GURUNANAK CHARITABLE EDUCATIONAL TRUST,,BIJNOR vs. CIT(EXEMPTION), LUCKNOW

This appeal by assessee has been directed against the order of Ld. CIT(Exemptions), Lucknow, dated 24.02.2016 rejecting the application u/s 12AA of the IT Act.

Briefly the facts of the case are that the assessee society filed application for registration u/s 12AA of the IT Act. Ld. CIT(Exemption) issued notice for disposal of the application for registration. It was adjourned on the request of the assessee’s counsel. On 24.02.2016 some documents were filed by the representative of the assessee having no power of attorney. Ld. CIT(Exemptions) in the absence of representation from the side of the assessee discussed the issue on merit and found that the books of account and other details have not been filed for his consideration. Therefore, genuineness of the activities of the assessee society could not be verified. The application was accordingly rejected. 3. After considering the submission of Ld. DR, we are of the view the matter requires re-consideration at the level of the Ld. CIT(Exemptions). Ld. CIT (Exemptions) noted that on the last date of hearing on 24.02.2016 some documents have been filed by representative of the assessee having no power of attorney. Since, the books account and other documents were not filed, therefore, Ld. CIT(E) was of the view that genuineness of the activities could not be verified. If representative of the assessee was having no authority to appear before Ld. CIT(E), the interest of justice requires that notice be given to the assessee to appear before himself and to produce the books of account and other records in order to satisfy the requirement of law. Merely because the representative of the assessee was holding no power of attorney may not be reason to reject application for registration. Ld. CIT(E) also noted that assessee society is not carrying out charitable activity. In that event only the objects have to be examined and considered if it is at the stage of establishment and formation. 4. Ld. DR stated that matter could be remanded to the Ld. CIT (Exemption) for reconsideration. 5. In view of the above, discussion, we set aside the impugned order and restored the appeal of assessee to the file of Ld. CIT(Exemption)- Lucknow, with direction to re-decide the registration application in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. Assessee is directed to cooperate with Ld. CIT(Exemption) and produce entire evidence for his satisfaction for disposal of the matter. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 20.11.2017. Sd/- Sd/- (L. P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Date: 20.11.2017