DHARM SANSKRITI SANGAM (DSS),NEW DELHI vs. CIT (EXEMPTIONS), NEW DELHI

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ITA 4357/DEL/2017Status: DisposedITAT Delhi01 January 2020AY 2017-185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal considered the orders of the CIT(E) and the documents filed. It acknowledged that the assessee did not file the original Memorandum of Association before the CIT(E). However, it also noted that certified copies of the MOA were indeed filed with the CIT(E). In the interest of justice and fair play, the Tribunal decided to restore the issues to the file of the CIT(E). The assessee was directed to furnish the original documents for verification. The CIT(E) was directed to examine these documents and decide the applications for registration under Section 12AA and approval under Section 80G in accordance with the provisions of law, after affording the assessee a reasonable and sufficient opportunity of being heard. The issue of whether the certified copies were sufficient for the CIT(E)'s satisfaction was implicitly left to be decided by the CIT(E) upon verification of the original documents.

What were the facts?

The assessee, Dharm Sanskriti Sangam (DSS), filed an appeal against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)], New Delhi, dated 29.03.2017. The appeal pertains to the assessment year 2017-18. The CIT(E) had rejected the assessee's applications for registration under Section 12AA and approval under Section 80G of the Income Tax Act, 1961. The rejection was primarily for want of the original Memorandum of Association (MOA) issued by the Registrar of Societies for verification. The assessee had filed applications on 01.09.2016. Despite subsequent letters from the CIT(E), the assessee did not submit the original MOA, leading to the rejection. The assessee contended that certified copies were filed and original documents could not be obtained from the Registrar.

What were the issues?

1. Whether the CIT(E) erred in rejecting the assessee's application for registration under Section 12AA of the Income Tax Act, 1961, for want of the original Memorandum of Association. 2. Whether the CIT(E) erred in rejecting the assessee's application for approval under Section 80G of the Income Tax Act, 1961, for want of the original Memorandum of Association. Assessee's Contentions: The assessee argued that original documents could not be received from the Registrar of Societies. They maintained that certified copies of the MOA were filed with the applications and were available with the CIT(E). The assessee sought condonation of delay in filing the appeal, which was granted as the delay was reasonably explained. Revenue's Contentions: The learned Departmental Representative supported the findings of the CIT(E). No specific authorities, circulars, or precedents were mentioned by the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI K.N. CHARY

For Appellant: Ms. Renuka Gupta, CA, Ms. Gunjan Sharma, CA
Hearing: 01.01.2020Pronounced: 01.01.2020

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

1.

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Exemptions], New Delhi dated 29.03.2017.

2.

The ld. counsel for the assessee has filed an application praying for condonation of delay in filing the appeal. We find that the delay stands reasonably explained. Accordingly, we condone this delay and admit the appeal.

3.

The sum and substance of the grievance of the assessee is that the CIT(E) erred in rejecting the application for registration u/s 12AA of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] and approval u/s 80G of the Act for want of original copy of Memorandum of Association issued by the Registrar of Societies.

4.

Briefly stated, the facts of the case are that the assessee filed two applications on 01.09.2016 in Form Nos.

10A & 10G seeking registration u/s 12AA of the Act and approval u/s 80G of the Act. The ld. CIT(E) issued letters requesting the assessee to submit certain documents in support of its claim of registration and approval. On receiving no compliance, the ld. CIT(E) further issued letters and subsequently received written submissions on 14.03.2017 and 21.03.2017.

5.

However, the ld. CIT(E) rejected the applications for want of original Memorandum of Association for verification.

The ld. CIT(E) was of the firm belief that the assessee has not complied with the provisions of section 12AA of the Act and hence not eligible for registration u/s 12AA of the Act and approval u/s 80G of the Act.

6.

Before us, the ld. counsel for the assessee stated that original documents could not be received from the Registrar of Societies. It is the say of the ld. counsel for the assessee that certified copies were filed with the applications and were very much available with the ld. CIT(E).

7.

Per contra, the ld. DR supported the findings of the ld. CIT(E).

8.

We have carefully considered the orders of the ld. CIT(E) and have perused the documents which have been filed before us. It is true that the assessee did not file original Memorandum of Association before the ld. CIT(E). However, it is equally true that certified copies were filed with the ld. CIT(E).

9.

In the interest of justice and fair play, we restore the issues to the file of the ld. CIT(E). The assessee is directed to furnish the original documents for verification and the ld. CIT(E) is directed to examine the same and decide the issue as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee.

10.

In the result, the appeal filed by the assessee in is treated as allowed for statistical purposes.

The order is pronounced in the open court on 01.01.2020.

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