Tulsi Gramodyog Seva Samiti, Lucknow V. Principal Commissioner of Income Tax (Exemption), Lucknow

ITA 90/LKW/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0194 (ITAT-LUCKNOW)
• Duration Of Justice: 2 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 01-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: EDUCATION
• Keywords: Charitable institution; Principle of natural justice; Cancellation of registration
• Section: 80G; 12AA; 131

Judgement Text

I.T.A. NO.90 & 91/LKW/2016 ASSESSMENT YEAR:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO.90 & 91/LKW/2016 ASSESSMENT YEAR:N.A. TULSI GRAMODYOG SEVA SAMITI, 1/542, VIKAS NAGAR, LUCKNOW. PAN:AABAT 9345 H VS. PR. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THESE TWO APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDERS OF PR. CIT (EXEMPTIONS), LUCKNOW DA TED 10/12/2015 AND 04/01/2016 RESPECTIVELY. LEARNED CIT (EXEMPTIONS) VIDE THESE ORDERS HAS CANCELLED THE REGISTRATION TO THE ASSESSEE U/S 12AA (3) OF THE ACT AND HAS ALSO CANCELLED THE APPROVAL U/S 80G(5)(VI) OF THE A CT. 2. AT THE OUTSET, LEARNED A. R. INVITED OUR ATTENTI ON TO THE ORDER OF LEARNED CIT (EXEMPTIONS) PASSED U/S 12AA(3) AND SUB MITTED THAT THERE WAS AN ALLEGATION AGAINST THE ASSESSEE TO HAVE RECEIVED AN AMOUNT OF RS.68,00,000/- FROM M/S MATRIVANI INSTITUTE OF EXPE RIMENTAL RESEARCH & EDUCATION BY PAYMENT OF AN AMOUNT OF RS.30,00,000/- IN CASH TO THE PAYEE APPELLANT BY SHRI K. R. RASTOGI, C. A. RESPONDENT BY SHRI A. K. BAR, CIT, (DR) DATE OF HEARING 04/12/2018 DATE OF PRONOUNCEMENT 07 / 12 /201 8 I.T.A. NO.90 & 91/LKW/2016 ASSESSMENT YEAR:N.A. 2 M/S GOVIND RAM GOEL CHARITABLE TRUST. IT WAS SUBMI TTED THAT THE ASSESSEE DURING THE PROCEEDINGS BEFORE LEARNED CIT (EXEMPTIO NS) SUBMITTED THAT THE ABOVE FACTS ARE NOT CORRECT AND ASSESSEE HAD NOT PA ID ANY AMOUNT IN CASH TO ANYBODY WHICH FACT WAS VERIFIABLE FROM THE BANK STATEMENT. THEREFORE, IT WAS SUBMITTED THAT THE ASSESSEE HAD NOT VIOLATED AN Y LAW. IT WAS SUBMITTED THAT THE ASSESSEE WAS SHOWN THE STATEMENT OF SHRI P ARAS MAL DAGA U/S 131 OF THE ACT BUT THAT PERSON WAS NOT CROSS EXAMINED B Y THE ASSESSEE AS THE LEARNED CIT (EXEMPTIONS) DID NOT PROVIDE ANY OPPORT UNITY TO CROSS EXAMINE SUCH PERSON AND THEREFORE, THE ORDER PASSED BY LEAR NED CIT (EXEMPTIONS) IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 3. LEARNED D. R., ON THE OTHER HAND, PLACED RELIANC E ON THE ORDER OF LEARNED CIT (EXEMPTIONS). 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE T HROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT LEARNED CIT (EXEMPT IONS) ISSUED NOTICE TO THE ASSESSEE FOR CANCELLATION OF REGISTRATION U/S 1 2AA(3) OF THE ACT AND CANCELLATION OF APPROVAL U/S 80G(5)(VI) OF THE ACT FOR THE REASON THAT CIT (EXEMPTIONS) HAD INFORMATION THAT ASSESSEE HAD RECE IVED CERTAIN DONATIONS AGAINST WHICH IT HAD PAID CASH TO THE DONOR. THE A SSESSEE WAS ALSO SHOWN THE STATEMENT OF SHRI PARAS MAL DAGA WHEREIN HE HAS STATED THAT HE WAS INSTRUMENTAL IN GETTING THE DONATION FOR THE ASSESS EE FOR A COMMISSION. THE ASSESSEE HOWEVER DENIED TO HAVE RECEIVED ANY AMOUNT FROM M/S GOVIND RAM GOEL CHARITABLE TRUST. HOWEVER, LEARNED CIT (E XEMPTIONS) DID NOT ACCEPT THE CONTENTIONS OF THE ASSESSEE AND CANCELLE D THE RESPECTIVE REGISTRATION AND APPROVAL U/S 12AA(3) AND 80G(5)(VI ) OF THE ACT. WE FIND THAT THE ASSESSEE HAS NOT BEEN GRANTED OPPORTUNITY TO CROSS EXAMINE THE STATEMENT OF SHRI PARAS MAL DAGA WHICH HAS BEEN USE D AGAINST THE ASSESSEE. THEREFORE, THERE IS VIOLATON OF NATURAL RULES AND JUSTICE AND, I.T.A. NO.90 & 91/LKW/2016 ASSESSMENT YEAR:N.A. 3 THEREFORE, WE DEEM IT APPROPRIATE TO REMIT THE ISSU E BACK TO THE OFFICE OF LEARNED CIT (EXEMPTIONS) WITH THE DIRECTION TO AFFO RD REASONABLE AND SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO CROSS EXA MINE SHRI PARAS MAL DAGA AND DECIDE THE ISSUE AFRESH. 4.1 WE FURTHER FIND THAT THE APPROVAL GRANTED TO TH E ASSESSEE U/S 80G(5)(VI) HAS ALSO BEEN CANCELLED IN VIEW OF CANCE LLATION OF REGISTRATION U/S 12AA OF THE ACT. SINCE WE HAVE REMANDED THE ISSUE OF CANCELLATION OF REGISTRATION TO THE FILE OF LEARNED CIT (EXEMPTIONS ), IT WILL BE APPROPRIATE TO REMIT THE ISSUE OF CANCELLATION OF APPROVAL U/S 80G (5)(VI) ALSO TO LEARNED CIT (EXEMPTIONS) FOR RECONSIDERATION IN VIEW OF HIS FRE SH ADJUDICATION OF CANCELLATION U/S 12AA OF THE ACT. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/12/2018) SD/. SD/. ( A. D. JAIN ) ( T. S. KAPOOR ) VICE PRESIDENT ACCOUNTANT MEMBER DATED:07/12/2018 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSISTANT REGISTRAR