M/s Bhai Ghanaiya Ji Care Services & Welfare Society, Patiala v. CIT(E), Chandigarh

ITA 1136/CHANDI/2017 | 2016-2017
Pronouncement Date: 28-11-2017 | Result: Allowed

Appeal Details

RSA Number 113621514 RSA 2017
Assessee PAN AADAB5243J
Bench Chandigarh
Appeal Number ITA 1136/CHANDI/2017
Duration Of Justice 4 month(s) 17 day(s)
Appellant M/s Bhai Ghanaiya Ji Care Services & Welfare Society, Patiala
Respondent CIT(E), Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted A
Tribunal Order Date 28-11-2017
Last Hearing Date 15-11-2017
First Hearing Date 15-11-2017
Assessment Year 2016-2017
Appeal Filed On 11-07-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHA CHANDIGARH BEFORE SMT. DIVA SINGH JUDICIAL MEMBER AND DR. B.R.R. KUMAR ACCOUNTANT MEMBER ITA NOS.1136/CHD/2017 (ASSESSMENT YEAR : 2016-17) M/S BHAI GHANAIYA JI CARE VS. THE CIT SERVICES & WELFARE SOCIETY CHANDIGARH RANBIRPURA BHAKHRA ENCLAVE PATIALA PAN: AADAB5243J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PARIKSHIT AGGARWAL DEPARTMENT BY : SHRI GULSHAN RAJ DATE OF HEARING : 15.11.2017 DATE OF PRONOUNCEMENT : 28/11/2017 O R D E R PER DR. B.R.R. KUMAR A.M. : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(EXEMPTION)CHANDIGARH DT. 30/06 /2017. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE THE WORTHY CIT HAS ERRED IN PASSING THAT ORDER IN CONTR AVENTION OF THE PROVISIONS OF SECTION 12AA OF THE INCOME TAX ACT 1961. 2. THAT ON THE FACTS CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE THE WORTHY CIT HAS ERRED IN REJECTING THE APPLICATION O F THE APPELLANT TRUST FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT ON INCORRECT ALLEG ATION OF INFRACTIONS IN THE FINANCIAL STATEMENTS OF THE APPLICANT AND MORE-SO W HEN NO DEFECT WAS FOUND IN THE MEMORANDUM AIMS AND OBJECTS OF THE SOCIETY AND MORE IMPORTANTLY IN THE GENUINENESS OF ACTIVITIES OF THE SOCIETY. 3. THAT ON THE FACTS CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE THE WORTHY CIT HAS ERRED IN REJECTING THE APPLICATION O F THE APPELLANT TRUST FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT ON INCORRECT ALLEG ATION OF INFRACTIONS IN THE FINANCIAL STATEMENTS OF THE APPLICANT EVEN WHEN THE SAID EXERCISE WAS BEYOND THE POWERS OF THE RESPONDENT. 4. THAT ON THE FACTS CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE AND IN LAW THE IMPUGNED ORDER DESERVES TO BE QUASHED AS NO REASONABLE OPPORTUNITY OF BEING HEARD U/S 12AA WAS GRANTED BY THE RESPONDE NT. 3. BRIEF FACTS OF THE CASE ARE THAT AN APPLICATION IN FORM NO. 10A WAS RECEIVED BY THE CIT(E) ON 02.12.2016 SEEKING REGIST RATION U/S 12 AA OF THE INCOME TAX ACT 1961. THE APPLICATION REVEALS THAT THE SOCIETY IS AN ONGOING ENTITY THAT HAS BEEN IN OPERATION SINCE 09.10.2015. 