By TIOL News Service

NEW DELHI, MAR 29, 2019: THE ISSUE BEFORE THE BENCH IS - Whether it is contrary to the principles of justice to hold a charitable society to be at fault for the failure of it's legal representative to properly present requisite documents supporting its claim for registration u/s 12AA. YES IS THE ANSWER.

Facts of the case

THE assessee is a society registered under the Haryana Registration and Regulation of the Societies Act, 2012. During the relevant AY, it filed an application for registration u/s 12A(1)(aa). The jurisdictional CIT asked the assessee to submit relevant information to satisfy whether or not the requisite conditions had been fulfilled. The assessee's representative appeared before the CIT and submitted relevant documents, whereupon the date of hearing was fixed. Thereafter, the CIT passed an order, holding that the assessee failed to discharge it onus of producing material to substantiate its claim that its activities were of a charitable nature. It was further held that the assessee failed to discharge its onus of proving the genuineness of its activities. Hence, the CIT rejected the application for registration. Hence the present appeal by the assessee.

On appeal, the Tribunal held that,

++ from the records and the observations made by the CIT, Faridabad, it can be seen that the representative of the assessee society could not properly represent the case of the society and did not file the relevant documents. For misrepresentation of the representative of the assessee society, the assessee society should not suffer, therefore, it will be appropriate in the interest of justice to remand back this matter to the file of the CIT, Faridabad for taking on record the relevant documents which were called by the CIT and then pass appropriate order as regards whether to grant registration u/s 12AA(1)(b)(ii) of the Act or not. Needless to say, the assessee society be given opportunity of hearing by following principles of natural justice. Hence, appeal of the assessee society is partly allowed for statistical purpose.

(See 2019-TIOL-703-ITAT-DEL)