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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI A.D. JAIN & DR. MITHA LAL MEENA
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:
This appeal is preferred by the assessee against the order of
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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Aggrieved, the assessee has preferred this appeal before
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.
Ld. DR on the other hand, placed strong reliance on the
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).
Having carefully examined the order of CIT(Exemptions) and
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.
In the result, appeal of the assessee stands allowed for statistical purposes.
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.