Samarpan Foundation, Ahmedabad V. The CIT-III, Baroda

ITA 1297/AHD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68013 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-12-2013
• Assessment Year: misc
• Appeal Filed On: 06-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV
• Assessee Lawyers: S N SOPARKAR
• Keywords: Charitable institution
• Section: 12A

Judgement Text

ITA NO 1297/ AHD/2013 . A.Y. N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (BEFORE SHRI MUKUL KR. SHRAWAT, J.M. & SHRI ANIL CH ATURVEDI, A.M.) I.T. A. NO. 1297/AHD/2013 (ASSESSMENT YEAR: N.A. SAMARPAN FOUNDATION SANJAY SMRUTI AT 7 P.O. VALIA, TAL: VALIA BHARUCH V/S CIT-III 2 ND FLOOR, AAYAKAR BHAVAN ANNEXE, RACE COURSE CIRCLE, BARODA 390007 (APPELLANT) (RESPONDENT) PAN: AAITS 5588B APPELLANT BY : SHRI S.N. SOPARKAR RESPONDENT BY : SHRI O.P. VAISHNAV, CIT D.R. ( )/ ORDER DATE OF HEARING : 04-12-201 3 DATE OF PRONOUNCEMENT : 13 -12-2013 PER SHRI ANIL CHATURVEDI,A.M. 1. THIS APPEAL OF THE ASSESSEE IS ARISING OUT OF ORDER OF CIT-III, BARODA DATED 29.05.2012 PASSED UNDER SECTION 12AA(1)(B)(II ) OF THE I.T. ACT 1961. 2. THE GROUNDS RAISED BY THE ASSESSEE READS AS UNDER:- 1. THE LD. CIT -III, BARODA HAS ERRED BOTH IN LAW AND IN FACT IN PASSING ORDER U/S. 12A (A) DATED 29- 05-2012 AND IN REJECTING THE APPLICATION OF YOUR AP PELLANT MADE U/S. 12 A(A) OF THE ACT. THE ABOVE ORDER IS BAD IN LAW AND VOID SINCE IT IS TIME BARRED AND NOT SERVED TO THE APPELLANT WITHIN THE STIPULATED TIME THEREFORE THE SAME BE CA NCELLED AND THE APPELLANT BE GRANTED REGISTRATION. ITA NO 1297/ AHD/2013 . A.Y. N.A. 2 2. WITHOUT PREJUDICE TO ABOVE IT IS SUBMITTED THAT ON FACTS OF THE CASE YOUR APPELLANT HAD APPEARED FROM TIME TO TIME AND SUPPLIED ALL INFORMATION AND PARTICULARS REQUIRED UNDER LAW AND IN SUPPORT OF VARIOUS QUERIES OF LD. CIT -III BARODA WHICH HAS NOT BEEN ACCEPTED BY HIM. 3. YOUR APPELLANT BEING A CHARITABLE INSTITUTION DULY REGISTERED UNDER BOMBAY PUBLIC TRUST ACT AND HAVING COMPLIED WITH ALL PROVISIONS OF SEC. 12A (A) AND WHOLLY ENGAGED IN EDUCATIONAL ACTIVITIES IN BACKWARD AREA, LD. CIT-III, BARODA BE DIRECTED T O GRANT REGISTRATION. 3. AT THE OUTSET, LD. A.R. SUBMITTED THAT THERE WAS DE LAY IN FILING THE PRESENT APPEAL. HE SUBMITTED THAT ORDER OF COMMISSIONER DAT ED 29.05.2012 WAS RECEIVED AROUND 04.06.2012 AND THE APPEAL WAS FILED ON 06.05.2013 AND THEREBY DELAY OF AROUND 9 MONTHS HAVE TAKEN PLACE I N FILING THE APPEAL. FOR EXPLAINING THE REASONS OF DELAY, ASSESSEE HAS F ILED AFFIDAVITS OF SHRI PARBHATBHAI PRAJAPATI, CHIEF ADMINISTRATIVE OFFICER , SHRI GHANSHYAMBHAI PATEL IN CHARGE OF ACCOUNTS, AND SHR I VIKRAMSINGH MANGROLA CHIEF ADMINISTRATIVE OFFICER. IN THE AFFI DAVIT OF SHRI VIKRAMSINGH MANGROLA, THE REASON FOR DELAY IN FILIN G IS STATED THAT HE WAS ADVISED THAT NO APPEAL WAS REQUIRED TO BE FILED AGA INST THE ORDER OF CIT SINCE IT WAS PASSED AFTER 6 MONTHS FROM THE DATE OF APPLICATION AND HE WAS THEREFORE UNDER A GENUINE AND BONA FIDE BELIEF THAT IT WAS NOT REQUIRED. IT WAS FURTHER SUBMITTED THAT THE DELAY I N FILING THE APPEAL BE CONDONED. THE LD. D.R. HOWEVER OBJECTED TO THE COND ONATION APPLICATION FILED BY THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE AFFIDAVITS FILED, THE REASON OF GEN UINE AND BONA FIDE BELIEF, STATED BY THE OFFICE BEARER OF ASSESSEE PRI MA FACIE APPEARS TO BE GENUINE. THUS CONSIDERING THE AVERMENTS MADE IN TH E AFFIDAVIT, WE CONDONE THE DELAY AND THE APPEAL IS ACCEPTED. ITA NO 1297/ AHD/2013 . A.Y. N.A. 3 5. ASSESSEE HAD MADE AN APPLICATION FOR REGISTRATION O F ITS FOUNDATION UNDER 12A(A) ON 23.11.2011. ON PERUSING THE APPLICATION, CERTAIN DETAILS WERE CALLED FROM THE ASSESSEE. CIT(A) HAS NOTED THAT SIN CE THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS AND THE OTHER DET AILS CALLED BY HIM, THE APPLICATION WAS REJECTED VIDE ORDER DATED 29.05.201 2. 6. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS N OW IN APPEAL BEFORE US. 7. BEFORE US, AT THE OUTSET, THE LD. A.R. SUBMITTED TH AT THE MATTER BE SENT BACK TO CIT FOR FRESH CONSIDERATION AND HE FURTHER UNDERTOOK TO FURNISH ALL THE REQUIRED INFORMATION PROMPTLY WHICH WOULD B E REQUIRED FOR PROCESSING OF APPLICATION AND WHICH THE ASSESSEE DI D NOT FURNISH EARLIER. HE THEREFORE URGED THAT ASSESSEE BE GRANTED ONE MOR E OPPORTUNITY TO FURNISH THE REQUIRED INFORMATION. THE LD. D.R. ON T HE OTHER HAND OBJECTED TO THE REQUEST OF LD. A.R. HE SUBMITTED THAT ASSESS EE WAS ASKED ON VARIOUS OCCASIONS TO FURNISH THE REQUIRED INFORMATI ON BUT SINCE NO INFORMATION WAS FURNISHED BY THE ASSESSEE, CIT WAS FULLY JUSTIFIED IN REJECTING THE APPLICATION. HE THUS SUPPORTED THE O RDER OF CIT. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. FROM THE ORDER OF CIT, IT IS SEEN THAT ASSESSEE WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNTS AND ALSO GIVE CLARIFICATION WITH RESPECT TO THE VARIOUS ITEMS OF THE BALANCE SHEET. APART FROM THE AFORESAI D INFORMATION, THE ASSESSEE WAS ALSO ASKED TO FURNISH OTHER DETAILS LI KE DISSOLUTION DEED OF NAVCHETAN EDUCATION SOCIETY AND COPY OF THE RETURN OF INCOME FOR A.Y. 2008-09 BUT THE SAME WAS NOT FURNISHED. DUE TO NON SUBMISSION OF DETAILS, THE APPLICATION WAS REJECTED. HOWEVER, IN VIEW OF THE UNDERTAKING ITA NO 1297/ AHD/2013 . A.Y. N.A. 4 GIVEN BY THE LD. A.R, BEFORE US, WE ARE OF THE VIEW THAT TO MEET THE ENDS OF JUSTICE, ONE MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE SO THAT IT CAN FURNISH THE INFORMATION CALLED FOR BY CIT. WE THER EFORE RESTORE THE ISSUE BACK TO THE FILE OF LD. COMMISSIONER TO EXAMINE ALL SUCH DETAILS WHICH ARE REQUIRED FOR REGISTRATION OF TRUST AND THEREAFTER D ECIDE THE GRANTING OF REGISTRATION AS PER THE PROVISIONS OF LAW. WE HERE BY ALSO DIRECT THE ASSESSEE TO SUO MOTU APPEAR BEFORE THE LD. COMMISSI ONER WITHIN 15 DAYS OF THE RECEIPT OF THIS ORDER OF TRIBUNAL WITHOUT WA ITING FOR ANY NOTICE, FROM THE REVENUE DEPARTMENT AND SUBMIT ALL THE NECE SSARY INFORMATION AND SUCH OTHER DOCUMENTS CALLED FOR BY LD. COMMISSI ONER SO AS TO ENABLE HIM TO PASS AN APPROPRIATE ORDER. WITH THESE DIREC TIONS, THIS GROUND OF ASSESSEE MAY BE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 13 - 12 - 2013. SD/- SD/- (MUKUL KR. SHRAWAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD. TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AH MEDABAD