TAPASTHAN BABA SRICHANDER JI MANDER AKHARA BRAHM BUTA, AMRITSAR V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

ITA 704/ASR/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 5746 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 25-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 11; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & DR. M.L. MEENA, ACCOUNTANT MEMBER) ITA. No: 704/Asr/2019 (Assessment Year: 2019-20) Tapasthan Baba Srichander G Mander Akhara Brahm Buta O/s. Guru Ram Dass Langar Hall, Amritsar-143001 PAN No. AACAT4246L V/S CIT Exemptions Chandigarh (Appellant) (Respondent) Appellant by : Shri T. S. Aurora, Adv., Respondent by : Smt. Abha Rani Singh, CIT/DR (आदेश आदेशआदेश आदेश)/ORDER Date of hearing : 07 -12-2021 Date of Pronouncement : 23-12-2021 PER MAHAVIR PRASAD, J.M. 1. This appeal filed by the Assessee is directed against the order of the Ld. CIT(E) vide order dated 23/09/2019 for A.Y. 2019-20. Assessee has taken following grounds of appeal: ITA No. 704/Asr/2019 . A.Y. 2019-20 2 1. That as per aims and objects of the Society, which have been reproduced in the impugned order at paragraph No. 2, the Ld. CIT(E), has passed the impugned order contrary to the provisions of section 12AA, which is not sustainable in the eyes of law. 2. That on the facts and in the circumstances of the case, Ld. CIT(E) has erred in rejecting the application for registration u/s 12AA of the Act, 1961 of the appellant Society by holding that the appellant society failed to provide ownership of land. Further, the Ld. CIT(E) held that the MOA did not have a dissolution clause & beneficiary clause and is violative of section 13(1) of the act. 3. That on the facts and in the circumstances of the case, Ld. CIT(E) has erred in rejecting the application for registration u/s 12AA of the Act, 1961 of the appellant Society by holding that the appellant society does not have Utilization Clause, Investment Clause & Beneficiary Clause. 4. That on the facts and in the circumstances of the case, Ld. CIT(E) has erred in rejecting the application for registration u/s 12AA of the Act, 1961 of the appellant Society in absence of any adverse finding regarding the aims, objects and genuineness of activities of the Society. Hence, the appellant Society should be granted registration u/s. 12AA. In fact, the Ld. CITE) held that the assessee has been carrying out charitable activity. 5. That on the facts and in the circumstances of the case, Ld. CIT(E) has errd in not allowing the Appellant a reasonable opportunity of being heard before passing the order under clause (ii) of Sub Section (b) of Section 12AA. 6. The facts of the application of property/funds/income of the appellant Society is to be looked into only by the Ld. A>O. at the assessment stage granting exemption under section 11 and not by the Ld. CIT(E) at the time of registration u/s. 12AA. 2. In this case, an application was filed on 30.03.2019 seeking registration u/s. 12AA of the Income Tax Act, 1961. Ld. CIT(E) issued notice to the applicant and it filed partly reply/documents. Therefore, in the absence of sufficient information required by the Ld. CIT(E), he rejected the application of the applicant. ITA No. 704/Asr/2019 . A.Y. 2019-20 3 3. Thereafter assessee preferred an appeal before us. Now Ld. A.R. argued that he is willing to supply all the relevant documents to the Ld. CIT(E) provided if it is given one more chance. 4. Thus, in the interest of justice, we set aside to the file of the Ld. CIT(E) and applicant is directed to file following documents before the Ld. CIT(E) (1) permission from the Government to run the temple in favour of the Society or ownership document. (2) Assessee shall also file an amended deed wherein clause of dissolution will be a part of the said deed and will also mention details of utilization clause, investment clause and beneficiary clause etc. After filing the above said details, Ld. CIT(E) is directed to grant registration. Because as per impugned order, assessee could not file the aforesaid details before the Ld. CIT(E). Thus, after examining and verification of the above said document, Ld. CIT(E) shall grant registration u/s. 12AA of the Income Tax Act within 30 days from the receipt of documents to be filed by the assessee. 5. In the result, appeal filed by the Assessee is allowed for statistical purposes. Order pronounced in U/R on 23-12-2021 Sd/- Sd/- (DR. M. L. MEENA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 23/12/2021 Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER Deputy/Asstt.Registrar ITAT,Amritsar