Baldev Krishan Memorial Charitable Society, Mohali V. CIT-II, Chandigarh

ITA 822/CHANDI/2011

• Counselvise Citation: 82221514 RSA 2011
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-10-2011
• Assessment Year: misc
• Appeal Filed On: 23-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Principle of natural justice
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 822/CHD/2011 BALDEV KRISHAN MEMORIAL V CIT-II, CHARITABLE SOCIETY, CHANDIGARH. 278, PHASE-IV,MOHALI. PAN: AABTB-5926B (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI SUDHIR SEHGAL DEPARTMENT BY: SHRI S.K.MITTAL DATE OF HEARING : 05.10.2011 DATE OF PRONOUNCEMENT : 17.10.2011 ORDER PER MEHAR SINGH, AM THE PRESENT APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER DATED 28.07.2011 PASSED BY THE LD. COMMISSION ER OF INCOME-TAX-II, CHANDIGARH U/S 12AA OF THE INCOME-TA X ACT,1961 (IN SHORT 'THE ACT'). 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS OF APPEAL: 1. THAT THE LD. CIT-II, CHANDIGARH HAS ERRED IN NO T GRANTING REGISTRATION/EXEMPTION U/S 12A/80G OF THE INCOME-TAX ACT,1961 2. THAT REGISTRATION/EXEMPTION U/S 12A/80G OF THE ACT HAS BEEN REJECTED AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT COMPLETE INFORMATION REGARDING VARIOUS QUERIES HAD BEEN FURNISHED TO LD. AO WARD 6(4) MUCH EARLIER ON THE BASIS OF DETAILED 2 QUESTIONNAIRE ISSUED BY HIM AND THUS DUE COMPLIANCE HAD BEEN MADE. 4. THAT NO REASONABLE/SUFFICIENT OPPORTUNITY WAS AFFORDED TO THE APPELLANT TO PRODUCE THE BOOKS OF ACCOUNT AS DESIRED. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUND OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 3. IN THE COURSE OF PRESENT APPELLATE PROCEEDINGS, LD. AR FOR THE ASSESSEE VEHEMENTLY CONTENDED THAT PROPER AND R EASONABLE OPPORTUNITY WAS NOT AFFORDED TO THE ASSESSEE-APPELL ANT, HENCE JUSTICE HAS BEEN DENIED. IT IS A CLEAR CASE OF VIO LATION OF PRINCIPLE OF NATURAL JUSTICE. ON THE CONTRARY, LD. DR CONTENDED THAT PROPER AND REASONABLE OPPORTUNITY WA S AFFORDED TO THE ASSESSEE. HOWEVER, ASSESSEE FAILED TO PRODU CE ITS BOOKS OF ACCOUNT REQUIRED FOR THE PURPOSE OF GRANTING REG ISTRATION U/S 12A READ WITH SECTION 12AA OF THE ACT. 4. WE HAVE CAREFULLY PERUSED THE FACTS OF THE CASE, RIVAL SUBMISSIONS AND RELEVANT RECORD. THE ASSESSEE APPE LLANT WAS DENIED REGISTRATION U/S 12A OF THE ACT ON THE GROUN D THAT NO BOOKS OF ACCOUNT WERE PRODUCED AS REQUIRED BY THE C IT. THE CIT ALSO OBSERVED THAT IN VIEW OF NON-COMPLIANCE WI TH THE NOTICES ISSUED TO THE ASSESSEE, IT APPEARS THAT THE SOCIETY IS NOT IN EXISTENCE OR NOT INTERESTED IN GETTING REGIS TRATION U/S 12A OF THE ACT. LD. AR ARGUED THAT THE NOTICES I SSUED BY THE CIT WERE DULY RECEIVED AT THE INDICATED ADDRESS AND HENCE, THERE IS NO QUESTION OF NON-EXISTENCE OF THE SOCIET Y. 5. HAVING REGARD TO THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, WE ARE OF THE CO NSIDERED 3 OPINION THAT SUBSTANTIVE JUSTICE CANNOT BE DENIED O N THE GROUND OF NON-ATTENDANCE ON THE PART OF THE ASSESSE E. CONSEQUENTLY, THE ISSUE IN QUESTION IS RESTORED TO THE FILE OF THE CIT TO DECIDE THE ISSUE OF REGISTRATION U/S 12A OF THE ACT AFTER AFFORDING PROPER AND REASONABLE OPPORTUNITY TO THE ASSESSEE IN ACCORDANCE WITH RELEVANT PROVISIONS OF THE ACT. TH E ASSESSEE IS ALSO DIRECTED TO RENDER NECESSARY COOPERATION TO TH E CIT IN THE MATTER. 6. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER,2011. SD/- SD/- (SUSHMA CHOWLA) (MEHAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 TH OCT.,2011 POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT ,DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH