Saint Johns Shikshan Sansthan, Jaipur vs Assessee

Jh vkj-ih-rksykuh] U;kf;d lnL; ,oa Jh Vh-vkj-ehuk] ys[kk lnL; ds le{k BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM

vk;dj vihy la-@ITA No. 703/JP/2014 under section 12AA of I.T. Act, 1961

M/s. Saint Johns Shikshan cuke The CIT-III Sansthan, Saved Bari, Vs. Jaipur Salasar Road, Dhod, Sikar LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAMTS 8785 Q vihykFkhZ@Appellant izR;FkhZ@Respondent

fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mahendra Gargieya & Shri Fazul Rehman, Advocate jktLo dh vksj ls@ Revenue by :Smt. Rolee Agarwal, CIT-DR .

lquokbZ dh rkjh[k@ Date of Hearing : 18/12/2014 ?kks"k.kk dh rkjh[k@ Date of Pronouncement : 13/02/2015

vkns'k@ ORDER PER R.P. TOLANI, JM

This is an appeal filed by the assessee against the order of the ld.

CIT-III, Jaipur dated 10-09-2014 u/s 12AA of the Act praying therein

following grounds.

''1. The ld. CIT -III, Jaipur erred in law as well as on the facts of the case in denying registration sought u/s 12AA(1)(a) of the Act. Such denial being contrary to the law provisions of law and facts, the registration as prayed, kindly be granted.

2. The ld. CIT -III, Jaipur erred in law as well as on the facts of the case in not providing adequate opportunity of being heard and the allegation labeled in the impugned order on this Court, are contrary to the facts available on record. 2 ITA No. 703/JP/2014

M/s. Saint Johns Shikshan Sansthan vs. CIT -III, Jaipur .

The impugned order suffers from incurable illegality and hence, registration as prayed, kindly be granted.

3. The ld. CIT -III, Jaipur erred in law as well as on the facts of the case in denying registration sought u/s 12AA(1)(a) of the Act on the ground that the appellant failed to satisfy about the genuineness of the activity and that did not fulfill the conditions under the provision. Such finding is contrary to the provisions of law and facts on record hence, the ld. CIT -III Jaipur kindly be directed to grant registration as prayed for.

2.1 Adverting to Ground No. 2 of the assessee, the ld. Counsel for the

assessee contends that ld. CIT passed the order denying registration u/s

12AA of the Act in ex-parte manner by following observations.

''4. Despite above facts and negative reporting by the ACIT, Circle- Jhunjhunu, the applicant society was given another opportunity of being heard vide this office letter no. 1430 dated 02-0902014 fixing the date on 10-09-2014 at 3.30 PM for furnishing of explanation/ justification on the observation of the ACIT, Circle- Jhunjhunu and the reason for non-production of books of account and bills/ vouchers. It was also asked to submit a note on charitable activities and production of books of account alongwith necessary supporting documents and minutes book of the society. This notice was sent through speed post on 03-09-2014 and as the status of speed post ascertained from website of India Post shows that the item was delivered on 06-09-2014. However, on this day neither anybody attended this office nor even any adjournment letter was filed. I fact, till the time of passing this order i.e. 4.00 PM neither anybody attended the office nor anything is heard from assessee's side.

5. Under these circumstances, it is clear that the applicant society failed to satisfy the undersigned about the genuineness of the its activities and show that it does fulfills the conditions laid down in Section 12AA(1)(a) of the Income tax Act.' 3 ITA No. 703/JP/2014 M/s. Saint Johns Shikshan Sansthan vs. CIT -III, Jaipur .

2.2 It is pleaded that non-attendance was due to improper

communication. Therefore, the assessee could not attend the proceedings.

It is also pleaded that in the interest of natural, justice, an opportunity

must be provided to the assessee to represent its case properly before the

ld. CIT.

3.1 Apropos the question of cost, the ld. Counsel for the assessee

concedes that reasonable amount may be imposed as cost and he

undertakes that the assessee will promptly comply with the notice.

4.1 The ld. DR on the other hand contends that the conduct of the

assessee is not proper and the assessee is not cooperating in the

proceedings. This indicates that the assessee's intentions are not genuine.

Hence, the appeal of the may be dismissed.

5.1 We have heard the rival contentions and perused the materials

available on record. In our considered view and in the interest of natural

justice, the assessee should be provided one more chance to represent its

case before the ld. CIT. Therefore, we are inclined to set aside the appeal

of the assessee back to the file of the ld CIT to decide the issue afresh

after providing reasonable opportunity of being heard to the assessee with

following conditions.

(i) The assessee shall pay cost of Rs. 5,000/- (Rs. Five Thousand only) as conceded by it and the challan for 4 ITA No. 703/JP/2014 M/s. Saint Johns Shikshan Sansthan vs. CIT -III, Jaipur .

the deposition of amount should be produced before the ld. CIT at the time of hearing.

(ii) The assessee shall fully cooperate in the proceedings.

In the eventuality of non-cooperation, the ld. CIT will be free to take appropriate view in this regard.

Thus the appeal of the assessee is allowed for statistical purposes.

6.0 In the result, the appeal of the assessee is allowed for statistical

purposes

Order pronounced in the open court on 13/02/2015.

Sd/- Sd/- ¼Vh-vkj-ehuk½ ¼vkj-ih-rksykuh½ (T.R. Meena) (R.P.Tolani) ys[kk lnL;@ Accountant Member U;kf;d lnL;@Judicial Member

Tk;iqj@Jaipur fnukad@Dated:- 13th FEB, 2015

*Mishra

vkns'k dh izfrfyfi vxzfs 'kr@Copy of the order forwarded to:

1. vihykFkhZ@The Appellant- M/s. Saint Johns Shikshan Sansthan, Sikar

2. izR;FkhZ@ The Respondent- The CIT-III, Jaipur

3. vk;dj vk;qDr@ CIT, Jaipur

4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur

5. xkMZ QkbZy@ Guard File (ITA No.703/JP/2014)

vkns'kkuqlkj@ By order,

lgk;d iathdkj@ Assistant. Registrar