Nova Educational Trust, Lucknow V. Commissioner of Income Tax-I, Lucknow

ITA 736/LKW/2014

• Counselvise Citation: 73623714 RSA 2014
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 19-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Assessee Lawyers: YOGESH AGARWAL
• Keywords: Opportunity of being heard; Reasonable cause; Condonation of delay
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.736/LKW/2014 NOVA EDUCATIONAL TRUST LUCKNOW V. COMMISSIONER OF INCOME-TAX-1 LUCKNOW PAN/PAN:AABTN5766H (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. YOGESH AGARWAL, ADVOCATE RESPONDENT BY: SHRI. VIVEK MISHRA, CIT (DR) DATE OF HEARING: 11 11 2014 DATE OF PRONOUNCEMENT: 19 11 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX DENYING REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT') ON VARIOUS GROUNDS, WHICH ARE AS UNDER:- 1. THE LEARNED COMMISSIONER OF INCOME TAX-I, LUCKNOW [HERE- IN-AFTER REFERRED TO AS THE LD. CIT] GROSSLY ERRED ON FACTS AND IN LAW IN REJECTING THE GRANT OF REGISTRATION UNDER SECTION 12AA OF THE IT. ACT, 1961 AND IN ALLEGEDLY HOLDING THAT THE APPELLANT TRUST HAS FAILED TO SUBSTANTIATE ITS ELIGIBILITY FOR GRANT OF REGISTRATION U/S 12AA WITHOUT AFFORDING ANY OPPORTUNITY TO THE APPELLANT TRUST AND THUS THE ORDER SO PASSED IS BAD-IN-LAW AND VOID-AB-INITIO. 2. WHILE PASSING THE PRESENT ORDER THE LD. CIT FURTHER GROSSLY :- 2 -: ERRED ON FACTS AND IN LAW IN HOLDING THAT THE APPELLANT TRUST FAILED TO COMPLY WITH THE NOTICE WHICH COULD NOT BE COMPLIED ONLY BECAUSE THE NOTICE WAS RECEIVED BY THE PEON WHO FAILED TO DELIVER THE SAME TO THE TRUSTEES DUE TO THE CONSTRUCTION ACTIVITY BEING UNDERTAKEN IN THE HOSPITAL PREMISES AND THUS NO APPEARANCE COULD BE MADE ON THE DATE SPECIFIED AND THUS THE ORDER SO PASSED IS BAD-IN-LAW AND VOID-AB-INITIO AND THUS NEEDS TO BE QUASHED AND THE REGISTRATION GRANTED TO THE APPELLANT TRUST. 3. ON THE FACTS AND IN THE PECULIAR CIRCUMSTANCES OF THE PRESET CASE THE LD. CIT WAS NOT AT ALL JUSTIFIED IN HOLDING THAT THE APPELLANT TRUST COULD NOT SUBSTANTIATE ITS ELIGIBILITY FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT DESPITE THE FACT THAT MORE THAN TWO MONTHS TIME WAS AVAILABLE WITH HIM TO PASS A REASONED ORDER AND THUS THE ORDER SO PASSED WITHOUT BRINGING ANY MATERIAL OR CREDIBLE EVIDENCE ON RECORD AGAINST THE APPELLANT TRUST IS BAD-IN-LAW AND MAY KINDLY BE ORDERED TO BE SET ASIDE. 4. THE LD. CIT GROSSLY ERRED ON FACTS AND IN LAW IN REFUSING TO GRANT REGISTRATION U/S 12AA TO THE APPELLANT TRUST AND IN FAILING TO APPRECIATE THAT THE OBJECTS OF THE TRUST AS ENUMERATED IN THE TRUST DEED. 5. THAT THE LD. CIT FAILED TO APPRECIATE THAT THE OBJECTS AND THE ACTIVITIES OF THE APPELLANT TRUST ARE CHARITABLE IN NATURE AND FOR GENERAL PUBLIC UTILITY WHICH SUCH FACT WAS ALREADY ON RECORD AND THUS THE REGISTRATION OUGHT TO HAVE BEEN GRANTED U/S 12AA OF THE I.T. ACT, 1961. 2. THIS APPEAL IS FILED LATE BY 320 DAYS, FOR WHICH APPLICATION FOR CONDONATION OF DELAY IS FILED ALONG WITH AN AFFIDAVIT STATING THEREIN THAT :- 3 -: AFTER SUBMITTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT, THE ASSESSEE WAS ENGAGED IN CONSTRUCTION AND RENOVATION OF THE HOSPITAL PREMISES AND NOTICE OF HEARING WAS RECEIVED BY THE PEON OF THE ASSESSEE-TRUST AND THE PEON DID NOT INFORM THE DEPONENT OF THE AFFIDAVIT, SHRI. AJEET KUMAR MAURYA (SECRETARY OF THE TRUST). THEREFORE, THE APPLICATION FILED BEFORE THE LD. COMMISSIONER OF INCOME-TAX COULD NOT BE PURSUED. ON ENQUIRY FROM THE OFFICE OF THE LD. COMMISSIONER OF INCOME- TAX, IT WAS NOTICED THAT REGISTRATION UNDER SECTION 12AA OF THE ACT WAS DECLINED BY THE LD. COMMISSIONER OF INCOME-TAX ON ACCOUNT OF NON- COMPLIANCE OF THE NOTICE ISSUED BY THE LD. COMMISSIONER OF INCOME-TAX AND THEREAFTER ASSESSEE OBTAINED A DUPLICATE COPY OF THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX AND FILED THIS APPEAL. THEREFORE, THE DELAY IN FILING OF THE APPEAL WAS NOT INTENTIONAL BUT DUE TO THE CIRCUMSTANCES MENTIONED ABOVE. 3. THE LD. D.R. HAS SIMPLY PLACED RELIANCE UPON THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX. 4. HAVING CAREFULLY EXAMINED THE CONTENTS OF THE AFFIDAVIT AND THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX, WE FIND THAT THE LD. COMMISSIONER OF INCOME-TAX HAS ISSUED ONE NOTICE OF HEARING TO THE ASSESSEE AND WHEN NONE APPEARED ON BEHALF OF THE ASSESSEE, THE LD. COMMISSIONER OF INCOME- TAX REJECTED THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. ON A CAREFUL PERUSAL OF THE AFFIDAVIT, WE FIND THAT THE ASSESSEE HAD REASONABLE CAUSE FOR DELAY IN FILING THE APPEAL. WE ACCORDINGLY CONDONE THE DELAY IN FILING OF THE APPEAL AND ADMIT THE APPEAL FOR HEARING. 5. ON MERIT, WE FIND THAT THE LD. COMMISSIONER OF INCOME-TAX HAS ISSUED ONLY ONE NOTICE OF HEARING WHILE ADJUDICATING THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 12AA OF THE ACT. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT PROPER OPPORTUNITY WAS NOT AFFORDED TO THE ASSESSEE AND WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME- :- 4 -: TAX AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE-ADJUDICATE THE ISSUE AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:19 TH NOVEMBER, 2014 JJ:1111 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR