Punjab State E-Governance Society, ... vs Assessee

Punjab State E-Governance Society, Vs The CIT-II, SCO-193-195, Sector 34-A , Chandigarh . Chandigarh .

PAN: AAA TP9562E

(Appellant) (Respondent)

Appellant by : Shri Uma Kant Mehta Respondent by : Smt. Jyoti Kumari

Date of Hearing : 30.03.2015 Date of Pronouncement : 31.03.2015

PER BHAVNESH SAINI,JM

This appeal by assessee is directed against the order of ld.

Ld. Commissioner of Income Tax-II Chandigarh dated

30.12.2013 rejecting the application under section 12AA of the

Income Tax Act.

2. Briefly the facts of the case are that the assessee society

filed its application in prescribed form for grant of registration

under section 12AA of the Act. The Assessing Officer was

directed to send enquiry report before Ld. Commissioner of

Income Tax, however Assessing Officer reported that assessee

has not furnished any document or reply. Therefore, due to

non-cooperative attitude of the assessee, the registration 2

application under section 12AA may not be considered

favourably. The Ld. Commissioner of Income Tax fixed the

hearing of the application and assessee was directed to furnish

complete supporting documents and produce the books of

account, bills and vouchers etc. The Ld. Commissioner of

Income Tax noted that necessary documents have been

furnished before him. The Ld. Commissioner of Income Tax, on

perusal of Memorandum of Association noted that assessee is

not doing charitable activity and the income and expenditure

revealed that the receipts of the assessee society are from

Government department, sale of tender forms, facilitation

charges, miscellaneous income and interest income etc. It was,

therefore, found that assessee society is working as a backend-

office to the Punjab Government and is not doing any charitable

activity. Therefore, application of assessee was rejected.

3. We have heard ld. Representatives of both the parties and

perused the material on record. The ld. counsel for the

assessee referred to the Income and Expenditure account of

various years from the Paper Book and stated that there is a

deficit over the receipts in all the years and assessee is not

doing any commercial activity and that complete details were

filed. Therefore, application of assessee should have been

rejected by the Ld. Commissioner of Income Tax.

4. On the other hand, ld. DR relied upon impugned order and

submitted that in the similar circumstances, Amritsar Bench

has rejected the registration application. 3

5. On consideration of the rival submissions, we are of the

view the matter required re-consideration at the level of the Ld.

Commissioner of Income Tax-II Chandigarh. The Income &

Expenditure account filed for various years in the Paper Book

clearly show that there was an excess of expenditure over

income. Therefore, it may not be a case of earning profit as is

suggested through the impugned order. It is admitted fact that

the receipts of the assessee society are from government

departments, sale of tender forms and facilitation charges. The

assessee is, therefore, working for the Government of Punjab

and as such may not be doing the commercial activity in order

to violate the provisions of Section 2(15) of the Act. The Ld.

Commissioner of Income Tax, at the end of the impugned order

noted that since the assessee could not furnish the

explanation, therefore, application of the assessee was rejected.

The ld. counsel for the assessee, however, submitted that

complete details were filed, therefore there was no justification

to reject the application for registration.

6. In view of the above, we are of the view the matter

requires re-consideration at the level of the ld. CIT(Appeals).

We, accordingly, set aside the impugned order and restore the

matter and issue to the file of Ld. Commissioner of Income Tax-

II Chandigarh with direction to re-decide registration

application in accordance with law and Ld. Commissioner of

Income Tax shall pass detailed speaking order by giving

reasonable sufficient opportunity of being heard to the assessee 4

and the application be decided preferably within a period of two

months from the receipt of this order.

7. In the result, appeal of the assessee is allowed for

statistical purposes.

Order pronounced in the Open Court on 31 s t March,2015.

Sd/- Sd/-

(T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 31 s t March,2015. 'Poonam' Copy to:

The Appellant, The Respondent, The CI T(A), The CI T,DR

Assistant Registrar, I TAT Chandigarh