Maruti Mandir, Latur V. Commissioner of Income-tax , (Exemption), Pune

ITA 1131/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5762 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-02-2020
• Assessment Year: misc
• Appeal Filed On: 23-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KISHORE
• Keywords: Condonation of delay; Set aside
• Section: 12A; 12AA

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI GEORGE MATHAN, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1131/PUN/2019 SHRI MARUTI MANDIR, MAKNI (THOR), TAL. NILANGA, LATUR. PAN : AAETS5026Q. . / APPELLANT V/S THE COMMISSIONER OF INCOME TAX, EXEMPTION, PUNE. . / RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI. REVENUE BY : SHRI B.KISHORE, CIT. / ORDER PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF TH E ORDER OF COMMISSIONER OF INCOME TAX (EXEMPTIONS) PUNE DATED 19 .02.2019 PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A TRUST REGISTERED UNDER THE BOMBAY PUBLIC TRUST ACT, 1950 ON 26.07.1962. ASSESSEE ELECTRONICALLY FILED AN A PPLICATION FOR REGISTRATION OF TRUST UNDER SEC.12AA(1)(B)(II) OF THE ACT O N 17.08.2018 AND THE SAME WAS REJECTED BY CIT (EXEMPTION S), PUNE VIDE ORDER NO. ITBA/EXM/S/EXM1/2018-19/1017697617(1) DATED / DATE OF HEARING : 13.02.2020 / DATE OF PRONOUNCEMENT: 17.02.2020 2 ITA NO.1131/PUN/2019 19.02.2019. AGGRIEVED BY THE ORDER OF LD.CIT(E), ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT (EXEMPTION) PUNE WAS NOT JUSTIFIED IN REJEC TING THE CLAIM OF REGISTRATION OF THE TRUST UNDER S. 12A OF THE AC T PASSING AN CONTRADICTORY ORDER ON THE ISSUES HOLDING THAT THE OBJECTS OF THE TRUST ARE NOT CHARITABLE. THE LD. CIT-PUNE IS OBLIG ED TO JUDICIALLY CONSIDER THE ISSUE OF REGISTRATION ONLY BY SATISFYI NG THE OBJECTS OF THE TRUST AS CHARITABLE. THE ORDER IS NOT SUSTAINAB LE AND BE SET ASIDE. THE REGISTRATION BE GRANTED TO THE TRUST ACC ORDINGLY. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW THOUGH IT IS ACCEPTED THAT THE 'OBJECTS OR RELIGIOU S' STILL IT IS ENTITLED REGISTRATION FOLLOWING HON'BLE SUPREME COU RT JUDGMENT REPORTED AS CIT V. DAWOODI BOHARA JAMAT (2014) 364 ITR 31 (SC). THE REGISTRATION BE GRANTED TO THE TRUST. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW ORDER OF THE CIT (EXEMPTIONS) IS AGAINST THE SETTLE D PRINCIPLES OF LAW AND AT THE TIME OF GRANTING OF REGISTRATION THE LD. CIT(EXEMPTION) IS ENTITLE TO SEE AND VERIFY THE OBJ ECTS OF THE TRUST AS ENVISAGED BY THE TRUST DEED. THE ACTIVITIE S OF THE TRUST AND ITS GENUINITY IS A MATTER TO BE VERIFIED AT THE TIME OF ASSESSMENT ONLY. THE LD. CIT(EXEMPTION) HAS GONE WR ONG IN PASSING HIS REJECTION ORDER CONSIDERING ONLY ACTIVI TIES AND GENUINITY OF THE OBJECTS WHICH THE PREROGATIVE OF T HE A. O. TO VERIFY AT THE TIME OF ASSESSMENT ONLY. THE REJECTIO N ORDER BE SET ASIDE. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW THE FILING OF THE APPEAL IS DELAYED BY FEW DAYS. THE AP PELLANT WAS PREVENTED BY SUFFICIENT CAUSE. THE APPLICATION FOR CONDONATION OF DELAY ALONG WITH SWORN AFFIDAVIT WILL BE FILED AT T HE TIME OF '- HEARING. THE DELAY BE CONDONED AND APPEAL BE ADMITT ED FOR HEARING. 3. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THOUG H ASSESSEE TRUST HAS RAISED VARIOUS GROUNDS BUT THE ONL Y GRIEVANCE OF THE ASSESSEE IS ABOUT THE REFUSAL OF GRANTING REGISTRATION U/ S 12AA OF THE ACT. 4. BEFORE US, LD.A.R. SUBMITTED THAT THE CIT(E) REJECTED T HE APPLICATION OF REGISTRATION INTER-ALIA FOR THE REASON THAT NE CESSARY DOCUMENTS WERE NOT FURNISHED BEFORE HIM AND THE TRUST D EED DID NOT CONTAIN THE DISSOLUTION AND IRREVOCABLE CLAUSES. HE SUBMIT TED THAT ONE 3 ITA NO.1131/PUN/2019 MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE FOR FURNISH ING THE DETAILS AND THE ASSESSEE WOULD FURNISH ALL THE REQUIRED DETAILS AS CALLED FOR BY THE LD.CIT(E). LD. D.R. ON THE OTHER HAND, OPPOSED THE PRA YER OF ASSESSEE OF LD.A.R. AND SUBMITTED THAT SUFFICIENT OPPORTUNITY WAS GRANTED TO ASSESSEE AND THE ASSESSEE HAS FAILED TO FURN ISH THE REQUIRED DETAILS AND THEREFORE CIT(E) WAS FULLY JUSTIFIED IN REJECTING THE CLAIM OF REGISTRATION OF TRUST U/S 12AA OF THE ACT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPECT T O DENIAL OF CLAIM OF REGISTRATION U/S 12AA OF THE ACT. WE FIND THAT LD.CIT (E) HAS REJECTED THE APPLICATION OF REGISTRATION MAINLY FOR THE REASON THAT THE REQUIRED DETAILS WERE NOT FURNISHED BY THE ASSESSEE. IN VIEW OF TH E SUBMISSION OF THE LD.A.R. THAT THE ASSESSEE WILL FURNISH ALL THE REQUIRED DETAILS AS CALLED FOR BY LD.CIT(E), WE ARE OF THE VIEW THAT ONE MORE OP PORTUNITY BE GRANTED TO ASSESSEE TO PRESENT ITS CASE BEFORE LD.CIT(E ). WE THEREFORE RESTORE THE ISSUE BACK TO CIT(E), PUNE TO DECIDE THE ISSU E OF REGISTRATION U/S 12AA OF THE ACT IN ACCORDANCE WITH LAW AND AFTER GRA NTING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, THE GROUNDS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 17 TH DAY OF FEBRUARY, 2020. SD/- SD /- ( GEORGE MATHAN ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; DATED : 17 TH FEBRUARY, 2020. YAMINI 4 ITA NO.1131/PUN/2019 !'#$#%! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(EXEMPTIONS), PUNE. ADDL.CIT(EXEMP), PUNE. '#$ %%&',) &', / DR, ITAT, A PUNE; $,-./ GUARD FILE. / BY ORDER // TRUE COPY // /01%2&3 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.