MAHARAJ PARAMHANS GRAMODAY VIKAS SANSTHAN,GONDA vs. CIT (E), LUCKNOW

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ITA 323/LKW/2020Status: DisposedITAT Lucknow11 August 20215 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the application without confronting the assessee with the material on record. Therefore, the Tribunal granted the assessee another opportunity to be heard by the CIT(E) and directed the CIT(E) to pass a fresh order.

What were the facts?

The assessee filed an application for registration under Section 12A of the Income Tax Act. The CIT (Exemptions) rejected the application, citing non-compliance by the assessee despite opportunities. The assessee appealed this rejection.

What were the issues?

Whether the rejection of the Section 12A registration application by the CIT(E) was justified without proper confrontation of evidence, and if the assessee should be granted another opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’ LUCKNOW

Before: SHRI A.D JAIN & SHRI T.S. KAPOOR

For Appellant: Shri S.C. Agarwal, Advocate, Smt. Abha Kala Chanda, CIT, DR
Hearing: 12/08/2021Pronounced: 17/08/2021

This is an appeal filed by the assessee against the order of ld. CIT(Exemption), Lucknow dated 05.08.2012. The assessee has raised the following grounds of appeal:

“1. That impugned order is bad in law inasmuch as at the time of grant of registration what is to be looked into is whether Trust is a genuine one or it is a sham institution floated only to avail benefit of exemption under the Act which was proved by the documents submitted along with application and there is no indication in the order as to the evidence not available on record regarding the genuineness of the activities such as copy of Balance Sheet and Income and Expenditure Account duly audited along with objects of Society and Registration Certificate under Societies Act.

2. That there was enough material before the Ld. Commissioner so as to prove that the Society is genuine and its objects are charitable in nature and the Ld. CIT (E) was wrong in rejecting application for grant of Registration as a charitable institution.

3.

That the Ld. CIT was wrong in rejecting the application on the presumption which is not permitted under the law inasmuch as the genuineness of the Society and its objects were clearly established as required under the law as per the documents on record and the Id. CIT(E) failed to disprove such evidence on record.

4. That the Ld. CIT was wrong in rejecting the application without indicating as to the evidence required for registration was not avail able on record resulting gross injustice.

5. That the appellant Society is genuine and established by law carrying out charitable activities as per the objects of the Society deserves registration as a charitable institution which was wrongly denied.

6.

That the Hon'ble Tribunal be pleased to grant registration inasmuch as the requirement of law for grant of registration is fulfilled.

7.

That any other relief which the Hon'ble Tribunal deemed appropriate be granted.”

2.

The crux of grounds of appeal

is the action of ld. CIT(E) by which he has rejected the application of assessee filed u/s 12A of the Act. The ld. AR also invited our attention to copy of additional grounds of appeal raised vide letter dated 16.11.2020 and also invited our attention to letter dated 10.08.2021 whereby such additional grounds of appeal were withdrawn and therefore it was submitted that the additional grounds of appeal may be dismissed as not pressed.

3. Inviting our attention to the facts of the case, the ld. AR submitted that assessee had filed application for registration u/s 12A of the Act and had filed the complete document including byelaws of the society as well as balance sheet and income and expenditure accounts of the assessee and the ld. CIT(E) has rejected the application of the assessee. Therefore, it was prayed that the assessee on furnishing the documents is entitled to get registration and therefore it was prayed that the appeal of the assessee may be allowed.

4.

Ld. DR on the other hand submitted that merely by filing the documents the assessee does not get entitled to registration u/s. 12A of the Act. It was submitted that ld. CIT(E) is empowered to call for further information and therefore, he issued notices to which assessee did not respond and therefore, the appeal filed by assessee be dismissed.

5.

We have heard both the parties and have gone through the material placed on record. We find that the assessee had raised additional grounds of appeal vide letter dated 16.11.2020 wherein the assessee had raised the issue of deemed registration and has argued that since a period of six months had expired from the end of the month in which the application was filed therefore the assessee was entitled for deemed registration u/s 12A of the Act. However, at the time of hearing, our attention was invited to letter dated 10.08.2021 by which the said additional grounds raised by the assessee were withdrawn therefore, the additional grounds of appeal are dismissed as withdrawn.

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