Iqbal Fatima Educational and Charitable Trust, Hyderabad V. Commissioner of Income Tax, (Exemptions), Hyderabad

ITA 1682/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5230 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: misc
• Appeal Filed On: 18-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R DIPAK
• Keywords: Charitable institution; Assessment record; Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A ', HYDERABAD BEFORE S HRI SATBEER SINGH GODARA , JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU , ACCOUNTANT MEMBER ITA NO. 1 6 82 /H/201 9 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, HYDERABAD. PAN AA BTI 5251J VS. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), HYDERABAD. (APPELLANT S ) (RESPONDENT) ASSESSEE BY: S HRI P.C. YADAV REVENUE BY: SHRI R . DIPAK DATE OF HEARING: 2 7 /0 4 /2021 DATE OF PRONOUNCEMENT: 29 / 0 4 /2021 O R D E R PER L.P. SAHU , AM: TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE CIT( EXEMPTIONS ), HYDERABAD S ORDER , DATED 2 6 /0 9 /201 9 INVOLVING PROCEEDINGS U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT , ON THE FOLLOWING GROUNDS OF APPEAL: 1. THE IMPUGNED ORDER DATED 26.9.2019 IS PASSED MUCH AGAINST THE WEIGHT OF EVIDENCE ON RECORD AND AS SUCH, LIABLE TO BE SET ASI DE. 2. THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMPTION) RS. ERRED IN HOLDING THAT THE APPELLANT FAILED TO FURNISH THE INFORMATION CALLED FOR VIDE LETTER DT.14.8.2019. THE LEARNED COMMISSIONER OF INCOME TAX(EXEMPTION) FAILED TO APPRECIATE THAT THE I.T.A. NO. 1682 /HYD/201 9 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, HYD. 2 APPEL LANT VIDE REPLY DATED 6.9.2019 FURNISHED THE INFORMATION SOUGHT FOR AND AS SUCH, THE . IMPUGNED ORDER DT.26:9.2019 MAY BE SET ASIDE AND A DIRECTION BE ISSUED TO GRANT REGISTRATION U/S 12AA OF THE I.T. ACT,1961 TO THE APPELLANT / TRUST. 3. THE LEARNED COMMI SSIONER OF INCOME TAX ( EXEMPTION) FAILED TO APPRECIATE THE FACT THAT APPELLANT WAS IN A NASCENT PHASE HAD A VERY DISMAL RECEIPT OF DONATIONS AND THE ENTIRE COLLECTIONS WERE SPENT IN PROVIDING FINANCIAL AID TO THE DESERVING STUDENTS. 4. THE LEARNED COMM ISSIONER OF INCOME TAX (EXEMPTION) DID NOT LOOK IN TO THE ASSESSMENT RECORD WITHOUT EVALUATING THE MATERIAL PRODUCED IN THE COURSE OF HEARING, DEDUCED THAT GENUINENESS IS CLOUDED WITH DOUBT. THE FINDING IS PERVERSE AND MUCH AGAINST THE WEIGHT OF EVIDENCE A ND IS BASED ON SURMISES AND CONJECTURES. 5. THE IMPUGNED ORDER IS BAD IN LAW IN AS MUCH AS IT FAILS TO STAND THE TEST OF LEGALITY AND REQUIREMENTS OF LAW AS SUCH IT IS LIABLE TO BE VACATED. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE FILED APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12A OF THE ACT ON 30/03/2019. THE CIT(E) ISSUED A NOTICE DATED 14/08/2019 TO APPEAR AND PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION/TRUST DEED FOR VERIFICATION AND FURNISH A DETAILED REPLY ON S PECIFIC POINTS ON OR BEFORE 06/09/2019. 2.1 THE CIT(E) NOTED THAT ON EXAMINATION OF THE INCOME & EXPENDITURE ACCOUNT FOR THE PERIOD ENDING 31/03/2018, THE ASSESSEE HAD SPENT RS. 25,000/ - IN I.T.A. NO. 1682 /HYD/201 9 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, HYD. 3 CASH TO VARIOUS STUDENTS. HE, THEREFORE, ASKED THE ASSESSEE VID E HIS LETTER DATED 14/08/2019 TO FURNISH THE DETAILS OF ACTIVITIES UNDERTAKEN ALONG WITH DATE, LOCATION ETC. AND TO JUSTIFY HOW THE ACTIVITIES ARE IN ACCORDANCE WITH THE OBJECTS OF THE INSTITUTION, THE ASSESSEE FAILED TO FURNISH THE SAME. THEREFORE, THE CI T(E) OBSERV ED THAT IN THE ABSENCE OF THE DETAILS OF BENEFICIARIES AND EVIDENCE, THE ACTIVITIES OF THE ASSESSEE COULD NOT BE VERIFIED AND HENCE, DOUBTED THE GENUINENESS OF THE TRUST. THUS, HE REJECTED THE APPLICATION OF THE ASSESSEE FILED IN FORM NO.10A. 3 . AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE ITAT . 4. THE CONTENTION OF THE ASSESSEE IN THE GROUND S OF APPEAL IS THAT IT HAD FURNISHED THE INFORMATION SOUGHT FOR VIDE REPLY DATED 06/09/2019, BUT THE SAME W AS IGNORED BY THE CIT(E) AND REJECTED ITS AP PLICATION FILED IN FORM 10A SEEKING REGISTRATION U/S 12A . HE , THEREFORE, REQUESTED THE BENCH TO REMIT THE MATTER BACK TO THE FILE OF CIT(E) TO FILE THE REQUIRED INFORMATION ONCE AGAIN BEFORE HIM. 5. THE LD. DR ON THE OTHER HAND RELIED ON THE ORDER OF CIT (E). I.T.A. NO. 1682 /HYD/201 9 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, HYD. 4 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. AS REQUESTED BY THE LD. AR OF THE ASSESSEE, IN THE INTEREST OF JUST ICE, WE REMIT THE MATTER BACK TO THE FILE OF THE CIT(E) WITH A DIRECTION TO E XAMIN E THE MATERIAL THAT ARE REQUIR ED FOR GRANTING REGISTRATION U/S 12A, WHICH WILL BE PUT - FORTH BY THE ASSESSEE BEFORE HIM AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AS WELL AS ON MERITS. THE ASSESSEE IS DIRECTED TO FURNISH THE MATERIAL EVIDENCE AS REQUIRED BY THE CIT(E) IN SUPPORT OF AP PLICATION FILED IN FORM 10A FOR GRANT OF REGISTRATION U/S 12A OF THE ACT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2021. SD/ - ( S.S. GODARA ) JUDICIAL MEMBER SD/ - ( L.P. SAHU ) ACCOUNTANT MEMBER HYDERABAD, DATED 29 TH APRIL, 2021 K V I.T.A. NO. 1682 /HYD/201 9 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, HYD. 5 COPY TO 1 IQBAL FATIMA EDUCATIONAL AND CHARITABLE TRUST, 81 - 297/2/E/7, SHAIKPET, GOLCONDA, HYDERABAD 500 008 2 C IT (E) , 2 ND FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 3 IT O ( E ) - 2 , HYDERABAD. 4 ITAT, DR, HYDERABAD. 5 GUARD FILE.