M/s Wellborn Educational Society, Lucknow V. The Commissioner of Income Tax-I, Lucknow

ITA 777/LKW/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75121 (ITAT-LUCKNOW)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Assessee Lawyers: A P SINHA
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO S . 777 & 778/LKW/2013 ASSESSMENT YEAR: 2012 - 13 M/S WELLBORN EDUCATIONAL SOCIETY D - 311, SECTOR 7 INDIRA NAGAR, LUCKNOW V. CIT - 1 LUCKNOW PAN: AAAAW2634 (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. A. P. SINHA, ADVOCATE RESPONDENT BY: SHRI. VIVEK MISHRA, CIT (DR) DATE OF HEARING: 08.01.2014 DATE OF PRONOUNCEMENT: 10.01.2014 O R D E R PER SUNIL KUMAR YADAV: THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS PASSED BY THE LD. COMMISSIONER OF INCOME - TAX UNDER SECTION 12AA(1)(B)(II) AND 80G(5) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED IN SHORT 'THE A CT'). 2 . WHILE ASSAILING THE ORDERS OF THE LD. COMMISSIONER OF INCOME - TAX, THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE LD. COMMISSIONER OF INCOME - TAX HAS ACTED IN HASTE AND HAS NOT AFFORDED PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. EVEN THE RECORD PRODUCED BY THE ASSESSEE WERE NOT EXAMINED AND THE LD. COMMISSIONER OF INCOME - TAX AND HAS REJECTED THE APPLICATION S FOR GRANT OF REGISTRATION UNDER SECTION : - 2 - : 12AA(1)(B)(II) AND APPROVAL UNDER SECTION 80G(5) OF THE ACT. THE LD. COUNSEL FOR THE ASS ESSEE FURTHER CONTENDED THAT WHILE GRANTING REGISTRATION UNDER SECTION 12A OF THE ACT, THE LD. COMMISSIONER OF INCOME - TAX IS REQUIRED TO EXAMINE THE NATURE OF ACTIVITIES CARRIED ON BY THE ASSESSEE. THOUGH THE ASSESSEE HAS PLACED ALL THE RELEVANT MATERIAL ON RECORD BEFORE THE LD. COMMISSIONER OF INCOME - TAX, BUT HE DID NOT EXAMINE THE SAME AND HAS REJECTED THE APPLICATION S FOR REGISTRATION UNDER SECTION 12A AND APPROVAL UNDER SECTION 80G(5) OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT IN THE INTEREST OF JUSTICE , THE MATTER MAY BE RESTORED TO THE FILE OF THE LD. COMMISSIONER OF INCOME - TAX TO PASS A DETAILED ORDER HAVING EXAMINED THE OBJECTS OF THE ASSESSEE - SOCIETY AND OTHER MATERIAL PLACED ON RECORD. 3 . THE LD. D.R. HAS, HOWEVER, AGREED TH AT THE MATTER MAY BE RESTORED TO THE LD. COMMISSIONER OF INCOME - TAX FOR ADJUDICATION OF THE REQUEST OF THE ASSESSEE FOR GRANT OF REGISTRATION IN THE LIGHT OF THE RELEVANT RECORD AND OBJECTS OF THE ASSESSEE. 4 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RI VAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX, WE FIND THAT THE LD. COMMISSIONER OF INCOME - TAX HAS NOT EXAMINED THE OBJECTS OF THE ASSESSEE WHILE DENYING REGISTRATION UNDER SECTION 12A OF THE ACT. HE HAS MEN TIONED IN HIS ORDER THAT ADJOURNMENT WAS SOUGHT BY THE ASSESSEES COUNSEL THAT IS WHY HE HAS DOUBTED THE ACTIVITIES OF THE ASSESSEE, WHEREAS THE LD. COMMISSIONER OF INCOME - TAX IS REQUIRED TO EXAMINE THE NATURE OF THE ACTIVITIES O F THE ASSESSEE, BESIDES THE OBJECTS OF THE ASSESSEE. IF IT IS FOUND TO BE CHARITABLE, REGISTRATION UNDER SECTION 12A OF THE ACT I S TO BE GRANTED, BUT THE LD. COMMISSIONER OF INCOME - TAX HAS NOT EXAMINED THIS ASPECT AND HAS DENIED REGISTRATION ONLY FOR THE SIMPLE REASON THAT THE ASSE SSEES COUNSEL HAS SOUGHT A NUMBER OF ADJOURNMENTS. THIS ACTION OF THE LD. COMMISSIONER OF INCOME - TAX IS NOT APPRECIABLE. WE : - 3 - : ACCORDINGLY SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX PASSED UNDER SECTION UNDER SECTION 12AA(1)(B)(II) OF THE AC T AND RESTORE THE MATTER TO HIS FILE FOR RE - ADJUDICATION OF THE ISSUE AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . SIMILAR IS THE POSITION WITH REGARD TO THE ORDER PASSED UNDER SECTION 80G(5) OF THE ACT. FOR THE REASONS DISCUSSED HER EINABOVE, WE SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX PASSED UNDER SECTION 80G(5) OF THE ACT AND RESTORE THE MATTER TO HIS FILE FOR RE - ADJUDICATION OF THE APPLICATION OF THE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT AF TER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10.1.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACC OUNTANT MEMBER JUDICIAL MEMBER DATED: 10.1.2014 JJ: 0801 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR