GHAZIABAD CHRISTIAN SOCIETY,GHAZIABAD vs. CIT (EXEMPTIONS), LUCKNOW

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ITA 950/DEL/2016Status: DisposedITAT Delhi21 September 20172 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal set aside the CIT(Exemptions)'s order and restored the issue back to the CIT(Exemptions). The assessee was directed to produce all requested books, vouchers, and documents to prove the genuineness of its activities.

What were the facts?

The assessee's application for registration under Section 12A(a) was rejected by the CIT(Exemptions) because it failed to produce its books of accounts and vouchers. The CIT(Exemptions) needed these documents to verify the genuineness of the society's activities.

What were the issues?

Whether the CIT(Exemptions) was justified in rejecting the registration application solely on the non-production of books and vouchers, and whether the assessee should be given another opportunity to produce the required documents.

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, DELHI BENCHES ‘B’ DELHI

Before: SHRI P.K.BANSAL & SH. AMIT SHUKLA

Hearing: 21.09.2017Pronounced: 21.09.2017

PER P.K.BANSAL, VICE PRESIDENT This appeal filed by the assessee against the order dated 11.01.2016 of the CIT(Exemptions), Lucknow. The CIT(Exemptions) has rejected the application of the assessee seeking registration u/s 12A(a) of the Income Tax Act, 1961.

2.

After hearing the rival submissions and going through the order of the CIT(Exemptions), we noted that the CIT(Exemptions) has rejected the application of the assessee as the assessee could not produce the books of accounts and vouchers. In the absence of the production of the books and vouchers, the CIT(Exemptions) was not in a position to look into the genuineness of the activities carried out by the assessee’s society. In our view, for granting the registration u/s 12A(a), it is necessary by the CIT(Exemptions) be satisfied about the genuineness of the activities and the object of the assessee’s society for ascertaining the genuineness of the activities carried out by the assessee. The CIT(Exemptions) is within his power to call for the books of accounts as well as the vouchers. We, therefore, in the interest of justice and fair play to both the parties, set aside the order of the CIT(Exemptions) and restore the issue to the CIT(Exemptions). The assessee is directed to produce all the books of accounts, the vouchers and the documents whatever are desired by the CIT(Exemptions) for the purpose of proving the genuineness of the activities carried out by the assessee’s society. The CIT(Exemptions) is also directed to look into the books of accounts and the vouchers and give a concrete finding in case he rejects the application of the assessee by way of passing a speaking order. How the activities carried out by the assessee’s society are not genuine and not in accordance with the objects of the society. Thus, the appeal of the assessee is statistically allowed.

3.

In the result, the appeal filed by the assessee is statistically allowed.

The order is pronounced in the open court on 21 September, 2017.

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