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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI
Before: SMT. DIVA SINGH & SH. O.P. KANT
Appellant by None Respondent by Sh. Sunil Chander Sharma, CIT (DR) Date of hearing 06.01.2016 Date of pronouncement 10.02.2016 ORDER PER O.P. KANT, A.M.: This appeal of the assessee is directed against the order dated 23.12.2013 of the Director of Income Tax (Exemption), New Delhi, passed under Section 12AA(1)(b) r.w.s. 12A of the Income-tax Act, 1961 (for short “the Act”) rejecting the registration of the trust under Section 12A of the Act. The grounds of appeal raised by the assessee are as under:
1. On the facts and circumstances of the case, the order passed by the learned Director of Income Tax (Exemption) [DIT(E)] is bad both in the eye of law and on facts.
2. That learned DIT(E) is not legally correct and proper in rejecting the application of the assessee for grant of registration under Section 12A & 80G of the Income Tax Act, 1961. The conclusion of the DIT(E) for rejection is not put to appellant at the time of hearing. Had the learned authority asked, his misapprehension would have been cleared. No proper opportunity was given to the appellant. The order is biased.
On the facts and circumstances of the case, the learned DIT(E) has erred both on facts and in law in contemplating that the appellant does not fulfill the conditions laid down for grant of registration u/s 12A & 80G despite the same being complete and was in compliance to the provisions of the Act. 4. On the facts and circumstances of the case, the learned DIT(E) has erred both on facts and in law in holding that the assessee failed to justify its claim despite the facts and explanations, submissions and evidences places on record to justify the same. 5. The appellant craves to leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal
at the time of or before the hearing of the appeal.
2. The facts in brief are that the assessee trust filed application for registration under Section 12A of the Act as well as for exemption under Section 80G of the Act before the Director of Income Tax (Exemption), New Delhi, but due to failure on account of assessee trust to file the necessary documents in support of the conditions laid down under the provisions of Section 12A and 80G of the Act, the Director of Income Tax (Exemption) rejected the application of the assessee. Aggrieved, the assessee is before us.
3. On the date of hearing, the application for adjournment of hearing was filed by authorized signatory of the assessee trust on the ground that the Authorized Representative of the assessee was out of the town for personal commitments. The adjournment application filed by the assessee was rejected and the case was heard in presence of learned CIT (DR) only, who relied on the order of the Director of Income Tax (Exemption).
We have heard the learned CIT(DR) and perused the material on record. We find from the order of the learned Director of Income Tax (Exemption) that the assessee failed to file necessary documentary evidence in support of the charitable activities of the assessee trust and, therefore, the applications of the assessee seeking registration under section 12A and exemption under Section 18G of the Act were rejected. The relevant paragraph of order of Director of Income Tax (Exemption), New Delhi is reproduced as under: “4. In the absence of any documentary evidence in support of the charitable activities of the applicant, satisfaction regarding the “genuineness of the activities” of the applicant as stipulated in Section 12AA(1)(b) of the Act can’t be arrived at. Therefore, it is not possible to ascertain as to whether the applicant is satisfying the above conditions.
5. In view of above facts, it is held that the applicant did not fulfill the conditions laid down for grant of registration u/s 12A of the I.T. Act. Accordingly, the application field by the applicant for grant of registration u/s 12A is hereby rejected.”
As we observed that the assessee could not produce the necessary document in support of the charitable activity and it was not possible for the Director of Income Tax (Exemption) to ascertain as to whether the assessee was satisfying the conditions stipulated in Section 12A of the Act. Therefore, in the interest of justice, we feel it appropriate to restore the matter back to the file of the Director of Income Tax (Exemption) to decide the issue afresh and the assessee is directed to produce all the necessary documentary evidences in support of the conditions of Section 12A and 80G of the Act. Accordingly, the grounds of the appeal are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. The decision is pronounced in the open court on 10th February, 2016.