BHAVNAGRI HALAI MEMON JAMAT , MUMBAI V. INCOME TAX OFFICER (EXEMPTION) 1(1), MUMBAI

ITA 1676/MUM/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8481 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 13-11-2022
• Assessment Year: misc
• Appeal Filed On: 23-06-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MUDASSIR H. DESHMUKH
• Section: 148; 12; 11; 143(3); 234B; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI PAVAN KUMAR GADALE, JM ITA No. 1676/MUM/2022 (Assessment Year 2012-13) Bhavna ga ri Hala i M emon Jam at C/O Um e r Ha ll T ru st, 11/13 Mas jid Cro s s Lane, Mum bai- 400 003 Vs. ITO(EXEMPTION)1(1) 6 TH Floor, Cumballa Hill MTNL, Te Building, Peddar Road, Dr. Gopalrao Deshmukh Marg, Mumbai- 400 002 (Appellant) (Respondent) PAN No. AAATB7848R Assessee by : Shri. Mudassir H. Deshmukh, CA Revenue by : Shri. Chetan M. Kacha, Sr. AR. Date of hearing: 14.11.2022 Date of pronouncement: 15.11.2022 O R D E R PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by the assessee trust for A.Y. 2012-13 against the appellate order passed by National Faceless Appeal Centre dated 09.06.2022 wherein assessment order passed under section 143(3) r.w.s 147 of the Act dated 30.11.2017 passed by the ITO(Exemption)-1-1 Mumbai (The Assessing Officer) was upheld. The assessee is aggrieved with the appellate order and has raised following grounds of appeal: Page | 2 ITA No. 1676/MUM/2022 Bhavnagari Halai Memon Jamat;A.Y. 2012-13 “Ground no 1 & 2 This ground of appeal is regarding the addition made of ₹70,55,980 on account of disallowance of exemption u/s 11 and 12 of the Income Tax Act on account of non-producing of 12A certificate. The appellant is a Trust registered under Bombay Public Trust Act 1950, bearing Registration No B- 1105(Bom). The appellant trust is engaged in giving Education and Medical Aid and other charitable activities to the poor and down trodden. The Ld. Assessing Officer issued the notice to the appellant under section 148 dated 31.03 2017, calling the Appellant Trust to file the Return of Income for the A.Y. 2012-13 as it was noticed that the appellant was in receipt of income which was above the taxable limit for filing of return. As stated above, the Appellant Trust had already filed the return of income on 28.09.2012 vide acknowledgement number 001331. Finally, the Appellant Trust received a copy of the Assessment order dated 30.11.2017 for the AY 2012- 13 passed under section 143(3) rws 147 of the Income Tax Act. During the course of assessment proceedings it was informed to the Assessing Officer that the certificate u/s 12A was not traceable and will be produced in due course. However, the Id. Assessing Officer passed the Assessment Order for the A.Y. 2012-13 determining high pitch total income of ₹70,55,980/- and also Page | 3 ITA No. 1676/MUM/2022 Bhavnagari Halai Memon Jamat;A.Y. 2012-13 raised high pitch demand by levying the huge interest under section 234b 234C etc. As the appellant is registered u/s 12A of the Income Tax Act exemptions u/s 11 and 12 may be allowed. Copy of the 12A certificate attached herewith for your kind perusal. Ground No 3: This is a general ground of appeal regarding certain factual mistakes and the reliance placed by the Assessing Officer on certain decisions which are not applicable to the facts of the Appellant's case. This aspect of the matter has already been covered in the respective specific ground of appeal raised.” 02. The brief fact of the case shows that assessee is a charitable trust registered under the Bombay Public Trust Act, 1950 and further registered under section 12A of the Act as per Registration No. TR/6733 dated 17.06.1976. 03. The learned Assessing Officer issued notice to the assessee based onnon-filers monitoring system cycling (NMS Cycle). The notice under section 148 was issued on 31.03.2017. This culminated in to the assessment order 143(3) read with section 147 of the Act. The learned Assessing Officer assessed the total income of the assessee at ₹70,55,980/- and granted deduction of expenditure only of ₹1,88,996/-. Thus the learned assessing officer denied exemption to the assessee Under the provisions of Section 11 and Section 12 of the income tax act, as the assessee could not produce the copy of registration certificate u/s 12 A of the act. The assessee is Page | 4 ITA No. 1676/MUM/2022 Bhavnagari Halai Memon Jamat;A.Y. 2012-13 aggrieved with that order as preferred appeal before the learned CIT(A). It was submitted that the assessee has filed nil return of income on 28.09.2012, however, as the copy of registration certificate under section 12A was not allowed. The Assessing Officer completed the assessment determining the total income of the assessee at ₹ 70,59,980/- . It was submitted that the trust is registered under section 12A of the Act since 1976. The learned CIT(A) noted that, income of the assesses was assessed by denying exemption under section 11 and 12 due to non submission of certificate of registration under section 12A of the Act which could not be submitted at the time of assessment proceedings. The learned CIT submitted that even before him though assessee stated that copy of 12A certificate is attached. However, same was not found accordingly, he confirmed the assessment order. The assessee is aggrieved with the appellate order and has preferred an appeal. 04. The learned authorized representative submitted a paper book containing 24 pages. It was submitted that assessee is a registered trust under section 12A of the Act and therefore, exemption under section 11 and 12 of the Act cannot be denied. Assessee submitted that certificate dated 26.10.2018 was submitted before the learned CIT(A) wherein CIT (Exemption) Mumbai categorically certified that the assessee trust is registered under section 12AA of the Act since 17.06.1976. It was also stated that before the learned CIT(A), 12A certificate was also submitted according to E-proceedings response Page | 5 ITA No. 1676/MUM/2022 Bhavnagari Halai Memon Jamat;A.Y. 2012-13 acknowledgement. Despite this, the learned CIT(A) denied exemption to the assessee under section 11 and 12 of the Income Tax Act and confirmed the assessment order. 05. The learned Departmental Representative vehemently supported that order of the lower authorities. 06. We have carefully considered the rival contentions and pursued the orders of the lower authorities. Undoubtedly, the assessee is charitable trust registered under the Bombay Public Trust Act and registered under section 12A of the Act vide registration No. PR/6733 dated 17.06.1976. This fact is certified by the CIT(Exemption), Mumbai vide letter dated 26.10.2018 issued to the assessee in response to request of the assessee dated 22.06.2018 for duplicate certificate. The learned ITO, Exemption, headquarter, technical, Mumbai on behalf of CIT Exemption has categorically intimated that the assessee trust has been registered w.e.f 17.06.1976. In view of this the assessee is entitled to exemption under section 11 and 12 of the Act. Both the lower authorities have denied the exemption as assessee failed to produce the copy of the certificate of registration under section 12A of the Act. Now, before us a certificate confirming the registration of the trust under section 12A is made available. Assessee submits that same was also submitted before the learned CIT(A). Without entering any further debate on this, it is evident that trust is registered under section 12A of the Income Tax Act from 17.06.1976 and therefore, the claim of the assessee for exemption under Page | 6 ITA No. 1676/MUM/2022 Bhavnagari Halai Memon Jamat;A.Y. 2012-13 section 11 and 12 deserves to be examined. In view of this, we set aside the appeal of the assessee back to the file of the learned Assessing Officer to compute the income of the assessee in accordance with the provisions of the law considering that assessee trust is registered under 12A of the Act. 07. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 15.11.2022. Sd/- Sd/- (PAVAN KUMAR GADALE) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 15.11.2022 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai