2013 (7) TMI 685 - AT - Income Tax

Registration of Charitable Society under section 12AA of the Income Tax Act - The assessee was directed to produce the books of account, audit report, bills and vouchers to justify the claim of genuineness of activities of the assessee society - No written submissions, books of account, bills and vouchers and other relevant documents justifying the claim of society was furnished Counsel along with ITP for the appellant argued that on the date of hearing before the ld. CIT, Gwalior, the books of account, bills and vouchers, audit report and evidences of activities of the assessee were furnished - Counsel for the assessee Shri S.M. Sinha filed his personal affidavit, in which he has affirmed to have produced the books of account and all supporting documents before the ld. CIT on the date of hearing - Held that - Considering the submissions of the ld. counsel for the assessee supported by his personal affidavit, the matter sent for reconsideration at the level of the ld. CIT. Right to practice as Income-tax Practitioner - Section 288(2)(v) & (vi) of the IT Act - Claimed that since retired departmental Officer, therefore, without any certificate of registration as ITP can appear before the Income-tax Authorities and the Tribunal Held that - Section 288(2)(v) & (vi) provides the meaning of authorized representative who have passed any accountancy examination recognized by the Board or any person who has acquired such educational qualifications prescribed by the Board in this behalf - Section 50 of the IT Rules provides accountancy examinations recognized in case of departmental officers and such departmental examination shall be conducted by the CBDT under sub-section (4) of section 50 of the IT Rules - Mere possession of educational qualification without conducting departmental examination by the Board itself is not sufficient to have any right to practice as Income-tax Practitioner - Provisions of the IT Act and IT Rules clearly prove that Shri B.D. Giri is not Income Tax Practitioner as recognized in the Income-tax Act and Rules. Therefore, without any certificate of registration in his favour under the above provisions, he cannot practice before the IT authorities and the Tribunal.

Summary

Issues Involved:
1. Rejection of the application for registration under section 12AA of the Income Tax Act.
2. The right of Shri B.D. Giri to appear before the Income-tax Authorities or the Tribunal as an Income Tax Practitioner (ITP).

Issue-wise Detailed Analysis:

1. Rejection of the application for registration under section 12AA of the Income Tax Act:

The assessee society filed an application for registration under section 12AA of the Income Tax Act. The CIT, Gwalior, after reviewing the report from JCIT, Range-I, Gwalior, required the society to justify the receipt of Rs.5,60,549/- and to produce books of account, audit report, bills, and vouchers. On the date of hearing, the advocate for the assessee appeared but did not provide the required documents. Consequently, the CIT rejected the application due to the absence of documentary evidence to establish the genuineness of the activities of the society.

The counsel for the assessee argued that the books of account and other documents were indeed produced before the CIT, and filed an affidavit to support this claim. The Tribunal noted that the CIT's order lacked detailed reasoning and did not discuss the JCIT's report. Given the affidavit and the written submission asserting that the documents were produced, the Tribunal decided that the matter required reconsideration. The Tribunal set aside the impugned order and directed the CIT to re-decide the registration application, ensuring a detailed and reasoned order, while providing the assessee an opportunity to present the required documents.

2. The right of Shri B.D. Giri to appear before the Income-tax Authorities or the Tribunal as an Income Tax Practitioner (ITP):

Shri B.D. Giri, who claimed to be an ITP, admitted that he did not possess a certificate of registration as an ITP from the CIT, Gwalior. He argued that as a retired departmental officer, he was entitled to practice without such a certificate. However, the Tribunal highlighted that under section 288 of the IT Act and Rules 49 to 57 of the IT Rules, an ITP must be registered and possess a certificate issued by the Chief Commissioner or Commissioner. The Tribunal found that Shri B.D. Giri did not meet these requirements and thus was not authorized to practice as an ITP. The Tribunal warned Shri B.D. Giri to refrain from unauthorized practice and directed a copy of the order to be sent to the CIT, Gwalior for necessary action.

Conclusion:

The appeal was allowed for statistical purposes, with the Tribunal directing the CIT to reconsider the registration application under section 12AA, and addressing the unauthorized practice of Shri B.D. Giri as an ITP.