Vardhman Foundation, Ludhiana v. CIT Exemption, Chandigarh

ITA 252/CHANDI/2020 | misc
Pronouncement Date: 24-05-2021 | Result: Allowed

Appeal Details

RSA Number 25221514 RSA 2020
Assessee PAN AADTV0898C
Bench Chandigarh
Appeal Number ITA 252/CHANDI/2020
Duration Of Justice 1 year(s) 2 month(s) 5 day(s)
Appellant Vardhman Foundation, Ludhiana
Respondent CIT Exemption, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 24-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 24-05-2021
Date Of Final Hearing 24-05-2021
Next Hearing Date 24-05-2021
Last Hearing Date 24-05-2021
First Hearing Date 12-01-2021
Assessment Year misc
Appeal Filed On 19-03-2020
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BE NCH B CHANDIGARH (VIRTUAL COURT) .. ! '# .. $ %& BEFORE: SHRI. N.K.SAINI VP & SHRI R.L. NEGI JM ITA NO. 251/CHD/2020 UNDER SECTION 12AA(B)(II) VARDHMAN FOUNDATION VARDHMAN PREMISES CHANDIGARH ROAD LUDHIANA- 141010 PUNJAB INDIA THE CIT EXEMPTIONS CHANDIGARH PAN NO: AADTV0898C APPELLANT RESPONDENT ITA NO. 252/CHD/2020 UNDER SECTION 80G(5)(VI) VARDHMAN FOUNDATION VARDHMAN PREMISES CHANDIGARH ROAD LUDHIANA- 141010 PUNJAB INDIA THE CIT EXEMPTIONS CHANDIGARH PAN NO: AADTV0898C APPELLANT RESPONDENT ASSESSEE BY : SHRI PANKAJ GUPTA C.A AND SHRI RISH IT DHINGRA CA ! REVENUE BY : SHRI SANDEEP DAHIYA ' !#$ DATE OF HEARING : 24/05/2021 %&'()*$ DATE OF PRONOUNCEMENT : 24/05/2021 %'/ ORDER PER N.K. SAINI VICE PRESIDENT THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS OF THE LD. CIT(E) CHANDIGARH DT. 29/01/2020 AND 03/02/2020 . 2. SINCE THE APPEALS WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. IN ITA NO. 251/CHD/2020 THE GRIEVANCE OF THE ASSESSEE RELATES TO THE REJECTION OF APPLICATION SEEKING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT 1961 2 (HEREINAFTER REFERRED TO AS ACT) WHILE IN APPEAL NO. 252/CHD/2020 THE GRIEVANCE OF THE ASSESSEE RELATES TO THE REJECTION OF REQUEST FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE E -FILED FORM NO. 10A ON 24/08/2019 SEEKING REGISTRATION UNDER SECTION 12AA OF T HE ACT AND FORM NO. 10G FOR APPROVAL UNDER SECTION 80G OF THE ACT. THE LD. CIT(E) ASKED THE ASSESSEE TO PROVIDE CLARIFICATION TO THE QUERIES RAISED AND ISSUED QUESTI ONNAIRE ELECTRONICALLY TO THE ASSESSEE AND HE ASKED THE ASSESSEE THE COMPLIANCE TO BE FILED EL ECTRONICALLY. THE LD. CIT(E) MENTIONED THAT IN RESPONSE TO THE ABOVE THE ASSESSEE SUBM ITTED IN ITS REPLY AS UNDER: THE BALANCE SHEET AND INCOME AND EXPENDITURE ACCO UNT OF THE TRUST WILL BE PREPARED AFTER COMPLETION OF THE CURRENT FINANCIAL YEAR BEING THE FIRST YEAR OF THE TRUST. FURTHER THE TRUST HAS RECEIVED ONLY RS. 30 0 00/- FROM THE SETTLORS OF THE TRUST AT THE TIME OF ITS INCORPORATION & THAT THE TRUST SHAL L START WITH THE CHARITABLE ACTIVITIES AS DETAILED IN THE TRUST DEED UPON REGISTRATION U/S 12A OF THE ACT. ACCORDING TO THE LD. CIT(E) NO EXPENSES WERE INCURRED O N THE CHARITABLE ACTIVITIES AND THE ASSESSEE FAILED TO PROVIDE THE PROOF OF EXPENSES I NCURRED FOR CHARITABLE ACTIVITIES IN THE FINANCIAL STATEMENT. HE THEREFORE REJECTED THE APPLI CATION MOVED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND SINCE THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA WAS REJECTED LD. CIT(E) ALSO REJE CTED THE APPLICATION FOR APPROVAL UNDER SECTION 80G OF THE ACT. 5. NOW THE ASSESSEE IS IN APPEAL. 6. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT LD. CIT (E) WITHOUT GOING THROUGH THE OBJECTS OF THE ASSESSEE WHICH WERE CHARITABLE IN NATURE R EJECTED THE APPLICATION MOVED BY THE ASSESSEE BY SIMPLY STATING THAT THE ASSE SSEE DID NOT PROVIDE THE PROOF OF EXPENSES IN THE FORM OF BILLS AND VOUCHERS. IT WAS SU BMITTED THAT THE LD. CIT(E) DID NOT ASK FOR THE BILLS AND VOUCHERS AS SUCH HAD NOT PROVIDED PROPER OPPORTUNITY FOR HEARING. IT WAS STATED THAT THE LD. CIT(E) WITHOUT CONSIDERING THIS FACT THAT AIMS AND OBJECT OF THE ASSESSEE WERE CHARITABLE IN NATURE WRONGLY REJECTED TH E APPLICATIONS MOVED BY THE ASSESSEE. 3 7. LD. CIT DR IN HIS RIVAL SUBMISSION STRONGLY SUPPORT ED THE IMPUGNED ORDER PASSED BY THE LD. CIT(E). 8. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE I T IS NOTICED THAT THE LD. CIT(E) ALTHOUGH REJECTED THE APPLICATION MOVED BY THE ASSESSEE FOR THE REASONS THAT THE ASSESSEE FAILED TO PROVIDE THE PROOF OF EXPENSES IN THE FORM OF BILLS AND VOUCHERS HOWEVER IT IS NOT BROUGHT ON RECORD TO SUBSTANTIATE THAT THE LD. CIT(E) ASKED THE ASSESSEE TO FURNISH THE BILLS AND VOUCHERS. MOREOVER T HE LD. CIT(E) DID NOT COMMENT ON THE AIMS AND OBJECTIVES OF THE ASSESSEE WE THEREFORE D EEM IT APPROPRIATE TO SET ASIDE THESE CASES BACK TO THE FILE OF THE LD. CIT(E) TO BE D ECIDED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. 9. IN THE RESULT APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 24/05/2021). SD/- SD/- .. .. (R.L. NEGI ) ( N.K. SAINI) $ %&/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 24/05/2021 &+ -.-) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. ' / CIT 4. ' /01 THE CIT(A) 5. -!245$4*56789 DR ITAT CHANDIGARH 6. 8:# GUARD FILE