TaxTMI 
TaxTMI 
2017 (12) TMI 868
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....not complied, Ld CIT failed to consider that the said Notice was duly complied by the 'Society' in writing by furnishing Submission which got received in his office on 22.06.2015 well before the limitation date of 31.08.2015. (b) Because, it is equally incorrect to observe that another Notice dated 11.06.2015 fixed for 19.06.2015 was served on 'Society', wheareas no such Notice ever got served. 3. BECAUSE, the allegation of Ld CIT (Exemption), Lucknow that Notice dated 14.07.2015 was returned by Postal authority with the remark "No one stays on given address" is factually wrong. As Notice dated 29.05.2015 and impugned order dated 06.08.2015 was duly served upon assessee on the same address by Postal authorities. 4. BECAUSE, the Ld. CIT (Exemption) Lucknow is arbitrary in observing that the 'Society' is not doing any charitable activities ignoring the fact brought on records that the 'Society' is imparting 'Education' which itself has been define and qualified as purpose of charity under section 2(15) of the IT Act, 1961. 5. BECAUSE, while rejecting the application the Ld. CIT (Exemption) Lucknow, has omitted to consider the Report as called upon ....
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....er to provide another opportunity another letter dated 11.06.15 was sent which again remained non-responded and thereafter, finally a letter dated 14.07.15 was sent which was returned by the postal authorities with the remark that 'No one stays on the given address." 4. The Ld. CIT (E), vide para-3 of the impugned order, on the basis of material available on records, held that applicant society is not carrying on any charitable activity as per provisions of section 12AA(i)(b) of the Act and that the applicant failed to prove two factors namely the object of charitable purpose and the genuineness of the activities as prerequisite conditions to be satisfied for granting the registration. Hence, Ld. CIT (E) held that the applicant society has not made out a case for granting the registration u/s 12AA(1)(b). The ld CIT (E), in para-9 has observed that sufficient material required for satisfaction regarding charitable purpose of the trust in this case has not been made available by the applicant. In fact, the applicant has not complied with notices at all. Thus, in absence of sufficient material required for formation of satisfaction applicant claim was not acceptable by the Ld. CIT ....
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...." 7.1 In view of the specific challenge made, it was imperative upon the ld CIT (E) to have rebutted the statement of fact submitted in writing by evidence while passing order u/s 154 which is also under challenge before the ITAT, and attention was drawn to order dated 28.09.15 passed by the CIT (E), in order to show that while passing order u/s 154 no evidence has been brought on record to rebut the claim of the assessee regarding non-service of letter dated 11.06.2015. 8. The assessee has taken objection in respect of Letter dated 14.07.2015 which was allegedly returned by the postal authorities with the remark 'No one stays on the given address' by submitting in Para-6 of its application dated 21.08.2015 'that in past notice dated 29.05.2015 addressed on the same address stood served; college being run on the same address as inspected by the Inspector of Income Tax who had even taken photographs of the college being run on the same address then how it can be presumed that the address given by the assessee is wrong'. It was contended by the Ld. counsel that it was the mistake on part of the Postal Department, had the Letter being attempted to be served, it would have been s....
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....ords by the assessee before the ld CIT (E) to have arrived at conclusion that the society qualifies for grant of registration by meeting both the factors as required by the ld CIT (E) i.e 'object of charitable purpose' and 'genuineness of activities'. 15. It is seen that along with the application dated 20.02.2015 following evidences were enclosed with Form No.10A: I. PAN Card of Trisha Welfare Society, (APB-3). II. Copy of 'Consent of Affiliation' from Chhatrapati Shahu Ji Maharaj University, Kanpur for running of B. Sc (Nursing) course by the Society, (APB-4) III. Copy of Society Registration Certificate , (APB-5) IV. Copy of Article of Society, Memorandum, and List of Management Committee, (APB,6-10). V. Copies of Photographs , (APB, 11 -17). VI. Copies of IT Returns, Audit Reports, Income & Expenditure Account and Balance Sheets for the Assessment Year 2014-2015, Assessment Year 2013-2014 and Assessment Year 2012-2013, (APB 18-34 & 44- 45). 16. The Ld Counsel for the assessee rightly contended that from these documents furnished in the Paper Book and placed at (APB-1 to 45), both the factors namely object of charitable....
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....ied on all 10 points out of 11 points contained in the said Notice. On point No. (ii) strangely the CIT (Exemption) has required the assessee to produce original document regarding registration certificate issued u/s 12AA of the Act ignoring the fact that assessee is seeking registration u/s 12AA and cannot be expected to have registration certificate in its hand u/s 12AA at the application stage. It is worth to note here that in its application dated 21.08.2015 filed under section 154 before ld CIT (E), the assessee vide para-2 has stated that due compliance was made with Notice dated 29.05.2015 by sending Reply on 18.06.15 by Speed Post again similar assertion was made in Para-5 where Speed Post delivery certificate was also referred by the assessee. Upon this application ld CIT(E) fixed personal hearing, intimated to the assessee vide Letter dated 26.08.2015 (APB-89) in its letter the CIT (E) has acknowledged receipt of above application dated 21.08.2015. During the course of personal hearing assessee again drew attention of the CIT (E) to the Report of ITO (E) who as stated by the assessee, upon reference made by the CIT (E) got spot enquiry conducted. (APB-93). But while passi....
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....ssuance of Letter dated 30.06.2016 also got spot enquiry conducted through Inspector of Income tax, which Report has been obtained under the RTI Act by the assessee by making application dated 08.11.2016 (APB-81) seeking copies of Order-sheet of ITO (E) and Report of Inspector. This was allowed to the assessee by the ITO (E) under cover of his letter dated 17.11.2016 (APB-82) in which ITO (E) on 10.07.2015 has recorded "In compliance to the aforesaid letter Shri Anil Verma, Advocate attended the hearing of the case and filed required documents which is palced on records. After examination of the papers filed by the assessee and as per enquiry report of the I. T.I, it seems to be a fit case for granting of registration u/s 12AA of the I.T Act,1961." 23. Further, the Inspector has prepared a detailed spot enquiry report dated 10.07.2015, submitted to the ITO (E) which is placed at APB-84, in which the Inspector has mentioned that the: Institute has 8 class rooms, 6 labs of (Anatomy & physiology, Nutrition Lab, Computer Lab, Community Lab, MCH Lab and Nursing Foundation Lab); that the classes are running for two courses of B.Sc. in Nursing and G.N.M (General nursing and Midwifery);....