RAJKIYA SNATKOTAR MAHAVIDHYALAY VIKAS SAMITI,CHURU vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), JAIPUR

PER VIJAY PAL RAO, JM :

This appeal by the assessee is directed against the order dated 24.08.2017 of

ld. CIT (Exemptions), Jaipur passed under section 12AA(1)(b) of the I.T. Act. The

assessee has raised the following grounds :-

1.1 The order passed u/s 12AA(1)(b) is bad in law as well as on facts and hence, the same may please be quashed.

1.2 The ld. CIT (Exemptions) erred in law as well as facts of the present case in not providing a reasonable opportunity of being heard and the application may please be restored for reconsideration of application.

1.3 The ld. CIT (Exemptions) erred in law as well as on the facts of the present case in rejecting application seeking registration u/s 12AA.

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1958 and running educational institutions. The assessee filed an application in Form

No. 10A on 27.03.2017 for seeking registration u/s 12A(A) of the IT Act. The ld. CIT

(Exemptions) has rejected the application while passing the impugned order on the

ground that sufficient opportunity was provided to the assessee society/trust to

produce the details and documents but it had failed to do so.

documents/explanation which has been duly replied by the assessee by filing the

details and submissions. However, another letter dated 18.7.2017 as alleged in the

impugned order was never received by the assessee and, therefore, the assessee

was not given a proper opportunity of hearing before rejecting the application of the

assessee. He has produced Dak Register of the Society and submitted that the

assessee is maintaining all the records of the correspondence received and sent and

no such letter dated 18.07.2017 was received by the assessee. Hence, the ld. A/R

has submitted that there is a violation of principles of natural justice as the assessee

was not given an appropriate opportunity of hearing by the ld. CIT (Exemptions).

3.1. On the other hand, the ld. D/R has supported the impugned order of the ld.

CIT (Exemptions) and submitted that the assessee has failed to comply with the

requisite details and documents in support of its claim for registration under section

12AA despite the opportunity given by the ld. CIT (Exemptions).

3 ITA No. 813/JP/2017 Rajkiya Snatkotar Mahavidhyalay Vikas Samiti the ld. CIT (Exemptions) has issued a notice dated 30th March, 2017 asking the

assessee to submit certain documents/explanations as well as to produce original Trust Deed/ Memorandum of Association for verification on 1st May, 2017. In

compliance to the said notice, the representative of the assessee appeared before ld.

CIT (Exemptions) and filed written submissions. However, the ld. CIT (Exemptions)

noticed that complete details were not filed by the assessee and accordingly a second notice dated 18th July, 2017 was stated to have been issued to the assessee

asking to file the copy of accounts for last three years and activity details with

evidence etc. We further note that in para 4 of the impugned order the ld. CIT

(Exemptions) has stated that the assessee was again asked vide letter dated

18.7.2017 to produce the requisite record. Since no response or reply was filed by

the assessee, therefore, the application of the assessee was rejected by the ld. CIT

(exemptions) by observing in para 6 as under :-

“ 6. Sufficient opportunity was provided to the trust/society to produce details and documents in support of his claim for registration u/s 12AA of the I.T. Act, 1961 but trust/society had failed to do so. In the light of the above facts, it appears that the applicant trust/society is not interested in getting itself registered u/s 12AA of the I.T. Act. The application seeking registration u/s 12AA is hereby rejected and filed.”

We find that the assessee has produced the Dispatch and Receipt Registers wherein

the details of the letters dispatched and received were recorded on day to day basis.

However, no entry is found in the Receipt Register of letter dated 18.07.2017 as

stated in the impugned order. Since the ld. CIT (Exemptions) has rejected the

application for want of necessary documents/details, therefore, in the facts and

circumstances and in the interest of justice we set aside the matter to the record of

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the ld. CIT (Exemption) for giving one more opportunity to the assessee to produce

the requisite record and documents. The ld. CIT (Exemptions) then decide the

matter afresh after considering relevant record to be filed by the assessee and giving

an opportunity of hearing to the assessee.

Order is pronounced in the open court on 16/04/2018.

Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member

Jaipur Dated:- 16/04/2018. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

5 ITA No. 813/JP/2017 Rajkiya Snatkotar Mahavidhyalay Vikas Samiti