Baba Kartar Singh Dukki Education Trust, Ludhiana v. CIT-I, Ludhiana

ITA 609/CHANDI/2011 | misc
Pronouncement Date: 20-09-2011 | Result: Allowed

Appeal Details

RSA Number 60921514 RSA 2011
Bench Chandigarh
Appeal Number ITA 609/CHANDI/2011
Duration Of Justice 3 month(s) 18 day(s)
Appellant Baba Kartar Singh Dukki Education Trust, Ludhiana
Respondent CIT-I, Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 20-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 20-09-2011
Date Of Final Hearing 20-09-2011
Next Hearing Date 20-09-2011
Assessment Year misc
Appeal Filed On 01-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI H.L.KARWA VICE PRESIDENT AND SHRI MEHAR SINGH ACCOUNTANT MEMBER ITA NO. 609/CHD/2011 BABA KARTAR SINGH DUKKI V CIT-I EDUCATION TRUST LUDHIANA. VILLAGE LATALA DISTT. LUDHIANA. PAN: AAATB-7340-L ASSESSEE BY: SHRI ASHWANI KUMAR RESPONDENT BY: SMT. JYOTI KUMARI DATE OF HEARING : 20.09.2011 DATE OF PRONOUNCEMENT : 20.09.2011 ORDER PER H.L.KARWA V.P. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX LUDHIANA-I PASSED U/S 12AA(1)(B)(II) OF THE INCOME-TAX ACT 1961 ( IN SHORT THE ACT) DATED 30.11.2007. 2. IN THIS APPEAL THE ASSESSEE HAS TAKEN THE FOLLO WING GROUNDS : 1. THAT THE ORDER U/S 12AA(1)(B)(II) OF THE INCOME -TAX ACT 1961 PASSED BY THE LD. COMMISSIONER OF INCOME-TAX-I LUDHIANA IS AGAINST LAW AND FACTS ON THE FILE IN AS MUCH AS HE WAS NOT JUSTIFIED TO HOLD THAT THE CONDUCT OF THE ASSESSEE IS NOT IN ACCORDANCE WITH THE PROVISIONS OF LAW. 2. THAT THE LD. COMMISSIONER OF INCOME TAX WAS NOT JUSTIFIED TO REJECT THE REGISTRATION OF THE TRUST U /S 12AA OF THE INCOME-TAX ACT 1961. 2 3. THAT HE WAS FURTHER NOT JUSTIFIED TO HOLD THAT T HE DELAY IN FILING APPLICATION U/S 12AA(1)(B)(II) WAS NOT DUE TO A BONAFIDE CAUSE. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE TRUST HAS PREFERRED AN APPLICATION FOR REG ISTRATION U/S 12A(A) OF THE ACT IN PRESCRIBED FORM 10A AND IN THE PRESCRIBED MANNER ON 31.05.2007 ALONGWITH AIMS AND OBJECTS OF THE TRUST AND COPY OF THE CERTIFICATE OF REGISTR ATION DATED 16.01.2004 WITH THE ADDL. REGISTRAR OF FIRMS AND SO CIETIES (PUNJAB) LUDHIANA. THE LD. COMMISSIONER OF INCOME TAX HAS REJECTED THE APPLICATION OBSERVING AS UNDER : 2. A PERUSAL OF THE DOCUMENTS SHOWS THAT THE TRUST CAME INTO EXISTENCE ON 04.02.2000 AND APPLICATION FOR REGISTRATION WAS FILED ON 31.05.200 7. THE ASSESSEE HAS SUBMITTED THAT THE DELAY IN FILING OF APPLICATION U/S 12A WAS UNAVAILABILITY OF COUNSE L OF THE TRUST. THIS CANNOT BE HELD AS SUFFICIENT REASON FOR DELAY INFILLING APPLICATION FOR REGISTRA TION U/S 12A(A) OF THE INCOME-TAX ACT 1961. HENCE THE REQUEST FOR CONDONING THE DELAY IN FILING THE APPLICATION U/S 12A IS REJECTED. 3. AS PER THE REPORT OF THE AO AND THE JOINT COMMISSIONER OF INCOME TAX RANGE-II LUDHIANA THE TRUST HAS NOT PERFORMED ANY CHARITABLE ACTIVITIES DURING THE ASSESSMENT YEAR 2004-05 TO 2006-07. MOREOVER THE FINAL ACCOUNTS SUBMITTED FOR THE ASSESSMENT YEARS 2004-05 TO 2006-07 REVEALS THAT A MEAGER AMOUNT HAS BEEN UTILIZED FOR DISTRIBUTION OF PRIZES AND UNIFORM WHICH DOES NOT TANTAMOUNT TO EITHER EDUCATIONAL OR CHARITABLE PURPOSE. THE ASSESSEE IS A REGULAR ASSESSEE AND IS CLAIMING ITS INCOME EXEMPT UNDER SECTION 10(23C)(IIAB) OF THE INCOME-TAX ACT 1961 FOR ASSESSMENT YEAR 2001-02 TO 2006-07. THE TRUST IS NOT ENTITLED FOR SUCH EXEMPT ION 3 AS THE PROVISIONS OF THIS SECTION ARE NOT APPLICABL E TO IT. IT IS NEITHER A UNIVERSITY NOR EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATIONAL PURPOSE AND WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNMENT. THE CONDUCT OF THE ASSESSEE IS THUS NO T IN ACCORDANCE WITH THE PROVISIONS OF LAW. 4. KEEPING IN VIEW THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE A LETTER NO.3385 DATED 06.11.2007 WAS ISSUED TO THE TRUST FOR HEARING ON 15.11.2007 AT 4.30 PM BUT NOBODY ATTENDED THE OFFICE. AGAIN A LETTER WAS ISSUED TO THE TRUST FOR HEARING ON 26.11.2007 AT 4.30 PM WHICH WAS SERVED ON 22.11.2007. IN RESPONSE TO THIS LETTER ALSO NOBODY ATTENDED THE OFFICE NOR FILED ANY WRITTEN REPLY IN SUPPORT OF ITS APPLICATION FOR REGISTRATIO N. 4. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARTIES AT LENGTH AND HAVE ALSO CAREFULLY PERUSED T HE MATERIALS AVAILABLE ON RECORD. ON PERUSING PARA 4 OF THE IMP UGNED ORDER IT WOULD BE CLEAR THAT THE LD. COMMISSIONER HAS NOT AFFORDED DUE AND REASONABLE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE. IT SEEMS THAT THE IMPUGNED ORDER HAS BEE N PASSED IN A HASTY MANNER WITHOUT AFFORDING ADEQUATE OPPORT UNITY OF BEING HEARD TO THE ASSESSEE. THE CIT HAS ALSO OBSE RVED THAT AS PER THE REPORT OF THE AO AND THE JOINT COMMISSIO NER OF INCOME TAX RANGE-II LUDHIANA THE ASSESSEE TRUST H AS NOT PERFORMED ANY CHARITABLE ACTIVITIES DURING THE ASSE SSMENT YEAR 2004-05 TO 2006-07. WE FIND THAT THE REPORTS OF THE AO AND THE JOINT COMMISSIONER OF INCOME TAX LUDHIANA HAVE NOT BEEN CONFRONTED TO THE ASSESSEE. IT IS A VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. AS REGARDS THE QUESTION OF CON DONING DELAY IN FILING THE APPLICATION U/S 12A THE CIT HAS NOT GIVEN A COGENT REASON. CONSIDERING THE FACTS AND CIRCUMSTA NCES OF 4 THE PRESENT CASE WE ARE OF THE VIEW THAT THE ORDER PASSED BY COMMISSIONER OF INCOME TAX LUDHIANA-I U/S 12AA(1)( B)(II) OF THE ACT DESERVES TO BE SET ASIDE IN TOTO. WE ORDE R ACCORDINGLY AND DIRECT THE CIT LUDHIANA-I TO DECIDE THE MATTER AFRESH IN ACCORDANCE WITH LAW AFTER AFFORDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ALS O DIRECT THE CIT TO DECIDE THE MATTER PREFERABLY WITHIN TWO MONT HS FROM THE DATE OF RECEIPT OF ORDER. AT THE SAME TIME WE THINK IT PROPER TO DIRECT THE ASSESSEE TO COOPERATE AND ATTE ND THE HEARING BEFORE THE CIT LUDHIANA-I. 5. FOR STATISTICAL PURPOSES THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 0 TH SEPTEMBER 2011. SD/- SD/- (MEHAR SINGH) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED: 20 TH SEPT. 2011 POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE D.R INCOME-TAX DEPARTMENT CHANDIGARH ASSISTANT REGISTRAR ITAT CHANDIGARH