Kaduvachira Meera Sahib Trust, Trivandrum V. CIT, Trivandrum

ITA 170/COCH/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69033 (ITAT-COCHIN)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 14-08-2013
• Assessment Year: misc
• Appeal Filed On: 05-04-2013
• Court: TRIBUNAL
• Department Lawyers: K K JOHN
• Keywords: Additional evidence
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A. NO.170/COCH/2013 ASSESSMENT YEAR : - N.A. KADUVACHIRA MEERA SAHIB TRUST, KADUVACHIRA GARDENS, KEEZH THONNAKKAL VILLAGE KUDAVOOR P.O., TRIVANDRUM-695 312. [PAN:AABTK 7553K] VS. THE COMMISSIONER OF INCOME-TAX, THIRUVANANTHAPURAM. (ASSESSEE -APPELLANT) (REVENUE-RESPONDEN T) ASSESSEE BY SHRI MATHEW JOSEPH, CA REVENUE BY SHRI K.K. JOHN, SR. DR DATE OF HEARING 14/08/2013 DATE OF PRONOUNCEMENT 06/11/2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 16-08-2012 PASSED BY THE LD. CIT, TRIVANDRUM, REJECTING THE AP PLICATION FILED BY THE ASSESSEE SEEKING REGISTRATION U/S. 12A OF THE ACT. 2. THE APPEAL IS BARRED BY LIMITATION BY 38 DAYS. THE ASSESSEE HAS MOVED A PETITION REQUESTING THE BENCH TO CONDONE THE DELAY IN FILING THE APPEAL. THE SAID PETITION IS ACCOMPANIED BY AN AFFIDAVIT FILED BY ON E OF THE TRUSTEES, WHEREIN IT IS STATED THAT THE ORDER RECEIVED BY HIM WAS OMITTED TO BE GI VEN TO THE TAX CONSULTANTS TO PURSUE THE MATTER DUE TO INADVERTENCE ON HIS PART. ACCORD INGLY, IT WAS PRAYED BY HIM THAT THE DELAY CAUSED IN FILING THE APPEAL MAY BE CONDONED. I.T.A. NO.170/COCH/2013 2 3. WE HAVE HEARD THE LD. DR IN THIS REGARD. HAVING REGARD TO THE SUBMISSIONS MADE IN THE AFFIDAVIT, WE ARE OF THE VIEW THAT THER E IS SUFFICIENT CAUSE FOR FILING OF THE APPEAL BELATEDLY. ACCORDINGLY, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 4. THE FACTS RELATING TO THE ISSUE ARE STATE IN BRI EF. THE ASSESSEE IS A TRUST CREATED BY A DEED DATED 03-12-2011. IT FILED AN APPLICATIO N IN THE PRESCRIBED FORM BEFORE THE LD. CIT, TRIVANDRUM ON 10-02-2012 SEEKING REGISTRAT ION U/S. 12A OF THE ACT. BEFORE THE LD. CIT, THE ASSESSEE ADMITTED THAT IT DID NOT CARR Y ON ANY ACTIVITY SINCE INCEPTION OF THE TRUST. THE LD. CIT ALSO NOTICED THAT THE ASSESSEE- TRUST IS NOT MAINTAINING ANY ACCOUNTS OTHER THAN OPENING A BANK ACCOUNT IN THE NAME OF TH E TRUST. SINCE THE TRUST DID NOT CARRY ON ANY ACTIVITY, THE LD CIT EXPRESSED THE VIE W THAT SHE COULD EXAMINE ABOUT THE GENUINENESS OF THE ACTIVITIES CARRIED ON BY THE ASS ESSEE TRUST. ACCORDINGLY, THE LD. CIT REJECTED THE APPLICATION FILED BY THE ASSESSEE. AG GRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPLICATION SEEKING REGISTRATION WAS FILED WITHIN TWO MONTHS FROM THE D ATE OF THE CREATION OF THE ASSESSEE- TRUST. AT THE RELEVANT POINT OF TIME, THE ASSESSEE -TRUST DID NOT CARRY ON ANY ACTIVITY. HOWEVER, SUBSEQUENTLY, THE ASSESSEE HAS CARRIED ON CERTAIN CHARITABLE ACTIVITIES. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASS ESSEE HAS DONATED RS. 52,000/- BY CHEQUE TO GOVERNMENT HIGH SCHOOL ON 31-03-2013 FOR GIVING THE SAME AS SCHOLARSHIP TO THE STUDENTS AS PER CLAUSE 7 OF THE TRUST DEED. 6. ON THE CONTRARY, THE LD. DR SUBMITTED THAT THE A SSESSEE DID NOT CARRY ON ANY ACTIVITY AT THE TIME THE APPLICATION WAS FILED BEFO RE THE LD. CIT. HENCE THE LD. CIT WAS CONSTRAINED TO REJECT THE APPLICATION SINCE IT WAS NOT POSSIBLE FOR HER TO EXAMINE THE GENUINENESS OF THE ACTIVITIES CARRIED ON BY THE ASS ESSEE. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. ADMITTEDLY, THE ASSESSEE HAS FILED AN APPLICATION S EEKING REGISTRATION U/S. 12A OF THE ACT WITHIN TWO MONTHS OF THE CREATION OF THE ASSESSEE-T RUST. IT IS ALSO ADMITTED THAT THE I.T.A. NO.170/COCH/2013 3 ASSESSEE DID NOT CARRY ON ANY ACTIVITY AT THAT POIN T OF TIME. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HA S SUBSEQUENTLY CARRIED ON CERTAIN CHARITABLE ACTIVITIES AS REQUIRED UNDER TRUST DEED AND IN SUPPORT OF THE SAME, THE ASSESSEE HAS FILED COPIES OF FINANCIAL STATEMENTS. 8. THE ASSESSEE COULD NOT HAVE FILED THESE FINANCIA L STATEMENTS BEFORE THE LD. CIT, AS THEY RELATE TO THE SUBSEQUENT PERIODS. HOWEVER, WE ARE OF THE VIEW THAT THE LD. CIT CAN CONSIDER THESE FINANCIAL STATEMENTS IN ORDER TO ASCERTAIN THE GENUINENESS OF THE ACTIVITIES CARRIED ON BY THE ASSESSEE. IN THIS REG ARD, IT IS ALSO PERTINENT TO CONSIDER THE OBSERVATIONS MADE BY THE HONBLE JURISDICTIONAL HIG H COURT OF KERALA IN THE CASE OF NORKA ROOTS VS. CIT (2010) (320 ITR 733). ACCORDI NGLY, IN OUR VIEW, THE APPLICATION FILED BY THE ASSESSEE REQUIRES FRESH EXAMINATION IN THE LIGHT OF FINANCIAL STATEMENTS FILED BEFORE US AS ADDITIONAL EVIDENCES. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT AND RESTORE THE MATTER TO HER FILE FOR FRESH CONSID ERATION. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 06-11-2 013. SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 6TH NOVEMBER, 2013 GJ COPY TO: 1. KADUVACHIRA MEERA SAHIB TRUST, KADUVACHIRA GARD ENS, KEEZH THONNAKKAL VILLAGE KUDAVOOR P.O., TRIVANDRUM-695 312. 2. THE COMMISSIONER OF INCOME-TAX, THIRUVANANTHAPUR AM. 3. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 4. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T, COCHIN