Somlai Hanuman Education Trust, Surat V. The CIT, Valsad

ITA 1327/AHD/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1225 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-08-2015
• Assessment Year: misc
• Appeal Filed On: 18-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SEWAK SR DR
• Assessee Lawyers: MITESH MODI
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.1327/AHD/2012 ( / ASSESSMENT YEAR : - ) SOMOLAI HANUMAN EDUCATION TRUST 504, ADINATH MARKET RING ROAD SURAT (GUJARAT) / VS. THE COMMISSIONER OF INCOME TAX SURYAPRAKASH CHAMBER DHARAMPUR ROAD VALSAD ./ ./ PAN/GIR NO. : AAKTS 0696Q ( ' / APPELLANT ) .. ( #' / RESPONDENT ) ' $ / APPELLANT BY : SHRI MITESH MODI, AR #' % $ / RESPONDENT BY : SHRI SHIVA SEWAK, SR.DR &'( % ) / DATE OF HEARING 14/08/2015 *+, % ) / DATE OF PRONOUNCEMENT 21/08/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX)-VALSAD [CIT IN SHORT] DATED 17/11/2011. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- (1) THE LEARNED CIT, VALSADS ORDER IS CONTRADICTORY T O LAW AND FACTS OF THE CASE AND HENCE DELETED. ITA NO.1327/AHD /2012 SOMOLAI HANUMAN EDUCATION TRUST VS. CIT - 2 - (2) THE LEARNED CIT, VALSAD HAS ERRED IN PASSING ORDER U/S.12AA(1)(B)(II) R.W.S. 12(A) OF THE ACT WITHOUT CONSIDERING ON MERITS THE DOCUMENTARY EVIDENCES/EXPLANATIONS FURNI SHED BEFORE HIM TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES CARRIED OUT BY THE APPLICANT TRUST AND HENCE, HIS ACTION IN REFUSING TO REGISTER THE TRUST IS ARBITRARY, BAD IN LAW AND NOT JUSTIFIED. (3) THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, DE LETE, CHANGE OR MODIFY AND/OR ANY GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE-TRUST FILED AN APPLICATION FOR REGISTRATION U/S.12A(A) OF THE INCOME TAX ACT,1 961 (HEREINAFTER REFERRED TO AS THE ACT) WHICH WAS REJECTED BY TH E LD.CIT VIDE ORDER DATED 17/11/2011 ON THE GROUND THAT APPLICATION REC EIVED BY LATE BY SEVEN MONTHS WITH REGARD TO STIPULATED DATE FOR MAK ING SUCH APPLICATION. THE TRUST HAS NOT EXPLAINED ANY REASON FOR THE DELA Y. FURTHER, THE TRUST HAS NOT FURNISHED ITS ACTIVITY. AGGRIEVED BY THE O RDER OF THE LD.CIT, THE ASSESSEE PREFERRED THE PRESENT APPEAL BEFORE US. 3. THE LD.COUNSEL FOR THE ASSESSEE REITERATED THE S UBMISSIONS AS WERE MADE IN THE WRITTEN SUBMISSIONS. 3.1. ON THE CONTRARY, THE LD.SR.DR OPPOSED THE SUBM ISSIONS OF THE LD.COUNSEL FOR THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF T HE LD.CIT. THE ASSESSEE HAS MADE FOLLOWING WRITTEN SUBMISSIONS WHI CH HAS BEEN OPPOSED BY THE LD.SR.DR:- ITA NO.1327/AHD /2012 SOMOLAI HANUMAN EDUCATION TRUST VS. CIT - 3 - RESPECTED SIRS, MOST RESPECTFULLY YOUR APPELLANT BEGS TO SUBMIT AS UNDER: THE APPELLANT TRUST IS DULY REGISTERED UNDER REGIST RATION NO. E/1462/NAVSARI CERTIFICATE OF REGISTRATION DTD. 29- 06-2009 ISSUED BY THE ASSISTANT CHARITY. COMMISSIONER, NAVSARI REGION , NAVSARI UNDER THE BOMBAY PUBLIC CHARITABLE TRUSTS ACT, 1950. THE APPELLANT TRUST FILED THE APPLICATION FOR REGISTRATION U/S 12A(1)(A A) OF THE ACT IN FORM NO.10A ON 18-03-2011 ALONG WITH THE RELEVANT D OCUMENTS IN COMPLIANCE TO RULE 17A OF THE I.T. RULES, 1962, SUC H AS- (I) THE COPY OF CERTIFICATE OF REGISTRATION IS SUED BY THE ASSISTANT CHARITY COMMISSIONER, NAVSARI REGION, NAV SARI. (II) CONSTITUTION OF THE TRUST/TRUST DEED. (III) PAN (IV) LIST OF NAMES AND ADDRESSES OF TR USTEES. HOWEVER, THE APPLICATION REQUESTING REGISTRATION U/ S 12A(1)(AA) OF THE ACT HAS BEEN REFUSED ON THE GROUND THAT THE APP ELLANT TRUST HAS NOT COMPLIED WITH THE LETTERS DTD. 10-06-2011 AND 1 4-10-2011. AS A MATTER OF FACT, THE APPELLANT TRUST HAS DULY COMPL IED WITH THE SAID NOTICES BY FURNISHING DETAILS/DOCUMENTS/MATERIALS A S REQUIRED BY THE CIT VIDE SUBMISSIONS MADE ON 16-05-2012 (KINDLY LOOK AT PAGE 24 OF THE APPEAL PAPERS). YOUR HONOURS, THE APPELLANT TRUST HAS SUBMITTED ALL THE REQUIRED DOCUMENTS INCLUDING AUDITED INCOME AND EXPENDITURE A/C AND BALANCE SHEET FOR THE YEAR ENDED 31 ST MARCH, 2011 AND THE ACTIVITY REPORT IN COMPLIANCE TO BOTH THE LETTERS, BUT UNFOR TUNATELY, WITHOUT TAKING INTO ACCOUNT THE SAME, THE CIT, VALSAD ARBIT RARILY DENIED TO GRANT THE REGISTRATION U/S 12A(1)(AA) WHICH IS IN V IOLATION .OF THE PROVISIONS OF SEC. 12AA(2) OF THE ACT. YOUR HONOURS WILL AGREE WITH THE CONTENTION THAT, W HILE DISPOSING THE APPLICATION FOR REGISTRATION, THE CIT, VALSAD HAS N OT FOUND ANYTHING CONTRARY TO THE STATUTORY REQUIREMENT AS PER THE RE LEVANT RULE 17A ITA NO.1327/AHD /2012 SOMOLAI HANUMAN EDUCATION TRUST VS. CIT - 4 - R.W.S. 12AA(1)(AA) OF THE ACT. THE CIT, VALSAD HAS GROSSLY FAILED TO SEE AND CONSIDER THE GENUINENESS OF THE ACTIVITIES CARRIED OUT BY THE APPELLANT TRUST IN FULFILLMENT OF THE OBJECTS OR TH E AIMS OF THE TRUST AS PER THE REGISTERED TRUST DEED PLACED BEFORE HIM' AN D THEREFORE, HIS ACTION IN REFUSING THE APPLICATION FOR REGISTRATION OF THE TRUST U/S 12AA OF THE ACT IS ARBITRARY, BAD IN LAW AND HENCE, LIABLE TO BE SET ASIDE. THUS, THE APPELLANT TRUST HAS NOT MADE ANY CONTRAVE NTION TO THE REQUIREMENT UNDER THE LAW IN ORDER TO SATISFY THE C IT, VALSAD ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST AND THEREFORE, THE ORDER U/S 12AA(1)(B)(II) PASSED BY CIT, VALSAD FOR REJECT ION OF APPLICATION FOR REGISTRATION U/S 12A(1)(AA) OF THE ACT IS LIABL E TO BE SET ASIDE. IT IS THEREFORE, RESPECTFULLY PRAYED THAT THE APPEA L OF THE APPELLANT BE ALLOWED IN TOTO AND-OBLIGE. SD/- (M.S. MODI) AUTHORIZED REPRESENTATIVE 4.1. WE FIND THAT BEFORE THE LD.CIT, THERE WAS NO R EPRESENTATION ON BEHALF OF THE ASSESSEE-TRUST. THE LD.CIT HAS NOTED THAT AN OPPORTUNITY OF HEARING WAS GRANTED BY LETTER DATED 10/06/2011 & 14 /10/2011 TO THE ASSESSEE-TRUST. AFTER CONSIDERING THE TOTALITY O F THE FACTS AND SUBMISSIONS OF THE PARTIES, WE ARE OF THE CONSIDERE D VIEW THAT THE ASSESSEE-TRUST SHOULD BE GRANTED ANOTHER OPPORTUNIT Y TO REPRESENT ITS CASE BEFORE THE LD.CIT FOR CONSIDERING HIS REGISTRATION U/S.12A(A) OF THE ACT. ACCORDINGLY, WE HEREBY SET ASIDE THE ORDER OF THE L D.CIT AND RESTORE THE APPLICATION BACK TO HIS FILE TO DECIDE THE SAME AFR ESH IN ACCORDANCE WITH LAW. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE TH E LD.CIT WITHIN FOUR ITA NO.1327/AHD /2012 SOMOLAI HANUMAN EDUCATION TRUST VS. CIT - 5 - WEEKS TIME ON RECEIPT OF THIS ORDER. THUS, GROUND OF ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 21 ST DAY OF AUGUST, 2015 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( PRAMOD KUMAR ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 21/ 08 /2015 0)..& , '.&../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 123 4 / CONCERNED CIT 4. 4 ( ) / THE CIT(A)-CONCENRED. 5. 5'6 &23 , ) 23 , , 1 / DR, ITAT, AHMEDABAD 6. 689 :( / GUARD FILE. / BY ORDER, #5 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD