SHANTI EDUCATIONAL TRUST, GURGAON V. CIT(EXEMPTION), CHANDIGARH

ITA 7137/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0385 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 28-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: G NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.7137/DEL/2017 ASSESSMENT YEAR: 2017-18 SHANTI EDUCATIONAL TRUST, HOUSE NO. 27, MODEL TOWN, 8-MARLA, NEW DELHI VS. CIT (EXEMPTION), 5 TH FLOOR, SECTOR-17E, CHANDIGARH PAN :AAQTS8910F (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER DATED 26/09/2017 PASSED BY THE LEARNED COMMIS SIONER OF INCOME-TAX (EXEMPTION), CHANDIGARH [IN SHORT THE L EARNED CIT(E)] PASSED UNDER SECTION 12AA OF THE INCOME-TA X ACT, 1961 (IN SHORT THE ACT) REJECTING THE REGISTRATION OF ASSESSEE TRUST. 2. BEFORE US, THE LEARNED COUNSEL OF THE ASSESSEE HAS SUBMITTED THAT REGISTRATION HAS BEEN DENIED MAINLY ON THE GROUND OF NON-SUBMISSION OF INFORMATION OF ACTIVITY-WISE R ECEIPTS AS APPELLANT BY SH. SANDEEP KUMAR, CA RESPONDENT BY SH. H.K. CHOUDHARY, CIT(DR) DATE OF HEARING 05.07.2021 DATE OF PRONOUNCEMENT 16.07.2021 2 ITA NO.7137/DEL/2017 REQUIRED BY THE LEARNED CIT(E). HE SUBMITTED THAT D UE TO SOME PERSONAL REASONS OF THE TRUSTEE, WHO WAS AUTHORIZED TO ATTEND PROCEEDINGS, SAID COMPLIANCE COULD NOT BE MADE AND NOW THE ASSESSEE IS WILLING TO PROVIDE ALL THE INFORMATION AS DESIRED BY THE LEARNED CIT(E), AND THEREFORE MATTER MAY BE RESTORE D BACK TO HIM FOR DECIDING AFRESH. 3. THE LEARNED DR, THOUGH RELIED ON THE ORDER OF THE LEARNED CIT(E) BUT DID NOT OBJECT FOR RESTORING THE MATTER BACK TO HIM FOR DECIDING AFRESH. 4. WE HAVE HEARD RIVAL SUBMISSION OF THE PARTIES ON T HE ISSUE IN DISPUTE. THE LEARNED CIT(E) HAS DENIED THE REGIS TRATION OF THE TRUST UNDER SECTION 12AA OF THE ACT OBSERVING AS UN DER: 6. ON 12.08.2017 A REPLY IN RESPONSE TO ABOVE NOT ED QUERIES WAS RECEIVED THROUGH DAK AND ON 06.09.2017 SMT. BHA RTI KUMAR, TRUSTEE ALSO ATTENDED THIS OFFICE AND INTIMA TED THAT THE REPLY WAS SENT BY HER THROUGH POST. AFTER CONSI DERING THE REPLY THE APPLICANT WAS REQUESTED TO PROVIDE BIFURC ATION OF RECEIPTS AMONGST THE THREE ACTIVITIES I.E. DAY CARE CENTRE, SUMER CAMPS AND EDUCATION AND THE SAME REQUEST WAS SENT THROUGH EMAIL AT [e-mail] THE APPLICANT WAS EVEN INFORMED TELEPHONICALLY ON MOBILE NO.98106 15320 AND THE MATTER WAS FINALLY ADJOURNED FOR 25.09.2017 . 7. ON 25.09.2017 NEITHER DID ANYONE ATTEND NOR WAS ANY REPLY SUBMITTED IN RESPONSE TO ABOVE NOTED QUERY. M OREOVER, NO ATTEMPT WAS MADE BY THE ASSESSEE TO PUT FORTH IT S VIEWS EVEN TILL THE DATE OF PASSING OF THE ORDER. GIVEN T HE NON- COMPLIANCE IT BECOMES EVIDENT THAT THE APPLICANT AP PEARS EITHER THE APPLICANT IS NOT INTERESTED IN PURSUING THE MATTER OR IS UNABLE TO REPLY THE QUERY POSED BY THE DEPARTMEN T. IN THE ABSENCE OF SUBMISSIONS IT IS DIFFICULT TO VERIFY BO TH THE OBJECTS & GENUINENESS OF ACTIVITIES OF THE SOCIETY. 8. IN THE INSTANT CASE, GIVEN THE ABOVE, IT IS SAFE TO CONCLUDE THAT THE ASSESSEE HAS FAILED TO DISCHARGE ITS ONUS, THIS BEING A BENEFICIAL CLAUSE FOR THE ASSESSEE, TO PROVE THAT ITS INCOME IS FREE FROM ELIGIBILITY OF TAXES. IN TH E LIGHT OF THE ABOVE, I HAVE NO OPTION BUT TO PROCEED ON MERITS AN D DENY THE REGISTRATION TO THE APPLICANT U/S 12AA OF THE INCOM E TAX ACT, 1961. 3 ITA NO.7137/DEL/2017 4.1 IT IS EVIDENT THAT LD. CIT(A) HAS DENIED REGISTRAT ION MAINLY ON THE GROUND OF NON-COMPLIANCE ON THE PART OF THE APPLICANT AND NOW THE APPLICANT HAS EXPRESSED ITS WILLINGNESS TO FILE ALL THE DOCUMENTARY EVIDENCES REQUIRED BY THE LEARNED CIT(E ) FOR REGISTRATION OF THE TRUST IN TERMS OF SECTION 12AA OF THE INCOME- TAX ACT. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANC ES, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(E) AND REST ORE THE MATTER BACK TO HIM FOR DECIDING AFRESH. THE ASSESSEE IS DI RECTED TO FILE ALL THE NECESSARY DOCUMENTARY EVIDENCE BEFORE THE LEARN ED CIT (E) AND COOPERATE IN DISPOSAL OF THE PROCEEDINGS BEFORE HIM WITHOUT SEEKING UNNECESSARY ADJOURNMENTS. THE GROUNDS OF TH E APPEAL OF THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICA L PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JULY, 2021. SD/- SD/- (KULDIP SINGH) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16 TH JULY, 2021. RK/- (DTDC) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI