Dr. Rakesh Education Trust, V. Commissioner of Income Tax (Exemption), Lucknow

ITA 74/LKW/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4405 (ITAT-LUCKNOW)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-04-2016
• Assessment Year: misc
• Appeal Filed On: 25-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.74/LKW/2016 CIT(EXEMPTIONS), LUCKNOW VS DR. RAKESH EDUCATION TRUST GAUR BIZ PARK, PLOT NO.1, ABHAY KHAND-2, INDIRAPURAM, GHAZIABAD, U.P. 201010 PAN AACTD 0959 P (RESPONDENT) (APPELLANT) SHRI K. R. RASTOGI, CA APPELLANT BY SHRI SANJAY KUMAR, CIT DR RESPONDENT BY 19 /0 4 /2016 DATE OF HEARING 09 / 06 /201 6 DATE OF PRONOUNCEMENT O R D E R PER MAHAVIR PRASAD, JM. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE O RDER OF LD. CIT (EXEMPTIONS), LUCKNOW DATED 14.12.2015 PASSED BY HI M U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING REJECTION OF THE ASSESSEE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. I T WAS NOTED IN THE IMPUGNED ORDER THAT THE ASSESSEE TRUST HAS FAILED T O PRODUCE/FURNISH ITS BOOKS OF ACCOUNTS AND VOUCHERS TO SUBSTANTIATE ITS ELIGIBILITY FOR GRANT OF REGISTRATION U/S 12AA. THEREFORE, CIT(EXEM PTION) WAS REJECTED HIS APPLICATION WITHOUT GIVING ADEQUATE OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. 2 3. THE BRIEF FACTS OF THE CASE ARE THAT SOCIETY HAS FILED AN APPLICATION FOR REGISTRATION U/S 12A(A) OF THE INCO ME TAX ACT, 1961 ON 09.07.2015 WITH THE CIT (EXEMPTIONS), LUCKN OW. THE ASSESSEE TRUST HAS NEITHER FILED ANY DETAILS NOR PR ODUCED BOOKS OF ACCOUNTS, BILLS/ VOUCHERS FOR VERIFICATION. THER E ARE VARIOUS OBJECTS OF THE TRUST AS MENTIONED IN THE TRUST DEED . AS PER PROVISIONS OF SECTION 12AA(1) OF THE ACT, TWO FACTO RS NAMELY THE OBJECTS OF CHARITABLE PURPOSE AND THE GENUINENESS O F ACTIVITIES HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION. HOWEVER, THE ASSESSEE FAILED TO PROVE THE SAME AS THE APPLIC ATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA(1)(B)(II) WAS REJECTED. 4. DURING THE COURSE OF HEARING, LD. COUNSEL FOR TH E ASSESSEE INVITED OUR ATTENTION THAT THE CIT(EXEMPTIONS) HAS REJECTED THE REQUEST OF REGISTRATION U/S 12AA(1)(B)(II) OF THE I NCOME TAX ACT, 1961(HEREINAFTER REFERRED TO AS ACT) WITHOUT VERI FYING THE RECORDS OF THE ASSESSEE, WHEREAS THE ASSESSEE HAS F URNISHED THE COMPLETE RECORDS IN ORDER TO ESTABLISH THAT THE ASS ESSEE WAS ENGAGED IN CHARITABLE ACTIVITIES. LD. DR ON THE OTH ER HAND, HAS CONTENDED THAT THE ASSESSEE HAS NOT FURNISHED THE C OMPLETE DETAILS BEFORE THE CIT(EXEMPTIONS), THEREFORE, THE CIT(EXEMPTIONS) RIGHTLY DENIED THE REGISTRATION. 5. LD. DR SUPPORTED THE ORDER OF THE LD.CIT (EXEMPT IONS). 6. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(E XEMPTION) IN THE LIGHT OF OTHER EVIDENCE PLACED BEFORE US, WE FI ND THAT THE CIT(EXEMPTION) HAS RECORDED HIS CATEGORICAL FINDING THAT NO BOOKS OF ACCOUNTS, BANK STATEMENT, BILLS AND VOUCHERS ETC. W ERE PRODUCED FOR EXAMINATION, THEREFORE THE ASSESSEE HAS FAILED TO P ROVE THE SAME. 3 NOW THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT HE HAS PLACED ALL BOOKS OF ACCOUNTS AND OTHER RELEVANT EVI DENCE TO JUSTIFY THE ACTIVITIES OF THE ASSESSEE. IN THE LIGHT OF CON TRARY ARGUMENTS BY THE RESPECTIVE PARTIES, WE ARE OF THE VIEW THAT THI S MATTER SHOULD BE DECIDED AFRESH BY THE CIT(EXEMPTIONS). WE THEREFORE , SET ASIDE THE ORDER OF LD. CIT (EXEMPTIONS) AND RESTORE THE MATTE R BACK TO THE FILE FOR A FRESH DECISION AFTER ALLOWING ADEQUATE OPPORT UNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED ON THE CAPTION PAGE) SD/- SD/- (P.K. BANSAL) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09/06/2016 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR