M/s. Kindoori Lal C/o- Dwarka Prasad Goyal Charitable Trust, 80, Gopal Wari, Ajmer Road, Jaipur, Jaipur V. ITO (Exemption) Ward-1, Jaipur, Ward-1, Jaipur

ITA 712/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6929 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 16-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Corroborative evidences; Set aside
• Section: 12; 144; 11; 12A; 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH VC DB, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 712/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2015-16. M/S. KINDOORI LAL DWARKA PRASAD GOYAL CHARITABLE TRUST, 80, GOPAL WARI, AJMER ROAD, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, (EXEMPTIONS), WARD-1, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAATK 2554 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : MS CHANCHAL MEENA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 10.09.2020. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 10/09/2020. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 28 TH MARCH, 2019 OF LD. CIT (A)-3, JAIPUR FOR THE ASSESSMENT YE AR 2015-16. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, LD. CIT (A) ERRED IN ADJUDICATING THE APPEAL, WITHOUT P ROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD. IT IS, THEREFO RE, PRAYED THAT ORDER PASSED BY LD. CIT (A) IS AGAINST THE PRI NCIPLES OF NATURAL JUSTICE AND DESERVES TO BE HELD BAD IN LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF L D. AO IN NOT ALLOWING THE EXEMPTION U/S 11 OF THE INCOME TAX ACT , 1961 MERELY BY HOLDING THAT THE ASSESSEE HAS NOT PRODUCE D THE COPY OF CERTIFICATE U/S 12AA OF THE ACT DESPITE THE FACT THAT 2 ITA NO. 712/JP/2019. KINDOORI LAL DWARKA PD. GOYAL CHARITABLE TRUST, JAI PUR. REGISTRATION NO. AND DATE OF REGISTRATION WAS CLEAR LY MENTIONED IN THE COMPUTATION OF INCOME ITSELF AVAILABLE BEFOR E LD. AO. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF L D. AO IN COMPLETING THE ASSESSMENT OF ASSESSEE IN THE STATUS OF AN AOP AS AGAINST A CHARITABLE TRUST REGISTERED U/S 12AA O F THE ACT. APPELLANT PRAYS THAT THE ASSESSEE IS REQUIRED TO BE ASSESSED AS A CHARITABLE TRUST EXEMPTIONS U/S 11 OF THE ACT ARE TO BE ALLOWED. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF L D. AO IN TREATING THE ROOM CHARGES OF DHARMSHALA TOTALING RS. 14,15,939/- RECEIVED FROM YATRIS AS INCOME FROM H OUSE PROPERTY IGNORING THE FACT THAT SAME IS PART OF CHA RITABLE ACTIVITY AND THEREFORE THE SURPLUS OF INCOME OVER EXPENDITUR E DECLARED BY ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961. 4.1. THAT, THE LD. CIT (A) HAS FURTHER ERRED IN CON FIRMING THE DISALLOWANCE OF EXPENDITURE INCURRED BY ASSESSEE FO R RUNNING THE DHARAMSHALA BY INCORRECTLY TREATING THE ROOM CHARGES OF DHARMSHALA RECEIVED FROM YATRIS AS INCOME FROM H OUSE PROPERTY AGAINST ACTUALLY THE CHARITABLE ACTIVITY AND THEREBY EXPENDITURE INCURRED BEING LAWFULLY ALLOWABLE TO AS SESSEE. APPELLANT PRAYS THE EXPENDITURE INCURRED BY ASSESSE E FOR MAINTAINING THE DHARAMSHALA DESERVE TO BE ALLOWED. 5. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF L D. AO IN ALLOWING ONLY AN AMOUNT OF RS. 1,66,193/- TOWARDS E XPENSES CLAIMED BY ASSESSEE IN THE INCOME AND EXPENDITURE A CCOUNT, AND DISALLOWING THE REST OF THE EXPENSES WHICH WERE CLEARLY RELATABLE TO THE INCOME EARNED BY ASSESSEE AND THER EFORE WERE LAWFULLY ALLOWABLE. APPELLANT PRAYS THE EXPENSES AS CLAIMED BY ASSESSEE IN THE INCOME AND EXPENDITURE ACCOUNT DESE RVE TO BE ALLOWED IN TOTO. 6. THE APPELLANT CRAVES THE RIGHT TO ADD, DELETE OR AMEND ANY OF THE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF APPEAL. 3 ITA NO. 712/JP/2019. KINDOORI LAL DWARKA PD. GOYAL CHARITABLE TRUST, JAI PUR. THE HEARING OF THE APPEAL IS CONCLUDED THROUGH VIDE O CONFERENCE DUE TO PREVAILING CONDITION OF COVID 19 PANDEMIC. 2. THE ASSESSEE STATED TO BE A CHARITABLE TRUST AND FILED ITS RETURN OF INCOME ON 31 ST MARCH, 2016 DECLARING NIL INCOME AFTER CLAIMING TH E EXEMPTION UNDER SECTIONS 11 AND 12 OF THE IT ACT. THE AO HAS DENIED THE CLA IM OF EXEMPTION UNDER SECTIONS 11 & 12 OF THE ACT FOR WANT OF SUPPORTING EVIDENCE AND PARTICULARLY THE CERTIFICATE OF REGISTRATION UNDER SECTION 12A OF THE IT ACT. THE ASSESSEE CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT (APPEALS), HOWEVER, THE A PPEAL OF THE ASSESSEE WAS DISMISSED EX PARTE DUE TO NON APPEARANCE ON BEHALF OF THE ASSESSEE. 3. WE HAVE HEARD THE LD. A/R AS WELL AS THE LD. D/R AND CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. THE AO WHILE COMPL ETING THE ASSESSMENT EX PARTE UNDER SECTION 144 OF THE IT ACT HAS DENIED THE CLAI M OF EXEMPTION UNDER SECTIONS 11 & 12 OF THE ACT FOR WANT OF SUPPORTING EVIDENCE AND PARTICULARLY THE COPY OF CERTIFICATE OF REGISTRATION UNDER SECTION 12A/12AA OF THE IT ACT. THE ASSESSEE CHALLENGED THE SAID ACTION OF THE AO BEFORE THE LD. CIT (A) AND REITERATED ITS CLAIM THAT THE ASSESSEE IS A CHARITABLE TRUST AND WAS GRA NTED REGISTRATION UNDER SECTION 12A OF THE IT ACT. HOWEVER, SINCE NOBODY HAS APPEA RED BEFORE THE LD. CIT (A) WHEN THE APPEAL WAS FIXED FOR HEARING AND CONSEQUENTLY T HE LD. CIT (A) HAS DISMISSED THE APPEAL FOR WANT OF ANY EXPLANATION AS WELL AS SUPPO RTING EVIDENCE PRODUCED BY THE ASSESSEE. THE ONLY ISSUE IS NON PRODUCTION OF THE REGISTRATION CERTIFICATE FOR THE PURPOSE OF CLAIMING EXEMPTION UNDER SECTIONS 11 & 1 2 OF THE ACT REMAINED UNEXAMINED BY THE LD. CIT (A) DUE TO NON APPEARANCE OF THE ASSESSEE. THE LD. A/R OF THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE WAS GRANTED REGISTRATION UNDER 4 ITA NO. 712/JP/2019. KINDOORI LAL DWARKA PD. GOYAL CHARITABLE TRUST, JAI PUR. SECTION 12A/12AA OF THE ACT AND, THEREFORE, THE ASS ESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO PRODUCE THE RELEVANT EVIDENCE/CERTIF ICATE OF REGISTRATION BEFORE THE LD. CIT (A). THE LD. D/R HAS RELIED UPON THE ORDER S OF THE AUTHORITIES BELOW AND SUBMITTED THAT DESPITE SEVERAL OPPORTUNITIES GIVEN BY THE AO AS WELL AS BY THE LD. CIT (A), THE ASSESSEE HAS FAILED TO PRODUCE THE SUP PORTING EVIDENCE TO CLAIM THE EXEMPTION UNDER SECTIONS 11 & 12 OF THE ACT. SINCE THE APPEAL OF THE ASSESSEE WAS DISMISSED DUE TO NON APPEARANCE, THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE GRANT ONE M ORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE SUPPORTING EVIDENCE FOR THE CLAIM OF EX EMPTION UNDER SECTIONS 11 & 12 OF THE ACT. ACCORDINGLY, THE IMPUGNED ORDER OF THE LD. CIT (A) IS SET ASIDE AND THE MATTER IS REMANDED TO THE RECORD OF THE LD. CIT (A) FOR DECIDING THE SAME AFRESH AFTER GIVING ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10/09 /2020. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/09/2020. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. KINDOORI LAL DWARKA PRASAD GOYAL CHARITABLE TRUST, JAIPUR. 5 ITA NO. 712/JP/2019. KINDOORI LAL DWARKA PD. GOYAL CHARITABLE TRUST, JAI PUR. 2. THE RESPONDENT THE ITO (EXEMPTIONS), WARD 1, J AIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 712/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR