Pratap Sarv Shiksha Prasar Samiti, Gwalior v. C.I.T., Gwalior

ITA 396/AGR/2010 | misc
Pronouncement Date: 24-11-2011 | Result: Allowed

Appeal Details

RSA Number 39620314 RSA 2010
Assessee PAN AABAP1348Q
Bench Agra
Appeal Number ITA 396/AGR/2010
Duration Of Justice 1 year(s) 2 month(s) 3 day(s)
Appellant Pratap Sarv Shiksha Prasar Samiti, Gwalior
Respondent C.I.T., Gwalior
Appeal Type Income Tax Appeal
Pronouncement Date 24-11-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 24-11-2011
Date Of Final Hearing 24-11-2011
Next Hearing Date 24-11-2011
Assessment Year misc
Appeal Filed On 21-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER AND SHRI B.P. JAIN ACCOUNTANT MEMBER ITA NO. 396/AGRA/2010 SEC. 12AA PRATAP SARV SHIKSHA PRASAR SAMITI VS. THE COMM ISSIONER OF A-18 VINAY NAGAR SECTOR-4 INCOME-TAX GWALI OR. GWALIOR (PAN :AABAP 1348 Q). (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI K.C. AGARWAL ADVOCATE FOR RESPONDENT : SHRI A.K. SHARMA JR D.R. DATE OF HEARING : 24.11.2011 DATE OF PRONOUNCEMENT : 24.11.2011 ORDER PER BENCH: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 29.07.2010 PASSED BY THE COMMISSIONER OF INCOME-TAX GWALIOR O N THE FOLLOWING GROUNDS : 1. BECAUSE THE ORDER OF THE LEARNED COMMISSIONER O F INCOME-TAX GWALIOR REFUSING REGISTRATION U/S 12AA(L)(B)(II) OF THE I.T. ACT IS ILLEGAL AND BAD IN LAW. 2. BECAUSE THE SOCIETY IS DULY REGISTERED UNDER THE SOCIETY ACT WITH ASSISTANT REGISTRAR OF FIRMS GWALIOR ON 30.5.2008. ITS OBJECTS ARE TO ESTABLISH EDUCATIONAL INSTITUTIONS HOSPITALS ETC. REGULAR BO OKS OF ACCOUNTS HAVE BEEN MAINTAINED AND AUDITED BALANCE SHEET HAS BEEN FILED ALONGWITH THE RETURN OF INCOME BEFORE THE INCOME-TAX DEPARTMENT ON 29.12.20 09. THE SOCIETY ALSO SUBMITTED BEFORE THE LEARNED COMMISSIONER OF INCOME -TAX IN PARA 5 OF THE LETTER DATED 9.7.20 1 0 THAT THE SOCIETY IS GOING TO STAR T PROFESSIONAL COLLEGES AT BANMORE DISTT. MORENA. LAND HAS BEEN PURCHASED CON STRUCTION OF THE BUILDING HAS BEEN STARTED AND AFFILIATIONS ARE BEING SOUGHT FOR PROFESSIONAL COURSES WITH VARIOUS EDUCATIONAL INSTITUTIONS. THE LEARNED COMMI SSIONER OF INCOME-TAX WAS NOT JUSTIFIED IN NOT APPRECIATING ALL THESE FACTS A ND HAS ARBITRARILY ERRED IN HOLDING THAT THE GENUINENESS OF THE SOCIETY DOING C HARITABLE ACTIVITIES CANNOT BE ASCERTAINED. 2 3. BECAUSE THERE IS NOTHING ON RECORD TO PROVE THAT THE OBJECTS OF THE SOCIETY WERE NOT LEGAL OR AGAINST THE PUBLIC POLICY OR THAT THE ACTIVITIES OF THE SOCIETY WERE NOT GENUINE. THE FINDINGS OF THE SOCIE TY ARE AGAINST THE FACTS OF THE CASE AND DESERVE TO BE CANCELLED AND THE REGISTRATI ON MAY KINDLY BE ALLOWED TO THE SOCIETY. 2. THE ASSESSEE FILED ITS APPLICATION IN FORM NO. 1 0A SEEKING REGISTRATION U/S. 12AA OF THE INCOME-TAX ACT 1961 ON 12.01.2001.THE COMMISSIONER OF INCOME-TAX GWALIOR CALLED THE REPORT IN ORDER TO VERIFY THE GENUINENESS OF THE AC TIVITIES OF THE ASSESSEE. IN RESPONSE TO THE SAME THE ACIT CIRCLE-1 GWALIOR HAS SUBMITTED HIS REPOR T DATED 19.07.2010. THE LD. CIT HAS PERUSED THE SAME AND FOUND THAT THE ASSESSEE SOCIETY HAS NO T YET STARTED ANY ACTIVITY OF IMPARTING EDUCATION AND IT IS ONLY IN ITS PRELIMINARY STAGE. THE LD. CIT CALLED THE PRESIDENT OF THE SOCIETY WITH ACCOUNT BOOKS VOUCHERS AND RELEVANT DOCUMENTS TO ESTABLISH THE CHARITABLE ACTIVITIES CARRIED ON BY THE SOCIETY VIDE ITS LETTER DATED 22.07.2010. IN RESPONSE TO THE SAME THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE APPEARED NOR FILED ANY AP PLICATION FOR ADJOURNMENT AND THE LD. CIT GWALIOR HAS REJECTED THE APPLICATION OF THE SOCIETY BY HOLDING THAT THE SOCIETY IS NOT FULFILLING ALL THE CRITERIA LAID DOWN U/S. 12AA OF THE ACT AND REJ ECTED THE ASSESSEES APPLICATION VIDE IMPUGNED ORDER DATED 29.07.2010. AGGRIEVED BY THE IMPUGNED O RDER THE ASSESSEE HAS FILED THE PRESENT APPEAL. 3. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ASSESSEE SOCIETY IS DULY REGISTERED UNDER THE SOCIETIES ACT AND HAVING ITS MAIN OBJECT TO IMPART EDUCATION TO THE PUBLIC. HE FURTHER STATED THAT THE ASSESSEE IS ALSO MAINTAINING REGULAR BOOKS OF ACCOUNT AND HAS FILED ITS RETURN OF INCOME ALONG WITH AUDITED BALAN CE SHEET. THE LD. COUNSEL FOR THE ASSESSEE FURTHER STATED THAT THE ASSESSEE SOCIETY IS HAVING ALL THE DOCUMENTARY EVIDENCE TO ESTABLISH THE 3 GENUINENESS OF THE SOCIETY AS WELL AS CHARITABLE AC TIVITIES BEING DONE BY THE ASSESSEE SOCIETY. BUT THE LD. CIT GWALIOR HAS NOT GIVEN REASONABLE OPPOR TUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM. HE FURTHER STATED THAT ALL THESE EVIDENCE AR E AVAILABLE WITH THE RETURN FILED BY THE SOCIETY ON 29.12.2009 WHICH HAS NOT BEEN PROPERLY APPRECIAT ED BY THE LD. CIT GWALIOR. HE REQUESTED THAT THE APPEAL FILED BY THE ASSESSEE MAY BE ACCEPT ED AND THE IMPUGNED ORDER MAY BE CANCELLED. IN THE ALTERNATE HE REQUESTED THAT IF THE BENCH IS NOT CONVINCED WITH THE REQUEST OF THE ASSESSEE THEN THE ISSUE MAY BE SET ASIDE TO THE CIT GWALIOR WITH THE DIRECTION TO PROVIDE REASONABLE OPPORTUNITY TO THE ASSESSEE FOR PRODUCING ALL THE N ECESSARY EVIDENCE AND ESTABLISHING THE CLAIM OF THE ASSESSEE SOCIETY. 4. ON THE CONTRARY THE LD. DR RELIED UPON THE ORDE R OF THE IMPUGNED ORDER. 5. WE HAVE HEARD THE BOTH PARTIES AND PERUSED THE M ATERIAL AVAILABLE BEFORE US ESPECIALLY THE IMPUGNED ORDER AS WELL AS THE PAPER BOOK FILED BY T HE ASSESSEE IN WHICH THE LD. COUNSEL FOR THE ASSESSEE HAS ATTACHED SOME PAPERS FILED BEFORE THE LD. CIT GWALIOR DATED 12.01.2010 AND COPY OF WRITTEN SUBMISSIONS FILED BEFORE THE ACIT GWALI OR DATED 09.07.2010 ALONG WITH VARIOUS DECISIONS RENDERED BY THE HONBLE ITAT. WE ARE OF T HE CONSIDERED OPINION THAT IT IS ADMITTED FACT THAT THE ASSESSEE IS A SOCIETY DULY REGISTERED UNDER THE SOCIETY ACT ON 03.05.2008 AND ALSO HAVING ITS OBJECTS FOR ESTABLISHING EDUCATIONAL INS TITUTIONS AND HOSPITALS. THE ASSESSEE HAD FILED ITS RETURN ON 29.12.2009 ALONG WITH AUDITED BALANCE SHEET BUT ACCORDING TO THE IMPUGNED ORDER DATED 29.07.2010 THE LD. CIT GWALIOR HAS ISSUED N OTICE DATED 22.07.10 TO THE PRESIDENT OF THE SOCIETY PROVIDING HIM OPPORTUNITY AND REQUIRING HIM TO ATTEND THE HEARING ALONG WITH BOOKS OF ACCOUNT VOUCHERS AND RELEVANT DOCUMENTS SHOWING CH ARITABLE ACTIVITIES CARRIED ON BY THE 4 SOCIETY BUT IN RESPONSE TO THE SAME THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE APPEARED BEFORE THE LD. CIT GWALIOR NOR FILED ANY APPLICATI ON FOR ADJOURNMENT. 6. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES E XPLAINED ABOVE WE ARE OF THE VIEW THAT THE LD. CIT GWALIOR HAS NOT GIVEN REASONABLE OPPOR TUNITY TO THE ASSESSEE AND THE LD. CIT HAS REJECTED THE APPLICATION OF THE ASSESSEE SOCIETY IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. THEREFORE IN THE INTEREST OF JUSTICE AND IN VIEW O F CLAUSE (A) OR CLAUSE (AA) OF SUB-SECTION (1) OF SECTION 12A THE ASSESSEE IS ENTITLED FOR REASONABL E OPPORTUNITY OF BEING HEARD WHICH HAS NOT BEEN PROVIDED BY THE LD. CIT GWALIOR. THEREFORE I N THE INTEREST OF JUSTICE WE CANCEL THE IMPUGNED ORDER DATED 29.07.2010 WITH THE DIRECTION TO THE LD. CIT GWALIOR TO DECIDE THE ISSUE IN DISPUTE AFRESH UNDER THE LAW AFTER GIVING REASONABL E OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.11.2011. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH NOVEMBER 2011 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) BY ORDER 4. CIT CONCERNED 5. DR ITAT AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY