Gujarat CSR Authority, Ahmedabad V. The CIT (Exemptions), Ahmedabad

ITA 101/AHD/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1123 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 13-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEEBHA BHALLA
• Assessee Lawyers: M G PATEL; ARATI N SHAH ARS
• Section: 80G; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , !' BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. ./ I.T.A. NO.100/AHD/2016 2. ./ I.T.A. NO.101/AHD/2016 1-2. GUJARAT CSR AUTHORITY 3 RD FLOOR, GFSC LTD. OPP. DRIVE-IN-CINEMA BEH. RELIANCE MART SKUM SCHOOL ROAD BODAKDEV AHMEDABAD 380 054 / VS. 1.2. THE COMMISSIONER OF INCOME (EXEMPTIONS) AAYAKAR BHAVAN AHMEDABAD $ ./ ./ PAN/GIR NO. : AACTG 2573 L ( $' / APPELLANT ) .. ( ()$' / RESPONDENT ) $'* / APPELLANT BY : SHRI M.G. PATEL & MS.ARATI N. SHAH ARS ()$'+* / RESPONDENT BY : MS. VEEBHA BHALLA, CIT-DR ,+ / DATE OF HEARING 22/06/2016 -./+ / DATE OF PRONOUNCEMENT 14/07/2016 / O R D E R PER SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER : BOTH THESE APPEALS BY THE ASSESSEE ARE DIRECTED A GAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX ( EXEMPTIONS)- AHMEDABAD DATED 21/12/2015 & 20/11/2015 AHMEDABAD R EJECTING THE ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 2 - APPLICATIONS OF THE ASSESSEE FOR REGISTRATION U/S. 80G(5) AND 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'T HE ACT') RESPECTIVELY. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- 3. ASSESSEE IS A STATED TO HAVE BEEN ESTABLISHED B Y THE GOVERNMENT OF GUJARAT FOR THE PURPOSE OF CO-ORDINATING, MONITORIN G, IMPLEMENTING AND MANAGING CORPORATE SOCIAL RESPONSIBILITIES (CSR) AC TIVITIES IN THE STATE IN GUJARAT STATE IN ACCORDANCE WITH THE PROVISIONS OF COMPANIES ACT. IT FILED APPLICATION ON 01/05/2015 BEFORE CIT(E) FOR R EGISTRATION OF TRUST U/S.12AA OF THE ACT AND ON 12/06/2015 FOR REGISTRAT ION OF TRUST U/S. 80G(5) OF THE ACT. BOTH THE APPLICATIONS WAS REJECT ED BY CIT(E) VIDE ORDER DATED 20/11/2015 AND 21/12/2015 RESPECTIVELY INTER-ALIA FOR THE REASON THAT THE ASSESSEE HAD NEITHER ATTENDED BEFOR E HIM NOR HAD FURNISHED THE REQUIRED DETAILS CALLED FOR BY THE CI T(E). AGGRIEVED BY THE ORDER OF CIT(E), ASSESSEE IS NOW IN APPEAL BEFORE U S AND HAS RAISED THE FOLLOWING GROUNDS:- IN ITA NO.100/AHD/2016 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPT IONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY PASSING ORDER REFUSING TO GRANT RECOGNITION U/S.80G(5) OF THE I.T . ACT, 1961. 1.1 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY NOT APPRECIATING THAT THE APPELLANT HAS BEEN ESTABLISHED BY GOVT. OF GUJARAT FOR THE PURPOSE OF COORDINATING, MONITORING, IMPLEMENTING A ND MANAGING CORPORATE SOCIAL RESPONSIBILITIES (CSR) ACTIVITIES IN THE GUJARAT STATE IN ACCORDANCE WITH THE PROVISIONS U/S.135 OF THE CO MPANIES ACT, 2013 ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 3 - AND COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLI CY) RULES, 2014 AS WELL AS VARIOUS SUCH ACTIVITIES TO BE UNDERTAKEN AS MENTIONED IN SCHEDULE VII OF THE COMPANIES ACT, 2013, AND THEREF ORE, THE OBJECTS OF THE SOCIETY ARE GENUINELY CHARITABLE IN NATURE WITH IN THE MEANING OF SEC.2(15) OF THE I.T. ACT, 1961. 1.2 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ALSO ERRED IN LAW AS WELL AS ON THE F ACTS BY HOLDING THAT THE APPELLANT HAS NOT ESTABLISHED CORPUS TO UNDERTA KE CHARITABLE ACTIVITIES EVEN THOUGH THE APPELLANT HAS ALREADY RE CEIVED GRANT OF RS.16,67,000/- FROM GOVERNMENT OF GUJARAT BY WAY OF CORPUS FUND. 1.3 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY HOLDING THAT THE APPELLANT DOES NOT HAVE INTENTION EVEN TO START CHA RITABLE ACTIVITIES, AFTER OVERLOOKING THE FACT THAT THE APPELLANT HAS B EEN ESTABLISHED BY GOVT. OF GUJARAT ONLY ON 16/04/2015 AND AS SUCH THE APPELLANT IS IN PROCESS OF COMMENCEMENT OF CSR ACTIVITIES. 1.4 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPT IONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY REJECTING THE APPLICATION FILED BY THE APPELLANT FOR APPROVAL U/S .80G(5) OF THE I.T. ACT, 1961 ON THE GROUND OF INABILITY TO ARRIVE AT S ATISFACTION OF GENUINENESS OF THE ACTIVITIES. 2. THE APPELLANT PRAYS THAT THE APPELLANT BE HEL D ELIGIBLE FOR APPROVAL U/S.80G(5) OF THE I.T. ACT, 1961 AND THE LEARNED CO MMISSIONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD BE DIRECTED TO G RANT APPROVAL TO THE APPELLANT. IN ITA NO.101/AHD/2016 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIO NS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY PASSING ORDER REFUSING TO GRANT REGISTRATION U/S.12AA OF THE I.T. ACT, 1961. ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 4 - 1.1 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY NOT APPRECIATING THAT THE APPELLANT HAS BEEN ESTABLISHED BY GOVT. OF GUJARAT FOR THE PURPOSE OF COORDINATING, MONITORING, IMPLEMENTING A ND MANAGING CORPORATE SOCIAL RESPONSIBILITIES (CSR) ACTIVITIES IN THE GUJARAT STATE IN ACCORDANCE WITH THE PROVISIONS U/S.135 OF THE CO MPANIES ACT, 2013 AND COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLI CY) RULES, 2014 AS WELL AS VARIOUS SUCH ACTIVITIES TO BE UNDERTAKEN AS MENTIONED IN SCHEDULE VII OF THE COMPANIES ACT, 2013, AND THEREF ORE, THE OBJECTS OF THE SOCIETY ARE GENUINELY CHARITABLE IN NATURE WITH IN THE MEANING OF SEC.2(15) OF THE I.T. ACT, 1961. 1.2 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ALSO ERRED IN LAW AS WELL AS ON THE F ACTS BY HOLDING THAT THE APPELLANT HAS NOT ESTABLISHED CORPUS TO UNDERTA KE CHARITABLE ACTIVITIES EVEN THOUGH THE APPELLANT HAS ALREADY RE CEIVED GRANT OF RS.16,67,000/- FROM GOVERNMENT OF GUJARAT BY WAY OF CORPUS FUND. 1.3 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY HOLDING THAT THE APPELLANT DOES NOT HAVE INTENTION EVEN TO START CHA RITABLE ACTIVITIES, AFTER OVERLOOKING THE FACT THAT THE APPELLANT HAS BEEN ESTABLISHED BY GOVT. OF GUJARAT ONLY ON 16/04/2015 AND AS SUCH T HE APPELLANT IS IN PROCESS OF COMMENCEMENT OF CSR ACTIVITIES. 1.4 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS), AHMEDABAD HAS ERRED IN LAW AS WELL AS ON THE FACTS BY REJECTING THE APPLICATION FILED BY THE APPELLANT FOR REGISTRATION U/S.12AA OF THE I.T. ACT, 1961 ON THE GROUND OF INABILITY TO ARRIVE AT S ATISFACTION OF GENUINENESS OF THE ACTIVITIES. 2. THE APPELLANT PRAYS THAT THE APPELLANT BE HELD ELIGIBLE FOR REGISTRATION U/S.12AA OF THE I.T. ACT, 1961 AND THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD BE DIRECTED TO GRANT REGISTRATION TO THE APPELLANT. ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 5 - 4. BEFORE US, AT THE OUTSET, THE LD.AR SUBMITTED THAT THOUGH ASSESSEE HAS VARIOUS GROUNDS IN BOTH THE APPEALS, BUT THE SOLITA RY ISSUE IS WITH RESPECT TO REJECTION OF REGISTRATION U/S.12AA & 80G(5) OF T HE ACT. BEFORE US, LD. AR SUBMITTED THAT THE APPLICATIONS FOR REGISTRA TION U/S 12AA AND 80G OF THE ACT HAS BEEN REJECTED BY LD.CIT(E) BY PASSIN G EX-PARTE ORDERS AND SUBMITTED THAT ON THE DATE OF HEARING ASSESSEE HAD SOUGHT ADJOURNMENT BEFORE LD.CIT(E) WHICH WAS NOT GRANTED BY HIM. HE H AS FURTHER FILED AN SWORN AFFIDAVIT OF SENIOR PROJECT MANAGER OF THE AS SESSEE DETAILING THE REASONS FOR NON APPEARANCE BEFORE LD.CIT(E). HE THE REFORE SUBMITTED THAT THE NON APPEARANCE BEFORE LD.CIT(E) WAS NOT DUE TO ANY MALAFIDE INTENTION ON THE PART OF THE ASSESSEE AND HE THEREF ORE SUBMITTED THAT LD.CIT(E) BE DIRECTED TO GRANT ONE MORE OPPORTUNITY TO PRESENT ITS CASE AND FURTHER UNDERTOOK THAT ASSESSEE WILL PROMPTLY F ILE THE REQUIRED DETAILS CALLED FOR BY HIM. LD.CIT-DR ON THE OTHER H AND SUPPORTED THE ORDER OF CIT(E). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPE CT TO DENIAL OF REGISTRATION OF THE TRUST U/S 12AA AND 80G OF THE A CT. WE FIND THAT IN THE PRESENT CASE, CIT(E) HAS PASSED EX-PARTE ORDERS AND THE REGISTRATIONS WERE REFUSED FOR THE REASON THAT THE REQUIRED DETAI LS WERE NOT FILED BY THE ASSESSEE. BEFORE US, THE REASONS FOR NON APPEARANCE BY THE ASSESSEE HAS BEEN SUBMITTED IN THE AFFIDAVIT, THE CONTENTS OF WH ICH HAVE NOT BEEN CONTROVERTED BY REVENUE. CONSIDERING THE AFORESAID FACTS AND IN THE ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 6 - INTEREST OF JUSTICE, WE ARE OF THE VIEW THAT ASSESS EE DESERVES ONE MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE LD.CIT(E). WE THEREFORE RESTORE THE ISSUES IN BOTH THE APPEALS, TO THE FILE OF LD.CIT(E ). ACCORDINGLY, BOTH THE ORDERS OF THE LD.CIT(E) ARE RESTORED TO HIS FILE WI TH DIRECTION TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PROVE ITS C ASE REGARDING GENUINENESS OF THE ACTIVITIES CARRIED OUT BY THE TR UST IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. THE ASSESSEE IS ALSO DIRE CTED TO CO-OPERATE WITH THE REVENUE AUTHORITIES IN THE MATTER OF ITS APPLIC ATION FOR REGISTRATION U/S.12AA AND 80G OF THE ACT BY PROMPTLY FURNISHING ALL THE NECESSARY DETAILS CALLED FOR BY CIT(E) SO AS TO FACILITATE L D.CIT(E) TO TAKE NECESSARY DECISION. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 14/07/2016 SD/- SD/- .. () () ( R.P. TOLANI ) ( ANIL CHATURVEDI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 14/ 07 /2016 3..,.../ T.C. NAIR, SR. PS ITA NOS.100 & 101/AHD/201 6 GUJARAT CSR AUTHORITY VS. CIT(E) (EXEMPTIONS) - 7 - !'!# / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ()$' / THE RESPONDENT. 3. 456 7 / CONCERNED CIT(E) 4. 7 ( ) / THE CIT(E)(EXEMPTIONS), AHMEDABAD 5. 89:(56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<=, / GUARD FILE. / BY ORDER, )8( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. (WORD PROCESSED BY HONBLE AM IN HIS COMPUTER) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 11.7.2016 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.14.7.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14.7.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER