SPARSH SANSTHAN PUSHKAR, V. CIT(EXEMPTIONS), Jaipur

ITA 987/JPR/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6135 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 09-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROLLY AGARWAL CIT DHK
• Assessee Lawyers: S C JAIN
• Keywords: Charitable institution; Competent authority
• Section: 80G; 12AA

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. 986 & 987/JP/2016 SPARSH INSTITUTION, PUSHKAR FORT PUSHKAR, AJMER. CUKE VS. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAMAS 6526 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.C. JAIN (CA) JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROLLY AGARWAL (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.05.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/05/2018. VKNS'K@ ORDER PER BENCH : THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST TWO SEPARATE ORDERS OF LD. CIT (EXEMPTIONS), JAIPUR BOTH DATED 7 TH SEPTEMBER, 2016 PASSED UNDER SECTION 12AA(1)(B) AND UNDER SECTION 80G(5)(VI) OF THE IT ACT, REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA AS WELL AS THE APPROVAL OF EXEMPTION UNDER SECTION 80G OF THE IT A CT RESPECTIVELY. FIRST, WE TAKE UP THE APPEAL AGAINST THE ORDER PASSED UNDER SECTIO N 12AA(1)(B) OF THE ACT WHEREIN THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMP TIONS), JAIPUR HAS ERRED IN LAW AND THE FACTS IN REJECTION THE REG ISTRATION UNDER 2 ITA NOS. 986 & 987/JP/2016 M/S. SPARSH INSTITUTION, AJMER. SECTION 12AA AND THE REGISTRATION TO BE GRANTED AS THE TRUST HAS BEEN FORMED AS PER CERTIFICATE OF REGISTRATION ISSU ED BY THE REGISTRAR OF SOCIETIES, AJMER DATED 17.03.2015 FOR WHOLLY CHARITABLE PURPOSES IN F.Y. 2014-15 SPECIFIED U/S 2 (15) OF THE ACT. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTI ONS), JAIPUR WAS PROVIDED WITH ALL THE DETAILS AND PAPERS, BUT F OR THE REASON OF NON VERIFICATION FROM THE ORIGINALS, REGISTRATIO N WAS REJECTED BY ALLOWING ONLY ONE OPPORTUNITY. 3. THE APPELLANT CRAVES TO ADD, ALTER OR AMEND ALL OR ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE HEARING. 2. THE LD. A/R OF THE ASSESSEE HAS SUBMITTED THAT T HE LD. CIT (EXEMPTIONS) HAS REJECTED THE APPLICATION ON THE GROUND THAT THE ASS ESSEE HAS NOT PRODUCED THE DETAILS/DOCUMENTS IN SUPPORT OF ITS CLAIM FOR REGIS TRATION UNDER SECTION 12AA OF THE IT ACT. HE HAS POINTED OUT THAT THE CIT (EXEMPTION S) HAS ASKED THE ASSESSEE VIDE LETTER DATED 11.8.2016 TO PRODUCE THE ORIGINAL DOCU MENTS FOR VERIFICATION AND BOOKS OF ACCOUNTS ALONG WITH VOUCHERS. HOWEVER, THE SAID NOTICE WAS NOT RECEIVED BY THE ASSESSEE IN TIME AND, THEREFORE, THE ASSESSEE COULD NOT PRODUCE THE REQUISITE DOCUMENTS BEFORE THE IMPUGNED ORDER WAS PASSED BY T HE LD. CIT (EXEMPTIONS). THE LD. A/R HAS FURTHER POINTED OUT THAT ALL THE REQUIS ITE DOCUMENTS IN ORIGINAL ARE READY WITH THE ASSESSEE AND THE ASSESSEE UNDERTAKES TO FI LE THE SAME IF ONE MORE OPPORTUNITY IS GRANTED. THUS THE LD. A/R HAS PRAYED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO COMPLY WITH THE DIRECTIONS OF THE LD. CIT (E) FOR PRODUCTION OF THE RELEVANT DOCUMENTS/DETAILS AND BOOKS OF ACCO UNTS. 2.1 ON THE OTHER HAND, THE LD. D/R HAS OBJECTED TO THE PRAYER OF THE ASSESSEE AND SUBMITTED THAT THE LD. CIT (E) HAS ALREADY AFFORDED TWO OPPORTUNITIES TO THE ASSESSEE 3 ITA NOS. 986 & 987/JP/2016 M/S. SPARSH INSTITUTION, AJMER. FOR PRODUCTION OF REQUISITE DETAILS/DOCUMENTS AND B OOKS OF ACCOUNTS ALONG WITH VOUCHERS. HOWEVER, THE ASSESSEE HAS FAILED TO PRODU CE THE REQUISITE MATERIAL. SHE HAS RELIED UPON THE IMPUGNED ORDER OF THE LD. CIT ( E). 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE FILED AN APPLICAT ION IN FORM NO. 10A SEEKING REGISTRATION UNDER SECTION 12AA OF THE IT ACT ON 16 .03.2016. THE LD. CIT (E) ISSUED A NOTICE DATED 28 TH JULY, 2016 REQUIRING THE ASSESSEE TO SUBMIT CERTAI N DOCUMENTS/EXPLANATIONS BY 8 TH AUGUST, 2016. IN RESPONSE TO THE SAID NOTICE, THE LD. A/R OF THE ASSESSEE FILED THE WRITTEN REPLY. THE LD . CIT (E) THEN ISSUED ANOTHER NOTICE DATED 11 TH SEPTEMBER, 2016 AND ASKED THE ASSESSEE TO PRODUCE ORIGINAL DOCUMENTS FOR VERIFICATION AND BOOKS OF ACCOUNTS AL ONG WITH VOUCHERS. THUS IT IS CLEAR THAT THE SECOND NOTICE ISSUED BY THE LD. CIT (E) TO VERIFY THE RECORDS FILED BY THE ASSESSEE FROM THE ORIGINAL DOCUMENTS AND BOOKS OF ACCOUNTS ALONG WITH VOUCHERS. SINCE THE ASSESSEE COULD NOT PRODUCE THE REQUISITE DOCUMENT/DETAILS, THEREFORE, THE APPLICATION OF THE ASSESSEE WAS REJE CTED BY THE LD. CIT (E) ON THE GROUND THAT DESPITE THE OPPORTUNITIES PROVIDED TO T HE ASSESSEE/APPLICANT TO PRODUCE THE DETAILS/DOCUMENTS IN SUPPORT OF ITS CLAIM, THE ASSESSEE HAS FAILED TO DO SO. THERE IS NO QUARREL THAT AT THE TIME OF GRANTING THE REGI STRATION, THE COMPETENT AUTHORITY HAS TO EXAMINE THE OBJECTS OF THE TRUST/INSTITUTION WHETHER THEY ARE CHARITABLE IN NATURE OR NOT, AND SECONDLY, THE GENUINENESS OF THE ACTIVITIES OF THE TRUST/INSTITUTION IN THE CONTEXT WHETHER THE ACTIVITIES CARRIED OUT B Y THE ASSESSEE ARE FOR ACHIEVING THE OBJECTS WHICH ARE CHARITABLE IN NATURE. AS FAR AS THE FIRST REQUIREMENT OF CHARITABLE NATURE OF THE OBJECTS OF THE ASSESSEE SO CIETY IS CONCERNED, THE LD. CIT (E) 4 ITA NOS. 986 & 987/JP/2016 M/S. SPARSH INSTITUTION, AJMER. HAS NOT RAISED ANY OBJECTION. HOWEVER, IN ORDER TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE, THE LD. CIT (E) WANTED TO EXAMINE THE ORIGINAL DOCUMENTS, BOOKS OF ACCOUNTS AND VOUCHERS. IT IS NOT THE CASE OF THE CIT (E) THAT THE ASSESSEE HAS NOT PRODUCED THE DOCUMENTS/RECORDS ALONG WITH T HE APPLICATION, BUT THE ORIGINAL RECORD WAS ASKED TO VERIFY THE SAME. THEREFORE, WE FIND THAT WHEN ONLY ONE OPPORTUNITY WAS GIVEN TO THE ASSESSEE TO PRODUCE TH E ORIGINAL RECORD AND WHICH COULD NOT BE AVAILED BY THE ASSESSEE DUE TO THE REA SON OF NOT RECEIVING THE NOTICE WELL IN TIME, HENCE WE ARE OF THE CONSIDERED VIEW T HAT THE ASSESSEE BE GIVEN ONE MORE OPPORTUNITY TO COMPLY WITH THE DIRECTIONS OF T HE LD. CIT (E) TO PRODUCE THE ORIGINAL RECORD, BOOKS OF ACCOUNT AND VOUCHERS. AC CORDINGLY, WE SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE RECORD O F THE LD. CIT (E) FOR CONSIDERATION AND ADJUDICATION OF THE SAME AFRESH A FTER GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE FOR PRODUCTION OF THE REQUISITE ORI GINAL DOCUMENTS/BOOKS OF ACCOUNTS AND VOUCHERS. THE LD. A/R OF THE ASSESSEE HAS ALSO UNDERTAKEN TO PRODUCE ALL THE REQUISITE RECORD/DOCUMENTS AND BOOKS OF ACCOUNTS BE FORE THE LD. CIT (E). NEEDLESS TO SAY THE ASSESSEE BE GIVEN AN OPPORTUNITY OF HEAR ING BEFORE PASSING THE ORDER AFRESH. ITA NO. 987/JP/2016 : 4. THIS APPEAL IS AGAINST THE ORDER PASSED UNDER S ECTION 80G(5)(VI)OF THE ACT. SINCE THIS ORDER IS CONSEQUENTIAL TO THE ORDER PASS ED UNDER SECTION 12AA OF THE IT ACT, ACCORDINGLY IN VIEW OF OUR FINDING IN THE APPE AL AGAINST THE ORDER PASSED UNDER 5 ITA NOS. 986 & 987/JP/2016 M/S. SPARSH INSTITUTION, AJMER. SECTION 12AA, THE IMPUGNED ORDER IS SET ASIDE AND T HE MATTER IS REMANDED TO THE RECORD OF THE LD. CIT (EXEMPTIONS) ON SIMILAR TERMS . 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOW ED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 16/05/2 018. 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:- 16/05/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. SPARSH INSTITUTION, PUSHKAR , AJMER. 2. THE RESPONDENT THE CIT (EXEMPTIONS), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 986 & 987/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 6 ITA NOS. 986 & 987/JP/2016 M/S. SPARSH INSTITUTION, AJMER.