SHANTI EDUCATIONAL TRUST,GURGAON vs. CIT(EXEMPTION), CHANDIGARH

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ITA 7137/DEL/2017Status: DisposedITAT Delhi16 July 2021AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and restored the matter for fresh adjudication. The assessee was directed to provide all necessary documentary evidence and cooperate with the proceedings.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application primarily because the trust failed to provide activity-wise receipts as requested.

What were the issues?

Whether the denial of registration under Section 12AA was justified due to non-submission of required information by 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, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI O.P. KANT & SHRI KULDIP SINGH

Hearing: 05.07.2021Pronounced: 16.07.2021

ORDER PER O.P. KANT, AM:

This appeal has been preferred by the assessee against the order dated 26/09/2017 passed by the Learned Commissioner of Income-tax (Exemption), Chandigarh [in short ‘the Learned CIT(E)’] passed under section 12AA of the Income-tax Act, 1961 (in short ‘the Act’) rejecting the registration of assessee trust. 2. Before us, the learned Counsel of the assessee has submitted that registration has been denied mainly on the ground of non-submission of information of activity-wise receipts as required by the Learned CIT(E). He submitted that due to some personal reasons of the trustee, who was authorized to attend proceedings, said compliance could not be made and now the assessee is willing to provide all the information as desired by the Learned CIT(E), and therefore matter may be restored back to him for deciding afresh.

3.

The Learned DR, though relied on the order of the Learned CIT(E) but did not object for restoring the matter back to him for deciding afresh.

4.

We have heard rival submission of the parties on the issue in dispute. The Learned CIT(E) has denied the registration of the trust under section 12AA of the Act observing as under: “6. On 12.08.2017 a reply in response to above noted queries was received through DAK and on 06.09.2017 Smt. Bharti Kumar, Trustee also attended this office and intimated that the reply was sent by her through post. After considering the reply the applicant was requested to provide bifurcation of receipts amongst the three activities i.e. day care centre, Sumer Camps and Education and the same request was sent through email at charu_kumar77@yahoo.com The applicant was even informed telephonically on Mobile No.9810615320 and the matter was finally adjourned for 25.09.2017.

7.

On 25.09.2017 neither did anyone attend nor was any reply submitted in response to above noted query. Moreover, no attempt was made by the assessee to put forth its views even till the date of passing of the order. Given the non- compliance it becomes evident that the applicant appears either the applicant is not interested in pursuing the matter or is unable to reply the query posed by the department. In the absence of submissions it is difficult to verify both the objects & genuineness of activities of the society.

8.

In the instant case, given the above, it is safe to conclude that the assessee has failed to discharge its onus, this being a beneficial clause for the assessee, to prove that its income is free from eligibility of taxes. In the light of the above, I have no option but to proceed on merits and deny the Registration to the applicant u/s 12AA of the Income Tax Act, 1961.”

4.1 It is evident that Ld. CIT(A) has denied registration mainly on the ground of non-compliance on the part of the applicant and now the applicant has expressed its willingness to file all the documentary evidences required by the Learned CIT(E) for registration of the trust in terms of section 12AA of the Income- tax Act. In view of the above facts and circumstances, we set aside the impugned order of the Ld. CIT(E) and restore the matter back to him for deciding afresh. The assessee is directed to file all the necessary documentary evidence before the Learned CIT (E) and cooperate in disposal of the proceedings before him without seeking unnecessary adjournments. The grounds of the appeal of the assessee are accordingly allowed for statistical purposes.

5.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 16th July, 2021.

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