PATEL LALJIDAS LAXMIDAS SADAVRUT SANSTHAN,PATAN vs. CIT (EXEMPTIONS), AHMEDABAD

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ITA 2238/AHD/2018Status: DisposedITAT Ahmedabad19 February 20204 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in not considering the assessee's withdrawal application, leading to a miscarriage of justice. The old registration dated 03/07/1975 was confirmed to remain in force.

What were the facts?

The assessee, already registered under Section 12AA since 1975, applied for fresh registration. During the process, the old registration was found, and the assessee applied to withdraw the fresh application. The CIT(E) rejected the withdrawal application and dismissed the fresh application.

What were the issues?

Whether the CIT(E) was justified in rejecting the withdrawal application for fresh registration under Section 12AA when the assessee had an existing valid registration.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ B” BENCH, AHMEDABAD

Before: SHRI MAHAVIR PRASAD & SHRI WASEEM AHMED

For Respondent: Shri Vidhyut Trivedi, Sr.DR
Hearing: 06/02/2020Pronounced: 19/02/2020

आदेश / O R D E R

PER MAHAVIR PRASAD, JUDICIAL MEMBER:

1.

This appeal has been preferred by the assessee against the order of the Ld.Commissioner of Income Tax (Exemptions)–Ahmedabad [CIT(E) in short] vide appeal no.CIT(E)-/AHD/12AA/173/2017-18/409 dated 24/08/2018, wherein assessee has raised the following grounds of appeal:-

1. The Hon'ble CIT(E) has grossly erred in rejecting the application for registration u/s. 12AA of the appellant on the ground of genuineness of the activities, which is wholly illegal, unlawful and against the principles of natural justice. Patel Laljidas Laxmidas Sadavrut Sanstha vs.CIT(E) - 2 - 2. The Hon'ble CIT(E) has grossly erred in rejecting the application without verifying the details submitted by the appellant vide letter dated 17.05.2018, which includes certified copy of trust deed, registration certificate of charity commissioner, copy of audited annual accounts of last three years etc. Hence, the contention of the Id. CIT(E) vide stated in para 5 of the order for rejection of the application in relation to non-submission of requisite details, is totally incorrect and baseless. 3. The Hon'ble CIT(E), Ahmedabad has grossly erred in law and or on facts in not considering the letter filed by the appellant withdrawing the application for registration u/s. 12AA of the I. T. Act dated 07.08.2018. 4. The Hon'ble CIT(E), Ahmedabad has grossly erred in passing order u/s. 12AA of the I.T. Act dated 24/08/2018 without providing sufficient opportunities of being heard. It is, therefore, prayed that the rejection of the application for registration u/s. 12AA of the I.T. Act by the Hon'ble CIT(E), Ahmedabad may kindly be deleted.

2.

Facts of the case are that assessee is a trust registered u/s.12AA of the Income Tax Act, 1961 dated 03/07/1975. As per Ld.AR registration dated 03/07/1975 got mixed up with some other papers, then assessee thought it proper to apply a fresh for registration u/s.12AA of the Act. For fresh registration, Ld.CIT(E) asked for around 33 details out of which some details were provided and some details remained uncomplied with. However, in the meanwhile assessee found its old registration dated 03/07/1975 and on 07/08/2018 assessee moved an application for withdrawal of new application made for registration. Patel Laljidas Laxmidas Sadavrut Sanstha vs.CIT(E) - 3 - 3. The Ld.CIT(E) declined the withdrawal application as well as dismissed the application for registration u/s.12AA of the Act on 24/08/2018.

4.

Now the assessee has come up before us against the order of the CIT(E).

5.

The Ld.DR relied on the impugned order.

6.

We have gone through the relevant record and impugned order and heard both the parties. Undoubtedly, assessee was registered u/s.12AA on 03/07/1975 and copy of the said registration certificate has been perused and assessee also placed on record application for withdrawal of application for registration u/s.12AA of the Act dated 07/08/2018. After hearing both the parties, we set aside the order of the CIT(E) as the same is non est. In our considered opinion, withdrawal application filed by the assessee ought to have considered by the Department while not allowing the withdrawal application. In our opinion, the same is amount to miscarriage of justice. We make it clear that registration order dated 03/07/1975 will remain in force. Patel Laljidas Laxmidas Sadavrut Sanstha vs.CIT(E)

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