Income Tax Appellate Tribunal - Lucknow
Shri Ram Swaroop Memorial Educational ... vs Commissioner Of Income Tax ... on 10 May, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
LUCKNOW BENCH"B", LUCKNOW
BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER
AND SHRI PARTHA SARATHI CHAUDHURY,JUDICIAL MEMBER
ITA No.313/LKW/2017
Assessment Year: N.A.
Shri Ram Swaroop Memorial v. CIT (Exemption)
Educational Trust Lucknow
A-12, Nirala Nagar
Lucknow
TAN/PAN:AANTS9311B
(Appellant) (Respondent)
Appellant by: Shri Ashish Kapoor, C.A.
Respondent by: Shri J.S. Minhas, D.R.
Date of hearing: 10 05 2018
Date of pronouncement: 10 05 2018
ORDER
PER PARTHA SARATHI CHAUDHURY, J.M:
This appeal preferred by the assessee emanates from the order of the ld. Commissioner of Income-tax (Exemptions), Lucknow dated 12/4/2017 denying registration under section 12AA of the Act for which an application before him was made by the assessee.
2. At the time of hearing before us, the ld. A.R. of the assessee apprised of the objects of the trust and in the paper book has filed copy of the trust deed wherein objects of the trust are written. The ld. A.R. of the assessee vehemently argued that the objects are only to provide education to the children and more so to the target group those who are capable to study but are unable to do so because of lack of finance. The main objective, as stated by the ld. A.R. of the assessee, which is ITA No.313/LKW/2017Page 2 of 3 described in the objects of the trust that education to be imparted to the children of the society in order that lack of funds should not be hindrance in the way of education. The ld. A.R. of the assessee further submitted that the ld. Commissioner of Income-tax (Exemptions) rejected their application not questioning the charitable objects of the trust but that activities undertaken by the trust were not charitable in nature. Administrative expenses like paying salary to staff, who are working for the Trust, cannot be an activity which is not charitable. These expenses are working expenses which cannot be avoided by the Trust. Therefore, the objects being charitable, registration under section 12AA ought to have been granted to the assessee-trust.
3. The ld. D.R., on the other hand, relied upon the order of the ld. Commissioner of Income-tax (Exemptions).
4. We have perused the case records, heard the rival contentions and the chronology of events of proceedings before the ld. Commissioner of Income-tax (Exemptions), as appearing in his order, are that an application for registration under section 12AA was filed by the applicant-assessee on 4/10/2016. Once application was filed, trust was given an opportunity to be heard through letter dated 17/3/20127 sent to the applicant-trust calling for specific queries regarding its application and to comply on 3/4/2017. On that date i.e. 3/4/2017 the ld. A.R. of the assessee had appeared on behalf of the assessee and had sought for adjournment for 11/4/2017. On that date i.e. 11/4/2017 the ld. A.R. of the assessee appeared and filed a letter, however, no activity of charitable nature could be deciphered from the material available on record. These are the main findings of the ld. Commissioner of Income- tax (Exemptions). From the record it is evident that effectively only two opportunities were provided to the assessee to put forth its case before ITA No.313/LKW/2017Page 3 of 3 the ld. Commissioner of Income-tax (Exemptions), firstly on 3/4/2017 and secondly on 11/4/2017. Thereafter order was passed on 12/4/2017. On totality, assessee was not provided sufficient opportunity to present its case before the ld. Commissioner of Income-tax (Exemptions). When the assessee is filing an application under section 12AA, it wants exemption under section 11 once registration is granted. Thus matter of exemption flows from registration under section 12AA of the Act. Therefore, proceedings cannot be summarily disposed of. In the interest of justice, we feel another opportunity should be given to the assessee and accordingly we are of the considered view and we hold that order of ld. Commissioner of Income-tax (Exemptions) is set aside and matter is restored back to his file to provide another opportunity to the assessee and pass fresh order after adjudicating the case and providing opportunity of hearing to the assessee.
5. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 10/05/2018.
Sd/- Sd/-
[T.S. KAPOOR] [PARTHA SARATHI CHAUDHURY]
ACCOUNTANT MEMBER JUDICIAL MEMBER
DATED: 10th May, 2018
JJ:1005
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR