RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI, CHURU V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), JAIPUR

ITA 813/JPR/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6158 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 06-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Assessee Lawyers: NIKHILESH KATARIA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA; 2

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 813/JP/2017 RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI, SUJANGARH, CHURU. CUKE VS. THE CIT (EXEMPTIONS), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABAR 7710 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI NIKHILESH KATARIA (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 12.04.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/04.2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 24.08.2017 OF LD. CIT (EXEMPTIONS), JAIPUR PASSED UNDER SECTION 12AA(1)(B) OF THE I.T. ACT. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1.1 THE ORDER PASSED U/S 12AA(1)(B) IS BAD IN LAW AS WE LL AS ON FACTS AND HENCE, THE SAME MAY PLEASE BE QUASHED. 1.2 THE LD. CIT (EXEMPTIONS) ERRED IN LAW AS WELL AS FA CTS OF THE PRESENT CASE IN NOT PROVIDING A REASONABLE OPPORTUNITY OF BEING HEARD AND THE APPLICATION MAY PLEASE BE RESTORED FOR RECONSIDERATION OF APPLICATI ON. 1.3 THE LD. CIT (EXEMPTIONS) ERRED IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE IN REJECTING APPLICATION SEEKING REGISTRATION U/S 12AA. 2 ITA NO. 813/JP/2017 RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI 2. THE ASSESSEE IS A SOCIETY REGISTERED UNDER THE S OCIETIES REGISTRATION ACT, 1958 AND RUNNING EDUCATIONAL INSTITUTIONS. THE ASSE SSEE FILED AN APPLICATION IN FORM NO. 10A ON 27.03.2017 FOR SEEKING REGISTRATION U/S 12A(A) OF THE IT ACT. THE LD. CIT (EXEMPTIONS) HAS REJECTED THE APPLICATION WHILE PAS SING THE IMPUGNED ORDER ON THE GROUND THAT SUFFICIENT OPPORTUNITY WAS PROVIDED TO THE ASSESSEE SOCIETY/TRUST TO PRODUCE THE DETAILS AND DOCUMENTS BUT IT HAD FAILED TO DO SO. 3. BEFORE US, THE LD. A/R OF THE ASSESSEE HAS SUBMI TTED THAT THE LD. CIT (EXEMPTIONS) ISSUED A LETTER DATED 30 TH MARCH, 2017 FOR SUBMISSION OF CERTAIN DOCUMENTS/EXPLANATION WHICH HAS BEEN DULY REPLIED B Y THE ASSESSEE BY FILING THE DETAILS AND SUBMISSIONS. HOWEVER, ANOTHER LETTER D ATED 18.7.2017 AS ALLEGED IN THE IMPUGNED ORDER WAS NEVER RECEIVED BY THE ASSESSEE A ND, THEREFORE, THE ASSESSEE WAS NOT GIVEN A PROPER OPPORTUNITY OF HEARING BEFOR E REJECTING THE APPLICATION OF THE ASSESSEE. HE HAS PRODUCED DAK REGISTER OF THE SOCI ETY AND SUBMITTED THAT THE ASSESSEE IS MAINTAINING ALL THE RECORDS OF THE CORR ESPONDENCE RECEIVED AND SENT AND NO SUCH LETTER DATED 18.07.2017 WAS RECEIVED BY THE ASSESSEE. HENCE, THE LD. A/R HAS SUBMITTED THAT THERE IS A VIOLATION OF PRINCIPL ES OF NATURAL JUSTICE AS THE ASSESSEE WAS NOT GIVEN AN APPROPRIATE OPPORTUNITY OF HEARING BY THE LD. CIT (EXEMPTIONS). 3.1. ON THE OTHER HAND, THE LD. D/R HAS SUPPORTED T HE IMPUGNED ORDER OF THE LD. CIT (EXEMPTIONS) AND SUBMITTED THAT THE ASSESSEE HA S FAILED TO COMPLY WITH THE REQUISITE DETAILS AND DOCUMENTS IN SUPPORT OF ITS C LAIM FOR REGISTRATION UNDER SECTION 12AA DESPITE THE OPPORTUNITY GIVEN BY THE LD. CIT ( EXEMPTIONS). 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD, WE NOTE THAT SUBSEQUENT TO THE FILING OF AP PLICATION DATED 27 TH MARCH, 2017, 3 ITA NO. 813/JP/2017 RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI THE LD. CIT (EXEMPTIONS) HAS ISSUED A NOTICE DATED 30 TH MARCH, 2017 ASKING THE ASSESSEE TO SUBMIT CERTAIN DOCUMENTS/EXPLANATIONS A S WELL AS TO PRODUCE ORIGINAL TRUST DEED/ MEMORANDUM OF ASSOCIATION FOR VERIFICAT ION ON 1 ST MAY, 2017. IN COMPLIANCE TO THE SAID NOTICE, THE REPRESENTATIVE O F THE ASSESSEE APPEARED BEFORE LD. CIT (EXEMPTIONS) AND FILED WRITTEN SUBMISSIONS. HO WEVER, THE LD. CIT (EXEMPTIONS) NOTICED THAT COMPLETE DETAILS WERE NOT FILED BY THE ASSESSEE AND ACCORDINGLY A SECOND NOTICE DATED 18 TH JULY, 2017 WAS STATED TO HAVE BEEN ISSUED TO THE A SSESSEE ASKING TO FILE THE COPY OF ACCOUNTS FOR LAST THREE YEARS AND ACTIVITY DETAILS WITH EVIDENCE ETC. WE FURTHER NOTE THAT IN PARA 4 OF THE IMPUGNED ORDER THE LD. CIT (EXEMPTIONS) HAS STATED THAT THE ASSESSEE WAS AGAIN ASKED VIDE LETTER DATED 18.7.2017 TO PRODUCE THE REQUISITE RECORD. SINCE NO RESPONSE OR REPLY WAS FILED BY THE ASSESSEE, THEREFORE, THE APPLICATION OF THE ASS ESSEE WAS REJECTED BY THE LD. CIT (EXEMPTIONS) BY OBSERVING IN PARA 6 AS UNDER :- 6. SUFFICIENT OPPORTUNITY WAS PROVIDED TO THE TRU ST/SOCIETY TO PRODUCE DETAILS AND DOCUMENTS IN SUPPORT OF HIS CLA IM FOR REGISTRATION U/S 12AA OF THE I.T. ACT, 1961 BUT TRU ST/SOCIETY HAD FAILED TO DO SO. IN THE LIGHT OF THE ABOVE FACTS, I T APPEARS THAT THE APPLICANT TRUST/SOCIETY IS NOT INTERESTED IN GE TTING ITSELF REGISTERED U/S 12AA OF THE I.T. ACT. THE APPLICATIO N SEEKING REGISTRATION U/S 12AA IS HEREBY REJECTED AND FILED. WE FIND THAT THE ASSESSEE HAS PRODUCED THE DISPATCH AND RECEIPT REGISTERS WHEREIN THE DETAILS OF THE LETTERS DISPATCHED AND RECEIVED WERE RECORDED ON DAY TO DAY BASIS. HOWEVER, NO ENTRY IS FOUND IN THE RECEIPT REGISTER OF LETTER DATED 18.07.2017 AS STATED IN THE IMPUGNED ORDER. SINCE THE LD. CIT (E XEMPTIONS) HAS REJECTED THE APPLICATION FOR WANT OF NECESSARY DOCUMENTS/DETAILS , THEREFORE, IN THE FACTS AND CIRCUMSTANCES AND IN THE INTEREST OF JUSTICE WE SET ASIDE THE MATTER TO THE RECORD OF 4 ITA NO. 813/JP/2017 RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI THE LD. CIT (EXEMPTION) FOR GIVING ONE MORE OPPORTU NITY TO THE ASSESSEE TO PRODUCE THE REQUISITE RECORD AND DOCUMENTS. THE LD. CIT (E XEMPTIONS) THEN DECIDE THE MATTER AFRESH AFTER CONSIDERING RELEVANT RECORD TO BE FILED BY THE ASSESSEE AND GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER IS PRONOUNCED IN THE OPEN COURT ON 16/04/2 018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 16/04/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- RAJKIYA SNATKOTAR MAHAVIDHYALAY V IKAS SAMITI, SUJANGARH. 2. THE RESPONDENT THE CIT (EXEMPTIONS), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 813/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 813/JP/2017 RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI