Case Number: ITA No. 170/DEL/2021
Appellant: Krypton Progressive Educational & Health Care Trust, MORADABAD
Respondent: CIT(E), Lucknow
Assessment Year: —
Case Filed on: 2021-03-02
Order Type: Final Tribunal Order
Date of Order: 2023-04-25
Pronounced on: 2023-04-25
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘C’ : NEW DELHI)
BEFORE SH. G.S.PANNU, HON’BLE PRESIDENT AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER
ITA No. 170/Del/2021
Krypton Progressive Educational & Health Care Trust
160 AVAS VIKAS, PLILIKOTHI, CIVIL LINES, MORADABAD- 244001
PAN: AACTK9852G
Vs.
Commissioner of Income Tax (Exemption), Lucknow (UP)
Appellant: Krypton Progressive Educational & Health Care Trust
Respondent: CIT(E), Lucknow
Assessee by: None
Revenue by: Mohd. Gayasuddin Ansari, CIT (DR)
Date of hearing: 11.04.2023
Date of Pronouncement: 25.04.2023
Per Anubhav Sharma, JM:
1. Heard and perused the record.
2. None has appeared for the assessee. Notices have been issued repeatedly for hearing and on the last three occasions also none has appeared. Accordingly, arguments of Ld. DR were heard, who supported the findings of ld. Tax Authorities below.
3. The assessee is in appeal against order dated 21.12.2020 whereby the ld. CIT(E), Lucknow has dismissed the application for registration u/s 12A(a) of the Income Tax Act, 1961.
4. The impugned order reflects that apart from expenditure on advertisement and salaries there was no expenditure on the charitable objects in the last three years. The statement of facts filed on behalf of the appellant mentions that on 12.08.2020 in view of Covid-19 situation, adjournment was allowed once and thereafter the adjournment was declined. It is stated therein the statement of facts, as to how income is generated by way of tuition fee, admission fee and transportation fee and the construction work was going on upon which the expenses were incurred.
5. In the light of aforesaid, the ends of justice require giving assessee an opportunity to appear before the Ld. CIT(E), Lucknow and make the submissions explaining that the expenses have been incurred for charitable purposes / objects. The impugned order dated 21.12.2020 is set aside for statistical purposes. The appeal is allowed for statistical purposes and the issue is restored to the files of ld. CIT(E).
Order pronounced in the open court on 25th April, 2023.
Sd/- G.S.PANNU, PRESIDENT
Sd/- ANUBHAV SHARMA, JUDICIAL MEMBER
Date: 25.04.2023
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT, NEW DELHI
Case Conclusion:
The case revolves around the denial of registration under Section 12A(a) of the Income Tax Act, 1961, to Krypton Progressive Educational & Health Care Trust by the CIT(E), Lucknow. The primary reason for denial was the lack of expenditure on charitable activities, apart from advertisements and salaries. The tribunal observed that the assessee had not appeared for multiple hearings, leading to the dismissal of their application. However, considering the circumstances and the need for a fair opportunity, the tribunal set aside the order of the CIT(E) and remanded the case back for reconsideration, allowing the assessee to present their case and justify the expenditures as being for charitable purposes.
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