Jeeva Centenary Trust, CHENNAI V. ITO, Erode

ITA 1702/CHNY/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0966 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 17-01-2013
• Assessment Year: misc
• Appeal Filed On: 14-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA
• Assessee Lawyers: S SRIDHAR
• Keywords: Reasonable cause
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NO. 1702/MDS/2011 M/S JEEVA CENTENARY TRUST, VELAVAN NAGAR, PERUNDURAI ROAD, THINDAL ROAD, ERODE-638 001. PAN : AABTJ 0896 N (APPELLANT) V. THE INCOME TAX OFFICER, WARD 1(2), ERODE. (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SMT. VIDISHA KALR A, CIT-DR DATE OF HEARING : 17.01.2013 DATE OF PRONOUNCEMENT : 24.01.2013 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE ASSESSEE, ITS GRIEVAN CE IS THAT REGISTRATION SOUGHT BY IT UNDER SECTION 12AA OF INC OME-TAX ACT, 1961 (IN SHORT 'THE ACT') WAS NOT GRANTED TO IT FROM ASS ESSMENT YEAR 2010- 11, BUT ONLY FROM 1.4.2010. 2. THE APPEAL IS DELAYED IN 171 DAYS. ASSESSEE HAS FILED CONDONATION PETITION FOR BELATED FILING OF APPEAL. WE ARE SATISFIED THAT REASONABLE CAUSE HAS BEEN SHOWN IN THE SAID PETITIO N FILED BY THE I.T.A. NO. 1702/MDS/11 2 ASSESSEE. NO SERIOUS OBJECTION WAS RAISED BY LEARN ED D.R. IN THIS REGARD. HENCE WE CONDONE THE DELAY AND ADMIT THE A PPEAL. 3. FACTS APROPOS ARE THAT ASSESSEE HAD FILED AN APP LICATION FOR REGISTRATION UNDER SECTION 12AA ON 15.3.2010 IN FOR M 10A. ASSESSEE-TRUST WAS CONSTITUTED BY A TRUST DEED DATE D 2.4.2008. DURING THE COURSE OF PROCEEDINGS BEFORE CIT, ASSESS EE DID FILE A CONDONATION PETITION. CIT WAS OF THE OPINION THAT THE DELAY OF TWO YEARS AND FIVE MONTHS IN FILING THE APPLICATION WAS TO BE CONDONED AND HE WAS OF THE OPINION THAT ASSESSEE WAS ELIGIBL E FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. HOWEVER, WHILE GRAN TING SUCH REGISTRATION THROUGH HIS ORDER DATED 25.2.2011, THE EFFECTIVE DATE WAS GIVEN FROM 1.4.2010. 4. NOW THE CONTENTION OF THE ASSESSEE BEFORE US IS THAT REGISTRATION SHOULD HAVE BEEN GIVEN WITH EFFECT FRO M ASSESSMENT YEAR 2010-11 AND NOT FROM 1.4.2010. ACCORDING TO LEARNE D A.R., ASSESSEE HAD FILED ITS APPLICATION ON 15.3.2010. THE RELEVA NT FINANCIAL YEAR IN WHICH THE APPLICATION WAS FILED WAS THEREFORE 2009- 10. HENCE, ACCORDING TO HIM, BY VIRTUE OF SECTION 12A(2), ASSE SSEE WAS ELIGIBLE FOR REGISTRATION FROM ASSESSMENT YEAR 2010-11. 5. PER CONTRA, LEARNED D.R. SUPPORTED THE ORDER OF CIT. I.T.A. NO. 1702/MDS/11 3 6. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL SUBMISSIONS. SECTION 12A, WHICH IS RELEVANT FOR RESOLVING THE AB OVE ISSUE, IS REPRODUCED HEREUNDER:- 12A. [(1)] THE PROVISIONS OF SECTION 11 AND SECTION 12 SHALL NOT APPLY IN RELATION TO THE INCOME OF ANY TRUST OR INSTITUT ION UNLESS THE FOLLOWING CONDITIONS ARE FULFILLED, NAMELY: ( A ) THE PERSON IN RECEIPT OF THE INCOME HAS MADE AN A PPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION IN THE PRE SCRIBED FORM AND IN THE PRESCRIBED MANNER TO THE COMMISSIONER BE FORE THE 1ST DAY OF JULY, 1973, OR BEFORE THE EXPIRY OF A PERIOD OF ONE YEAR FROM THE DATE OF THE CREATION OF THE TRUST OR THE E STABLISHMENT OF THE INSTITUTION, [WHICHEVER IS LATER AND SUCH TR UST OR INSTITUTION IS REGISTERED UNDER SECTION 12AA ] : [ PROVIDED THAT WHERE AN APPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION IS MADE AFTER THE EXPIRY OF THE PERI OD AFORESAID, THE PROVISIONS OF SECTIONS 11 AND 12 SHALL APPLY IN RELATION TO THE INCOME OF SUCH TRUST OR INSTITUTION, ( I ) FROM THE DATE OF THE CREATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION IF THE COMMISSIONE R IS, FOR REASONS TO BE RECORDED IN WRITING, SATISFIED THAT T HE PERSON IN RECEIPT OF THE INCOME WAS PREVENTED FROM MAKING THE APPLICATION BEFORE THE EXPIRY OF THE PERIOD AFORESA ID FOR SUFFICIENT REASONS; ( II ) FROM THE 1ST DAY OF THE FINANCIAL YEAR IN WHICH T HE APPLICATION IS MADE, IF THE COMMISSIONER IS NOT SO SATISFIED:] [ PROVIDED FURTHER THAT THE PROVISIONS OF THIS CLAUSE SHALL NOT APPLY IN RELATION TO ANY APPLICATION MADE ON OR AFT ER THE 1ST DAY OF JUNE, 2007;] [( AA ) THE PERSON IN RECEIPT OF THE INCOME HAS MADE AN A PPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION ON OR AFTE R THE 1ST DAY OF I.T.A. NO. 1702/MDS/11 4 JUNE, 2007 IN THE PRESCRIBED FORM AND MANNER TO THE COMMISSIONER AND SUCH TRUST OR INSTITUTION IS REGIS TERED UNDER SECTION 12AA ;] ( B ) WHERE THE TOTAL INCOME OF THE TRUST OR INSTITUTIO N AS COMPUTED UNDER THIS ACT WITHOUT GIVING EFFECT TO [THE PROVIS IONS OF SECTION 11 AND SECTION 12 EXCEEDS THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME-TAX IN ANY PREVIOUS YEAR], THE ACCOUNTS OF THE TRUST OR INSTITUTION FOR THAT YEAR HAVE BEEN AU DITED BY AN ACCOUNTANT AS DEFINED IN THE EXPLANATION BELOW SUB-SECTION (2) OF SECTION 288 AND THE PERSON IN RECEIPT OF THE INCOME FURNISHES ALONG WITH THE RETURN OF INCOME FOR THE RELEVANT AS SESSMENT YEAR THE REPORT OF SUCH AUDIT IN THE PRES-CRIBED FORM DU LY SIGNED AND VERIFIED BY SUCH ACCOUNTANT AND SETTING FORTH SUCH PARTICULARS AS MAY BE PRESCRIBED.] ( C ) [***] [(2) WHERE AN APPLICATION HAS BEEN MADE ON OR AFTER THE 1ST DAY OF JUNE, 2007, THE PROVISIONS OF SECTIONS 11 AND 12 SHALL APPLY IN RELATION TO THE INCOME OF SUCH TRUST OR INSTITUTION FROM THE ASSESS MENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH SUCH APPLICAT ION IS MADE.] 7. HERE, ASSESSEE HAD FILED ITS APPLICATION ON 15.3 .2010. SINCE IT WAS A DATE BEYOND FIRST JUNE 2007, SUB-SECTION (2) IS CLEARLY APPLICABLE. SAID SUB-SECTION (2) PROVIDES THAT PRO VISIONS OF SECTION 11 AND 12 WOULD APPLY TO A TRUST GRANTED REGISTRATI ON UNDER SECTION 12A OF THE ACT, FROM THE ASSESSMENT YEAR IMMEDIATEL Y FOLLOWING THE FINANCIAL YEAR IN WHICH APPLICATION FOR REGISTRATIO N WAS MADE. HERE THE FINANCIAL YEAR, IN WHICH APPLICATION FOR REGIST RATION WAS FILED, WAS 2009-10. ASSESSMENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR 2009-10 WAS THE ASSESSMENT YEAR COMMENCING ON 1.4.2 010. IN I.T.A. NO. 1702/MDS/11 5 OTHER WORDS, SAID ASSESSMENT YEAR IS 2010-11. CIT HAD INDEED GRANTED THE REGISTRATION FROM 1.4.2010, BUT IN OUR OPINION, THIS OUGHT TO BE CONSIDERED AS EFFECTIVE FROM ASSESSMENT YEAR 2010-11 ITSELF. 8. WE ARE, THEREFORE, OF THE OPINION THAT APPEAL OF THE ASSESSEE HAS TO SUCCEED. IT IS DIRECTED THAT ASSESSEE SHALL BE GRANTED EXEMPTION UNDER SECTIONS 11 AND 12 BASED ON THE REG ISTRATION GIVEN TO THE ASSESSEE THROUGH ORDER DATED 25.2.2011 OF CI T-II, COIMBATORE, BUT WITH EFFECT FROM ASSESSMENT YEAR 2010-11. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON THURSDAY, THE 24 TH OF JANUARY, 2013, AT CHENNAI. SD/- SD/- (V.DURGA RAO) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 24 TH JANUARY, 2013. KRI. COPY TO: APPELLANT/RESPONDENT/CIT-II, COIMBATORE/ D.R./ GUARD FILE