Maidh Karavadhi Maravadhi Swarnkar Panchayat Nyas, Ujjain V. CIT Excemption, Bhopal

ITA 717/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6995 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 30-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Keywords: Set aside
• Section: 12AA

Judgement Text

[ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.717/IND/2018 ASSESSMENT YEAR: 2018-19 MAIDH KSHTRIYA MARAVADH I SWARNKAR PANCHAYAT NYAS UJJAIN / VS. CIT (EXEMPTION) BHOPAL ( APPELLANT ) ( REVENUE ) P.A. NO. AAETM6877F APPELLANT BY SHRI VENUS RAWKA , A.R. RESPONDENT BY SHRI LAL CHAND , D.R. DATE OF HEARING: 05.02.2020 DATE OF PRONOUNCEMENT: 06.02.2020 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE CIT(EXEMPTION), BHOPAL DATED 29.6.2018 PERTAINING TO THE ASSESSMENT YEAR 2018-19. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) , BHOPAL ERRED IN NOT GRANTING TO THE APPELLANT REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. [ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] 2 2. THE ABOVE NON GRANT OF REGISTRATION U/S 12AA IS UNJ USTIFIED AND BAD IN LAW BEING IN VIOLATION OF SET PROCEDURE. IT IS EVIDENT ON THE BASIS THAT: I. THE APPELLANT HAS BEEN DENIED TO GIVE REGISTRATION U/S 12AA BY LD. CIT(EXEMPTION) BY MISINTERPRETING THE OBJECT CLAUSE OF THE TRUST AND ITS NATURE. II. THE LD. CIT(EXEMPTION) HAS NOT CONSIDERED THE SUBMI SSION FILED BY THE TRUST VIDE LETTER DATED 22.6.2018. III. NO REASONABLE OPPORTUNITY HAS BEEN GIVEN TO BE HEAR D TO THE APPELLANT TRUST AS THE REGISTRATION APPLICATION IS DISPOSED OFF IN ONLY ONE HEARING DURING THE TIME LIMIT OF 6 MONTHS. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, A MEND OR MODIFY ALL OR ANY OF THE ABOVE GROUND AT ANY TIME BEFORE THE COMPLETI ON OF HEARING. 3. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE ASSESSEE SOCIETY HAD FILED AN APPLICATION SEEKING REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THE LD. COMMISSION ER OF INCOME TAX (IN SHORT CIT), THEREAFTER ISSUED A NOTI CE TO THE [ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] 3 ASSESSEE AND AFFORDED OPPORTUNITY OF HEARING. IN RESPO NSE TO THE NOTICE OF HEARING, THE AUTHORISED REPRESENTATIV E OF THE ASSESSEE APPEARED BEFORE THE LD. CIT. HOWEVER, TH E LD. CIT POINTED OUT CERTAIN DISCREPANCIES. THE DISCREPANC IES SO POINTED OUT ARE RECORDED IN PARA 3 OF THE ORDER OF THE LD. CIT AND THE SAME ARE REPRODUCED HEREIN BELOW. THE ASSESSEE REPLIED VIDE SPEED POST LETTER DATED 25.6.20 18. HOWEVER, THE EXPLANATION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE BY THE LD. CIT AND DISMISSED THE APPLICATION SEEKING REGISTRATION. AGAINST THIS, THE ASSESSEE IS I N APPEAL BEFORE THIS TRIBUNAL. 4. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST REJECTION OF APPLICATION SEEKING REGISTRATION U/S 12AA OF THE ACT. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. TH E SUBMISSIONS OF THE ASSESSEE ARE AS UNDER: [ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] 4 [ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] 5 5. LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDER OF THE LD. CIT AND SUBMITTED THAT THE SPECI FIC DISCREPANCIES WERE POINTED OUT. 6. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS NOW AMENDED THE OBJECTS OF THE SOCIETY. HE SUBMITTED THAT THE APPLICATION MAY BE RESTORED TO THE FILE OF THE LD. CIT TO DECIDE IT AFRESH. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS AND GONE THROUGH THE ORDER S OF THE AUTHORITIES BELOW. WE FIND THAT LD. CIT POINT ED OUT CERTAIN DISCREPANCIES AND DECIDED THE ISSUE AS UNDER: 5. IN VIEW OF ABOVE AND IN THE ABSENCE OF REGISTER ED AMENDED BYE-LAWS, AND CLEAR RESOLUTION BY THE TRUST MEMBERS , IT IS VERY DIFFICULT TO VERIFY THE GENUINENESS OF THE CHARITAB LE ACTIVITIES OF THE TRUST CARRIED OUT ARE FOR THE GENERAL PUBLIC AT LAR GE. CONSIDERING THE ABOVE, THERE IS NO ALTERNATIVE LEFT WITH THE UNDERS IGNED EXCEPT TO DECIDE THE APPLICATION ON THE BASIS OF MATERIAL AVA ILABLE ON RECORD ON MERITS. 6. IN THE LIGHT OF ABOVE DISCUSSION, IT IS HELD THA T THE APPLICANT TRUST IS NOT ENTITLED FOR REGISTRATION U/S 12AA OF THE I.T. ACT, 1961. ACCORDINGLY, THE APPLICATION IN FORM NO.10A, RECEIV ED IN THIS OFFICE ON 29.12.2017 SEEKING REGISTRATION U/S 12AA IS HEREBY REJECTED AND REGISTRATION SOUGHT U/S 12AA IS REFUSED. HOWEVER, THE ASSESSEE HAS LIBERTY TO APPLY FURTHER AFTER THE AMENDED BYE- LAWS GOT REGISTERED. [ITA NO.717/IND/2018] [MAIDH KSHTRIYA MARAVADHI SWARNKAR PANCHAYAT NYAS, UJJAIN] 6 8. SINCE THE ASSESSEE HAS NOW AMENDED THE OBJECTS, IN THE INTEREST OF JUSTICE, THE ORDER IS SET ASIDE AND APPLICATION IS RESTORED TO THE FILE OF THE LD. CIT TO DECIDE IT AFRESH IN ACCORDANCE WITH LAW. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 06 . 02.2020. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 06/02/2020 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE