UTTARAKHAND CIVIL AVIATION DEVELOPMENT AUTHORITY,DEHRADUN V. CIT(E) , LUCKNOW

ITA 2/DDN/2024

AI Insights

The case involves the Uttarakhand Civil Aviation Development Authority (the appellant) appealing against the decision of the Commissioner of Income Tax (Exemption), Lucknow, which rejected their application for registration under section 12AB of the Income-tax Act, 1961. The appellant argued that their primary objectives, which include developing tourism-related infrastructure and executing rescue operations, are charitable in nature. The Tribunal noted that the CIT(E) had previously failed to issue the registration despite a directive from the Tribunal in a prior case. The Tribunal found that the CIT(E)'s rejection was primarily based on the appellant's failure to respond to queries, which led to doubts about the genuineness of their charitable activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471977 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Other Referred Cases: ITA no. 383/Luck/2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12A

Judgement Text

"1 ITA no. 02/DDN/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 2/DDN/2024 Uttarakhand Civil Aviation Development Authority Sahastradhara Aerodrum Mussoorie By Pass Road, Dehradun-248001. PAN- AAAAU 5634 K Vs CIT (Exemption), Lucknow. APPELLANT RESPONDENT Assessee represented by Sh. Himanshu Sharma, CA Department represented by Sh. Amarpal Singh, Sr. DR Date of hearing 14.02.2025 Date of pronouncement 19.02.2025 O R D E R PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 30.03.2023 passed by the Commissioner of Income Tax, Exemption, Lucknow u/s 12AB(1)(1)(ii)(B) of the Income-tax Act, 1961 (hereinafter referred as the “Act”). 2. Heard and perused the record. The appellant society is formed by the order of Government of Uttarakhand, Directorate of Civil Aviation. Learned AR has pointed out that the primary objective of the establishment of the assessee is of developing tourism related infrastructure facilities, promotion of tourism and 2 ITA no. 02/DDN/2024 construction of Helipads etc. and also to execute rescue operations in case of medical emergencies or natural disasters in the state of Uttarakhand. Learned AR has pointed out that earlier an application for registration u/s 12A of the act was rejected by the learned CIT(E) on 16.3.2016 which was challenged before the Tribunal and the Lucknow Bench vide order dated 15.3.2018 in ITA no. 383/Luck/2016 had allowed the appeal and directed the CIT(E) concerned to grant registration u/s 12A of the Act. A copy of the said order has been perused by us. Learned AR has pointed out that in fact learned CIT(E) had failed to issue the registration. 3. It comes up that appellant had furnished an application for registration u/s 12AB of the Act on 10.3.2022 in Form No. 10 AD read with Rule 17A of the Income-tax Rules, which had been rejected by the impugned order on the basis that the learned CIT(E) was of the view that assessee has failed to establish the nature of charitable activities. 4. After taking into consideration the impugned order it comes up that primarily for the failure of the assessee to respond to the queries raised, the learned CIT(E) Lucknow had doubted the genuineness of the charitable activities. The order in assessee’s case dated 15.3.2018 in ITA no. 383/Luck/2016 when taken into consideration categorically establishes that the preliminary objectives are charitable in nature and predominantly serving public utility. In the light of 3 ITA no. 02/DDN/2024 aforesaid we set aside the impugned order of learned CIT(E), Lucknow with direction to give fresh opportunity of hearing to the assessee and also to take into consideration the observations and conclusions drawn in case of the assessee by the coordinate Bench in order dated 15.3.2018 in ITA no. 383/Luck/2016, to pass an order afresh. 5. The appeal is allowed for statistical purposes. Order pronounced in open court on 19.02.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "