ARDEE EDUCATIONAL FOUNDATION, NEW DELHI V. CIT(E), DELHI

ITA 7566/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9552 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 18-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 12A; 12AA; 12; 11

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI BHAVNESH SAINI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 7566/DEL/2017 (ASSESSMENT YEAR: 2017 - 18 ) ARDEE EDUCATIONAL FOUNDATION, KH. NO. 532, GADAIPUR, NEW DELHI PAN: AAFTA7800H VS. CIT(E), NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY: SHRI SATPAL GULATI, CIT DR DATE OF HEARING 04/01/2021 DATE OF PRONOUNCEMENT 04 / 01 / 2021 O R D E R PER PRASHANT MAHARISHI , A. M. 1. THIS APPEAL IS FILED BY A CHARITABLE TRUST APPELLANT AGAINST THE ORDER OF THE LD CIT(EXEMPTION), DELHI PASSED U/S 12AA OF THE ACT REJECTING THE APPLICATION FOR REGISTRATION U/S 12A OF THE ACT OF THE ASSESSEE TRUST. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS GROSSLY ERRED BOTH IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE TRUST U/S 12AA(L)(B) READ WITH SECTION 12A OF THE ACT 2. THAT THE IMPUGNED ORDER HAS BEEN MADE IN AN ARBITRARY AND WHIMSICAL MANNER AND THAT TOO WITHOUT GIVING ANY OPPORTUNITY OF BEING HEARD MUCH LESS A FAIR OPPORTUNITY AND AS SUCH THE ORDER PASSED IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 3. THAT VARIOUS ADVERSE FINDINGS RECORDED IN THE IMPUGNED ORDER ARE NOT ONLY CONTRADICTORY, VAGUE BUT ALSO FACTUALLY INCORRECT, LEGALLY MISCONCEIVED AND UNTENABLE. 4. THAT THE LEARNED COMMISSIONER OF INCOME TAX HAS FAILED TO APPRECIATE THAT, WHILE EXAMINING THE A PPLICATION UNDER SECTION 12AA OF THE ACT, THE SCOPE WAS TO MERELY EXAMINE THE SECTION 12A OF THE OBJECTS OF THE TRUST AND, WHETHER INCOME RECEIVED BY THE ASSESSEE TRUST IS LIABLE TO BE CONSIDERED UNDER SECTION 11 AND 12 OF THE ACT PAGE | 2 AND, NOT WHETHER THE INCO ME IS ACTUALLY EXEMPT UNDER SECTION 11 AND 12 OF THE ACT AND THEREFORE REJECTION OF APPLICATION OF THE ASSESSEE TRUST IS WHOLLY MISCONCEIVED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AND THEREFORE, THE ISSUE IS DECIDED ON THE MERITS OF THE CASE. 4. THE LD DR IS HEARD ON THE MATTER. 5. WE HAVE CAREFULLY CONSIDERED THE CONTENTION OF THE LD DR AND FIND THAT THE ASSESSEE FILED AN APPLICATION BEFORE THE LD CIT(E) ON 27.04.2017 SEEKING REGISTRATION U/S 12AA OF THE ACT. THE LD CIT(E) VIDE LETTER DATED 27.04.2017 REQUE STED FOR CERTAIN DETAILS AND ALSO ASKED THE ASSESSEE TO PRODUCE ORIGINAL TRUST DEED. ON THE APPOINTED DATED NONE APPEARED ON BEHALF OF THE ASSESSEE. FURTHER , NUMBER OF OPPORTUNITIES WERE GIVEN TO THE ASSESSEE HOWEVER, ASSESSEE SUBMITTED CERTAIN DOCUMENTS ONLY THROUGH DAK. HOWEVER, THE ASSESSEE DID NOT PRODUCE THE ORIGINAL MEMORANDUM OF ASSOCIATION (TRUST DEED) BEFORE THE LD CIT(E), THEREFORE, HE HELD THAT THE REQUISITE DETAILS ARE NOT FURNISHED BY THE ASSESSEE, HENCE, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE EXAMINED. HE THEREFORE, REJECTED THE APPLICATION OF THE ASSESSEE. HOWEVER, HE ALSO GRANTED OPPORTUNITY TO THE ASSESSEE TO REAPPLY FOR REGISTRATION U/S 12A AFTER COMPLETING THE REQUISIT E DETAILS. AGAINST THIS ORDER THE ASSESSEE IS AGGRIEVED. WE FULLY AGREE WITH THE CONTENTION OF THE LD CIT(E) THAT AS TH E ASSESSEE HAS NOT FURNISHED THE ORIGINAL TRUST DEED FOR VERIFICATION OF THE LEARNED CIT E FOR HIS VERIFICATION SO THAT HE CAN VERIFY WHETHER THE OBJECTS OF THE SOCIETY ARE CHARITABLE IN NATURE OR NOT AND WHETHER THE ACTIVITIES OF THE SOCIETY ARE GENUINE OR NOT. HE HAS ALSO GIVEN LIBERTY TO THE ASSESSEE TO REAPPLY FOR REGISTRATION U/S 12 A OF THE INCOME TAX ACT AFTER COMPLETING THE NECES SARY REQUIREMENT. IN VIEW OF THIS WE DIRECT THE ASSESSEE TO PRODUCE THE RELEVANT DETAILS BEFORE THE LEARNED CIT E FOR THE PURPOSE OF REGISTRATION U/S 12 AA OF THE INCOME TAX ACT AND ALSO THE NECESSARY DETAILS ASKED FOR BY THE VARIOUS LETTERS ISSUED BY HIM . THE LEARNED AND CIT E EXAMINE THE SAME AND DECIDE THE ISSUE ON THE MERITS OF THE CASE. THE ASSESSEE SHOULD ALSO BE GRANTED REASONABLE OPPORTUNITY OF HEARING. IN VIEW OF THIS APPEAL FILED BY THE ASSESSEE AS PER GROUND PAGE | 3 NUMBER 1 4 ARE AS SET ASIDE TO THE FILE OF THE LEARNED AND CIT E ACCORDINGLY. 6. IN THE RESULT APPEAL FILED BY THE ASSESSEE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04 / 01 / 2021 . - SD/ - - SD/ - ( BHAVNESH SAINI ) (PRASHANT MAHARISHI) JUDICIAL MEMB ER ACCOUNTANT MEMBER DATED: 04 / 01 / 2021 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI