VANITABEN GOUSEVA TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 1216/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2227 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 10-03-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 12-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AN D SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.1216/M/2013 ASSESSMENT YEAR: 2013-14 M/S. VANITABEN GOUSEVA TRUST, S.A. KANJI & CO., 206, REWA CHAMBERS, SIR THACKERSAY MARG, NEW MARINE LINES, MUMBAI 400 020 PAN: AABTV5165A VS. DIRECTOR OF INCOME TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI - 400012 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI G.M. DOSS, D.R. DATE OF HEARING : 13.08.2015 DATE OF PRONOUNCEMENT : 27.11.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE TRUST AGAINST THE ORDER DATED 27.09.2012 OF THE DIRECTOR OF INCOME TA X (EXEMPTION) [HEREINAFTER REFERRED TO AS THE DIT(E)] RELEVANT TO ASSESSMENT Y EAR 2013-14 WHEREBY HE HAS REJECTED THE APPLICATION OF THE TRUST FOR REGISTRAT ION UNDER SECTION 12A OF THE ACT. NONE HAS COME PRESENT ON BEHALF OF THE ASSESS EE DESPITE NOTICE. HENCE, WE PROCEED TO DECIDE THE APPEAL ON MERITS AFTER HEA RING THE LD. D.R. 2. WE FIND THAT THE LD. DIT(E) HAD CALLED FOR VARIO US DETAILS FROM THE ASSESSEE SUCH AS PAN CARD OF THE SETTLER AND TRUSTE ES COPIES OF BANK ACCOUNT, NOC IN RESPECT OF OFFICE PREMISES, CERTIFICATE OF R EGISTRATION ISSUED BY CHARITY COMMISSIONER, COPIES OF ACCOUNTS AND NOTE ON ACTIVI TIES UNDERTAKEN BY THE ITA NO.1216/M/2013 M/S. VANITABEN GOUSEVA TRUST 2 ASSESSEE TRUST. THE ASSESSEE TRUST SUBMITTED THE R EQUISITE DOCUMENTS. ON PERUSAL OF THE SAID DOCUMENTS, THE LD. DIT(E) OBSER VED THAT THE TRUST BEING A NEW AND RECENTLY CREATED, NO MAJOR ACTIVITY WAS CAR RIED OUT BY IT SO FAR. HOWEVER, THE TRUST HAD SPENT RS.5,26,000/- FOR CONS TRUCTION OF COW SHED MEANT FOR RUNNING GOUSHALA. IT WAS ALSO CLAIMED THAT THE TRUST HAD DISTRIBUTED NOTEBOOKS AT VILLAGE MANGAON, DISTRICT RAIGAD, BUT NO DOCUMENTARY PROOF WAS SUBMITTED REGARDING THIS ACTIVITY. THE LD. DIT(E), AFTER PERUSAL OF THE DOCUMENTS AND CONSIDERING THE SUBMISSIONS OF THE AS SESSEE TRUST, OBSERVED THAT THE ASSESSEE TRUST HAD NOT CARRIED OUT ANY CONCRETE ACTIVITY SO FAR WHICH WOULD ENABLE THE REGISTERING AUTHORITY TO EXAMINE WHETHER THE ACTIVITIES CARRIED OUT ARE GENUINE AND ARE IN ACCORDANCE WITH OBJECTS FOR WHICH THE TRUST HAS BEEN CREATED. HE THEREFORE HELD THAT THE APPLICATION OF THE TRUST FOR GRANT OF REGISTRATION WAS PREMATURE. HE ACCORDINGLY REJECTE D THE APPLICATION OF THE ASSESSEE TRUST. BEING AGGRIEVED, THE ASSESSEE TRUS T HAS COME IN APPEAL BEFORE US. 3. WE HAVE HEARD THE LD. D.R. AND HAVE ALSO GONE TH ROUGH THE RECORDS. SO FAR AS THE ISSUE THAT THE TRUST HAS NOT BEEN ABLE T O BRING ANY EVIDENCE ON RECORD TO ESTABLISH THAT ANY ACTIVITY OF THE TRUST/ASSOCIA TION HAS BEEN TAKEN FOR THE CHARITABLE PURPOSES IS CONCERNED, THE DELHI BENCH O F THE TRIBUNAL, IN THE CASE OF DHARMA SANSTHAPAKSANGH (NIYAS) VS. CIT (2008) 118 TTJ (DEL) 823 : (2008) 13 DTR (DEL) (TRIB) 589; HAS HELD THAT CARR YING ON OF CHARITABLE ACTIVITY, AT THE STAGE OF COMMENCEMENT IS NOT RELEV ANT TO DECIDE WHETHER SUCH TRUST/INSTITUTION IS ENTITLED FOR REGISTRATION. AGA IN IN THE CASE OF SARDARILALOBERAI MEMORIAL CHARITABLE TRUST VS. ITO (2005) 3 SOT 229 (DEL), THE DELHI BENCH OF THE TRIBUNAL HAS HELD THA T SECTION 12AA TAKES CARE OF A SITUATION WHERE ACTIVITIES HAVE BEEN CARRIED OUT BY A TRUST, WHEREAS IT DOES NOT LAY DOWN ANYTHING NEGATIVE IN CASES WHERE NO ACTIVI TIES HAVE BEEN CARRIED OUT, ITA NO.1216/M/2013 M/S. VANITABEN GOUSEVA TRUST 3 LIKE IN THE INSTANT CASE. IN SUCH A CASE, THE SOLE CRITERION OF GRANT/NON-GRANT OF REGISTRATION WOULD BE FOR THE CIT TO SEE THE OBJECT S OF THE TRUST. IF THE OBJECTS OF THE TRUST ARE CHARITABLE, THE FACT THAT NO ACTIVITY HAS BEEN CARRIED OUT BY THE TRUST, DOES NOT ENTITLE THE CIT TO HOLD THAT THE TR UST IS NOT ENTITLED TO REGISTRATION. MOREOVER IN THIS CASE, THE APPLICANT TRUST HAS ALRE ADY STARTED ITS ACTIVITIES AS IT HAS SPENT RS.5,26,00/- FOR BUILDING OF COWSHED MEAN T FOR RUNNING OF GAUSHALA WHICH IS A PART OF ITS OBJECTS. 4. IN VIEW OF OUR ABOVE OBSERVATIONS, WE HOLD THAT THERE WAS NO JUSTIFICATION FOR THE DIT(EXEMPTIONS) FOR REFUSING THE REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE. THE ORDERS OF THE DIT(EXEM PTIONS) ARE THEREFORE REVERSED AND THE LD. DIT(EXEMPTIONS) IS HEREBY DIRE CTED TO GRANT THE REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS HEREBY A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27.11.2015. SD/- SD/- (D. KARUNAKARA RAO) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 27.11.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.