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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
PER SUBHASH MALGURIA, J.M.: The present appeal has been filed by the assessee challenging the impugned order dated 16/08/2016 passed by the learned Commissioner of Income Tax (Exemptions), Lucknow, [“learned CIT(E)”], rejecting the application for registration filed by the assessee under section 12AA of the Income Tax Act, 1961 (“the Act”), for the assessment year N.A.
In this appeal, the assessee has raised the following grounds: -
1.That learned Commissioner of Income Tax (Exemption), Lucknow erred in facts and in law in rejecting the application for registration under section 12AA of the Income Tax Act, 1961.
2. That learned Commissioner of Income Tax (Exemption), Lucknow erred in facts and in law by ignoring the Charitable objects of the applicant Trust and rejected the application on the ground of non- conduct activities, which would occur in future in due course of time.
1. 3. That learned Commissioner of Income Tax (Exemption), Lucknow erred in facts and in law by trying to assess the genuineness of the activity of a new established trust which is in the process of establishing its activities in line with its charitable objects.
4. That learned Commissioner of Income Tax (Exemption), Lucknow erred in facts and in law by ignoring the books of accounts, bills and voucher furnished along with submission made in compliance to his letter No.F/No. Commissioner of Income Tax (Exemp)./LKO/12A/.2016-17/2008 dated 13/06/2016, on the date of hearing on 18/07/2016.”
None has appeared for the assessee despite issuance of notice through RPAD, which notice has not returned unserved. However, the finding that the matter can be decided in the absence of the assessee, we have decided to dispose of the appeal after hearing the Ld. DR and after perusing the materials available on record.
In the course of appellate proceedings in Income Tax Appellate Tribunal (ITAT), the assessee filed paper book containing the following particulars: - Paper Book No. I Paper Book No. II 4 Order dated 16.08.2016 passed by the Commissioner of IV Incoem Tax (Exemptions) rejecting the application for registration u/s 12AA of the Income Tax Act, 1961 in the present case 5 Copy of Index of the Paper Book submitted before the V Hon’ble ITAT Bench on 28.10.2016 for the present case.
At the time of hearing before us, in the absence of any representation from the assessee’s side, we have heard the Ld. CIT-DR for revenue. He relied on the order passed by the Ld. CIT(E).
On perusal of the impugned order dated 16/08/2016 of the Ld. CIT(E), we find that the Ld. CIT(E) rejected the application, alleging that the applicant failed to provide corroborating evidences leading to the satisfaction regarding genuineness of the charitable activities of the applicant. However, we find on perusal of the order of the Ld. CIT(E) that there is no mention of what books of accounts and what kind of supporting material were called for by the Ld. CIT(E). And also on perusal of the materials on record, we are of the view that the material on record are not sufficient for us to come at conclusion that the assessee’s activities are, in fact, genuine. Therefore, we are of the view that Page 4 of 5 in this case further inquiry is required to establish the genuineness of the charitable activities of the assessee. In view of the foregoing and in the specific facts and circumstances of the present appeal before us, we set aside the impugned appellate order of the Ld. CIT(E) dated 16/08/2016; and we direct the Ld. CIT(E) to pass denovo order after due verification of fact and after reasonable opportunity to the applicant/assessee. This appeal is disposed off in accordance with aforesaid direction.
In the result, the appeal of the assessee is partly allowed for statistical purposes.
Order pronounced in the open Court on 19/09/2024.