Madad Jan Kalyan Sansthan, Lucknow V. CIT, Lucknow

ITA 761/LKW/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9143 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 01-03-2011
• Assessment Year: misc
• Appeal Filed On: 24-12-2010
• Court: TRIBUNAL
• Assessee Lawyers: DHARMEDNRA KUMAR
• Keywords: Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE HONBLE SHRI H.L. KARWA BEFORE HONBLE SHRI H.L. KARWA BEFORE HONBLE SHRI H.L. KARWA BEFORE HONBLE SHRI H.L. KARWA AND HONBLE SHRI N.K. SAINI AND HONBLE SHRI N.K. SAINI AND HONBLE SHRI N.K. SAINI AND HONBLE SHRI N.K. SAINI ITA NO.761/LUC/2010 ASSESSMENT YEAR:N.A. MADAD JAN KALYAN SANSTHAN S-30, NEELIGIRI COMPLEX INDIRA NAGAR, LUCKNOW V. CIT-I LUCKNOW PAN:AAVTN8698R (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI DHARMEDNRA KUMAR, CA RESPONDENT BY: SHRI ANADI VERMA, D.R O OO O R RR R D DD D E EE E R RR R PER PER PER PER H. L. KARWA H. L. KARWA H. L. KARWA H. L. KARWA: :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT-I, LUCKNOW DATED 29.10.2010 PASSED U/S. 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 (IN SHORT ACT). 2. THE LD. COMMISSIONER OF INCOME TAX I, LUCKNOW VIDE ORDER DATED 29.10.2010 REFUSED TO GRANT REGISTRATION TO THE ASSESSEE-SOCIE TY. THE ASSESSEE-SOCIETY WAS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 18 60 ON 1.6.2006 WITH CHARITABLE OBJECTS. THE ASSESSEE-SOCIETY HAS BEEN ENGAGED MAINLY TO PRO VIDE MEDICAL CHECKUP, FACILITY AND AWARENESS AND DISTRIBUTES FREE MEDICINES TO POOR, D OWNTRODDEN AND UNPRIVILEGED PERSONS OF THE SOCIETY, REGARDLESS OF ANY CASTE, CR EED AND CULTURE IN INDIA. THE SOCIETY FILED AN APPLICATION U/S. 12A(I)(A) OF THE ACT ON 1 5.4.2010 SEEKING REGISTRATION UNDER THE SAID SECTION. THE LD. COMMISSIONER OF INCOME TAX C ALLED REPORT FROM THE ASSESSING OFFICER AS WELL AS THE ADDL. COMMISSIONER OF INCOME -TAX, RANGE-I, LUCKNOW. BOTH THE AUTHORITIES DID NOT RECOMMEND THE CASE FOR REGISTRA TION. ON THE BASIS OF THE REPORTS OF THE ABOVE AUTHORITIES, THE LD. COMMISSIONER OF INCO ME TAX REFUSED REGISTRATION OBSERVING AS UNDER:- 5. IN VIEW OF THE ABOVE, I AM INCLINED TO HOLD THA T THE ASSESSEE SOCIETY HAS FAILED TO ESTABLISH THE CARRYING ON OF CHARITABLE ACTIVITI ES WHICH IS A CONDITION PRECEDENT FOR GRANT OF REGISTRATION U/S. 12AA(1)(B)(I). THAT BEING SO, THIS IS NOT FOUND TO BE A FIT CASE FOR GRANTING REGISTRATION U/S. 12AA(1) OF THE INCOME-TAX ACT. ACCORDINGLY, THE REGISTRATION SOUGHT IS HEREBY REJECTED. :-2-: 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE PERUSE D THE MATERIALS AVAILABLE ON RECORD. SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. COMMISSIONER OF INCOME TAX INTENTIONALLY HAS NOT DI SCUSSED THE SUBMISSION DATED 28.10.2010 OF THE ASSESSEE IN HIS ORDER AND REJECTE D THE REGISTRATION WITHOUT ANY BASIS. SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSE SSEE ALSO POINTED OUT THAT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNT ALONG WI TH SNAPS OF MEDICAL CAMPS ORGANIZED BY THE ASSESSEE IN MALIN BASTI, BEFORE TH E ASSESSING OFFICER AND THE LD. COMMISSIONER OF INCOME TAX. IN HIS ORDER, THE LD. COMMISSIONER OF INCOME TAX