SH. RAM KRISHAN ADARSH SEWA SAMITI,MATHURA vs. C.I.T.,(EXEMPTIONS), LUCKNOW

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA

BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER

ITA No. 23 /AGR/2016 N.A. (Shri) Ram Krishan Adarsh CIT(Exemption) Sewa Samiti, A-29, Teacher’s Vs. Aaykar Bhawan, Colony, Maholi Road, Lucknow Mathura. PAN AAEAS 4361 D APPELLANT RESPONDENT

Appellant by: Shri Anurag Sinha, Advocate Respondent by: Shri Inderjeet Singh, CIT DR

Date of hearing: 14/09/2017 Date of Pronouncement: 26/09/2017 ORDER

PER, DR. MITHA LAL MEENA, AM:

the CIT(Exemptions), dated 10.12.2015 Lucknow denying the

registration u/s 80G(5)(vi) of the Income Tax Act, 1961 (hereinafter called as ‘Act’) having observed that assessee has not produced any

evidence regarding claim of charitable activities and mostly

transactions have been made in cash by the assessee and therefore

it is difficult to verify the genuineness.

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the Tribunal. Vide grounds no.2 & 3, assessee submitted that the

registration has been denied without affording due and reasonable

opportunity of hearing as the impugned order have been passed on

the same day on which the case was fixed for hearing which is direct conflict with the decision of Hon’ble Madras High Cour in the

case of SCIL Capital India Pvt. Ltd. vs. DCIT reported in 83 ITR

0683 (Mad.). The impugned order is misdirected in as much as the

finding recorded by learned 'CIT' that the 'applicant didn't carry any

charitable or religious activity.

impugned order contending that the CIT(Exemptions) has

specifically recorded in his order that assessee has not produced

any evidence regarding claim of charitable activities and that mostly

transactions have been made in cash by the applicant society and

hence it is difficult to verify the genuineness of charitable activities

Ld. DR supported the order of the CIT(Exemptions).

in the light of rival submission, we find that the CIT(Exemptions)

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has failed to grant adequate opportunity of being heard to the assessee to come to decision of rejection of assessee’s application.

It is noted that sufficient opportunity of being heard was not

allowed to the assessee for filing necessary documents by

CIT(Exemptions). It is evident that in compliance to the notice

dated 19.03.2015, the AR for the assessee society appeared and

filed the written submission as placed on record. The

CIT(Exemptions) has every right to examine all the necessary

documents etc. before grant of approval u/s 80G(5)(vi) of the Act.

However, the CIT(Exemptions) Lucknow has not issued a show

cause notice in respect of rejection of application of assessee u/s

80G(5)(vi) of the Act.

Following the case law of Hon’ble Madras High Court in the 5.

case of SCIL Capital India Pvt. Ltd. vs. DCIT (Supra), we set aside

the order of the CIT(Exemptions) and restore the matter to his file

with a direction to readjudicate the issue afresh for grant of

approval u/s 80G(5)(vi) of the Act after affording opportunity of

being heard to the assessee. We also direct the assessee to

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produce all the necessary document before the CIT(Exemptions) on

the date fixed for hearing and cooperate in the fresh proceeding.

Order pronounced, in the open Court on 26/09/2017.

Sd/- Sd/- (A. D. JAIN) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:26/09/2017 Aks Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

5 ITA No. 23 /AGR/2016

Date 1. Draft dictated (DNS) 18.09.2017 PS 2. Draft placed before author 18.09.2017 PS 3. Draft proposed & placed before the second member JM/AM 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS PS/PS 6. Kept for pronouncement on 26.09.2017 PS 7. File sent to the Bench Clerk PS 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order.