Al- Qaim Foundation, New Delhi V. DIT(E), New Delhi

ITA 1469/DEL/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74345 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-03-2014
• Assessment Year: misc
• Appeal Filed On: 24-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESH CHANDER
• Assessee Lawyers: S K SARKAR
• Keywords: Competent authority
• Section: 12A; 12

Judgement Text

ITA NO. 1469/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 1469/DEL/2011 A.Y. : --------- AL-QAIM FOUNDATION, D-60, PANCHSHEEL ENCLAVE, NEW DELHI 110 017 (PAN:AACTA8441R) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), AAYAKAR BHAWAN, 3 RD FLOOR, DISTT. CENTRE, LAXMI NAGAR, DELHI 110 092 (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. S.K. SARKAR, CA DEPARTMENT BY : SH. RAMESH CHANDER, CIT(DR) ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS), DELHI DAT ED 21.2.2011 REJECTING THE APPLICATION OF THE ASSESSEE FOR GRAN T OF REGISTRATION UNDER SECTION 12A OF THE ACT. 2. IN THIS CASE, LD. DIT(E) NOTED THAT ASSESSEE SOU GHT REGISTRATION U/S. 12A OF THE I.T. ACT. LD. DIT(E) HELD THAT ON PERUSAL OF THE RECORDS, IT WAS FOUND THAT THE ASSESSEE HAS NOT DON E ANY ACTIVITY SO FAR. HE NOTED THAT ONE OF THE OBJECTIVE OF THE A SSESSEE WAS TO RUN THE SCHOOL/COLLEGES AND THEY HAVE NOT TAKEN ANY PER MISSION FROM THE COMPETENT AUTHORITY. LD. DIT(E) FURTHER NOTED THAT THERE IS NO DOCUMENTARY EVIDENCE FOR ANY CHARITABLE ACTIVITY. HENCE, LD. DIT(E) FOUND THAT NO ACTIVITY WAS CONDUCTED BY THE ASSESSE E. LD. DIT(E) FURTHER REFERRED TO THE DECISION OF THE HONBLE KER ALA HIGH COURT IN THE CASE OF SELF EMPLOYERS SERVICE SOCIETY VS. COMM ISSIONER OF ITA NO. 1469/DEL/2011 2 INCOME TAX (2001) 247 IT 0018. ACCORDINGLY, LD. DI T(E) REJECTED THE APPLICATION FILED BY THE ASSESSEE FOR GRANT OF REGI STRATION UNDER SECTION 12A. 3. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPE AL BEFORE US. 4. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT ASSESSEE HAS NOT COMMENCED ANY ACTIVITY, BECAUSE THE GRANT OF REGIST RATION IS AWAITED. HE SUBMITTED AT THE STAGE OF GRANT OF REG ISTRATION, DIT(E) HAS TO LOOK AT THE OBJECTIVE OF THE TRUST. IT IS NOT MANDATORY THAT THE TRUST SHOULD HAVE STARTED ACTIVITIES FOR OBTAIN ING REGISTRATION U/S. 12A. IN THIS REGARD, LD. COUNSEL OF THE ASSESSEE R EFERRED TO THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF DIT VS. FOUNDATION OF OPHTHALMIC & OPTOMETRY RESEARCH EDUCATION CENTRE 355 ITR 361. IN THIS CASE, IT WAS EXPOUNDED THAT DIT(E) CANNOT REFUSE TO GRANT THE REGISTRATION TO THE ASS ESSEE ON THE GROUND THAT NO CHARITABLE ACTIVITY HAD TAKEN PLAC E. ACCORDINGLY, LD. COUNSEL OF THE ASSESSEE PRAYED THAT DIT(E) MA Y BE DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE. LD. DR ON THE OTHER HAND SUPPORTED THE ORDER OF THE LD. DIT(E). 5. UPON CAREFUL CONSIDERATION, WE FIND THAT AS PER THE ANVIL OF THE HONBLE JURISDICTIONAL HIGH COURT DECISION CITED AB OVE, LD. DIT(E) WHILE CONSIDERING THE GRANT OF REGISTRATION U/S. 12 A CANNOT REJECT THE ASSESSEES APPLICATION ON THE GROUND THAT ASSESSEE S TRUST HAS NOT STARTED ANY ACTIVITY AT THE STAGE OF REGISTRATION. LD. DIT(E) IS TO LOOK INTO THE OBJECT OF THE TRUST AND DECIDE AS PE R LAW. IN THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION, TH AT THE REJECTION BY THE LD. DIT(E) OF THE ASSESSEES APPLICATION FOR REGISTRATION IN THIS CASE IS WITHOUT ANY COGENT BASIS. ACCORDINGLY, WE REMIT THE ISSUE TO THE FILE OF THE LD. DIT(E). LD. DIT(E) IS DIRECTE D TO DECIDE UPON THE ITA NO. 1469/DEL/2011 3 ASSESSEES APPLICATION EXPEDITIOUSLY AND WITHIN T HE REASONABLE TIME. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14/3/2014. SD/- SD/- [ [[ [R.P. TOLANI R.P. TOLANI R.P. TOLANI R.P. TOLANI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 14/3/2014 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES ITA NO. 1469/DEL/2011 4