DURGAMATAR SEBAIT NAMOPARA,BURDWAN vs. ITO, WARD - 2(1), ASANSOL, ASANSOL

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ITA 1694/KOL/2017Status: DisposedITAT Kolkata25 July 20183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemption) passed a cryptic order, failing to follow the procedure laid down in Section 12AA of the Act. The order lacked satisfaction regarding the trust's objects and genuineness of activities.

What were the facts?

The assessee filed an application for registration under Section 12A of the Income Tax Act. The CIT(Exemption) rejected the application without providing cogent reasons or recording satisfaction about the trust's objects and activities.

What were the issues?

Whether the CIT(Exemption) followed the prescribed procedure under Section 12AA while rejecting the application for registration under Section 12A. Whether the order passed by the CIT(Exemption) was speaking and well-reasoned.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “D”, KOLKATA

Hearing: 25.07.2018Pronounced: 25.07.2018

This appeal filed by the assessee is directed against the order of Ld. CIT(Exemption), Kolkata dated 12.05.2017 rejecting the application of the assessee for registration u/s 12A of the Income Tax Act, 1961 (in short “Act”).

2.

At the time of hearing fixed today, none has appeared on behalf of the assessee. This appeal of the assessee is therefore being disposed of ex-parte after hearing the arguments of Ld. DR and perusing the material available on record. It is observed that the application filed by the assessee for registration u/s 12A has been rejected by Ld.CIT(Exemption) after recording the following observations in his impugned order:-

“M/s. Durgamatar Sebait Namopara came into existence vide Deed of Trust “dated 31.12.2006. The aforesaid Trust filed an application in From 10A for approval for registration u/s 12A of the Income Tax Act, 1961 on 27.01.2017. The hearing was attended by Shri Ajay Roy (Secretary) & Shri Chandan Roy (Treasurer). During hearing dated 03.05.2017, specific questions were asked regarding why the Trust needs registration u/s 12A. The case was discussed with Shri Ajay Roy (Secretary) & Shri Chandan Roy (Treasurer). After the discussions, I am of the opinion that this is not a fit case for registration u/s 12A of the Income tax Act.

Because of the reasons mentioned above, the application for registration u/s 12A is rejected.”

3.

A perusal of the observations recorded by Ld.CIT(Exemption) clearly shows that he has passed a very cryptic order without giving any cogent or convincing reason for rejecting the application of the assessee u/s 12A of the Act. As per the procedure laid down in section 12AA of the Act, he is required to pass an order in writing granting or refusing the registration u/s 12A to the trust or institution after satisfying himself about the objects of the trust or institution and genuineness of its activities. In the impugned order passed in the present case, Ld.CIT(Exemption) however has not recorded any satisfaction or otherwise about the objects of the trust or institution or the genuineness of its activities. The impugned order passed by Ld.CIT(Exemption) thus is not in consonance with the procedure laid down in section 12AA of the Act and this position clearly evident from the impugned order is not disputed even by the Ld.CIT DR. He has urged that the matter may be sent back to Ld.CIT(Exemption) for passing a speaking and well-reasoned order in accordance with section 12AA. We accordingly set aside the impugned order of Ld.CIT(Exemption) and remit the matter back to him for disposing of the application of the assessee for registration u/s 12A of the Act afresh by passing a well-reasoned and speaking order in accordance with section 12AA of the Act after giving the assessee proper and sufficient opportunity of being heard.

4.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the open court on 25.07.2018.

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