Sanskar Education Trust, , Baroda vs Assessee

अपीलाथ / अपीलाथ / (Appellant) ू यथ यथ / थ / (Respondent)

Assessee(s) by : Shri Tej Shah, AR Revenue by : Shri Dinesh Singh, Sr. DR.

सुनवाई क# तार%ख/ / Dateof Hearing : 25/03/2015 घोषणा क# तार%ख / Date of Pronouncement: 27/03/2015

आदे श/O R D E R

PER G.D. AGRAWAL, VICE PRESIDENT:

This is an appeal filed by the assessee and is directed against the order of the Ld. Commissioner of Income-tax-III, Baroda dated 28.08.2014 passed u/s 12AA(1)(b)(ii) r.w.s. 12A of the Income-tax Act.

2. At the time of hearing before us, it is submitted by the ld. Counsel that the assessee is an educational trust which is running various educational institutions. That whatever details asked for by the Commissioner of Income-tax were submitted; however, the Commissioner of Income-tax refused to register the trust with the following finding:-

"5. The reply furnished by the Ld. Council of the applicant has been considered. The reply is not only self contradictory, vague and completely unsatisfactory but also mostly aimed at withholding information."

ITA No. 2902/Ahd/2014 Sanskar Education Trust v. CIT 12AA(1)(b)(ii) 2

3. It is submitted by the ld. Counsel that, before arriving at the above finding, the Commissioner of Income-tax did not allow any opportunity to the assessee to justify why the assessee's reply is neither self-contradictory nor vague. If he wanted any further information, he could have asked the assessee to submit some more information rather than rejecting the application of the assessee on the ground that the assessee withheld various information. The ld. Counsel also requested for admission of additional evidence under Rule 29, in which he attached bank statements pertaining to three years of the various educational institutions being run by the assessee. He stated that the assessee is running primary school, secondary school, colleges etc. In view of above, the ld. Counsel submitted that the Commissioner of Income-tax should be directed to register the trust or alternatively, the matter should be set aside to his file for allowing adequate opportunity to the assessee.

4. The ld. DR, on the other hand, relied upon the order of the Commissioner of Income-tax passed u/s 12AA(1)(b)(ii) r.w.s. 12A of the Income-tax Act. He submitted that the order of the Commissioner of Income-tax should be sustained. He, however, has no serious objection to the setting aside of the matter back to the file of the Commissioner of Income-tax for reconsideration. He also stated that if the assessee's application for admission of additional evidences is accepted, then the matter should certainly go back to the file of the Commissioner of Income- tax because he must get an opportunity to examine those additional evidences.

5. We have carefully considered the arguments of both the parties and perused the material placed before us. In our opinion, it would meet the ends of justice if the order of the Commissioner of Income-tax passed u/s ITA No. 2902/Ahd/2014 Sanskar Education Trust v. CIT 12AA(1)(b)(ii) 3

12AA(1)(b)(ii) r.w.s. 12A of the Income-tax Act dated 28.08.2014 is set aside and the matter is restored back to his file . We order accordingly and direct him to allow adequate opportunity of being heard to the assessee. We also direct the assessee to furnish all the evidences which he wants to furnish before us as additional evidences. We further direct the Commissioner of Income-tax that, after considering the evidence furnished by the assessee as well as additional evidences as may be furnished by the assessee, if he requires any other information he will specify the same to the assessee and allow adequate time to produce the same. Thereafter, he will pass the order u/s 12AA(1)(b)(ii) r.w.s. 12A of the Income-tax Act afresh in accordance with law.

6. In the result, the assessee's appeal is allowed for statistical purposes.

Order pronounced in the Court on 27th March, 2015 at Ahmedabad.

Sd/- Sd/-

(KUL BHARAT) (G.D. AGRAWAL) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 27/03/2015 Biju T., PS

षत Copy आदे श क# ूितिल,प अमे,षत/ of the Order forwarded to : 1. अपीलाथ / The Appellant 2. ू यथ / The Respondent. 3. संबंिधत आयकर आयु. / Concerned CIT 4. आयकर आयु.(अपील) / The CIT(A)- XV, Ahmedabad

5. ,वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad

6. गाड4 फाईल / Guard file.

/ BY ORDER, आदे शानु सार

TRUE COPY

Dy./Asstt.Registrar) उप/सहायक पंजीकार ( उप/ अिधकरण, अहमदाबाद / आयकर अपीलीय अिधकरण, ITAT, Ahmedabad