Income Tax Appellate Tribunal - Agra
Sh. Ram Krishan Adarsh Sewa Samiti, ... vs C.I.T.,(Exemptions), Lucknow on 26 September, 2017
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:
1. 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.2
ITA No. 23 /AGR/2016
2. 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.
3. 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).
4. Having carefully examined the order of CIT(Exemptions) and in the light of rival submission, we find that the CIT(Exemptions) 3 ITA No. 23 /AGR/2016 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.
5. Following the case law of Hon'ble Madras High Court in the 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 4 ITA No. 23 /AGR/2016 produce all the necessary document before the CIT(Exemptions) on the date fixed for hearing and cooperate in the fresh proceeding.
6. 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.