ITA NO.4670/Del/2014
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "E", NEW DELHI
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
AND
SHRI J.S. REDDY, ACCOUNTANT MEMBER
I.T.A. No. 4670/DEL/2014
A.Y. : ---------
Mallikarjun School Society, Commissioner of Income
Vill. & PO Aincholi, Pithoragarh, VS. Tax, Haldwani (Camp at
Distt. Pithoragarh, Uttarakhand Dehradun),
(PAN AABTM6832B) Uttarakhand
(APPELLANT) (RESPONDENT)
Assessee by : Sh. K. Sampath, Advocate
Department by : Sh. Gunjan Prasad, CIT(DR)
Date of Hearing : 15-06-2015
Date of Order : 16-06-2015
ORDER
PER H.S. SIDHU : JM
This appeal by the Assessee is directed against the Order of
the Ld. Commissioner of Income Tax, Haldwani (Camp at Dehradun)
dated 23.7.2014 passed u/s. 12AA(1)(b)(i) of the I.T. Act, 1961 and
raised the following ground:-
"That on the facts and in the circumstance of the case
and in law the action of the Ld. CIT in refusing to grant
registration u/s. 12AA of the Income Tax Act, 1961 is
most grossly arbitrary, palpably erroneous and wholly
unjust. It is prayed that this action must be quashed with
directions to grant the registration as sought."
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2. The facts narrated by the Ld. Commissioner of Income Tax,
Haldwani (Camp at Dehradun) are that the assessee-society made
an Application for registration under section 12AA of the I.T. Act,
1961 (hereinafter called "the Act") on 13.1.2014. The Ld. CIT,
Haldwani, examined the contents of the Application and after
providing the opportunity of hearing to the assessee has rejected
the Application by passing this impugned order.
2.1 Ld. CIT, Haldwani has passed the impugned order mainly by
relying upon the order passed by the Chief Commissioner of Income
Tax, Dehradun dated 13.9.2012 wherein Ld. CIT has denied the
approval of the Society under section 10(23C)(vi) of the Act. He has
also relied upon the judgment passed by the Hon'ble Uttarakhand
High Court in the case of M/s Queens Educational Society reported in
177 Taxmann 326.
3. After hearing both the parties, we are of the view that
assessee has filed a Writ Petition against the order dated 13.9.2012
before the Hon'ble Uttrakhand High Court and the same is pending,
as stated by the Ld. CIT, Haldwani in the impugned order. This
finding has also not been controvered by both the parties before us.
Secondly, the judgment of the Hon'ble Uttarakhand High Court
passed in the case of M/s Queens Educational Society reported in
177 taxmann 326 on the basis of which the Ld. CIT, Haldwani has
rejected the Application filed by the assessee u/s. 12A has also
been set aside by the Hon'ble Supreme Court of India in Civil Appeal
NO. 5167 of 2008 in the case of M/s Queen's Educational Society vs.
CIT vide Order dated 16.3.2015 reported in (2015) 55 taxmann.com
255 (SC). No doubt that the Ld. Counsel of the assessee has filed a
small paper book containing pages 1 to 65 in which he has
attached the copy of the Application for registration in Form no. 10A;
letter from AO regarding registration u/s. 12.1.2014; Reply to AO
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dated 20.2.2014; Application for recognition u/s 10(23)(C)(vi) of the
I.T. Act in Form NO. 56D; Reply to letter dated 3.9.2012; Copy of
Affiliation Certificate issued by CBSE; copy of Order u/s., 10(23C)(vi)
dated 13.9.2012; copy of Memorandum of Association; Copy of ITR
and computation of taxable income for AY 2012-13 and copies of
Audit Reports for assessment years 2012-13 to 2014-15. He stated
that once the order relied upon by the CIT, Haldwani has been
cancelled, then the impugned order may be set aside and the
Appeal of the assessee may be allowed and registration u/s. 12AA of
the I.T. Act may be given to the asseessee-society.
3.1 Ld. DR strongly opposed the request of the Ld. Counsel of the
assessee and stated that the issue in dispute may be set aside to
the file of the Ld. CIT, Haldwani to pass a fresh order, keeping in
view of the decision of the Hon'ble Supreme Court of India passed in
the case of Queen's Educational Society vs. CIT (Supra).
4. Keeping in view of the aforesaid discussions and the
documentary evidence filed by the Ld. Counsel of the assessee, we
are of the considered that Ld. CIT, Haldwani has passed the
impugned order on the basis of the order dated 13.9.2012 passed by
the Chief Commissioner of Income Tax, Dehradun against which a
Writ Petition is pending before the Hon'ble Uttrakhand High Court.
According to the provisions of section 12AA of the I.T. Act, the
Commissioner, on the receipt of Application for registration of a trust
or institution shall (a) call for such documents or information from
the trust or institution as he thinks necessary in order to satisfy
himself about the genuineness of activities of the trust or institution
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and may also make such inquiries as he may deem necessary in this
behalf; (b) after satisfying himself about the objects of the trust or
institution and the genuineness of its activities, he shall pass an
order in writing registering the trust or institution; if he is not so
satisfied, pass an order in writing refusing to register the trust or
institution. In the present case, we find that Ld.CIT, Haldwani in the
impugned order has not followed the prescribed procedure u/s. 12AA
of the I.T. Act and passed the impugned order on the basis of the
order dated 13.9.2012 passed by the Chief Commissioner of Income
Tax,Dehradun against which a Writ Petition is pending before the
Hon'ble Uttrakhand High Court. In our considered view the
impugned order is not sustainable in the eyes of law, therefore, is
deserved to be cancelled. Secondly, the Ld. CIT, Haldwani has also
not given full opportunity to the assessee for substantiating its claim
before him and passed the impugned order in a hurry manner which
is also not permissible under the law and is contrary to the principles
of natural justice. We are not commenting upon the merits of the
case as well as documentary evidence filed by the assessee in the
shape of Paper Book as discussed above. Therefore, in the interest
of justice, we are setting aside the issue in dispute to the Ld. CIT,
Haldwani to pass a speaking order, after giving the assessee proper
opportunity, after going through the judgment of the Hon'ble
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Supreme Court of India delivered in the case of Queens Educational
Society vs. Commissioner of Income Tax (Supra).
5. In the result, the Appeal filed by the Assesssee stands allowed
for statistical purpose.
Order pronounced in the Open Court on 16/6/2015.
Sd/- Sd/-
[J.S. REDDY] [H.S. SIDHU]
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date 16/6/2015
"SRBHATNAGAR"
Copy forwarded to: -
1. Appellant -
2. Respondent -
3. CIT
4. CIT (A)
5. DR, ITAT
TRUE COPY
By Order,
Assistant Registrar,
ITAT, Delhi Benches
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