Lady Kikabai Premchand Iyambil Trust, V. Commissioner of Income-tax,

ITA 1589/PUN/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9183 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-03-2018
• Assessment Year: misc
• Appeal Filed On: 04-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIRUPAMA KOTRU
• Keywords: Benefit of exemption; Condonation of delay
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 1 589 /P U N/201 5 LADY KIKABAI PREMCHAND IYAMBIL TRUST, 113, GURUWAR PETH, PUNE 411042 PAN : AAATL4899A ....... / APPELLANT / V/S. COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE / RESPONDENT ASSESSEE BY : SMT. DEEPA KHARE WITH SHRI D.Y. PANDIT REVENUE BY : SMT. NIRUPAMA KOTRU / DATE OF HEARING : 0 1 - 03 - 2018 / DATE OF PRONOUNCEMENT : 07 - 0 3 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE DATED 30 - 09 - 2015 GRANTING BENEFIT OF REGISTRATION U/S. 12AA O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FROM 30 - 09 - 2015. THE ASSESSEE HAS 2 ITA NO .1589/PUN/2015 SOUGHT MODIFICATION OF ORDER VIZ. REGISTRATION OF TRUST U/S. 12AA FROM THE DATE OF APPLICATION I.E. 19 - 03 - 2015. 2. THE ASSESSEE HAS FILED THIS APPEAL WITH A DELAY OF 5 DAYS. THE ASSESSEE HAS FILED AN APPLICATION SEEKING CONDONATION OF DELAY IN FILING OF THE APPEAL SUPPORTED BY AN AFFIDAV IT. AFTER PERUSAL OF THE SAME, WE ARE SATISFIED THAT THE DELAY IN FILING OF APPEAL IS NOT INTENTIONAL OR DELIBERATE BUT HAS OCCURRED FOR THE REASONS MENTIONED IN THE APPLICATION. ACCORDINGLY, THE DELAY IN FILING OF APPEAL IS CONDONED AND THE APPEAL IS AD MITTED TO BE HEARD AND DISPOSED OF ON MERITS. 3. SMT. DEEPA KHARE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS TRUST REGISTERED WITH CHARITY COMMISSIONER, PUNE WITH THE MAIN OBJECT OF PROVIDING FOOD AND SHELTER TO THE MEMBERS OF JA IN SWETAMBER MURTIPUJAK COMMUNITY. THE ASSESSEE TRUST WAS FORMED IN 1943. THE ASSESSEE WAS REGISTERED UNDER THE PROVISIONS OF SECTION 12A IN THE YEAR 1974 , AND SINCE THEN THE ASSESSEE HAS BEEN CLAIMING BENEFIT OF REGISTRATION IN ITS RETURN OF INCOME . TH E DEPARTMENT NEVER RAISED ANY OBJECTION IN ASSESSEE CLAIMING THE BENEFIT OF EXEMPTION U/S. 11 OF THE ACT. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 13 DECLARING NIL INCOME , AS WAS DONE IN THE PAST. THE ASSESSING OFFICER RAISED OBJECTION AND ASKED THE ASSESSEE TO PRODUCE CERTIFICATE OF REGISTRATION ISSUED U/S. 12A OF THE ACT. THIS OBJECTION WAS RAISED BY THE ASSESSING OFFICER FOR THE FIRST TIME. THE ASSESSEE TRUST TRIED TO LOCATE THE REGISTRATION CERTIFICATE ISSUED BY THE DEPAR TMENT. BEING VERY OLD DOCUMENT, THE ASSESSEE FAILED TO LOCATE THE SAME. THE ASSESSEE IMMEDIATELY APPLIED FOR FRESH REGISTRATION U/S. 12A A IN THE PRESCRIBED FORM ON 19 - 03 - 2015. THE 3 ITA NO .1589/PUN/2015 COMMISSIONER OF INCOME TAX (EXEMPTIONS) VIDE ORDER DATED 30 - 09 - 2015 GRANT ED REGISTRATION TO THE ASSESSEE UNDER THE PROVISIONS OF SECTION 12AA OF THE ACT. IN THE MEANTIME THE ASSESSING OFFICER VIDE ORDER DATED 20 - 03 - 2015 FOR THE ASSESSMENT YEAR 2012 - 13 MADE ADDITION TO THE TUNE OF RS.7,31,037/ - BY DENYING THE BENEFIT OF EXEMPTION U/S. 11 TO THE ASSESSEE. 3.1 THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE HAS BEEN NO CHANGE IN THE OBJECTS OF TRUST FROM THE DATE OF INCEPTION. THE ASSESSEE HAS BEEN ENJOYING THE BENEFIT OF REGISTRATION U/S. 11 OF THE ACT ON ACCOUN T OF REGISTRATION U/S. 12A GRANTED EARLIER. NO DISPUTE WHATSOEVER WAS RAISED BY THE DEPARTMENT TILL ASSESSMENT YEAR 2011 - 12 ON EXEMPTION CLAIMED BY ASSESSEE U/S. 11. IT WAS FOR THE FIRST TIME IN ASSESSMENT YEAR 2012 - 13 THAT THE ASSESSING OFFICER RAISED O BJECTION AND ASKED FOR THE REGISTRATION CERTIFICATE. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) SHOULD HAVE GRANTED REGISTRATION U/S. 12AA FROM THE DATE OF APPLICATION AS IT WAS MERELY EXTENSION OF REGISTRATION EARLIER GRANTED TO THE ASSESSEE U/S. 12A OF THE ACT. THE ASSESSEE HAD APPROACHED THE DEPARTMENT FOR OBTAINING DUPLICATE COPY OF EARLIER CERTIFICATE GRANTED IN THE YEAR 1974. THE ASSESSEE WAS INFORMED , THAT THE DEPARTMENT DOES NOT POSSESS OLD RECORDS. THE FACT THAT THE ASSESSEE WAS GRANTED REGIST RATION U/S. 12A IS EVIDENT FROM THE RETURNS FILED BY ASSESSEE AND THE ASSESSMENT ORDERS IN ASSESSMENT YEAR S PRIOR TO 201 2 - 13. THE EXEMPTION CLAIMED BY ASSESSEE U/S. 11 WAS ALLOWED BY THE DEPARTMENT PRIOR TO ASSESSMENT YEAR 2012 - 13 . THE LD. COUNSEL PRAYED FOR DIRECTION TO COMMISSIONER OF INCOME TAX (EXEMPTIONS) TO MODIFY THE ORDER DATED 30 - 09 - 2015 AND TO GRANT REGISTRATION TO THE ASSESSEE FROM THE DATE OF APPLICATION. 4 ITA NO .1589/PUN/2015 4. ON THE OTHER HAND SMT. NIRUPAMA KOTRU REPRESENTING THE DEPARTMENT VEHEMENTLY DEF ENDED THE ORDER OF COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE. THE LD. DR SUBMITTED THAT THE ASSESSEE SHOULD HAVE NO GRIEVANCE AS THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS CONSIDERED THE APPLICATION OF ASSESSEE FOR GRANT OF REGISTRATION U/S. 12AA FAVOURABLY. THE LD. DR SUBMITTED THAT THE ASSESSEE HAS NOT PLACED ON RECORD ANY DOCUMENT , WHATSOEVER TO SHOW THAT THE ASSESSEE WAS HAVING REGISTRATION CERTIFICATE U/S. 12A OF THE ACT IN THE PAST. 5. W E HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIVE S OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW . THE ASSESSEE HAS APPLIED FOR REGISTRATION U/S. 12AA VIDE APPLICATION DATED 19 - 03 - 2015. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS GRANTED REGISTRATION TO THE ASSESSEE W.E.F. 30 - 09 - 2015. THE SHORT GRIEVANCE OF ASSESSEE IS THAT THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) SHOULD HAVE GRANTED REGISTRATION FROM THE DATE OF APPLICATION AS IT IS MERELY EXTENSION OF REGISTRATION EARLIER GRANTED TO THE ASSESSEE IN 1974. THE CASE OF A SSESSEE IS THAT THE ASSESSEE TRUST WAS FORMED IN THE YEAR 1943 AND THE REGISTRATION U/S. 12A WAS GRANTED TO THE ASSESSEE IN THE YEAR 1974. SINCE, THEN THE ASSESSEE IS CLAIMING EXEMPTION U/S. 11 IN THE RETURN OF INCOME. HOWEVER, NO DOCUMENT HAS BEEN PLACE D BEFORE US TO SHOW THAT IN PAST THE ASSESSEE HAS BEEN CLAIMING BENEFIT OF REGISTRATION U/S. 12A OF THE ACT. UNDER SUCH CIRCUMSTANCES , WE DEEM IT APPROPRIATE TO REMIT THIS FILE BACK TO COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE TO CONSIDER THE REQUEST OF ASSESSEE . THE ASSESSEE SHALL FURNISH DOCUMENTARY EVIDENCE BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) TO SUBSTANTIATE THAT IN PAST THE ASSESSEE HAS BEEN CLAIMING BENEFIT OF REGISTRATION U/S. 12A BY CLAIMING 5 ITA NO .1589/PUN/2015 EXEMPTION U/S. 11 IN THE RETURN OF INC OME AND THE SAME WAS ALLOWED BY THE ASSESSING OFFICER . THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) AFTER EXAMINING THE SAME MAY CONSIDER THE REQUEST OF ASSESSEE FOR GRANT OF REGISTRATION U/S. 12AA FROM THE DATE OF APPLICATION, IN ACCORDANCE WITH LAW. 6 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON WEDNESDAY, THE 07 TH DAY OF MARCH, 201 8 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 07 TH MARCH, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE 4 . , , , / DR, ITAT, B BENCH, PUNE. 5 . / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE