M/S. KHETRAPAL CHARITABLE & EDUCATION TRUST,GURGAON vs. CIT, FARIDABAD

This appeal is filed by the Assessee against the order of Commissioner of Income Tax -Faridabad, dated 29.09.2014 for Assessment Year 2014-15 on the following grounds:-

ITA No.-6461/Del/2014. Khetrapal Charitable & Education Trust.

2. On the facts and circumstances of case, the learned CIT has erred both on facts and in law in rejecting the application of the assessee for grant of registration under section 12A of the Income Tax Act, 1961.

3. On the facts and circumstances of the case, th earned CIT has erred both on facts and in law in rejecting the application of the assessee for grant of registration under section 12A of the Income Tax Act, 1961 without giving it a proper and adequate opportunity of being heard is clear violation of principle of natural justice. 4. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in rejecting the application of the assessee for registration under section 12A despite the same being complete and was in compliance to the provisions of the Act. 5. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in commenting on various issues which are in the domain of the A.O. while granting exemption under section 11 of the Act, ignoring the fact that the CIT, while granting registration has to confine himself as to the charitable nature of objectives and genuineness of activities only. 6. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in holding the aims and objects of the society not being charitable in nature. 7. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in holding the activities conducted by the assessee as not being genuine, despite the assessee bringing all the material and evidence on record to prove the same. 8. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in rejecting the registration under section 12A of the Act holding that the activities of the trust are not yet commenced, ignoring the fact that the CIT , while granting registration has to confine himself as to the charitable nature of objectives and genuineness of activities only. 9. That the appellant craves leave to add, amend or alter any of the grounds of appeal.

ITA No.-6461/Del/2014. Khetrapal Charitable & Education Trust. order to verify, if the conditions necessary for registration u/s 12A were met, letter dated 22.07.2014 asking certain information / details / copies of documents, was issued to the Society by the Commissioner of Income Tax, Faridabad and the case was fixed for hearing. On the date of hearing, Chartered Accountant who is a member & president of the society and a Practicing Chartered Accountant appeared in capacity of Authorized Representative of the Society. The case was partially discussed in regarding the Aims & Objects of the applicant society as well as the activities undertaken so far, by the applicant society. On change of incumbent, it was noted that the case was getting time barred on 30.09.2014. Therefore, to proceed further, a fresh notice was issued vide communication dated 15/17.09.20.14, fixing date of hearing on 22.09.2014. As per the said communication, the applicant society was asked to furnish/produce certain information/documents including the following:-

(i) Books of Accounts alongwith Bills/vouchers (form beginning i.e. 31.05.2013) for verification.

(ii) A copy of proceedings/minutes register reordering he minutes of meetings of General body /Governing meetings. Also original (Register) was requested for verification.

(iii) Objectives wise details of Activities carried out.

(iv) Copy of the document regarding ownership of the property in which office of the society is working.

ITA No.-6461/Del/2014. Khetrapal Charitable & Education Trust.

The Commissioner of Income Tax, Faridabad vide order dated 29.09.2014 passed order u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 and held that the applicant society failed to discharge its onus in terms of producing material to substantiate its claim that society’s aims/objects and terms of memorandum are of the charitable nature and the same are being followed. The Commissioner of Income Tax, Faridabad further held that the applicant society failed to discharge its onus to produce concrete evidence to show the genuineness of the activities of the society. Consequently, the Commissioner of Income Tax rejected the application for the registration u/s 12AA of the Act and refused the registration u/s 12AA(1)(b)(ii) of the Act.

ITA No.-6461/Del/2014. Khetrapal Charitable & Education Trust. in the interest of justice to remand back this matter to the file of the Commissioner of Income Tax, Faridabad for taking on record the relevant documents which were called by the Commissioner of Income Tax and then pass appropriate order as regards whether to grant registration u/s 12AA(1)(b)(ii) of the Act or not. Needless to say, the appellant society be given opportunity of hearing by following principles of natural justice. Hence, appeal of the appellant society is partly allowed for statistical purpose.

Order pronounced in the open court on 01/01/2019.