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Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM & SHRI LALIET KUMAR, JM
आदेश / ORDER PER LALIET KUMAR, JM:
This appeal preferred by the assessee emanates from the order of the Ld. CIT (Exemption) Pune dated 31.08.2019 passed u/s.12AA(1)(b) (ii) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) as per the following grounds of appeal on record:
“1.On the facts and circumstances of the case and in law, the learned Commissioner of I.T (E) Pune is not justified in rejecting the application for registration when the trust fulfills the conditions of section 2(15), 11, 12AA. The registration may please be accorded.
2. On the facts and circumstances of the case and in law, the learned Commissioner of I.T (E) Pune is not justified in rejecting the application for registration under section 12AA of the IT Act when the Trust exists solely for education and charitable purpose and not for profit. The trust may please be registered under section 12AA.
3. On the facts and circumstances of the case and in law, the learned Commissioner of I.T (E) Pune is not justified in rejecting the application on the presumption and assumption. The order may be cancelled and registration be granted.
4. On the facts and circumstances of the case and in law, the learned Commissioner of I.T (E) Pune is not justified in providing the copy of Report of the learned Commissioner of I.T (E) Pune and the Inspector for comments which is against the principles of natural justice. The order may please be cancelled.
5. The appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal.”
At the time of hearing, the Ld. AR of the assessee has submitted that mentioned that the Trust is registered under BPT Act, 1950 with registration number F-19490(AU) dated 09.04.2013. The Trust had earlier applied for 12AA on 19.03.2018 and the said application was rejected vide order dated 26.09.2018 after calling a report from the respective Assessing Officer. The Ld. AR further submitted that the trust fulfils the conditions as mentioned under section 2(15), 11,12AA of the Act and the trust existents solely for education and charitable purpose and not for profit. The Ld. AR of the assessee further submitted that the trust does not have any revenue or capital transaction with Upadhye Classes LLP.
2.1 The Ld. AR of the assessee also submitted that the Ld. CIT(Exemption) has not confronted the copy of report of the Ld. CIT(Exemption) and the Inspector for comments. Mentioning that the CIT(Exemption) rejected the said application of the assessee for want of details, Ld. AR for the assessee submitted that the matter may be remanded to his file once again for fresh adjudication.
3. The Ld. DR for the Revenue has placed strong reliance on the orders of the lower Authorities.
We have heard the rival contentions and perused the material available on record. The Ld.CIT(Exemption) rejected the registration merely on the basis of the Report of the Inspector. The Inspector had conducted detailed enquiry and have also contacted various students who are exempted from paying the fees by the assessee trust. The Ld. AR of the assessee submitted that neither the copy of the report was provided to the assessee nor the comments of the assessee were called for on the report of the Inspector. The Ld.CIT(Exemption) without confronting the report of the Inspector have wrongly held that the assessee was into commercial activities. In the light of the above we are of the opinion that the Ld.CIT(Exemption) was under duty to provide the copy of the report of the Inspector to the assessee and thereafter the assessee should called upon to furnish its report and the assessee may also be called upon by the Ld.CIT(Exemption) to file any other documents to prove the genuineness of the activities of the assessee.
As the Ld. CIT(Exemption) has not followed the principles of natural justice and has also not provided the opportunity to contradict the report of the Inspector. We are of the opinion that the matter is required to be sent back to the file of Ld. CIT(Exemption) for fresh adjudication of the matter in accordance with law. Needless to say if the Ld. CIT(Exemption) relies upon any document or report of the Inspector against the assessee then the copy of the same shall be provide to the assessee and the assessee would be called upon to put forward its point of view and if so required may also called upon the assessee to file any documents / evidence substantiating its nature of the activities. Hence, the grounds raised by the assessee in appeal are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on 12th day of February, 2020.
Sd/- Sd/- D. KARUNAKARA RAO LALIET KUMAR ACCOUNTANT MEMBER JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 12th February, 2020. SB आदेश की प्रतिलऱपप अग्रेपिि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.
The CIT (Exemption), Pune.