4. THE STATED AIMS AND OBJECTS OF THE SOCIETY ARE T O BRING ALL THE PEOPLES ON ONE PLATFORM SO AS TO RESOLVE THEIR PROBLEMS OF DA Y TO DAY ROUTINE LIFE AND WELFARE ACTIVITY FOR COMMUNITY; TO FIND OUT THE SOL UTIONS OF THE PROBLEMS FACED BY DIE GENERAL PUBLIC; TO ORGANIZE FREE MEDICAL CAM P EYE CAMP ETC. FOR THE NEEDY PERSONS; TO ARRANGE DE-ADDICTION CAMPS AND TO INFORM THE YOUNG BLOODS REGARDING TIRE NEGATIVE CONSEQUENCES OF NARCOTIC AD DICTIONS; TO TAKE THE RESPONSIBILITIES REGARDING TO RESOLVE ANY TYPE OF P ROBLEM AS ARISE WITH THE PEOPLES; TO HELP IN PROVIDING BASIC AMENITIES TO IT S RESIDENTS VIZ. STREET LIGHTS ROADS PARKS SCHOOL SHOPPING CENTRE COMMUNITY CEN TRE ETC.; TO ENURE EMPLOYMENT TO THE UNEMPLOYED PERSONS WHO SUBMIT THE IR COMPLETE RESUME WITH THE SOCIETY TO EARN THEIR LIVELIHOOD; TO HELP' FOR SAFETY & SECURITY TO THE GENERAL SOCIETY; IT WILL BE A TOTALLY A NON-POLITIC AL BUT SOCIAL SOCIETY. 5. VARIOUS DETAILS WERE OBTAINED IN ORDER TO GRANT EXEMPTION UNDER SECTION 12AA BY THE LD. CIT(E). THE HEARING WAS ACCORDED ON 05/06/2017 THE ASSESSEE WAS REQUESTED TO FILE DETAILS ON 13/06/2017. AS PER THE RECORDS THE PRESIDENT OF THE SOCIETY ATTENDED AND FILED WRITTEN REPLIES FOR THE QUERIES RAISED. 6. THE ASSESSEE WAS FURTHER REQUESTED TO SUBMIT COP Y OF BANK STATEMENT AND EVIDENCE IN SUPPORT OF ITS CHARITABLE ACTIVITY AND THE SAME WAS REQUIRED TO BE SUBMITTED ON 16.06.2017. THE ASSESSEE ATTENDED THE HEARING ON 15/06/2017 AND FURTHER QUERIES WERE RAISED WHICH WERE TO BE REPLIE D BY 19/06/2017. ON THE SAID DATE THE ASSESSEE COULD NOT ATTEND THE HEARING. 7. LD. CIT(E) REFUSED THE REGISTRATION UNDER SECTIO N 12AA ON THE GROUNDS THAT A) THE ASSESSEE DID NOT ATTEND THE HEARING ON 19/06/20 17 I.E; THREE DAYS AFTER THE HEARING HELD ON 15/06/2017 B) THE COPIES OF THE INCOME & EXPENDITURE ACCOUNT SHOW N DIFFERENT GROSS RECEIPTS I.E; RS. 1 92 551/- AND RS. 1 93 551/- (PR ECISELY TO BE A DIFFERENCE OF RS. 1 000/-) C) IN THE INCOME & EXPENDITURE STATEMENT THERE IS A NE T DEFICIT OF RS. 1522/- AND THE OTHER NET SURPLUS OF RS. 12648/-. 8. BEFORE US THE ASSESSEE SUBMITTED THAT HE COULD NOT ATTEND THE HEARING BECAUSE OF BONAFIDE REASONS AND PREPARATION OF THE ANSWERS FOR THE QUERIES WAS UNDER WAY AND THE REPLY TO THE QUERIES WAS FILE D ON 19/06/2017. 9. BEFORE US THE LD. AR SUBMITTED THAT IN ALL PROB ABILITY REPLY OF THE ASSESSEE COULD NOT BE PERUSED WHICH LED TO REJECTION OF REGI STRATION UNDER SECTION 12AA. THE LD. AR REQUESTED FOR OPPORTUNITY OF BEING HEARD BEFORE REJECTION OF THE REGISTRATION. 10. THE LD. DR ARGUED THAT SUFFICIENT OPPORTUNITIES WERE GIVEN TO THE ASSESSEE HENCE NO NEED TO ACCORD ANOTHER OPPORTUNITY. 11. WE HAVE GONE THROUGH THE ENTIRE MATERIAL BEFORE US AND THE TIMELINES OF THE HEARINGS HELD. WE FEEL THAT THE ASSESSEE COULD NOT GET ADEQUATE TIME TO REPRESENT THEMSELVES PROPERLY BEFORE THE LD. CIT(E) . HENCE THE CASE IS BEING DISPOSED OFF WITH THE DIRECTIONS THAT ANOTHER OPPOR TUNITY BE GIVEN TO THE ASSESSEE TO REPRESENT THEIR CASE. WE ALSO DIRECT TH E ASSESSEE TO PROMPTLY ATTEND THE HEARINGS WITHOUT DELAYING THE PROCEEDINGS FROM THAT SIDE. 12. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :28/11/2017 AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR