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Income Tax Appellate Tribunal, DELHI BENCH: ‘D’, NEW DELHI
Before: SHRI N.K. BILLAIYA & MS. SUCHITRA KAMBLE
PER: SUCHITRA KAMBLE, JM
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:-
On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (CIT) is bad both in the eye of law and on facts.
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ITA No.-6461/Del/2014. Khetrapal Charitable & Education Trust.
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.
Khetrapal Charitable and Educational Trust, which is a society registered
under the Haryana Registration and Regulation of the Societies Act, 2012 (
Haryana Act No-1 of 2012) on 31.05.2013 with Registration no 710 filed an
application on 11.03.2014 in Form No. 10A for registration of Society under
clause (aa) of sub-section (1) of section 12A of the Income- tax Act, 1961. In Page 2 of 6
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.
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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.
Being aggrieved by the said order dated 29.09.2014, the appellant society filed the present appeal.
During the hearing, the Ld. AR submitted that due to the misunderstanding the Chartered Accountant could not properly represent case and could not file the relevant documents before the Commissioner of Income Tax, Faridabad. The Ld. AR therefore, requested that an opportunity of filing the proper documents as mentioned in the order dated 29.09.2014 be allowed to the appellant society and after hearing the appellant society, the Commissioner of Income Tax, Faridabad can pass the relevant order by following due process of law.
The Ld. DR relied upon the order of the Commissioner of Income Tax, Faridabad.
We have heard both the parties and perused all the relevant records. From the records and the observations made by the Commissioner of Income Tax, Faridabad, it can be seen that the representative of the appellant society could not properly represent the case of the society and did not file the relevant documents. For misrepresentation of the representative of the appellant society, the appellant society should not suffer, therefore, it will be appropriate
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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.
In result, appeal of the appellant society is partly allowed for statistical purpose.
Order pronounced in the open court on 01/01/2019.
Sd/- Sd/- (N.K. BILLAIYA) (SUCHITRA KAMBLE) JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 01.01.2019