Appeal details
Counselvise Citation
[2019] 117 COUNSELVISE.COM (IT) 0637 (ITAT-AGRA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 year(s) 4 month(s) 6 day(s)
Appellant
Respondent
Appeal Type
Cross Objection
Pronouncement Date
16-05-2019
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
10-07-2013
Assessment Year
misc
Appeal Filed On
09-01-2013
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 15 & 16/AGRA/2013 AKSHARA SHIKSHA EVAM SAMAJ, VS. COMMISSIONER OF KALYAN SAMITI, 403, MILLENNIUM INCOME-TAX, GWALIO R. PLAZA CITY CENTRE, GWALIOR. (PAN : AACAA 1576 G) (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 10.07.2013 DATE OF PRONOUNCEMENT OF ORDER : 12.07.2013 ORDER PER BHAVNESH SAINI, J.M.: BOTH THE APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST DIFFERENT ORDERS OF LD. CIT, GWALIOR DATED 03.12.2013, CHALLENGING THE ORDE RS REJECTING THE APPLICATION FOR REGISTRATION U/S. 12AA AND RECOGNITION U/S. 80G(5) OF THE IT ACT. 2. IT IS NOTED IN THE IMPUGNED ORDERS THAT THE ASSE SSEE SOCIETY FILED APPLICATIONS IN PRESCRIBED FORM SEEKING REGISTRATION U/S. 12AA & RECOGNITION U/S. 80G OF THE IT ACT. IN ORDER TO VERIFY THE GENUINENESS OF THE ACTI VITIES OF THE SOCIETY, REPORT FROM THE AO WAS CALLED FOR, WHICH WAS SUBMITTED THROUGH JCIT, RANGE-3, GWALIOR WHO ITA NO. 15 & 16/AGRA/2013 2 HAVE NOT RECOMMENDED GRANT OF REGISTRATION/APPROVAL TO THE SOCIETY BECAUSE THE ASSESSEE DID NOT PRODUCE BILLS, VOUCHERS AND BOOKS OF ACCOUNT FOR VERIFICATION. THEREFORE, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE ASCERTAINED BY THE AO. WHEN THE CASE WAS TAKEN UP BY THE LD. CIT, THE MATT ER WAS DISCUSSED WITH THE AUTHORIZED REPRESENTATIVE AND THE LD. CIT FOUND THA T THE ASSESSEE SOCIETY HAD NOT CARRIED OUT ANY CHARITABLE ACTIVITIES. BOTH THE APP LICATIONS WERE ACCORDINGLY REJECTED. 3. THE ASSESSEE STATED THAT THE WRITTEN SUBMISSIONS FILED MAY BE CONSIDERED. THE LD. DR, HOWEVER, RELIED UPON THE ORDERS OF THE LD. CIT. 4. ON CONSIDERATION OF THE FACTS OF THE CASE, WE AR E OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE LD. CI T. THE LD. CIT HAS NOT DISCUSSED THE DETAILS SUBMITTED IN THE REPORT OF JCIT, RANGE- 3, GWALIOR IN THE IMPUGNED ORDER AND IT IS ALSO NOT CLARIFIED WHETHER SUCH REP ORT WAS CONFRONTED TO THE ASSESSEE BEFORE ARRIVING AT THE DECISION IN THE MATTER. THE SOLE REASON GIVEN FOR REJECTION OF BOTH THE APPLICATIONS IS THAT THE ASSESSEE SOCIETY HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES. THE ASSESSEE IN THE WRITTEN SUBMISSIONS SUBMITTED THAT ACCORDING TO THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN THE CAS E OF FIFTH GENERATION ITA NO. 15 & 16/AGRA/2013 3 EDUCATION SOCIETY, NON COMMENCEMENT OF CHARITABLE A CTIVITIES CANNOT BE A GROUND FOR REJECTION OF APPLICATION FOR REGISTRATION. THE ASSESSEE ALSO RELIED UPON THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF DIT VS. FOUNDATION OF OPHTHALMIC & OPTOMETRY RESEARCH EDUCATION CENTRE, 2 54 CTR (DEL.) 133 IN WHICH IT WAS HELD THAT WHILE EXAMINING THE APPLICAT ION U/S. 12AA, THE CIT / DIT IS NOT REQUIRED TO EXAMINE THE QUESTION WHETHER THE TR UST HAS ACTUALLY COMMENCED AND HAS IN FACT CARRIED OUT CHARITABLE ACTIVITIES. WE M AY ALSO NOTE HERE THAT THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF HARDAYAL CHARIT ABLE AND EDUCATION TRUST VS. CIT-II, AGRA IN INCOME-TAX APPEAL NO. 107 OF 2012 V IDE JUDGMENT DATED 15.03.2013 HELD THAT AT THE STAGE OF REGISTRATION, ONLY GENUINENESS OF THE OBJECTS HAVE TO BE TESTED AND NOT THE ACTIVITIES WHICH HAVE NOT COMMENCED. ENQUIRY OF THE CIT AT SUCH PRELIMINARY STAGE SHOULD BE RESTRICTED TO GENUINENESS OF THE OBJECTS AND NOT THE ACTIVITIES UNLESS SUCH ACTIVITIES HAVE COMMENCED. THE TRUST OR SOCIETY CANNOT CLAIM EXEMPTION UNLESS IT IS REGISTERED U/S. 12AA OF THE IT ACT AND THUS, AT THAT INITIAL STAGE, THE TEST OF GENUINENESS OF ACTI VITIES CANNOT BE A GROUND, ON WHICH REGISTRATION MAY BE REFUSED. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT OF JUDGMENTS OF ALLAHABAD HIGH COURT IN THE CASE OF HA RDAYAL CHARITABLE AND EDUCATION TRUST (SUPRA), WE SET ASIDE THE IMPUGNED ORDERS AND RESTORE THE MATTER IN ISSUE TO THE FILE OF LD. CIT, GWALIOR FOR RECONSIDE RATION IN ACCORDANCE WITH LAW. ITA NO. 15 & 16/AGRA/2013 4 THE LD. CIT SHALL GIVE REASONABLE AND SUFFICIENT OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY
