SMT. BIMLA DUTT & SHRI HARI DEV DUTT PUBLIC WELFARE TRUST,LUDHIANA vs. CIT(E), CHANDIGARH

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ITA 572/CHANDI/2019Status: DisposedITAT Chandigarh22 October 2019AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the interest of justice would be served by giving the assessee an opportunity to properly present its case and furnish necessary evidence to the CIT(E). The matter was restored to the CIT(E) for a fresh decision.

What were the facts?

The assessee trust's application for registration under Section 12A of the Income Tax Act was denied by the CIT(E). The denial was primarily based on donations received under CSR and the trust's alleged failure to furnish details of donations made to colleges.

What were the issues?

Whether the denial of registration under Section 12A was justified without providing the assessee a proper opportunity to present its case and furnish evidence.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee’s trust agitating the denial of registration u/s 12A of the Income Tax Act, 1961 vide order dated 27.03.2019 of the Ld. Commissioner of Income Tax (Exemptions), Patiala [hereinafter referred to as ‘CIT(E)’].

2.

The Ld. Counsel for the assessee, at the outset, has submitted that the registration of the assessee trust u/s 12A of the Act has been

ITA No. 572-chd-2019 Smt. Bimla Dutt & Shri Hari Dev Dutt Public WelfareTurst, Ludhiana 2 denied by the Ld. CIT(E) mainly on the ground that the assessee had

received donations from ‘M/s Chanakya Diary Product Limited’ under

the Corporate Social Responsibility (CSR) of the said concern. The Ld.

CIT(E) observed that the activities of the assessee trust were not

towards the charitable purposes. Further, that the assessee had not

furnished the details of the donations made by the assessee trust to

some colleges. The Ld. Counsel has submitted that, in fact, the Ld.

CIT(E) did not raise specific queries on this issue. That the assessee

trust is ready to furnish the necessary details to the Ld. CIT(E) and

apprise him of the activities of the assessee trust. That the assessee

trust may be given opportunity to properly present its case before the

Ld. CIT(E).

3.

The Ld. DR on the other hand, has relied on the findings of the

Ld. CIT(E).

4.

Considering the rival submissions, we are of the view, that the

interest of the justice will be well served if the assessee is given

opportunity to properly present its case before the Ld. CIT(E) and

furnish the necessary evidence. In view of this, the matter is restored to

the file of the CIT(E) for decision afresh. Needless to say that the Ld.

CIT(E) will give proper opportunity to the assessee trust to furnish

necessary details and evidences and then to examine the same and pass

ITA No. 572-chd-2019 Smt. Bimla Dutt & Shri Hari Dev Dutt Public WelfareTurst, Ludhiana 3 the order afresh on the application of the assessee in accordance with

law.

The appeal of the assessee is treated as allowed for statistical

purposes

Order pronounced in the Open Court on 22.10.2019.

Sd/- Sd/- (संजय गग� / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा�य� /Vice President �या�यकसद�य/ Judicial Member Dated : 22.10.2019

आदेशक���त�ल�पअ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकरआयु�त/ CIT 4. आयकरआयु�त (अपील)/ The CIT(A) 5. �वभागीय��त�न�ध, आयकरअपील�यआ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड�फाईल/ Guard File

आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar

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