Appeal Details
Counselvise Citation
[2017] 130 COUNSELVISE.COM (IT) 8982 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
2 year(s) 11 month(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-03-2017
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
06-03-2017
Assessment Year
misc
Appeal Filed On
21-04-2014
Judgement Text
, - IN THE INCOME TAX APPELLATE TRIBUNAL CAMP AT SURAT BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.1184/AHD/2014 / ASSTT. YEAR: - SHRI PRANAV SAMAJ KALYAN TRUST C/O. VALLABAHRAM AT & POST ANAVAL, TAL. MAHUVA, DIST. SURAT. VS. THE CIT-II SURAT. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI RASESH SHAH REVENUE BY : SHRI PRASENJIT SINGH, CIT-DR ! / DATE OF HEARING : 06/03/2017 '#$ ! / DATE OF PRONOUNCEMENT: 21 /03/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST T HE ORDER OF THE LD.CIT-II, SURAT PASSED UNDER SECTION 12A(A) OF THE INCOME TAX ACT, 1961, WHICH HAS BEEN COMMUNICATED TO THE ASSESSEE V IDE LETTER DATED 24.3.2014. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T HAS ERRED IN NOT GRANTING REGISTRATION UNDER SECTION 12A(A) OF THE A CT. ITA NO.1184/AHD/2014 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE TR UST CAME INTO EXISTENCE VIDE TRUST DEED DATED 17.8.2013 WITH AN O BJECT TO START A SCHOOL AT VILLAGE ANAVAL, TAL. MAHUVA, DIST. SURAT FOR THE TRIBAL STUDENTS OF THIS AREA. APPLICANT TRUST HAD APPLIED FOR REGI STRATION UNDER SECTION 12A OF THE INCOME TAX ACT. ON RECEIPT OF THIS APPL ICATION, ITO (TECH)-II WROTE A LETTER DATED 30.1.2014 TO THE APPLICANT DIR ECTING TO SUBMIT DETAILS OF WORK CARRIED OUT BY IT AND EVIDENCE IN S UPPORT OF ITS ACTIVITIES. COPY OF THE LETTER WRITTEN BY THE ITO READS AS UNDE R: OFFICE OF THE COMMISSIONER OF INCOME TAX-II, ROOM NO.227, 2 ND FLOOR, AYAKAR BHAVAN, MAJURA GATE, SURAT NO.SRT/CIT-II/TECH/TRUST/12A/13-14 DATE: 30.01.204 TO, PRANAV SAMAJ KALYAN TRUST C/O.VALLABHAASHRA, AT & POST: ANAVAL, TAL: MAHUVA, DIST. SURAT. SIR, SUB .-REGISTRATION OF INSTITUTION U/S 12A(A) OF THE IT. ACT 1961- REG. KINDLY REFER TO THE ABOVE. KINDLY REFER TO THIS OFFICE LETTER OF EVEN NO. DATE D 10.12.2013 ON THE ABOVE SUBJECT THROUGH WHICH DETAILS WERE CALLED FOR BUT Y OU HAVE SUBMITTED SOME OF THE DETAILS. YOU ARE, THEREFORE, REQUESTED TO SU BMIT DETAILS CALLED FOR VIDE ABOVE LETTER ALONG WITH FOLLOWING DETAILS TO THIS O FFICE ON 05.02.2014 AT 3:30 P.M. 1. DETAILS OF WORK CARRIED OUT BY THE TRUST TOWAR DS OBJECTIVE ALONG WITH EVIDENCES IN SUPPORT OF ACTIVITIES FROM THE DATE O F CREATION TO TILL DATE. 2. DETAILS OF PROOF OF EXPENSES INCURRED TOWARDS T HE OBJECT OF THE TRUST. PLEASE NOTE THAT THIS IS THE FINAL OPPORTUNITY OF B EING HEARD IS BEING GIVEN TO YOU AND IN CASE OF NON COMPLIANCE OF THIS LETTER IT WILL BE CONSIDERED THAT YOU HAVE NOTHING TO SAY IN THIS REGARD AND YOUR APP LICATION WILL BE DECIDED ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD. ITA NO.1184/AHD/2014 3 YOURS FAITHFULLY, SD/- (P.N. BOKADE) ITO (TECH)-II FOR COMMISSIONER OF INCOME-TAX II, SURAT 4. IN RESPONSE TO THIS LETTER, A REPLY WAS GIVEN BY THE TRUST WHICH HAS BEEN PLACED ON RECORD. IT READS AS UNDER: PRANAV SAMAJ KALYAN TRUST CIO. VALLABHAASHRAM , AT & POST : ANAVAL ,TAL. : MAHUVA , DIST. :SURAT. TRUST REG.NO. : A/2969/SURAT DATE : 04/02/2014 TO, SHRI P.N.BOKADE SAHEB, ITO (TECH)-LL, COMMISSIONER OF INCOME TAX-LL,SURAT. SUB.: SUBMISSION OF DETAILS FOR 12A REGISTRATION PAN: AACTP3876F REF.: LETTER NO. SRT/CIT-LL/TECH/TRUST/12A/13-14 HONORABLE SIR, WE HAVE RECEIVED YOUR LETTER REGARDING DETAILS FOR 12A REGISTRATION OF OUR TRUST. AS PER THE LETTER WE ARE SUBMITTING THE FOLL OWING DETAILS. 1. DETAILS OF ACTIVITY : OUR TRUST IS CREATED ON 17/08/2013 AND THE MAIN OBJ ECT OF THE TRUST IS EDUCATION. TRUSTEES ARE PLANNING TO START ONE SCHOO L AT VILLAGE ANAVAL, TAL. MAHUVA, DIST. SURAT FOR THE TRIBAL STUDENTS OF THIS AREA. AFTER GETTING 12A REGISTRATION TRUST WILL START TO COLLECT DONATION, SO WE CAN START SCHOOL FROM JUNE 2014 ACADEMIC YEAR. TILL DATE TRUST HAS COLLEC TED DONATION OF RS.1,50,000/- BUT, NOT INCURRED ANY EXPENDITURE. 2. TILL DATE TRUST HAS NOT START ITS ACTIVITIES, SO NO MAJOR EXPENSES ARE INCURRED BY THE TRUST. PLEASE ACCEPT OUR ABOVE SUBMISSION AND OBLIGE US. I F YOUR GOOD SELF NEEDS SOME MORE INFORMATION PLEASE INFORM US. THANKING YOU, YOURS TRULY, ITA NO.1184/AHD/2014 4 FOR PRANAV SAMAJ KALYAN TRUST SD/- (DHARMEN V. PAREKH) (AUTHORIZED SIGNATORY) 5. THE ITO HAD COMMUNICATED THE ORDER TO THE ASSESS EE VIDE LETTER DATED 24.3.2014 AND WE DEEM IT PERTINENT TO TAKE NO TE OF THIS LETTER ALSO, WHICH READS AS UNDER: OFFICE OF THE COMMISSIONER OF INCOME TAX-II, ROOM NO.227, 2 ND FLOOR, AYAKAR BHAVAN, MAJURA GATE, SURAT NO.SRT/CIT-II/TECH/TRUST/12A/13-14 DATE: 30.01.204 TO, PRANAV SAMAJ KALYAN TRUST C/O.VALLABHAASHRA, AT & POST: ANAVAL, TAL: MAHUVA, DIST. SURAT. SUB : REGISTRATION OF TRUST U/S.12A(A) OF THE I.T.A CT - REG KINDLY REFER TO THE ABOVE. IN THIS CASE, YOU HAD MADE AN APPLICATION FOR REGIS TRATION U/S.12AA WAS RECEIVED BY THIS OFFICE ON 13.09.2013. ON VERIFICATION OF THE APPLICATION, IT WAS NOTICED THA T THE APPLICATION WAS NOT ACCOMPANIED BY DOCUMENTS WHICH ARE REQUIRED FOR REGISTRATION UNDER RULES 17A OF I.T.RU LES. IN THIS REGARD, OPPORTUNITIES OF BEING HEARD WERE G IVEN TO YOU VIDE THIS OFFICE LETTERS DATED 10.12.2013 AND 3 0.01.2014 TO SUBMIT EVIDENCES WITH REGARD TO ACTIVITIES OF TR UST AND DETAILS OF EXPENSES. IN RESPONSE TO THE SAME YOU HA VE FILED COPY OF BANK STATEMENT AND NOTARIZED COPY OF TRUST DEED VIDE LETTER DATED 31.12.2013 BUT COULD NOT FILE DET AILS WITH REGARD TO ACTIVITIES OF THE TRUST AND SUPPORTING EV IDENCES IN THIS REGARD. IN REPLY THE TRUST HAS STATED THAT IT HAS NOT ITA NO.1184/AHD/2014 5 CARRIED OUT ANY ACTIVITIES AND NOT INCURRED ANY EXP ENSES TOWARDS OBJECT OF THE TRUST. IN VIEW OF THE ABOVE FACTS, THE TRUST DOES NOT SATI SFY THE CONDITIONS LAID DOWN U/S 12AA OF THE INCOME TAX ACT , HENCE YOUR APPLICATION FOR RECOGNITION CANNOT BE APPROVED . THE APPLICATION FOR APPROVAL FOR REGISTRATION OF TRUST U/S.12A(A) IS THUS REJECTED. YOURS FAITHFULLY, SD/- (P.N. BOKADE) ITO (TECH)-II FOR COMMISSIONER OF INCOME-TAX II, SURAT 6. