Baba Kartar Singh Dukki Education Trust Latala, Ludhiana V. Commissioner of Income Tax, Ludhiana (Punjab)

ITA/103/2014

AI Insights

The case involves the Baba Kartar Singh Dukki Education Trust, which sought to challenge the decision of the Income Tax Appellate Tribunal regarding the effective date of its registration under Section 12AA of the Income Tax Act, 1961. The Trust argued that it was entitled to registration effective from the assessment year 2001-02, whereas the Tribunal and the Commissioner of Income Tax had allowed it only from 2004-05 onwards. The Trust's application for earlier registration was initially rejected due to delay and the absence of government financing, among other reasons. The Tribunal's decision to allow registration from 2004-05 was based on the Trust's failure to provide a justified cause for the delay in applying for registration, which was filed significantly later than the Trust's establishment.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 820782 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 28-07-2014
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax v. Surya Educational and Charitable Trust
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: PANKAJ JAIN; DIVYA SURI; SACHIN BHARDWAJ
• Keywords: Condonation of delay; Delay in Application; Income Tax; Registration under section 12AA
• Section: 254(2); 119(2)(b); 260A; 12AA(2)

Judgement Text

"ITA No. 103 of 2014 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 103 of 2014 (O&M) Date of Decision: 28.7.2014 Baba Kartar Singh Dukki Education Trust Latala, Ludhiana ....Appellant. Versus Commissioner of Income Tax, Ludhiana (Punjab) ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Pankaj Jain, Senior Advocate with Mr. Divya Suri, Advocate and Mr. Sachin Bhardwaj, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1. Delay of 8 days' in refiling the appeal is condoned. 2 This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short “the Act”) against the order dated 6.3.2013 (Annexure A-9) passed by the Income Tax Appellate Tribunal, Chandigarh Bench “A”, Chandigarh (hereinafter referred to as “the Tribunal”) in ITA No. 1360/CHD/2012, for the assessment year 2001-02, claiming the following substantial questions of law:- I. Whether under the facts and circumstances of the case, in accordance with the provisions of Section 12AA(2) r.w. 119(2)(b), the action for not exercise of inherent jurisdiction for GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 103 of 2014 -2- condoning delay (partially) is unreasonable and not in accordance with law? II. Whether under the facts and circumstnaces of the case the Tribunal was justified in law in not allowing registration u/s. 12AA(2) with effect from Assessment Year 2001-02 after having allowed registration the same? III. Whether under the facts and circumstances of the case the Tribunal was justified in sustaining the order of CIT in declining to allow registration U/s. 12AA(2) with effect from Assessment Year 2001-2002? 3. The facts necessary for adjudication of the present appeal as narrated therein may be noticed. The appellant-trust was working in accordance with the trust deed dated 4.2.2000. It got registered under the Societies Registration Act, 1860 vide Registration No. 429 dated 16.1.2004. On 31.5.2007, an application was made for grant of registration under Section 12AA of the Act in Form 10A. Along with the application, the aims and objects of the trust were also attached. The Commissioner of Income Tax (CIT) vide order dated 30.11.2007 (Annexure A-1) rejected the said application on two grounds, firstly not condoning the delay and secondly on the basis of the report of the Assessing Officer that the trust was not being financed by the Government. The assessee challenged the said order before the Tribunal who vide order dated 20.09.2011 (Annexure A-2) set aside the order dated 30.11.2007 (Annexure A-1) and directed the CIT to decide the matter afresh in accordance with law after affording due and GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 103 of 2014 -3- reasonable opportunity of hearing to the assessee. In pursuance thereof, the CIT after affording an opportunity of hearing to the assessee rejected the application vide order dated 27.12.2011 (Annexure A-4). Against the order dated 27.12.2011, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 27.6.2012 (Annexure A-5) following the judgment of this Court in Commissioner of Income Tax v. Surya Educational and Charitable Trust, ITA Nos. 701 of 2010 and 189 of 2011 decided on 5.10.2011 (Annexure A-6) allowed the application and directed the CIT to grant registration. The CIT vide order dated 26.10.2012 (Annexure A-7) allowed registration under Section 12A of the Act w.e.f. assessment year 2004-05 onwards. Against the order dated 26.10.2012 (Annexure A-7), the assessee filed an appeal (Annexure A-8) before the Tribunal for granting exemption from the assessment year 2001-02 onwards instead of assessment year 2004-05 onwards. The Tribunal vide order dated 6.3.2013 (Annexure A-9) dismissed the said appeal. Thereafter, an application under Section 254 (2) of the Act was filed for recalling of the order but the same has not been decided. Hence, the present appeal. 4. Learned counsel for the appellant submitted that the assessee was entitled to registration under Section 12AA of the Act effective from assessment year 2001-02 instead of 2004-05 as held by the CIT and the Tribunal. It was urged that the authorities below had erred in not condoning the delay in terms of provisions of Section 12AA (2) read with Section 119(2)(b) of the Act. Reliance was placed upon the following judgments:- 1. (2012) 76 DTR 439 (Bombay); 2. (2012) 75 DTR 402 (Kerala); GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 103 of 2014 -4- 3. (2012) 75 DTR 406 (Delhi); 4. (2005) 272 ITR 381 (P&H); 5. (1984) 146 ITR 16 (P&H); 6. (1994) 206 ITR 138. 5. After hearing learned counsel for the appellant, we do not find any merit in the appeal. 6. The Tribunal while dismissing the appeal of the assessee had recorded that the assessee was registered vide certificate of registration dated 29.1.2004 issued by the Registrar of Firms and Societies (Punjab), Chandigarh. The assessee had not given any justified cause for not applying for registration before 31.5.2007 whereas the trust was constituted vide deed dated 4.2.2000. Thus, no ground for condonation of delay was made out. The Tribunal had observed as under:- “7. We have heard the rival contentions and perused the record. The assessee trust came into existence vide Trust Deed dated 04.02.2000. The trust had registered itself with the Addl. Registrar of Firms and Societies (Punjab), Ludhiana vide certificate of registration dated 16.01.2004. The assessee had furnished Form No. 10A for registration of the trust under Section 12A of the Act in the prescribed manner on 31.05.2007. The Tribunal (supra) vide order dated 27.06.2012 had noted the fact vide para 13 of the order that the Commissioner of Income Tax had condoned the delay in filing the application for registration and the registration was to GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 103 of 2014 -5- be allowed prospectively from assessment year 2012- 13. However, the same was rejected by the Commissioner of Income Tax on the invocation of section 13(I) & (2) of the Act and other aspects. The Tribunal (supra) however, allowed registration to the trust. The Commissioner of Income Tax giving effect to the order of the Tribunal vide order dated 26.10.2012 had condoned the delay in filing the application for registration under section 12A of the Act on 31.05.2007 by the assessee and had allowed the registration under Section 12A of the Act from the assessment year 2004-05 in line with certificate of registration dated 29.01.2004 issued by the Registrar of Firms and Societies (Punjab), Chandigarh. In the totality of the above said facts and circumstances of the case, we find no merit in the plea of the assessee as the assessee has failed to justify the delay in filing the application under Section 12A of the Act belated on 31.05.2007 as against the constitution of the trust vide deed dated 04.02.2000. The grounds of appeal raised by the assessee are thus dismissed.” 7. In view of the aforesaid finding recorded by the Tribunal, which has not been demonstrated to be erroneous or perverse in any manner, we do not find any substance in the appeal warranting interference with the order dated 6.3.2013 (Annexure A-9). The judgments relied upon by the learned counsel for the appellant being based upon individual fact situation involved therein does not advance GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 103 of 2014 -6- the case of the assessee. 8. Accordingly, no substantial question of law arises in this appeal. Finding no merit in this appeal, the same is hereby dismissed. (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE GURBACHAN SINGH 2014.08.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh "