GOPSAI AVINANDAN SANGHA,PASCHIM MEDINIPUR vs. C.I.T KOLKATA - XIX, KOLKATA

When these appeals came up for hearing the ld. Counsel for the assessee submitted that since the application for registration u/s 12AA of the Act as well as approval u/s 80G(5)(vi) of the Act relate to one and the same assessee he would press for an adjudication of the assessee’s application in Form-10A for registration u/s 12AA of the Act dated 07.01.2013 and the application for grant of approval u./s 80G(5)(vi) of the Act dated 07.01.2013. He therefore prayed that & 2157/Kol/2014 which arise out of the application in Form-10A for grant of registration u/s 12AA dated 28.04.2014 and for grant of approval u/s 80G(5)(vi) of the Act dated 28.04.2014may be dismissed as not pressed. Accordingly ITA Nos.2156 & 2157/Kol/2014 are dismissed as not pressed.

As far as ITA No.2244/Kol/2013 is concerned the facts are that the assessee is a registered society under the Societies Registration Act of the Government of West Bengal duly registered on 14.08.2003. It was created for the purpose of carrying out the charitable purpose of imparting education. The assessee applied for grant of registration u/s 12AA of the Act in Form-10A on 07.01.2013. The assessee also applied for grant of approval u/s 80G(5)(vi) on 07.01.2013. The CIT on perusal of the Memorandum of the Association noticed that there was a clause for dissolution of the association. It has been provided that the society may be dissolved by a resolution to that effect passed by three fourth members of the society at a joint meeting. It was also provided that the said meeting would also decide the manner of disbursing of the funds and assets of the association, if any, after dissolution as per the provisions of the Act. The CIT was of the view that in the event of dissolution of the assessee there was no guarantee that the funds will be applied towards the purpose of charity. The CIT in a letter dated 13.03.2013 called upon the assessee to produce the books of accounts of the society on a hearing held on 06.05.2013. The assessee was asked to appear on 04.06.2013 for verification of the details. On 04.06.2013 none appeared. The CIT ITA Nos.2244 & 2245/Kol/2013& 2156&2157/Kol/2014-Gopsai Avinandan Sangha made a reference to the fact that in a letter dated 09.04.2013 the secretary of the assessee intimated the office of the CIT his inability to produce the books of accounts and related documents for verification. It appears that by a letter dated 24.06.2013 the CIT gave last opportunity for the assessee to appear on 03.07.2013 to its office bearers for verification of books of accounts and other details. It appears that on 03.07.2013 a letter was submitted in the office of CIT but books of accounts were not produced for verification. In these circumstances the CIT came to the conclusion that the assessee failed to satisfactorily explain the genuineness of its activities and therefore the application for registration u/s 12AA of the Act was being rejected. For identical reason the application for grant of approval u/s 80G(5)(vi) of the Act was also rejected.

Aggrieved by the aforesaid orders of CIT the assessee has filed the present appeals before the Tribunal.

We have heard the rival submissions. It was stated by the ld. Counsel for the assessee before us that at the time of filling applications, the Assessee annexed the following documents with duly filled Form No. l0A and Form No. 10G:

Keeping in mind the above submissions and also taking note of the fact that ultimately the eligibility of the assessee for registration u/s 12AA of the Act and approval u/s 80G(5)(vi) of the Act has to be decided on merits rather than on the basis of default by the assessee, we are of the view that the impugned orders of the CIT should be set aside and the issue with regard to the grant of registration u/s 12AA of the Act and the approval u/s 80G(5)(vi) of the Act should be directed to be considered afresh by CIT after affording the assessee opportunity of being heard. The CIT should take into consideration the documents already filed by the assessee and also permit the assessee to produce other documents as may be necessary or called for by the CIT. The CIT will thereafter decide the applications in accordance with law. For statistical purposes the appeals are treated as allowed.

In the result & 2245/Kol/2013 are allowed for statistical purposes. ITA Nos.2156 & 2157/Kol/2014 are dismissed as not pressed. Order pronounced in the open Court on 03.01.2018.