Prakriti Charitable Trust, CHENNAI V. DIT, CHENNAI

ITA 1014/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68711 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-09-2013
• Assessment Year: misc
• Appeal Filed On: 16-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SRINIVAS RAO IRS
• Assessee Lawyers: T VASUDEVAN
• Keywords: Charitable institution
• Section: 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO.1014(MDS)/2013 M/S. PRAKRTI CHARITABLE TRUST, 46, POSTAL COLONY, I STREET, WEST MAMBALAM, CHENNAI 600 033. PAN AACTP0217C. VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), CHENNAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.VASUDEVAN , ADVOCATE RESPONDENT BY : SHRI M.SRINIVAS RAO, IRS, CIT DATE OF HEARING : 19 TH SEPTEMBER, 2013 DATE OF PRONOUNCEMENT : 19 TH SEPTEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE DIRECTOR O F INCOME- TAX(EXEMPTIONS) AT CHENNAI, DATED 8 TH MARCH, 2013, REJECTING THE - - ITA 1014 OF 2013 2 APPLICATION PUT IN BY THE ASSESSEE FOR GRANT OF REG ISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961. THE APPL ICATION PUT IN BY THE ASSESSEE IS SEEN REJECTED BY THE DIRECTOR OF INCOME- TAX(EXEMPTIONS) FOR THE REASON THAT THE NOTICE CALL ING FOR DETAILS ISSUED TO THE ASSESSEE WAS RETURNED UNSERVED BY THE POSTAL AUTHORITIES WITH THE OBSERVATION NO SUCH PERSON AN D NOT KNOWN. AT THAT POINT OF TIME, THE DIRECTOR OF INC OME- TAX(EXEMPTIONS) MIGHT BE JUSTIFIED IN REJECTING THE PETITION, AS NO DETAILS WERE PLACED BEFORE HIM TO TAKE A DECISION O N THE MATTER. 2. BUT, AS THINGS STAND NOW, THE COUNSEL APPEARING FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS VER Y MUCH IN EXISTENCE AND THE EARLIER NOTICE WAS RETURNED ONLY FOR THE REASON THAT THE AUTHORIZED PERSON MIGHT HAVE GONE OUTSIDE WHEN THE POSTMAN KNOCKED THE DOOR AND BUT FOR THAT ACCIDENTA L LAPSE, THERE IS NO REASON TO HOLD THAT THE ASSESSEE IS NOT IN EXISTENCE. HE FURTHER CONTENDED THAT THE ASSESSEE IS CARRYING ON CHARITABLE ACTIVITIES WITHIN THE FINANCIAL MEANS AVAILABLE WIT H IT. IT IS SUBMITTED THAT IT IS ALWAYS POSSIBLE FOR THE ASSESS EE TO ESTABLISH - - ITA 1014 OF 2013 3 BEFORE THE DIRECTOR OF INCOME-TAX(EXEMPTIONS) THAT THE ASSESSEE IS A GENUINE CHARITABLE INSTITUTION ENGAGED IN SUCH ACTIVITIES. 3. AFTER HEARING BOTH SIDES IN DETAIL, WE FIND THA T INTEREST OF JUSTICE WILL BE SERVED IF THE ASSESSEE IS GIVEN ONE MORE OPPORTUNITY BY THE DIRECTOR OF INCOME-TAX(EXEM PTIONS) TO PRODUCE THE PARTICULARS AND DETAILS OF THE TRUST AN D RECONSIDER THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12 AA OF THE ACT. 4. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE DIRE CTOR OF INCOME-TAX(EXEMPTIONS) AND DIRECT HIM TO PASS A FRESH ORDER IN ACCORDANCE WITH LAW AFTER HEARING THE ASSESSEE. THE ASSESSEE IS DIRECTED TO APPROACH THE DIRECTOR OF IN COME- TAX(EXEMPTIONS) AND BE READY TO APPEAR BEFORE HIM W ITH ALL DETAILS AND TO CO-OPERATE WITH THE REVENUE IN DISPO SING OF THE MATTER AT THE EARLIEST. ANY LAPSE ON THE PART OF T HE ASSESSEE WILL BE VIEWED VERY SERIOUSLY. 5. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. - - ITA 1014 OF 2013 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 19 TH OF SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (V.DURGA RAO) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 19 TH SEPTEMBER, 2013. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.