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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM
O R D E R
Per Arun Khodpia, AM :
This appeal is filed by the assessee against the order passed by the ld. CIT(E), Bhopal, dated 29.04.2019 for the assessment year 2019-2020, on the following grounds :-
1. In facts and circumstances of the case and in law the Id. Commissioner of Income-tax Exemptions, Bhopal is not justified in rejecting the application seeking registration u/s.l2AA of the Income-tax Act, 1961 and refusing registration sought u/s 12AA of the Act ignoring the fact that the appellant is engaged in carrying out the charitable activity as per the objects of the institution.
2. In the facts and circumstances of the case and in law the Id. Commissioner of Income-tax, Exemption, Bhopal has erred in refusing to register the appellant institution u/s. 12AA of the Income-tax Act, 1961 without giving proper and reasonable opportunity to make compliance, which was sought within one day, and the impugned order is against statutory provisions and the principles of natural justice and illegal.
3. The impugned order is bad in law and on facts.
4. The appellant reserves the right to add, amend, alter, omit or withdraw all or any of the grounds of appeal.
Brief facts of the case are that the assessee is a society registered with the Registrar of Chhattisgarh Society Registration on 09.04.2008 and its main activity is arranging open school examination for class 10th and Class 12th and distant education. The assessee society filed an application for registration u/s.12AA of the Act in Form No.10A on 31.10.2018. The ld. CIT(E) after verifying the documents provided by the assessee-society found that the assessee society is generating substantial surpluses. On examination of accounts of the society, the CIT(E) also found that the assessee-society has given substantial amount of loans and advances. Therefore, the ld. CIT(E) observed that the assessee society is not carrying out any charitable activity for public at large rather it is generating huge surplus by carrying out its activities by running the institution in commercial terms. Accordingly, the ld. CIT(E) rejected the registration u/s.12A of the Act filed by the assessee-society.
Now, the assessee is in further appeal against order of CIT(E). 4 Ld. AR before us submitted that the CIT(E) is not justified in rejecting the application seeking registration u/s.l2AA of the Income-tax Act, 1961 and refusing registration sought u/s 12AA of the Act ignoring the fact that the assessee is engaged in carrying out the charitable activity as per the objects of the institution. It was also submitted by the ld. AR that the ld. CIT(E) has not given proper and reasonable opportunity to make compliance, which was sought within two days, and the impugned order is against statutory provisions without appreciating the facts which the assessee trust could have produced if the reasonable time was made available to it. It was submitted that the act of the Ld CIT(E) was against the principles of natural justice, illegal and, therefore, the impugned order deserves to be dismissed.
On the other hand, ld. CIT-DR relied on the order of ld. CIT(E).
We have heard the rival submissions and perused the record carefully. On perusal of the impugned order, we found that the CIT(E) has provided only one opportunity to the assessee to provide the details as sought for, for which, as per the ld. AR, the assessee could not submit the details within the time. Looking to the above facts and circumstances of the case and in the interest of principle of natural justice, as fairly admitted by both the sides, we set aside the issue to the file of CIT(E) to readjudicate the same after providing adequate opportunity of hearing to the assessee. The assessee is also directed to produce the relevant documents as sought for by the ld. CIT(E) and cooperate with the ld. CIT(E) in early disposal of the appeal 7. In the result, the appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 02/01/2023. Sd/- Sd/- (RAVISH SOOD) (ARUN KHODPIA) न्यानयक सदस्य / JUDICIAL MEMBER लेखा सदस्य / ACCOUNTANT MEMBER रायपुर/Raipur; ददनाांक Dated 02/01/2023 Prakash Kumar Mishra, Sr.P.S.(on tour)