E OF PASSING THIS ORDER I.E. 4.00 PM NEITHER ANYBODY ATTENDED TH E OFFICE NOR ANYTHING IS HEARD FROM ASSESSEE'S SIDE. 5. UNDER THESE CIRCUMSTANCES, IT IS CLEAR THAT THE APPLICANT SOCIETY FAILED TO SATISFY THE UNDERSIGNED ABOUT THE GENUINENESS OF THE ITS ACTIVITIES AND SHOW THAT IT DOES FULFILLS THE CONDITIONS LAID DOWN IN SECTION 12AA(1)(A) OF T HE INCOME TAX ACT. ITA NO. 703/JP/2014 M/S. SAINT JOHNS SHIKSHAN SANSTHAN VS. CIT III, JA IPUR . 3 2.2 IT IS PLEADED THAT NON-ATTENDANCE WAS DUE TO IM PROPER COMMUNICATION. THEREFORE, THE ASSESSEE COULD NOT AT TEND THE PROCEEDINGS. IT IS ALSO PLEADED THAT IN THE INTEREST OF NATURAL, JUSTICE, AN OPPORTUNITY MUST BE PROVIDED TO THE ASSESSEE TO REPRESENT ITS C ASE PROPERLY BEFORE THE LD. CIT. 3.1 APROPOS THE QUESTION OF COST, THE LD. COUNSEL FOR THE ASSESSEE CONCEDES THAT REASONABLE AMOUNT MAY BE IMPOSED AS C OST AND HE UNDERTAKES THAT THE ASSESSEE WILL PROMPTLY COMPLY W ITH THE NOTICE. 4.1 THE LD. DR ON THE OTHER HAND CONTENDS THAT THE CONDUCT OF THE ASSESSEE IS NOT PROPER AND THE ASSESSEE IS NOT COOP ERATING IN THE PROCEEDINGS. THIS INDICATES THAT THE ASSESSEE'S INT ENTIONS ARE NOT GENUINE. HENCE, THE APPEAL OF THE MAY BE DISMISSED. 5.1 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN OUR CONSIDERED VIEW AND IN THE INTEREST OF NATURAL JUSTICE, THE ASSESSEE SHOULD BE PROVIDED ONE MORE C HANCE TO REPRESENT ITS CASE BEFORE THE LD. CIT. THEREFORE, WE ARE INCLINED TO SET ASIDE THE APPEAL OF THE ASSESSEE BACK TO THE FILE OF THE LD CIT TO D ECIDE THE ISSUE AFRESH AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEA RD TO THE ASSESSEE WITH FOLLOWING CONDITIONS. (I) THE ASSESSEE SHALL PAY COST OF RS. 5,000/- (RS. FIV E THOUSAND ONLY) AS CONCEDED BY IT AND THE CHALLAN FO R ITA NO. 703/JP/2014 M/S. SAINT JOHNS SHIKSHAN SANSTHAN VS. CIT III, JA IPUR . 4 THE DEPOSITION OF AMOUNT SHOULD BE PRODUCED BEFORE THE LD. CIT AT THE TIME OF HEARING. (II) THE ASSESSEE SHALL FULLY COOPERATE IN THE PROCEEDIN GS. IN THE EVENTUALITY OF NON-COOPERATION, THE LD. CIT WILL BE FREE TO TAKE APPROPRIATE VIEW IN THIS REGARD. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STAT ISTICAL PURPOSES. 6.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 13/02/201 5. SD/- SD/- VH-VKJ-EHUK VKJ-IH-RKSYKUH (T.R. MEENA) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 13 TH FEB, 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. SAINT JOHNS SHIKSHAN SANSTHAN, SIKAR 2. IZR;FKHZ@ THE RESPONDENT- THE CIT-III, JAIPUR 3. VK;DJ VK;QDR@ CIT, JAIPUR 4. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 5. XKMZ QKBZY@ GUARD FILE (ITA NO.703/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR