Khateejatul Kubra Trust, Kuppam, Chittoor V. CIT(Exemptions), Hyd, Hyderabad

ITA 1239/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6344 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-06-2016
• Assessment Year: misc
• Appeal Filed On: 28-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G V HEMALATHA DEVI
• Assessee Lawyers: S RAMA RAO
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NOS. 1239 & 1240/HYD/2015 KHATEEJATUL KUBRA, KUPPAM. VS. COMMISSIONER OF INCOME-TAX (EXEMPTIONS), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SMT. G.V. HEMALATHA DEVI DATE OF HEARING 30-06-2016 DATE OF PRONOUNCEMENT 15-07-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: BOTH THESE APPEALS PREFERRED BY THE ASSESSEE ARE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(EXEMPTIONS ), HYDERABAD. 2. ON PERUSAL OF RECORD, WE FIND THAT THERE WAS A D ELAY OF 16 DAYS IN FILING THE APPEALS BEFORE US. THE ASSESSEE FILED A PETITION REQUESTING FOR CONDONATION OF THE SAID DELAY, WHERE IN IT WAS STATED THAT AT THE RELEVANT POINT OF TIME THE ASSESSEE WAS SUFFERING FROM JAUNDICE AND THEREFORE THE DELAY WAS BEYOND ASSESSE ES CONTROL AND WAS NOT INTENTIONAL. TO THIS EFFECT, A COPY OF THE MEDICAL CERTIFICATE ISSUED BY PVC CHEST & MATERNITY HOSPITAL WAS FILED, WHICH IS AVAILABLE ON RECORD. THE ASSESSEE ALSO FILED AN AFF IDAVIT AFFIRMING THE REASONS MENTIONED IN THE PETITION. 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE VI EW THAT SINCE THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN FILIN G THE APPEALS 2 ITA NOS. 1239 & 1240/H/15 KHATEEJATUL KUBRA TRUST, KUPPAM WITHIN THE STIPULATED TIME BEFORE US, WE HEREBY CON DONE THE DELAY AND ADMIT THE APPEALS FOR HEARING. 4. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE IS A TRUST WAS CREATED ON 04/06/2014 AND FILED ITS APPLICATION IN FORM NO. 10A AND FORM NO. 10G ON 28/01/2015, SEEKING REGISTRATION U/ S 12AA OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) AND APPRO VAL U/S 80G(5) OF THE ACT. THE CIT(E) OBSERVED THAT THE ASSESSEE HAS NOT FILED COPIES OF ACCOUNTS FOR THE ACCOUNTING YEAR ENDED 31/03/201 5, WHICH IS MANDATORY AS PER RULE 17A(B) OF THE INCOME TAX RULE S, 1962. SINCE ASSESSEE HAS NOT FURNISHED COPIES OF THE ACCOUNTS F OR THE SAID ACCOUNTING YEAR, CIT(E) HAS TREATED THE ASSESSEE AS NOT ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT. FURTHER, CIT(E) H AS ASKED THE ASSESSEE TO FURNISH A NOTE ON THE PRECISE ACTIVITIE S UNDERTAKEN BY IT, FOR WHICH, ASSESSEE HAS FURNISHED THAT THE TRUST A CTIVITIES COMMENCED ON 04/06/2014, THE TRUST IS EDUCATING 15 POOR CHILDREN AND ALSO PROVIDING FOOD AND TEXT BOOKS/NOTE BOOKS. THE BOOKS ARE DISTRIBUTED FREELY TO NEEDY STUDENTS.. CIT(E) HAS NOT CONVINCED WITH THE EXPLANATION OF ACTIVITIES CARRIED ON BY TH E ASSESSEE, AS ACCORDING TO HIM, WHICH ARE NOT AS PER ITS OBJECTS. HENCE, THE CIT(E) CONSIDERED THE ASSESSEE AS NOT ELIGIBLE FOR REGISTR ATION U/S 12AA OF THE ACT. SIMILARLY, CIT(E) HAS REJECTED THE APPLICA TIONS FILED BY THE ASSESSEE IN FORM NO. 10A AND 10G. 5. AGGRIEVED WITH THE ABOVE ORDER OF CIT(E), THE AS SESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF A PPEAL: THE LEARNED COMMISSIONER OF INCOME-TAX IS NOT LEGA LLY CORRECT AND PROPER IN REJECTING REGISTRATION UNDER SECTION 12AA OF INCOME-TAX ACT, 1961. 2) COMMISSIONER OF INCOME-TAX'S OBSERVATIONS: ' ON 22.07.2015, THE APPLICANT'S AUTHORISED REPRESE NTATIVE SRI T VENKATESWARA RAO, CHARTERED ACCOUNTANT APPEARED AND FILED CERTAIN INFORMATION REPLY, WHICH HOWEVER WAS FOUND TO BE NOT SATISFACTORY' 3 ITA NOS. 1239 & 1240/H/15 KHATEEJATUL KUBRA TRUST, KUPPAM 3) THE LEARNED COMMISSIONER OF INCOME-TAX HAS NOT A SKED ANY FURTHER INFORMATION ON 22.07.2015 HENCE REJECTION O F 12A IS ILLEGAL AND IMPROPER. 4) PARA 2 OF COMMISSIONER OF INCOME-TAX'S ORDER T HE TRUST WAS CREATED ON 04.06.2014, THE APPLICANT IS REQUIRED TO FURNISH ITS COPIES OF ACCOUNTS FOR THE ACCOUNTING YEAR ENDED ON 31.03.2015, FILING OF WHICH IS MANDATORY AS PER RULE 17A(B) OF INCOME-TAX RULES, 1962. HOWEVER, THE APPLICANT HAS NOT FURNISH ED THE COPIES OF ACCOUNTS FOR THE SAID ACCOUNTING YEAR, IN ABSENC E OF WHICH IN MY VIEW IT IS NOT ELIGIBLE FOR REGISTRATION U/S 12A A OF THE ACT. 5) THE TRUST WAS CREATED ON 04.06.2014, 12A/80G APP LICATION WAS FILED ON 28.01.2015. HENCE ACCOUNTS FOR THE YEA R ENDING 31.03.2015 WAS NOT FILED. 6) 'THE TRUST IS EDUCATING 15 POOR CHILDREN AND ALS O PROVIDING FOOD AND PROVIDING TEXT BOOKS & NOTE BOOKS. BOOKS A RC DISTRIBUTED FREELY TO '1EEDY STUDENTS .... '. 7) THE COMMISSIONER OF INCOME-TAX'S FINDING 'IN ABSENCE OF THE DETAILS OF SUCH ACTIVITIES FURNI SHED BY THE APPLICANT, IN MY VIEW, IT CANNOT BE SAID THAT IT HA S CARRIED ON SUCH ACTIVITIES AS PER ITS OBJECTS, AND HENCE UNDER THAT CIRCUMSTANCES, IT IS NOT ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT. 3. FOR THE REASONS MENTIONED ABOVE, THE APPLICANT T RUST THUS CANNOT BE GRANTED REGISTRATION U/S 12AA OF THE ACT. HENCE REGISTRATION SOUGHT U/S 12AA OF THE ACT, IS REFUSED TO THE ABOVE SOCIETY. THUS, THE SAID APPLICATION IN FORM NO. 10A FILED BY THE APPLICANT IS REJECTED. AS SUCH, THE OTHER APPLICATI ON IN FORM NO. 10G IS ALSO REJECTED' 8) THE APPELLANT FURNISHED ACTIVITIES OF THE TRUST AS MENTIONED ABOVE. THE COMMISSIONER OF INCOME-TAX IS NOT LEGALL Y CORRECT AND PROPER IN CONCLUDING AS PER PARA 7 ABOVE. 9) WHEN THE ACTIVITIES DONE IS WITHIN OBJECTS OF TR UST, COMMISSIONER OF INCOME-TAX'S REJECTION OF 12AA IS N OT LEGALLY CORRECT AND PROPER. 6. CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES A ND PERUSED THE MATERIAL FACTS ON RECORD. AS UNDERSTOOD, THE TRUST WAS CREATED ON 04/06/2014 AND THE ASSESSEE HAS FILED APPLICATION F OR REGISTRATION U/S 4 ITA NOS. 1239 & 1240/H/15 KHATEEJATUL KUBRA TRUST, KUPPAM 12AA AND 80G ON 28/01/2015. ON THAT DATE, THE ACCOU NTS FOR THE YEAR ENDING 31/03/2015 WERE NOT AVAILABLE TO ASSESSEE TO FILE ALONG WITH THE APPLICATIONS FILED. CIT(E) HAS MET THE ASSESSEE S AR SHRI T. VENKATESWARA RAO, C.A., ON 22/07/15. FROM THE RECO RD, IT IS NOTICED THAT CIT(E) HAS NOT ASKED ANY FURTHER DETAILS NOR A SKED THE ASSESSEE TO FILE COPIES OF ACCOUNTS FOR THE YEAR ENDING 31/0 3/15, AS HE IS AWARE THAT THE SAME ARE MANDATORY AS PER THE RULE 17A(B) OF THE IT RULES, 1962. MOREOVER, THE CIT(E) HAS REJECTED THE APPLICA TIONS OBSERVING THAT DETAILS FURNISHED BY THE ASSESSEE ON ITS ACTIV ITIES ARE NOT PROPER. IN OUR CONSIDERED VIEW, THE ASSESSEE HAS COMMENCED SOME ACTIVITIES, WHICH MAY BE INSIGNIFICANT. THE CIT(E) IS EXPECTED TO ANALYSE THE OBJECTS OF THE SOCIETY FOR REGISTRATION . HENCE, WE FIND IT APPROPRIATE TO REMIT BOTH THE APPEALS BACK TO THE F ILE OF THE CIT(E) WITH A DIRECTION TO GET ALL THE NECESSARY INFORMATI ON FROM THE ASSESSEE AND GRANT REGISTRATION AS PER THE PROVISIO NS OF THE LAW. ASSESSEE MAY BE GIVEN PROPER OPPORTUNITY OF BEING H EARD IN THE MATTER. WE ORDER ACCORDINGLY. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 15 TH JULY, 2016. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHM AN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 15 TH JULY, 2016 KV 5 ITA NOS. 1239 & 1240/H/15 KHATEEJATUL KUBRA TRUST, KUPPAM COPY TO:- 1) KHATEEJATUL KUBRA TRUST, C/O. M/S KGM GUPTA & C O., CAS., 10/67, GANDHI ROAD, CHITTOOR 517 001. 2) CIT(E), AAYAKAR BHAVAN, LB STADIUM ROAD, BASHEER BAG, HYDERABAD 500 029 3) ITO (EXEMPTIONS), WARD, TIRUPATHI 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.