SHANI SHAKTI PITH PITRA SEVA ASHRAM,UJJAIN vs. THE EXEMPTION, BHOPAL

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ITA 15/IND/2019Status: DisposedITAT Indore21 January 20204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not provided with a proper opportunity of being heard. Therefore, the order of the CIT(Exemption) was set aside, and the grounds were restored to the CIT(Exemption) for fresh consideration.

What were the facts?

The assessee society applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemption) denied registration ex-parte due to the assessee's failure to respond to notices and a negative report from the JCIT & AO.

What were the issues?

Whether the denial of registration under Section 12AA was justified without providing a proper opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

For Appellant: Shri Pavan Ved, Adv
For Respondent: Shri V.J. Boricha Sr., DR
Hearing: 14.01.2020

arising out of the order u/s 12AA of the Income Tax Act 1961(In short the ‘Act’) dated 30.05.2018.

2.

Assessee has raised following grounds of appeal;

ITANo.15/Ind/2019 Shani Shakti Pith Pitra Seva

“1. The Ld. CIT€ erred in denying registration to the assessee society without assigning clear reason. 2. The appellant reserves right to add amend or alter Grounds of appeal

.”

3. Brief facts relating to this issue are that the assessee is an Association of person. It applied for Registration u/s 12AA of the Act on Form No.10A on 30.05.2018. Despite two opportunities provided no response was received from the appellant assessee about the details called for by Ld. CIT(Exemption). Further, the JCIT & AO vide report dated 22.10.2018 also did not recommend the case for registration u/s 12AA of the Act due to the following two reasons: i. Society is mainly engaged in religious activities related to Shani Temple and no other charitable activities are being conducted by the Society. ii. The society has mentioned objective of running dharmshala orphanage, gaushala, school but no such activities are conducted by the society.

4. Since the appellant society failed to compliance to the notices and considering the negative report by the JCIT & Ld. AO. Ld. CIT(E) decided the application ex-parte rejecting the application for registration u/s 12AA of the Act. Against this rejection the assessee 2

ITANo.15/Ind/2019 Shani Shakti Pith Pitra Seva is in appeal before the Tribunal.

5.

Ld. counsel for the assessee submitted that religious trust are eligible for registration. No charitable activities and work was started as there was no fund. These activities are eligible for registration and nothing has been mentioned by Ld. CIT(E) in his order as to why registration cannot be given on these objectives.

Further the Ld. counsel also contended that the requisite documents as sought through RTI applications have not been supplied to the assessee which shall prove that the assessee had given all information with the application.

6.

On the other hand Ld. CIT-DR placed reliance upon the order of the Ld. CIT(E).

7.

We have heard rival contentions and perused the records placed before us. Before us the Ld. counsel for the assessee has contended that no charitable activities and work was started as there were no funds however activities mentioned in Trust deed are of charitable in nature and are eligible for registration u/s 12AA of the Act.

Further, the requisite documents as sought through RTI

ITANo.15/Ind/2019 Shani Shakti Pith Pitra Seva applications have not been supplied to the assessee. Therefore, looking to totality of facts and circumstances which indicate that proper opportunity of being heard to the assessee was not provided to the assessee. We, thus in the interest of justice set aside the order of Ld. CIT(E) and restore the grounds raised by the assessee before us to Ld. CIT(E). Needless to mention that proper opportunity of being heard to be provided to assessee.

8.

In the result appeal of the assessee is allowed for statistical purposes. The order pronounced in the open Court on 21.01.2020.

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