Holy Heart Education Society, Sangrur V. CIT, Patiala

ITA 933/CHANDI/2013

• Counselvise Citation: 93321514 RSA 2013
• Duration Of Justice: 2 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-11-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 01-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHIL VERMANCIT
• Assessee Lawyers: DEEPAK AGGARWAL
• Keywords: Period of limitation; Competent authority; Condonation of delay
• Section: 12; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 933/CHD/2013 ASSESSMENT YEAR: 2012-13 HOLY HEART EDUCATION SOCIETY, VS THE CIT, NABHA GATE, PATIALA. SANGRUR. PAN: AAATH4761P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPAK AGGARWA L RESPONDENT BY : SHRI SUSHIL VERMAN,CIT DATE OF HEARING : 03.11.2015 DATE OF PRONOUNCEMENT : 06.11.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX, PATIALA DATED 30.07.2013 REJECTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT. 2. THE APPEAL OF THE ASSESSEE IS TIME BARRED BY ONE DAY. THE ASSESSEE IN THE APPLICATION FOR CONDONATION OF DELAY EXPLAINED THAT SINCE THE C.A. OF THE ASSESSEE WAS B USY IN FINALIZATION OF THE ACCOUNTS, THEREFORE, THERE IS A DELAY IN FILING THE APPEAL BY ONE DAY. FROM THE EXPLANATION OF THE ASSESSEE AND NOMINAL DELAY, WE CONDONE THE DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL BEYOND THE PERIOD OF LIMITATION. 2 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE FILED APPLICATION FOR REGISTRATION UNDER SECTION 12 AA OF THE ACT ON 09.01.2013. THE LD. CIT ON EXAMINATION OF T HE MATERIAL BEFORE HIM NOTED THAT THE OBJECTS OF THE A SSESSEE TRUST IS INCULCATE THE SPIRIT OF FATHERHOOD OF GOD WHICH IS RELIGIOUS IN NATURE AND NOT CHARITABLE. THE OBJECTS ARE TO PROMOTE PUNJABIAT AND THE SECRETARY ENJOYS THE CO MPLETE POWERS INCLUDING OVER THE FUNDS ETC. AND THAT THE F REE EDUCATION TO 5% OF THE STUDENTS WAS NOT SUBSTANTIAT ED. THE LD. COMMISSIONER OF INCOME TAX, IN VIEW OF THES E FACTS FOUND THAT ACTIVITIES OF THE ASSESSEE TRUST ARE NOT GENUINE AND THE OBJECTS ARE NOT CHARITABLE IN NATURE AND ACCORDINGLY, REJECTED THE GRANT OF REGISTRATION. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AFTER REJECTION OF THE PRESENT APPLICATION FOR REGISTRATI ON, ASSESSEE FILED FRESH APPLICATION UNDER SECTION 12AA OF THE ACT BEFORE LD. COMMISSIONER OF INCOME TAX (EXEMPTIO N) CHANDIGARH FOR THE SAME ASSESSEE WHICH HAVE BEEN AL LOWED BY LD. COMMISSIONER OF INCOME TAX (EXEMPTION) AND REGISTRATION UNDER SECTION 12AA HAVE BEEN GRANTED V IDE ORDER DATED 17.03.2015 FROM THE FINANCIAL YEAR 2014 -15. COPY OF THE SAME ORDER IS FILED AT PAGE 95 OF THE P APER BOOK. THE LD. COUNSEL FOR THE ASSESSEE ALSO FILED THE AIMS AND OBJECTS ON WHICH REGISTRATION WAS GRANTED BY LD . CIT WHICH SHOWS THAT ASSESSEE FILED AMENDED MEMORANDUM OF ASSOCIATION AND RULES AND REGULATIONS BEFORE CIT (EXEMPTION) AND ON CONSIDERATION OF THE SAME, THE REGISTRATION WAS GRANTED TO THE ASSESSEE. THE LD. COUNSEL 3 FOR THE ASSESSEE, THEREFORE, SUBMITTED THAT MATTER COULD BE REMANDED TO LD. CIT (EXEMPTION) FOR RE-CONSIDERATIO N. THE LD. DR, HOWEVER, RELIED UPON IMPUGNED ORDER. 5. ON CONSIDERATION OF SUBMISSIONS OF THE PARTIES I N THE LIGHT OF THE FACTS BROUGHT ON RECORD, WE ARE OF THE VIEW THAT THE MATTER REQUIRES RE-CONSIDERATION AT THE LEVEL O F THE CIT/COMPETENT AUTHORITY. THE ASSESSEE FILED APPLIC ATION FOR REGISTRATION ON 09.01.2013 BUT THE LD. CIT, PAT IALA FOUND THAT THE OBJECTS OF THE ASSESSEE ARE NOT CHAR ITABLE IN NATURE AND ACTIVITIES ARE NOT FULLY GENUINE. IT AP PEARS FROM MATERIAL ON RECORD THAT ASSESSEE LATER ON FILE D FRESH APPLICATION BEFORE LD. CIT, CHANDIGARH ON 26.02.201 5 WHICH WAS SUPPORTED BY AMENDED MEMORANDUM OF ASSOCIATION AND RULES, COPIES OF WHICH ARE ALSO FIL ED ON RECORD WHICH SUPPORT THE CONTENTION OF ASSESSEE THA T OBJECTS OF THE ASSESSEE WERE CHARITABLE IN NATURE. THE LD. CIT (EXEMPTION) ACCORDINGLY GRANTED REGISTRATION TO THE ASSESSEE VIDE ORDER DATED 17.03.2015 FROM FINANCIAL YEAR 2014-15. THEREFORE, THE SUBSEQUENT EVENTS NOW BROU GHT ON RECORD SHALL HAVE TO BE CONSIDERED BY LD. CIT FOR T HE PURPOSE OF GRANT OF REGISTRATION TO THE ASSESSEE FR OM FINANCIAL YEAR 2013-14. THESE SUBSEQUENT EVENTS AR E VITAL IN NATURE CONSIDERED LATER ON AND ASSESSEE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT. 6. WE, ACCORDINGLY, SET ASIDE THE IMPUGNED ORDER AN D RESTORE THE MATTER IN ISSUE TO THE FILE OF LD. CIT/ COMPETENT AUTHORITY NOW WITH DIRECTION TO RE-DECIDE THIS ISSU E IN THE 4 LIGHT OF THE SUBSEQUENT AMENDMENTS MADE BY THE ASSE SSEE IN MEMORANDUM OF ASSOCIATION AND RULES ETC. AND IN THE LIGHT OF REGISTRATION GRANTED BY LD. CIT (EXEMPTION ) CHANDIGARH VIDE ORDER DATED 17.03.2015. THE LD. CI T SHALL GIVE REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEA RD TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 6 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD