BEHALA SRIJAN,KOLKATA vs. CIT (EXEMPTION), KOLKATA, KOLKATA

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ITA 923/KOL/2018Status: DisposedITAT Kolkata05 July 20182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order, remanding the matter back for fresh adjudication. The assessee was granted an opportunity to produce the required documents.

What were the facts?

The assessee society applied for registration under Section 12AA of the Income-tax Act, 1961. The CIT(E) rejected the application ex parte for non-compliance with directions to submit documents.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application ex parte without affording a reasonable opportunity to the assessee to produce documents.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Hearing: 28.06.2018Pronounced: 05.07.2018

ORDER

Per Shri A.T.Varkey, JM

1.

The appeal filed by the assessee society against the order of Ld. CIT(E), Kolkata dated 17.10.2017 rejecting the registration u/s. 12AA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).

2.

The sole issue involved in this appeal of assessee society is against the order of Ld. CIT(E) in rejecting the registration u/s. 12AA of the Act. We note that the assessee society got registration certificate dated 14.05.2012 and had filed an application in Form 10A for registration u/s. 12AA of the Act on 15.05.2017. The Ld. CIT(E) notes that the case was fixed for hearing on 14.08.2017 and Shri Subhasis Saha (Member) attended the hearing. The Ld. CIT(E) notes that the hearing was adjourned to 13.10.2017 for the society to submit certified copies of Memorandum and Regulation of the society, complete bank statement, income tax return for AYs 2016-17, 2017-18 and financial statements. According to Ld. CIT(E), as the society did not comply to the direction and since it failed to reply, the Ld. CIT(E) passed the order ex parte. Before us, Ms. Nabnita Banerjee the Secretary of the society was present and she undertook before us that they will produce the Memorandum of Association and financial statement before the Ld. CIT(E) if an opportunity is given to her.

2 Behala Srijan. It was also brought to our notice that the non supply of document was not willful and they are willing to cooperate. In such a scenario, since it is an ex parte order passed by the Ld. CIT(E) for want of documents, it would be in the interest of justice and fair play that the assessee society should be given an opportunity to produce the documents as called for by the Ld. CIT(E) to grant registration u/s. 12AA of the Act. We, therefore, set aside the order of Ld. CIT(E) and restore the matter back to his file for fresh adjudication after affording reasonable opportunity of hearing to the assessee. Before we part, the Ld. CIT(E) has to keep in mind that at the time of grant of registration u/s. 12AA of the Act, the Ld. CIT(E)’s jurisdiction is only to verify the objects of the Institution/Trust and look into the genuineness of the activities, meaning thereby that he has to satisfy himself that the objects are charitable in nature and the activities being carried on or to be carried on are genuine, meaning thereby that they are in consonance for achieving the charitable object and nothing else. The Ld. CIT(E) while discharging his duty for grant of registration u/s. 12AA of the Act has to restrict himself in the field which we have stated above. Therefore, appeal of assessee is allowed for statistical purposes.

3.

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

Order is pronounced in the open court on 05/07/2018.

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