HAS NOT POINTED OUT ANY DEFECT IN THE ACTIVITIES OF THE ASS ESSEE. SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY SUBMITTED THAT THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE AND THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES. WE FIND THAT IN THE INSTANT CASE THE LD. COMMISSIONER OF INCOME TAX HAS NOT APPLIED HIS MIND AND REJECTED THE CLAIM OF THE ASSESSEE MERELY ON THE BA SIS OF REPORTS OF THE ASSESSING OFFICER AND THE ACIT, RANGE-I, LUCKNOW. IT IS ALSO NOTICED THAT THE LD. COMMISSIONER OF INCOME TAX HAS NOT DISCUSSED AND CONSIDERED THE SUBMISSION S OF THE ASSESSEE DATED 28.10.2010. IN OUR VIEW THE LD. COMMISSIONER OF IN COME TAX SHOULD HAVE CONSIDERED THE ABOVE SUBMISSIONS BEFORE PASSING THE IMPUGNED O RDER. SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. COMMISSIONER OF INCOME TAX WAS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE-SOCIETY FAILED TO ESTABLISH CARRYING ON OF THE CHARITABLE ACTIVITIES. ACCORDING TO THE LD. COUNSE L FOR THE ASSESSEE IN THE YEAR 2006-07 THE SOCIETY INCURRED EXPENDITURE ON HEALTH CAMP AND MEDICAL CHECKUP OF POOR TO THE TUNE OF $46,671. FURTHER, THE ASSESSEE-SOCIETY PURCHASE D MEDICAL EQUIPMENT OF $18,750, FURNITURE AND FIXTURES OF $11,205 FOR THE PURPOSE O F ACTIVITY OF THE SOCIETY. DURING THE SAID YEAR, THE ASSESSEE-SOCIETY HAS ORGANIZED ORAL HYGIE NE CAMP IN WHICH FREE ORAL AND DENTAL CHECKUPS FACILITIES PROVIDED TO THE PUBLIC A T LARGE. SIMILARLY, IN THE YEAR 2007-08, THE ASSESSEE-SOCIETY INCURRED EXPENDITURE ON HEALTH CAMP AND MEDICAL CHECKUP OF POOR TO THE TUNE OF $84,456. DURING THIS YEAR ALSO, THE ASSESSEE ORGANIZED ORAL HYGIENE CAMP IN WHICH FREE ORAL AND DENTAL CHECKUPS FACILITIES P ROVIDED TO PUBLIC AT LARGE. IT IS ALSO STATED THAT IN THE YEAR 2008-09, THE ASSESSEE-SOCIE TY INCURRED EXPENDITURE ON HEALTH CAMP AND MEDICAL CHECKUP OF POOR TO THE TUNE OF $89 ,066. SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED THAT THE LD. COMMISSIONER OF INCOME TAX HAS NOT APPRECIATED THE CHARITABLE OBJECTS OF THE A SSESSEE-SOCIETY AND ALSO IGNORED THE CHARITABLE ACTIVITIES CARRIED OUT BY THE ASSESSEE. IN OUR VIEW, THERE IS A SUBSTANCE IN THE ABOVE SUBMISSIONS OF SHRI DHARMENDRA KUMAR, THE LD. COUNSEL FOR THE ASSESSEE AND :-3-: THEREFORE WE DEEM IT FIT TO SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX IN TOTO AND REMAND THE MATTER TO HIS FILE WITH A DIREC TION TO DECIDE THE MATTER AFRESH IN ACCORDANCE WITH LAW AFTER AFFORDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IT IS MADE CLEAR THAT THE LD. COMMISSIONER OF INCOM E TAX WILL DECIDE THE MATTER PREFERABLY WITHIN TWO MONTHS FROM THE DATE OF RECEI PT OF THE ORDER. AT THE SAME TIME, WE ALSO DIRECT THE ASSESSEE TO CO-OPERATE IN THE PROCE EDINGS BEFORE THE LD. COMMISSIONER OF INCOME TAX. WE ALSO ADD HERE THAT THE ASSESSEE IS FREE TO PRODUCE EVIDENCE IN SUPPORT OF ITS CLAIM. 5. FOR STATISTICAL PURPOSES, THE APPEAL IS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 7.3.2011 . SD/- SD/- [ N. K. SAINI] [H. L. KARWA] ACCOUNTANT MEMBER VICE PRESIDENT DATED:7.3.2011 JJ:0103 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR