SHREE BABA RADHEY LAL KRIPA SAMITI, Jaipur V. CIT, Jaipur

ITA 797/JPR/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3017 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 12-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Assessee Lawyers: S L PODDAR
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

1 ITA 797-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH : JAIPUR. BEFORE SHRI B.R. JAIN AND SHRI VIJAY PAL RAO ITA NO. 797/JP/2011 SHREE BABA RADHEY LAL KRIPA SAMITI, VS. COMMISSIONE R OF INCOME-TAX, LADHA BHAWAN, BEHIND LMB HOTEL, JAIPUR-1, JAIPUR. JOHARI BAZAR, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.L. PODDAR RESPONDENT BY : SHRI SUBHASH CHANDRA DATE OF HEARING : 21.05.2013. DATE OF PRONOUNCEMENT : 21.05.2013. ORDER PER B.R. JAIN, A.M. THIS APPEAL BY ASSESSEE AGAINST THE ORDER DATED 30 .08.2011 OF LD. CIT, JAIPUR-1, JAIPUR IN VARIOUS GROUNDS CHALLENGES DENIAL OF REGI STRATION UNDER SECTION 12AA OF THE IT ACT. 2. THE LD. CIT (A), JAIPUR-1, JAIPUR IN ORDER TO TE ST GENUINENESS AND CORRECTNESS OF THE TRUST CALLED FOR CERTAIN INFORMATION WITH RESPE CT TO THE RECEIPTS FROM DONORS. DESPITE OPPORTUNITIES, THE SAME WERE NOT PRODUCED AND ACCOR DINGLY HE DREW ADVERSE INFERENCE THAT THE TRUST IS NOT WORKING AS PER OBJECTS OF THE TRUST AND DENIED REGISTRATION ACCORDINGLY. 2 3. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECO RD AND CASE LAWS BROUGHT TO OUR NOTICE. THE PROCEDURE FOR REGISTRATION AS CONTAINE D UNDER SECTION 12AA OF THE ACT WITH REGARD TO THE GENUINENESS OF THE ACTIVITIES OF THE TRUST DOES NOT MEAN CARRYING OUT OF ACTUAL ACTIVITIES OF THE TRUST. THE SCOPE OF ENQUIR Y WITH RESPECT TO ACTIVITIES IS LIMITED AS TO WHETHER THE OBJECTS ARE GENUINELY CHARITABLE OR NOT . THIS VIEW FIND SUPPORT FROM THE JUDGMENT RENDERED BY HON'BLE DELHI HIGH COURT IN TH E CASE OF DIT VS. FOUNDATION OF OPHTHALMIC AND OPTOMETRY RESEARCH EDUCATION CENTRE (2012) 79 DTR 178 (DEL.). IN THE PRESENT CASE IN APPEAL, THE LD. CIT, JAIPUR-I, JAIP UR DID NOT EMBARK ANY ENQUIRY AS TO WHETHER THE OBJECTS ARE GENUINELY CHARITABLE OR NOT AND PROCEEDED TO DENY REGISTRATION BY DRAWING ADVERSE INFERENCE ON THE BASIS OF ACTUAL AC TIVITIES CARRIED OUT WHICH COULD HAVE BEEN A SUBJECT MATTER AT THE TIME OF ASSESSMENT BUT NOT FOR THE PURPOSE OF GRANT OF REGISTRATION TO THE APPELLANT. WE, THEREFORE, SET A SIDE THE ORDER OF LD. CIT, JAIPUR-1, JAIPUR IN THIS REGARD AND REMIT THE MATTER BACK TO HIM FOR EMBARKING ENQUIRY INTO THE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES STATED THEREIN IN THE LIGHT OF THE AFORESAID JUDGMENT BY HON'BLE DELHI HIGH COURT AND DECIDE ISS UE OF REGISTRATION UNDER SECTION 12AA OF THE ACT AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE AND EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, APPEAL BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES ONLY AS ANNOUNCED IN THE OPEN COURT IN PRESENCE OF PARTIES IMMEDIATELY AFTER CONCLUSION OF HEARING ON 21.5.2013. SD/- SD/- ( VIJAY PAL RAO ) ( B. R. JAIN ) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR, DATED : 21/05/2013. 3 D/- COPY FORWARDED TO :- SHREE BABA RADHEY LAL KRIPA SAMITI, JAIPUR. THE CIT JAIPUR-1, JAIPUR. THE CIT THE D/R GUARD FILE (ITA NO. 797/JP/2011) BY ORDER, AR ITAT JAIPUR.