Trinity Charitable & Educational Trust, CHENNAI V. ITO, Coimbatore

ITA 1251/CHNY/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9204 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 09-05-2014
• Court: TRIBUNAL
• Department Lawyers: DUREGESH SUMROTTCIT
• Assessee Lawyers: A S SRIRAMAN
• Keywords: Reasonable cause; Condonation of delay
• Section: 12A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , . !' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO.1251/MDS./2014 M/S.TRINITY CHARITABLE & EDUCATIONAL TRUST , NO.19K4,THANTHAI PERIYAR STREET, MATHAYYAN LAYOUT, METTUPALAYAM, COIMBATORE 641 301 . VS. THE INCOME TAX OFFICER, COMPANY WARD-I, COIMBATORE. [PAN AABTT 8889 R ] ( #$ / APPELLANT) ( %&#$ /RESPONDENT) / APPELLANT BY : MR.A.S.SRIRAMAN,ADVOCATE /RESPONDENT BY : MR.DUREGESH SUMROTT,CIT DR / DATE OF HEARING : 31 - 05 - 201 6 / DATE OF PRONOUNCEMENT : 06 - 06 - 2016 ' / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX-I, COIMBATORE DATED 30. 08.2013. 2. THE GRIEVANCE OF THE ASSESSEE TRUST IS WITH REGA RD TO NON-GRANTING OF REGISTRATION U/S.12AA OF THE ACT. ITA NO. 1251/MDS./14 :- 2 -: 3. THIS APPEAL IS FILED BY THE ASSESSEE WITH A DELAY O F 176 DAYS BEFORE THIS TRIBUNAL. A CONDONATION PETITION WAS F ILED BY THE LD.A.R DATED 19-08-2015 SEEKING CONDONATION OF DELAY IN FI LING THE APPEAL STATING THAT THE DELAY WAS ON ACCOUNT OF SUDDEN ILL NESS OF ASSESSEES CHARTERED ACCOUNTANT AND STATED THAT THE SHORT DELA Y OF 176 DAYS TO BE CONDONED IN THE INTEREST OF JUSTICE. WE HAVE GON E THROUGH THE REASONS ADVANCED BY THE ASSESSEES COUNSEL IN CONDO NATION PETITION. ACCORDING TO THE LD. AR, REFUSAL TO CONDONE THE DEL AY WOULD RESULT IN A MERITORIOUS BEING THROWN AT THE VERY THRESHOLD, CAU SE OF JUSTICE BEING DEFEATED. AS AGAINST THIS, WHEN DELAY IS CONDONED, THE HIGHEST THAT CAN HAPPEN IS THAT A CASE WOULD BE DECIDED ON MERIT AFTER HEARING THE PARTIES. ON THIS POINT, IT IS PERTINENT TO DRAW THE RATIO LAID DOWN BY THE SUPREME COURT IN THE CASE OF COLLECTOR LAND ACQUISI TION V. MST. KATIGI (167 ITR 471). ACCORDING TO LD.A.R, THERE IS GOOD AND SUFFICIENT R EASON TO CONDONE THE DELAY AND ADMIT THE APPEAL FOR ADJUD ICATION. WE HAVE GONE THROUGH THE REASONS ADVANCED BY THE ASSESSEE I N ITS PETITION. IN OUR OPINION, THERE EXISTS REASONABLE CAUSE FOR F ILING THE APPEAL BELATEDLY. ACCORDINGLY, WE CONDONE THE DELAY OF 17 6 DAYS IN FILING THIS APPEAL AND ADMIT THE APPEAL FOR ADJUDICATION. 3.1. REGARDING THE MAIN GROUND OF THE APPEAL, LD.A .R SUBMITTED THAT NON-COMMENCEMENT OF THE ACTIVITIES OF ASSESSEE-TRUS T CANNOT THE REASON TO DENY THE REGISTRATION U/S.12A OF THE ACT. ITA NO. 1251/MDS./14 :- 3 -: 4 . WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE MAIN CONTENTION OF LD.D.R IS THAT THE T HE ASSESSEE HAS NOT COMMENCED THE ACTIVITY SO AS TO GRANT REGISTRATION U/S.12AA OF THE ACT. THE ASSESSEE HAS ALSO NOT FURNISHED THE DETAILS OF ACTIVITIES CARRIED ON BY THE ASSESSEE TO THE SATISFACTION OF THE CIT. HO WEVER, WE FIND THAT SECTION 12A DOES NOT STIPULATE THE COMMENCEMENT OF THE ACTIVITIES TO GRANT REGISTRATION U/S.12A OF THE ACT. ON THE OTHER HAND, SEC.12A CONTEMPLATES SATISFACTION OF COMMISSIONER OF INCOME TAX ABOUT THE OBJECT OF THE TRUST AND THE GENUINENESS OF THE ACTI VITIES AND CIT WILL MAKE SUCH ENQUIRY AS MAY BE NECESSARY FOR THE PURPO SE OF GRANT OF REGISTRATION. IN DOING SO, THE CIT HAS TO GIVE AN O PPORTUNITY TO THE ASSESSEE IN TERMS OF SEC.12A OF THE ACT AND IF HE S ATISFIES THAT THE OBJECT OF THE ASSESSEE TRUST ARE NOT GENUINE AND NO T BEING CARRIED ON IN ACCORDANCE WITH THE OBJECT OF THE ASSESSEE TRUST , HE CAN CANCEL THE REGISTRATION OF TRUST. WITH SUCH POWER IS VESTED WI TH THE CIT TO CANCEL THE REGISTRATION IN THE EVENT OF THE TRUST NOT BEIN G CARRIED ON IN ACCORDANCE WITH THE OBJECT OF THE TRUST DEED, WE D O NOT FIND ANY GROUND TO SEE THAT MERELY ON THE DATE OF APPLICATIO N, THE ASSESSEE TRUST HAD NOT COMMENCED ITS ACTIVITIES, HENCE, THE REGISTRATION COULD NOT BE DENIED. BEING SO, IN OUR OPINION, THE CIT(A) SHALL CARRY ON NECESSARY ENQUIRY REGARDING THE OBJECT OF THE TRUST AND GENUINENESS ITA NO. 1251/MDS./14 :- 4 -: OF THE ACTIVITIES OF THE TRUST AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. IT IS PERTINENT TO MENTION HEREIN THAT T HE JUDGEMENT OF JURISDICTIONAL HIGH COURT IN CASE OF DIE(EXEMPTIONS ) VS.SEERVI SAMAJ TAMBARAM TRUST REPORTED IN (2014) 362 ITR 0199 (MAD .) HELD THAT WHERE THE GENUINENESS AND OBJECT OF THE TRUST WAS N OT DOUBTED, REGISTRATION U/S.12AA OF THE ACT CANNOT BE REFUSED ON THE GROUND THAT THE TRUST HAD NOT YET STARTED ITS ACTIVITIES. ACC ORDINGLY, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH JUNE, 2016, AT CHENNAI. SD/ - SD/ - ( . ) ( G.PAVAN KUMAR ) / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ! / CHENNAI '# / DATED: 06 TH JUNE, 2016 K S SUNDARAM #$%%&'(% )( / COPY TO: % 1 . / APPELLANT 4. % * / CIT 2. / RESPONDENT 5. (+, %&&-. / DR 3. % *%/ 0 / CIT(A) 6. ,12%3 / GF