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. BEFORE EMBARKING UPO N AN INQUIRY ON THE FACTS OF THE PRESENT CASE AND THE MANNER IN WHICH T HE APPLICATION FOR GRANT REGISTRATION HAS BEEN PROCESSED BY THE REVENU E AUTHORITIES, WE DEEM IT PERTINENT TO TAKE NOTE OF THE PROCEDURE CON TEMPLATES FOR GRANT OF SUCH REGISTRATION UNDER SECTION 12AA OF THE ACT. IT READS AS UNDER: SECTION 12AA 12AA. (1) THE [PRINCIPAL COMMISSIONER OR] COMMISSIO NER, ON RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR IN STITUTION MADE UNDER CLAUSE (A) [OR CLAUSE (AA) OF SUB-SECTION (1)] OF SECTION 12A, SHALL (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION AND MAY A LSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THIS BEHALF; AND (B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF T HE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE (I) SHALL PASS AN ORDER IN WRITING REGISTERING THE TRUST OR INSTITUTION; (II) SHALL, IF HE IS NOT SO SATISFIED, PASS AN ORDE R IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION, AND A COPY OF SUCH ORDER SHALL BE SENT TO THE APPLI CANT : ITA NO.1184/AHD/2014 6 PROVIDED THAT NO ORDER UNDER SUB-CLAUSE (II) SHALL BE PASSED UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNITY O F BEING HEARD. [(1A) ALL APPLICATIONS, PENDING BEFORE THE [PRINCIP AL CHIEF COMMISSIONER OR] CHIEF COMMISSIONER ON WHICH NO ORD ER HAS BEEN PASSED UNDER CLAUSE (B) OF SUB-SECTION (1) BEFORE T HE 1ST DAY OF JUNE, 1999, SHALL STAND TRANSFERRED ON THAT DAY TO THE [ PRINCIPAL COMMISSIONER OR] COMMISSIONER AND THE [PRINCIPAL C OMMISSIONER OR] COMMISSIONER MAY PROCEED WITH SUCH APPLICATIONS UNDER THAT SUB- SECTION FROM THE STAGE AT WHICH THEY WERE ON THAT D AY.] (2) EVERY ORDER GRANTING OR REFUSING REGISTRATION U NDER CLAUSE (B) OF SUB-SECTION (1) SHALL BE PASSED BEFORE THE EXPIRY O F SIX MONTHS FROM THE END OF THE MONTH IN WHICH THE APPLICATION WAS RECEI VED UNDER CLAUSE (A) 4[OR CLAUSE (AA) OF SUB-SECTION (1)] OF SECTION 12A.] [(3) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANT ED REGISTRATION UNDER CLAUSE (B) OF SUB-SECTION (1) [OR HAS OBTAINED REGI STRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANCE (NO. 2) ACT, 1996 (33 OF 1996)]] AND SUBSEQUENTLY T HE [PRINCIPAL COMMISSIONER OR] COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION ARE NOT GENUINE OR ARE NOT BEI NG CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITU TION, AS THE CASE MAY BE, HE SHALL PASS AN ORDER IN WRITING CANCELLING TH E REGISTRATION OF SUCH TRUST OR INSTITUTION: PROVIDED THAT NO ORDER UNDER THIS SUB-SECTION SHALL BE PASSED UNLESS SUCH TRUST OR INSTITUTION HAS BEEN GIVEN A REASONAB LE OPPORTUNITY OF BEING HEARD.] [(4) WITHOUT PREJUDICE TO THE PROVISIONS OF SUB-SEC TION (3), WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTED REGISTRATI ON UNDER CLAUSE (B) OF SUB-SECTION (1) OR HAS OBTAINED REGISTRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANC E (NO. 2) ACT, 1996 (33 OF 1996)] AND SUBSEQUENTLY IT IS NOTICED THAT T HE ACTIVITIES OF THE TRUST OR THE INSTITUTION ARE BEING CARRIED OUT IN A MANNER THAT THE PROVISIONS OF SECTIONS 11 AND 12 DO NOT APPLY TO EX CLUDE EITHER WHOLE OR ANY PART OF THE INCOME OF SUCH TRUST OR INSTITUT ION DUE TO OPERATION OF SUB-SECTION (1) OF SECTION 13, THEN, THE PRINCIPAL COMMISSIONER OR THE COMMISSIONER MAY BY AN ORDER IN WRITING CANCEL THE REGISTRATION OF SUCH TRUST OR INSTITUTION: ITA NO.1184/AHD/2014 7 PROVIDED THAT THE REGISTRATION SHALL NOT BE CANCELL ED UNDER THIS SUB- SECTION, IF THE TRUST OR INSTITUTION PROVES THAT TH ERE WAS A REASONABLE CAUSE FOR THE ACTIVITIES TO BE CARRIED OUT IN THE S AID MANNER.] 7. A PERUSAL OF SUB-SECTION 1 WOULD INDICATE THAT O N RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUT ION MADE UNDER CLAUSE (A) OR CLAUSE (AA) OF SUB-SECTION (1) OF SECTION 12 A BY THE PR.COMMISSIONER OR COMMISSIONER, I WOULD CALL FOR S UCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION, AS HE TH INKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVIT IES OF THE TRUST OR INSTITUTION. IN OTHER WORDS, THE LEARNED COMPETENT AUTHORITY I.E. PRINCIPAL COMMISSIONER OR COMMISSIONER WOULD CALL FOR THE DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION IN ORD ER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF TRUST OR INS TITUTION. IF HE IS SATISFIED ABOUT OBJECTS OF TRUST OR INSTITUTION AND GENUINENESS OF ITS ACTIVITIES, THEN HE WILL PASS AN ORDER IN WRITING G RANTING REGISTRATION TO SUCH TRUST. A PERUSAL OF THE LETTER DATED 24.3.201 4 VIDE WHICH THE ITO (TECH)-HQ HAS COMMUNICATED THE ASSESSEE ABOUT NON-G RANT OF REGISTRATION TO THE ASSESSEE WOULD INDICATE THAT NO SUCH PROCEDURE HAS BEEN FOLLOWED. IT IS HIGHLY DEPRECATING THAT THE C OMPETENT AUTHORITY HAS NOT PASSED ANY ORDER AND ONLY AN INFORMATION IS BEING SENT TO THE ASSESSEE BY AN ITO. IT IS PERTINENT TO OBSERVE THA T ORDER FOR GRANT OF REGISTRATION OR REFUSAL IS TO BE PASSED UNDER THE S IGNATURE OF LD.COMMISSIONER OR PR.COMMISSIONER. THIS PROCEDURE CANNOT BE LEFT TO BE CONDUCTED AT THE END OF AN ITO. HE CAN ONLY WOR K FOR COMMUNICATION OF THE ORDER OR THE NOTICE. WE HAVE BEEN INFORMED THAT NO OTHER ORDER HAS BEEN PASSED. THIS IS THE ONLY O RDER WHICH EXTRACTED (SUPRA). THAT BE SO, THEN, IT IS NOT IN TRUE SPIRI T OF THE ACT AND NOT A COMMENDABLE PROCEDURE. EVEN FOR A SAKE OF ARGUMENT , WE ASSUME THAT CONTENTS OF THIS LETTER IS AN ORDER PASSED BY THE C OMPETENT AUTHORITY, THEN ALSO IT IS NOT DISCERNIBLE WHICH OBJECTS OF TH E TRUST DEED HAS BEEN ANALYSED BY THE COMPETENT AUTHORITY. AT THE STAGE OF GRANTING REGISTRATION, THERE WOULD NOT HAVE BEEN ANY EXPENDI TURE INCURRED BY AN ITA NO.1184/AHD/2014 8 ASSESSEE, BUT OBJECTS CONTEMPLATED UNDER THE TRUST DEED ARE TO BE ANALYSISED. NO SUCH STEP HAS BEEN TAKEN BY THE COM PETENT AUTHORITY IN THE PRESENT CASE. THEREFORE, THE IMPUGNED ORDER IS NOT SUSTAINABLE. WE QUASH THE LETTER DATED 24.3.2014 WRITTEN BY THE ITO (TECH.)-II, SURAT ON BEHALF OF THE COMMISSIONER, AND REMAND THI S ISSUE TO THE FILE OF THE LD.COMMISSIONER FOR RE-ADJUDICATION OF THE C ONTROVERSY AFTER PROVIDING DUE OPPORTUNITY OF HEARING. IT WILL BE A PPRECIATED THAT IF AN ORDER IN WRITING FOR GRANT OF REGISTRATION OR REFUS AL IS TO BE PASSED BY THE COMPETENT AUTHORITY AND NOT TO BE LEFT TO AN ITO. WITH THE ABOVE OBSERVATION, THIS APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 21 ST MARCH, 2017 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER
Other Referred Cases
-
Laws Referred To
-
1:1 Consultation on Tax Litigation
₹0
1:1 Consultation on Startup Compliance
₹1
Consultation on Entity Formation
₹0
CRM Implementation Plan
₹0
Social Media Brand Kit
₹100
Transfer Pricing and International Tax Reforms under Finance Bill, 2026: A Practical Overview
Team Counselvise - February 07, 2026
Residency Rules: Income Tax Act, 1961 vs Income Tax Bill, 2025 — A Subtle Yet Significant Shift!
Team Counselvise - February 18, 2026
Minimum Alternate Tax (MAT): Comprehensive Overview and Key Changes under Finance Bill, 2026
Team Counselvise - February 06, 2026