Income Tax Appellate Tribunal - Chandigarh
M/S Bhai Ghanaiya Ji Care Services & ... vs Cit(E), Chandigarh on 28 November, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH'A', CHANDIGARH
BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER
AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER
ITA Nos.1136/Chd/2017
(Assessment Year : 2016-17)
M/s Bhai Ghanaiya Ji Care Vs. The CI T
Services & welfare Society Chandigarh
Ranbirpura, Bhakhra enclave
Patial a
PAN: AADAB5243J
(Appellant) (Respondent)
Assessee by : Shri Parikshit Aggarw al
Departm ent by : Shri Gulshan Raj
Date of hearing : 15.11.2017
Date of Pronouncement : 28/11/2017
O R D E R
PER DR. B.R.R. KUMAR, A.M. :
The present appeal has been filed by the Assessee against the order of Ld. CIT(Exemption)Chandigarh dt. 30/06/2017.
2. The Assessee has raised the following grounds of appeal:
1. That on the facts, circumstances and legal position of the case, the Worthy CIT has erred in passing that order in contravention of the provisions of Section 12AA of the Income Tax Act, 1961.
2. That on the facts, circumstances and legal position of the case, the Worthy CIT has erred in rejecting the application of the appellant trust for grant of registration u/s 12AA of the Act on incorrect allegation of infractions in the financial statements of the applicant and more-so when no defect was found in the memorandum, aims and objects of the society and more importantly in the genuineness of activities of the society.
3. That on the facts, circumstances and legal position of the case, the Worthy CIT has erred in rejecting the application of the appellant trust for grant of registration u/s 12AA of the Act on incorrect allegation of infractions in the financial statements of the applicant even when the said exercise was beyond the powers of the respondent.
4. That on the facts, circumstances and legal position of the case and in law, the impugned order deserves to be quashed, as no reasonable opportunity of being heard u/s 12AA was granted by the respondent.
3. Brief facts of the case are that an application in Form No. 10A was received by the CIT(E) on 02.12.2016 seeking registration u/s 12 AA of the Income Tax Act, 1961. The application reveals that the society is an ongoing entity that has been in operation since 09.10.2015.
4. The stated aims and objects of the society are to bring all the peoples on one platform, so as to resolve their problems of day to day routine life and welfare activity for community; to find out the solutions of the problems faced by die general public; to organize free medical camp, eye camp etc. for the needy persons; to arrange de-addiction camps and to inform the young bloods regarding tire negative consequences of Narcotic Addictions; to take the responsibilities regarding to resolve any type of problem as arise with the peoples; to help in providing basic amenities to its residents viz. Street Lights, Roads Parks, School, Shopping Centre, community centre etc.; to enure employment to the unemployed persons who submit their complete resume with the society to earn their livelihood; to help' for safety & security to the general society; it will be a totally a non-political but social society.
5. Various details were obtained in order to grant exemption under section 12AA by the Ld. CIT(E). The hearing was accorded on 05/06/2017 the assessee was requested to file details on 13/06/2017. As per the records the President of the society attended and filed written replies for the queries raised.
6. The assessee was further requested to submit copy of bank statement and evidence in support of its charitable activity and the same was required to be submitted on 16.06.2017. The assessee attended the hearing on 15/06/2017 and further queries were raised which were to be replied by 19/06/2017. On the said date the assessee could not attend the hearing.
7. Ld. CIT(E) refused the registration under section 12AA on the grounds that
a) The assessee did not attend the hearing on 19/06/2017 i.e; three days after the hearing held on 15/06/2017
b) The copies of the income & expenditure account shown different gross receipts i.e; Rs. 1,92,551/- and Rs. 1,93,551/- (precisely to be a difference of Rs. 1,000/-)
c) In the income & expenditure statement there is a net deficit of Rs. 1522/- and the other net surplus of Rs. 12648/-.
8. Before us, the assessee submitted that he could not attend the hearing because of bonafide reasons and preparation of the answers for the queries was under way and the reply to the queries was filed on 19/06/2017.
9. Before us, the Ld. AR submitted that in all probability reply of the assessee could not be perused which led to rejection of registration under section 12AA. The Ld. AR requested for opportunity of being heard before rejection of the registration.
10. The Ld. DR argued that sufficient opportunities were given to the assessee hence no need to accord another opportunity.
11. We have gone through the entire material before us and the timelines of the hearings held. We feel that the assessee could not get adequate time to represent themselves properly before the Ld. CIT(E). Hence the case is being disposed off with the directions that another opportunity be given to the assessee to represent their case. We also direct the assessee to promptly attend the hearings without delaying the proceedings from that side.
12. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court.
Sd/- Sd/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated :28/11/2017 AG Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR