Indian Epilepsy Association, CHENNAI V. CIT, CHENNAI

ITA 1515/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96059 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 26-06-2015
• Court: TRIBUNAL
• Department Lawyers: S BHARATHCIT
• Assessee Lawyers: G SEETHARAMANC A
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , ! , ' #$ % , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO.1515 /MDS./2015 INDIAN EPILEPSY ASSOCIATION , NO.36,PANTHEON ROAD, EGMORE, CHENNAI 600 008. VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS), ANNEXE,III FLOOR,CHENNAI. PAN AAAAI 7227 G ( () / APPELLANT ) ( %*() / RESPONDENT ) / APPELLANT BY : MR.G.SEETHARAMAN,C.A / RESPONDENT BY : MR.S.BHARATH,CIT, D.R / DATE OF HEARING : 01 .09.2015 /DATE OF PRONOUNCEMENT : 04.09.2015 + / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(EXEMPTIONS), CHENNAI DATED 25.05.2015 IN CIT(E) NO.2(134)/14-15 WHEREIN THE LD.CIT(EXEMPTIONS) REJECTED THE APPLICATION FILED B Y THE ASSESSEE ITA NO.1515 /MDS/2015 2 TRUST SEEKING REGISTRATION UNDER SECTION 12AA OF TH E INCOME TAX ACT, 1961. 2. THE ASSESSEE AGGRIEVED BY THE ORDER OF THE LD.CIT(EXEMPTIONS) HAS RAISED FOUR GROUNDS BEFORE U S; HOWEVER, THE CRUX OF THE ISSUE IS THAT THE ASSESSEE TRUST IS AGG RIEVED BY THE ORDER OF THE LD. CIT WHO HAD REFUSED TO GRANT REGISTRATIO N UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT THE APPLICATION OF THE ASSESSEE IS NOT ACCOMPANIED WITH THE ACCOUNTS OF THE SOCIETY FO R THE PERIOD ENDING 31.03.2014. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A SOCIETY, CONSTITUTED BY MEMORANDUM OF ASSOCIATION ON 21.07.2 013 AND GOT REGISTERED WITH REGISTRAR OF SOCIETIES ON 29.10.201 3 VIDE REGISTRATION NO.209/2013 UNDER TAMIL NADU SOCIETIES REGISTRATION ACT, 1975, FILED ITS APPLICATION IN FORM 10A ON 15.05.2014 SEEKING R EGISTRATION U/S. 12AA OF THE ACT. AFTER ANALYZING THE RELEVANT DOCU MENTS FURNISHED BY ASSESSEE-TRUST, THE LD. CIT OBSERVED AS FOLLOWS:- ITA NO.1515 /MDS/2015 3 ADJUDICATION ON MERITS: 4.1 ON VERIFICATION OF THE DETAILS FURNISHED ALONG WITH FORM 10A IT IS FOUND THAT THE ACCOUNTS OF THE SOCIETY FOR THE PERIOD ENDING 3 1.3.2014 HAS NOT BEEN SUBMITTED, ALTHOUGH THE SOCIETY WAS FORMED ON 21 07 2013 AND GOT REGISTERED WITH REGISTRAR OF SOCIETIES ON 29.10.2013 VIDE REGI STRATION NO. 209/2013 UNDER TAMIL NADU SOCIETIES REGISTRATION ACT, 1975. THE SA ME IS REQUIRED TO BE FILED UNDER RULE. I 7A OF THE INCOME-TAX RULES, 1962 THE RELEVANT PORTION OF RULE 17A IS REPRODUCED HEREUNDER:- RULE 17A APPLICATION FOR REGISTRATION OF CHARITAB LE OR RELIGIOUS TRUSTS, ETC. AN APPLICATION UNDER SECTION 12A, FOR REGISTRAT ION OF A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION SHALL BE MADE IN DUP LICATE IN FORM 10A AND SHALL BE ACCOMPANIED BY THE FOLLOWING DOCUMENTS, NA MELY (A) (B) WHERE THE TRUST OR INSTITUTION HAS BEEN IN EXIS TENCE DURING ANY YEAR OR YEARS, PRIOR TO THE FINANCIAL YEAR IN WHICH THE APP LICATION FOR REGISTRATION IS MADE, TWO COPIES OF THE ACCOUNT OF THE TRUST OR INS TITUTION RELATING TO SUCH PRIOR YEAR OR YEARS (NOT BEING MORE THAN THREE YEAR S IMMEDIATELY PRECEDING THE YEAR IN WHICH THE SAID APPLICATION IS MADE) FOR WHICH SUCH ACCOUNTS HAVE BEEN MADE UP. 4.2 THE REQUIREMENT OF FURNISHING AUDITED ACCOUNTS OF THE SOCIETY FOR THE PERIOD ENDING ON 31.3.2014 HAS NOT BEEN FULFILLED BY THE A PPLICANT SOCIETY WHILE APPLYING FOR REGISTRATION U/S.I2AA. IN RESPONSE TO A SPECIFI C QUERY ON THIS POINT, THE ASSESSEE, VIDE ITS LETTER DATED 12.11.2014, HAS SUB MITTED AS UNDER: (XV THE REGISTRATION OF THE SOCIETY WAS D ONE ONLY IN MAY2014 AND THE ACCOUNTS WILL BE CLOSED IN MARCH 2015. THEREFO RE, COPIES OF THE ACCOUNTS OF THE EARLIER YEAR AND THE COPIES OF THE RETURN OF INCOME FILED DO NOT ARISE 5. THE ABOVE REPLY OF THE ASSESSEE HAS BEEN DULY CO NSIDERED AND HAS BEEN FOUND TO BE FACTUALLY INCORRECT AS MENTIONED EARLIE R, THE ASSOCIATION WAS FORMED ON 21.07.2013. IT FILED ITS APPLICATION FOR REGISTR ATION UNDER THE TAMILNADU SOCIETIES REGISTRATION ACT ON THE SAME DATE AS PER THE DETAILS AVAILABLE ON OUR RECORD. THEREFORE, IT SHOULD HAVE MAINTAINED ITS A CCOUNTS FROM THE DATE OF ITS INFORMATION I.E., 21.07.2013, EVEN THOUGH IT OBTAIN ED REGISTRATION FROM THE REGISTRAR OF SOCIETIES 29.10.2013. SINCE, THE APPLI CATION IS NOT ACCOMPANIED WITH THE ACCOUNTS OF THE SOCIETY FOR THE PERIOD 21.07.20 13 TO 31 .03.2014; IT DOES NOT MEET THE REQUIREMENT OF RULE 17A OF INCOME-TAX RULE S, 1962. HENCE, THE APPLICATION IS TREATED AS INVALID AB INITIO . ITA NO.1515 /MDS/2015 4 FURTHER THE LD. CIT HAD OBSERVED IN HIS ORDER THAT THE PERIOD OF SIX MONTHS HAD LAPSED FROM THE DATE OF FILING OF THE AP PLICATION SEEKING REGISTRATION U/S.12AA OF THE ACT AND THEREFORE BARR ED BY LIMITATION FOR GRANTING REGISTRATION. 4. BEFORE US, LD. A.R. ARGUED THAT, AT THE TIME OF GRANTING REGISTRATION U/S. 12AA OF THE ACT, ONLY THE OBJECTS OF THE TRUST HAD TO BE LOOKED INTO AS HELD BY THE DECISION OF VARIOUS H IGHER JUDICIAL AUTHORITIES. ON THE OTHER HAND, LD. D.R RELIED IN T HE ORDER OF THE LD. CIT AND ARGUED IN SUPPORT OF THE SAME. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFU LLY PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS APPARENT FROM THE FACTS OF THE CASE THAT THE LD. CIT HAD REJECTED TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE BECAUSE THE ASSESSEE TRUST HAS NOT FILED ITS STATEMENT OF ACCOUNTS FOR THE PERIOD 21.07.2013 TO 31.03.2014. WE DO NOT AGREE WITH THIS VIEW OF THE LD.CIT (EXEMP TION). AS RIGHTLY ARGUED BY THE LD. A.R THAT THE AT THE TIME OF REGIS TRATION THE LD.CIT (EXEMPTIONS) HAS TO ONLY LOOK INTO THE OBJECTS OF T HE TRUST AND IF IT ITA NO.1515 /MDS/2015 5 FOUND APPROPRIATE GRANT REGISTRATION UNDER THE PROV ISIONS OF THE ACT. THEREFORE IN THE CASE OF THE ASSESSEE, THE LD.CIT ( EXEMPTION) OUGHT TO HAVE EXAMINED THE OBJECTS OF THE TRUST AND DECID E THE ISSUE ON MERITS AS PER LAW. MOREOVER, THE ASSESSEE TRUST IS IN INCUBATION STAGE AND YET TO COMMENCE ITS ACTIVITIES. AT THIS JUNCTUR E IT IS PREMATURE TO DETERMINE THE GENUINENESS OF THE TRUST BY SEEKING I TS STATEMENT OF ACCOUNTS. THEREFORE WE HEREBY REMIT BACK THE MATTE R TO THE FILE OF THE LD.CIT (EXEMPTIONS) TO CONSIDER THE OBJECTS OF THE TRUST AND PASS APPROPRIATE ORDER AS PER MERITS AND LAW. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 04.09.2015. SD/- SD/- ( ' #$ % ) ((CHALLA NAGENDRA PRASAD) ( . ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 04.09. 2015. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE