M/S AGGARWAL EDUCATION & WELFARE SOCIETY,SANGRUR vs. CIT(E), CHANDIGARH

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ITA 1537/CHANDI/2017Status: DisposedITAT Chandigarh16 May 20183 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(E)'s order dismissing the application for registration. However, it clarified that the CIT(E)'s observations on the genuineness of activities would not prejudice any fresh application.

What were the facts?

The assessee applied for registration under Section 12AA. The CIT(E) rejected the application, stating the assessee failed to justify its claim for exemption. However, the assessee had previously requested to withdraw the application.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application when the assessee had sought withdrawal, and whether the CIT(E)'s observations on the merits should be binding on future applications.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH

Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA

Hearing: 16.05.2018Pronounced: 16.05.2018

Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 31.08.2017 of the Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as CIT(E)] against rejection of the application of the assessee for registration u/s 12AA of the Income-tax Act, 1961 (in short 'the Act')..

2.

Though, the Ld. Counsel for the assessee has submitted that while rejecting the application, the Ld. CIT (E) has not considered the evidences furnished by the assessee and that the findings arrived at by the Ld. CIT(E) are factually wrong, however, the perusal of the

ITA No.1537/Chd/2017- M/s Aggarwal Education & Welfare Society, Sangrur 2

order of the CIT (E) reveals that an e-mail from Shri Naresh Jindal,

C.A. the authorised representative of the assessee had been received

in his office on 29.8.2012, with attached letter 22.8.2017, vide

which it has been stated that due to some personal / unavoidable

reasons the assessee wants to withdraw the application. The Ld.

CIT (E), however, further continued to discuss the factual aspects of

the case and held that the assessee had not been able to justify its

claim of exemption.

3.

Now, the Ld. Counsel for the assessee has submitted that the

Ld. CIT(E) while deciding the appeal had not given proper

opportunity to the assessee to present its case. We are not convinced

with the above arguments of the Ld. Counsel for the assessee. When

the representative of the assessee had already requested to the Ld.

CIT(E) that he did not want to continue with its application for

registration and sought withdrawal of the application, neither there

was any justification on the part of the CIT (E) to continue to

examine the facts of the case and arrive at a finding that assessee

could not establish a case nor there is any justification on the part of

the assessee to say that it may be given an opportunity to prove its

case.

4.

In view of this, the order of the CIT (E) dismissing the appeal

of the assessee is upheld, however, with the direction that any

observation made by the CIT (E) regarding the genuineness of the

activities of the assessee will not have any bearing. The assessee

will be at liberty to move a fresh application for registration to the

ITA No.1537/Chd/2017- M/s Aggarwal Education & Welfare Society, Sangrur 3

CIT(E) if it so wish to do so, and in that event the Ld. CIT(E) will decide the matter afresh uninfluenced of any findings given in the impugned order of the CIT(E). Subject to above observations, the appeal of the assessee is hereby dismissed. Order pronounced in the Open Court

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 16.05.2018 Rkk Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR

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