Punjab Digital Library, Mohali V. CIT (Exemptions), Chandigarh

ITA 793/CHANDI/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8448 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 17-12-2015
• Assessment Year: misc
• Appeal Filed On: 26-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12A; 12AA; 12

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L. KARWA, HONBLE VICE PRESIDENT AND MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 793/CHD/2015 ASSESSMENT YEAR : UNDER SECTION : 12 AA PANJAB DIGITAL LIBRARY VS. THE CIT (EXEMPTIONS) 867, SECTOR 64, CHANDIGARH SAS NAGAR, MOHALI PAN NO. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SUDHIR SEHGAL RESPONDENT BY : SH. MANOJ MISHRA DATE OF HEARING : 17/12/2015 DATE OF PRONOUNCEMENT : 04/03/2016 ORDER PER ANNAPURNA MEHROTRA A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(EXEMPTION) CHANDIGARH DATED 26.08.2015 REJECTIN G THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT, 1961. 2. IN THIS APPEAL ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPT ION), CHANDIGARH HAS ERRED IN DENYING THE REGISTRATION U/S 12AA OF T HE INCOME TAX ACT, 1961. 2. THAT NO REASONABLE OR PROPER OPPORTUNITY HAD BEEN A FFORDED BEFORE PASSING AN ORDER REJECTING THE REGISTRATION U/S 12A A OF THE INCOME TAX ACT, 1961. 3. THAT EVEN OTHERWISE CERTIFIED COPY OF THE TRUST DEE D, BY LAWS, MEMORANDUM OF ASSOCIATION AND OTHER DOCUMENTS HAVE BEEN ATTACHED ALONGWITH THE APPLICATION FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT AND AS SUCH, THERE COULD BE NO GROUND FOR REJECTION OF REG ISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. 3. BRIEFLY STATED, AN APPLICATION U/S 12A WAS FILED BY THE ASSESSEE TRUST ON 06.02.2015 WHICH WAS REJECTED BY THE LD. CIT(EXEMPT ION) FOR THE REASON THAT THE ASSSESSEE HAD FAILED TO SUPPLY NECESSARY INFORMATIO N TO ASCERTAIN WHETHER THE TRUST IS ENGAGED IN ANY CHARITABLE ACTIVITY OR NOT. 4. AGGRIEVED BY THE SAME, THE ASSESSEE FILED THE PR ESENT APPEAL BEFORE US:- 5. BEFORE US LD. COUNSEL FOR THE ASSESSEE PLEADED T HAT REGISTRATION U/S 12A HAD BEEN DENIED TO THE ASSESSEE FOR THE REASON THAT THE ASSESSEE HAD NOT 2 SUPPLIED THE NECESSARY INFORMATION CALLED FOR. THIS , THE LD. AR STATED WAS INCORRECT ON FACTS. LD. AR DREW OUR ATTENTION TO TH E LETTER FILED BY THE ASSESSEE DATED 24.03.2015 ENCLOSING ALL THE INFORMATION CALL ED FOR BY THE LD. CIT. LD. AR STATED THAT THE LD. CIT HAD FAILED TO CONSIDER THIS LETTER FILED BY THE ASSESSEE SUPPLYING ALL THE NECESSARY INFORMATION AND THEREFO RE, REJECTION OF APPLICATION BY THE LD. CIT WAS NOT CORRECT. LD. DR ON THE OTHER HAND SUPPORTED THE ORDER OF THE LD. CIT. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE ORDERS OF THE AUTHORITIES BELOW AS ALSO THE DOCUMENTS PLACED BEFO RE US. 7. WE FIND THAT THE DENIAL OF REGISTRATION TO THE A SSESSEE TRUST U/S 12AA WAS INCORRECT. AS PER THE ORDER OF THE LD. CIT PARA2 T HE FOLLOWING INFORMATION HAD BEEN CALLED FOR BY THE LD. CIT VIDE ITS LETTER DATE D 22.06.2015 I. ORIGINAL AND CERTIFIED COPY OF TRUST DEED, BYE LAWS , MEMORANDUM OF ASSOCIATION II. NOTE ON ACTIVITIES WITH SUPPORTING DOCUMENTS III. BOOKS OF ACCOUNTS OF CURRENT FINANCIAL YEAR IV. RECEIPT OF BOOKS SHOWING THE RECEIPT OF DONATIONS(I F ANY) V. ANY OTHER DOCUMENT / DETAILS RELIED UPON BY THE ASS ESSEE IN SUPPORT OF HIS APPLICATION 8. WE FIND THAT THE ASSESSE HAD SUPPLIED ALL THIS I NFORMATION VIDE ITS LETTER DATED 24.03.2015 FILED IN RESPONSE TO THE LETTER OF CIT(EXEMPTION) DATED 13.03.2015. THE SAME IS REPRODUCED HEREUNDER:- THE DY. DIRECTOR (SYSTEMS) DATED :-24.03.20 15 CHANDIGARH SIR, RE.: PANJAB DIGITAL LIBRARY SUB.: APPLICATION FOR REGISTRATION U/S 12A/80G OF T HE INCOME TAX ACT, 1961 WITH REFERENCE TO YOUR LETTER NO. CIT (EXEMPTIONS)/ CHD/10(23C)/2014-15/2540 DATED 13.03.2015, PLEASE FIND ENCLOSED THE FOLLOWING DOCUMENTS:- 1. COPY OF TRUST DEED IS ENCLOSED HEREWITH. 2. NAME AND ADDRESS OF THE TRUSTEES ARE AS UNDER:- S.NO. NAME ADDRESS (I) DAVINDER PAL SINGH 867, SECTOR 64, MOHALI (II) HARINDER SINGH 867, SECTOR 64, MOHALI 3. THE APPLICATION U/S 12A AND 80G HAS BEEN MADE FO R THE FIRST TIME. 3 4. COPIES OF THE LAST THREE YEARS INCOME TAX RETURN S ARE ENCLOSED HEREWITH. 5. COPIES OF BALANCE SHEETS FOR THE LAST THREE YEAR S ARE ENCLOSED HEREWITH. 6. NOTE ON THE ACTIVITIES OF THE TRUST ARE ENCLOSED HEREWITH. HOPE YOU WILL FIND OUR SUBMISSIONS IN ORDER. THANKING YOU, TRULY YOURS, SD/- (CA PREM GARG) (COUNSEL FOR THE ASSESSEE) THEREFORE, THE LD. CIT HAS ERRED IN STATING THAT TH E ASSESSEE TRUST HAD FAILED TO SUPPLY THE INFORMATION CALLED FOR. FURTHER WE FIND THAT BESIDES THE ABOVE, NO FURTHER OPPORTUNITY OF HEARING WAS GIVEN TO THE ASS ESSEE AND THE ORDER WAS PASSED U/S 12AA DENYING REGISTRATION U/S 12A. 9. IN VIEW OF THE ABOVE, WE CONSIDER IT FIT TO REST ORE THE MATTER BACK TO THE FILE OF THE LD. CIT(EXEMPTION) TO CONSIDER THE APPL ICATION AFRESH AND GIVE DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 10. THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04/03/2016. SD/- SD/- (H.L. KARWA) (ANNAPURNA MEHROTRA) VICE PRESIDENT ACCOUNTANT MEMBER DATED :04/03/2016 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR