M/S. KARUNA FOUNDATION,GHAZIABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

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ITA 243/LKW/2018Status: DisposedITAT Lucknow01 January 20193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held 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 to provide a fresh opportunity.

What were the facts?

The assessee trust applied for registration under Section 12A(a) of the IT Act. The CIT (Exemptions) rejected the application as the assessee failed to produce books of account and vouchers despite being given opportunities.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 12A(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

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

For Appellant: Shri Subham Rastogi, CA
For Respondent: Shri Adhir Kumar Bar, CIT DR
Hearing: 10/01/2019Pronounced: 11/01/2019

PER: A.D. JAIN, VICE PRESIDENT:

This is an appeal filed by the assessee against the order dated 06/03/2018

passed by ld. CIT (Exemptions) rejecting the registration u/s 12AA of the

I.T. Act.

2.

The facts of the case, in brief, are that the assessee trust applied for

registration u/s 12A(a) of the Act with CIT (Exemptions) vide application

dated 15/09/2017. The ld. CIT (Exemptions) issued a letter dated

19/01/2018 to the assessee calling for specific queries regarding the

application for registration u/s 12A for compliance on 16/02/2018. On that

date, his CA appeared and filed part reply and sought adjournment for

2 ITA No. 243/Lkw/2018

05.03.2018 for producing the books of account and vouchers. On

05.03.2018, his CA appeared and filed a letter but could not produce any

books of account or vouchers for verification, therefore, the ld CIT

(Exemptions) rejected the application of the assessee for registration u/s

12A(a) of the Act on the ground that sufficient material required for

formation of satisfaction had not been produced.

3.

Heard. From the order of learned CIT (Exemptions), it is apparent

that the ld. CIT (Exemptions) had issued only one letter dated 19/01/2018

calling for certain queries, documents/clarifications. The assessee could

not file books of account and vouchers and the CIT (Exemptions) passed

the order and rejected the application of the assessee for registration u/s

12A of the Act. In these facts, we feel that one more opportunity should be

given to the assessee to explain its case before the ld. 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 ld. CIT (Exemptions). We, therefore, in the

interest of justice, set aside the order of the ld. CIT (Exemptions) and

restore the matter 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

3 ITA No. 243/Lkw/2018

directed to be present on the date of hearing and provide the material /

clarification as asked for by the ld. CIT (Exemptions).

5.

In the result, the appeal of the assessee stands allowed for statistical

purposes.

(Order pronounced in the open court on 11/01/2019)

Sd/- Sd/- (T.S. Kapoor) (A.D. Jain) Accountant Member Vice President

Aks – Dtd. 11 /01/2019 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar

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