R. J. FOUNDATION,SHAHJAHANPUR vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), LUCKNOW

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ITA 209/LKW/2018Status: DisposedITAT Lucknow08 March 20192 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not given a proper and sufficient opportunity to present its case. Therefore, the order of the CIT (Exemptions) was set aside, and the matter was restored for fresh consideration.

What were the facts?

The assessee's application for registration under Section 12AA was rejected by the CIT (Exemptions) for non-compliance with queries and failure to appear. The CIT noted that the assessee did not furnish financial statements or seek an adjournment.

What were the issues?

Whether the CIT (Exemptions) provided a sufficient opportunity to the assessee before rejecting the registration application under Section 12AA.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW

Before: SHRI A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri Sanjay Saxena, F.C.A
For Respondent: Shri Sushil Kumar Madhuk, CIT, (DR)
Hearing: 06/03/2019Pronounced: 08/03/2019

PER T. S. KAPOOR, A.M.

This is an appeal filed by the assessee against the order of learned CIT (Exemptions), Lucknow dated 13/02/2018 passed under section 12AA(1)(b)(ii) of the I.T. Act.

2.

We have heard the rival parties and have gone through the material placed on record. We noted that learned CIT (Exemptions) has rejected the application of the assessee for registration u/s 12AA of the Act. From the order of learned CIT (Exemptions), it is apparent that the learned CIT (Exemptions) had issued letter dated 19/01/2018 calling for specific queries regarding application of the assessee for registration u/s 12A for compliance on 13/02/2018. On 13/02/2018 neither anybody appeared nor filed any application for adjournment. Learned CIT (Exemptions) has observed that

I.T.A. No.209/Lkw/2018 Assessment Year:N.A. 2

the assessee has failed to furnish the financial statements namely income and expenditure accounts, receipts and payments accounts and balance sheet and CIT (Exemptions) passed the order rejecting the application of the assessee for registration u/s 12AA of the Act. Under these facts, we feel that one more opportunity should be given to the assessee to explain its case before learned CIT (Exemptions). We are of the view from the facts of the case that the assessee has not been given proper and sufficient opportunity before disposing of the application of registration by the learned CIT (Exemptions). We, therefore, in the interest of justice set aside the order of CIT (Exemptions) and restore the matter back to his file with the direction to consider the application of the assessee for registration u/s 12A afresh after giving proper and sufficient opportunity of being heard to the assessee. The assessee is also directed to be present on the date of hearing and provide the material / clarification as asked for by learned CIT (Exemptions).

3.

In the result, the appeal of the assessee is allowed for statistical purposes.

(Order pronounced in the open court on 08/03/2019)

Sd/. Sd/. ( A. D. JAIN ) ( T. S. KAPOOR ) Vice President Accountant Member

Dated:08/03/2019 *Singh

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow

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