Case Law Details
Shyama Sharma Charitable Trust Vs CIT, Exemptions (ITAT Chandigarh)
The provisions of section 12AA provides that the CIT(E) after receipt of application and calling for such documents and information as he thinks necessary and after making such enquiries as he may deem necessary and after satisfying himself about the objects of the assessee society and the genuineness of its activities shall pass an order in writing registering such society and where he is not so satisfied, shall again pass an order in writing refusing to register the assessee society. In light of the same, we find that there is a clear mandate of the legislation to pass an order in writing accepting or rejecting the application seeking registration by the assessee society. The Ld CIT(E) therefore has to speak through his order reflecting his satisfaction or otherwise about the objects and the activities of the assessee society and basis of arriving at such a satisfaction which in turn will allow the assessee to claim and the AO to examine the claim of exemption u/s 11 and 12 in the respective assessment years and in an event of an adverse order, allow the assessee to challenge such an order before the higher appellate authority. Therefore, we are unable to accede to the contention of the Ld AR and agree with the contention of the Ld CIT DR that in absence of any specific finding recorded by the Ld CIT(E), there cannot be any presumption regarding the findings of the Ld CIT(E) regarding the objects and activities of the assessee society.
Further, regarding non-filing of return of income for the financial year F.Y. 2018-19 relevant to A.Y. 201 9-20, the ld AR has stated at the Bar that it is a fact that the assessee has not filed the return of income for the said assessment year but at the same time, it was submitted that merely non-filing of the return of income cannot be a basis to challenge the genuineness of the activities actually been undertaken by the assessee society in that year and extrapolating that to all subsequent years. It was submitted that even where the return of income was not filed, the assessee society is maintaining its regular books of accounts accounting for its receipts and expenditure relating to various charitable activities which were carried out by the assessee society and given that the Ld CIT(E) has not called for the books of accounts, there was no occasion for the assessee society to furnish the same and where so permitted, the assessee society shall produce its books of accounts for necessary examination by the Ld CIT(E).
Taking into consideration the entirety of facts and circumstances of the case, we deem it appropriate that the matter be set-aside to the file of the Ld CIT(E) to examine the matter a fresh after calling for books of accounts and other documents as so desired and pass a speaking order recording his satisfaction or otherwise regarding the objects and genuineness of the activities of the assessee society after providing reasonable opportunity to the assessee society.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
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