Menaka Fashion & Prashikshan Kendra, Deoghar V. The Commissioner of Income Tax, Deoghar

ITA 120/RAN/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4362 (ITAT-RANCHI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 13-12-2012
• Court: TRIBUNAL
• Department Lawyers: HARSHWARDHAN PRASAD SR S C
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI CIRCUI T BENCH, RANCHI (BEFORE SHRI P.K.BANSAL, HONBLE A.M.& SHR I D,T. GARASIA, HONBLE J.M.) I.T.A. NO. 120/RAN/2012 MENAKA FASHION & PRASHIKSHAN KENDRA, DEOGHAR -VS- C.I.T., DHANBAD (APPELLANT) (RESPOND ENT) APPELLANT BY : SHRI M.K.CHOUDHURY WITH MISS A MRITA SINGH, ADVOCATES RESPONDENT BY : SHRI HARSHWARDHAN PRASAD, SR.S.C. DATE OF CONCLUDING THE HEARING : 30.04.2013 DATE OF PRONOUNCING THE ORDER : 30.04.2013 O R D E R PER BENCH : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT, DHANBAD DATED 28.09.2012 FOR NOT GRANTING THE REGIS TRATION TO THE ASSESSEE UNDER SECTION 12A OF THE INCOME TAX ACT. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME. WE NOTED THAT FOR FURTHER REGISTRATION UNDER SECTIO N 12A, THE PROCEDURE HAS BEEN LAID DOWN UNDER SECTION 12AA(1). SECTION 12AA(1)(A) AUTHORISES THE CIT TO CALL FOR SUCH DOCUMENTS AND INFORMATION FROM THE TRUST O R INSTITUTION AS HE THINKS NECESSARY TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE INSTITUTION AND HE IS ALSO AUTHORISED TO MAKE SUCH ENQUIRIES AS HE MAY DEEM NECESSARY IN THIS REGARD. SECTION 12A(1)(B) STATES THAT THE CIT, AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR THE INSTI TUTION AND THE GENUINENESS OF ITS ACTIVITIES SHALL PASS AN ORDER IN WRITING REGISTERI NG THE TRUST OR INSTITUTION OR IN 2 CASE HE IS NOT SATISFIED, HE MAY PASS AN ORDER IN W RITING REFUSING TO REGISTER THE TRUST OR INSTITUTION. FROM THE PERUSAL OF THIS PROV ISION, IT IS APPARENT THAT THE CIT MUST BE SATISFIED ABOUT THE GENUINENESS OF THE ACTI VITIES OF THE TRUST AS WELL AS ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION THAT THEY ARE CHARITABLE OR RELIGIOUS. IN THE INSTANT CASE, WE NOTED THAT THE CIT HAS NOT UTT ERED EVEN A SINGLE WORD THAT THE OBJECTS CARRIED ON BY THE TRUST / INSTITUTION ARE N OT CHARITABLE. EVEN GENUINITY OF THE TRUST WAS ALSO NOT DENIED. THE ONLY REASON GIVE N FOR REFUSING THE REGISTRATION MENTIONED IN THE ORDER IS THAT NO BOOKS OF ACCOUNT EXCEPT COMPUTERS, CASH BOOKS WERE PRODUCED. WE NOTED FROM THE PAPER BOOK THAT VI DE NOTICE DATED 06.09.2012 REQUIRING THE ASSESSEE TO PRESENT ON 20.09.2012, TH E CIT DID NOT ASK TO PRODUCE THE BOOKS OF ACCOUNTS. THE ONLY REQUIREMENT WAS IN RESPECT OF COPY OF MEMORANDUM OF ARTICLE OR AUDIT REPORT FOR THE LAST THREE FINANCIAL YEARS AND COPIES OF ALL BANK ACCOUNTS AND ANY OTHER DOCUMENTS, EVIDE NCE IN SUPPORT OF CLAIM FOR THE REGISTRATION. THE ASSESSEE HAS SUBMITTED THE CO PY OF THE INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD SEPTEMBER 5, 201 1 (DATE OF THE REGISTRATION OF THE TRUST IS NOVEMBER 30, 2011) ALONG WITH THE APPL ICATION FOR THE REGISTRATION VIDE THE INCOME & EXPENDITURE A/C. FOR THE PERIOD 0 5.09.2011 TO 31.03.2012 AND THE AUDITED BALANCE-SHEET AND THE AGAIN THE PRESCRI BED FORM FOR THE YEAR ENDED 31.03.2012 WERE FILED ON 24.09.2012. THE ASSESSEE H AS ALSO SUBMITTED BEFORE THE CIT. THERE IS ONLY ONE BANK ACCOUNT WITH THE STATE BANK OF INDIA. THE ASSESSEE HAS ALSO FILED CERTAIN OTHER DOCUMENTS VIDE LETTER DATED 24.09.2012. AFTER THE SUBMISSION OF THE INFORMATION AS DESIRED BY THE CIT , THE CIT HAS NOT ISSUED ANY FURTHER NOTICE TO THE ASSESSEE ASKING FOR ANY FURTH ER INFORMATION TO REFUSE THE REGISTRATION. THE REFUSAL OF THE REGISTRATION TO TH E TRUST IN THIS WAY, IN OUR OPINION, IS NOT CORRECT AND NOT IN ACCORDANCE WITH LAW. IN T HE ORDER PASSED UNDER SECTION 12A, THE CIT NOWHERE STATED THAT THE TRUST IS NOT G ENUINE OR THE OBJECTS OF THE TRUST OR INSTITUTION HAS BEEN ESTABLISHED ARE NOT C HARITABLE OR RELIGIOUS. WE, 3 THEREFORE, SET ASIDE THE ORDER OF THE CIT AND DIREC T THE CIT TO GRANT THE REGISTRATION UNDER SECTION 12AA TO THE ASSESSEE INS TITUTION. 3. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30 TH APRIL, 2013. SD/- SD/- [D.T.GARASIA] [P.K.BANSAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30 TH APRIL, 2013 COPY OF ORDER FORWARDED TO : 1. MENAKA FASHION & PRASHIKSHAN KENDRA, DEOGHAR 2. C.I.T., DHANBAD 3. THE C.I.T., RANCHI 4. THE D.R., I.T.A.T., TRUE COPY, BY ORDER, SR. PRIVATE SECRETARY, ITAT, RANCHI [MST, SR.PS]