Addor Foundation, Ahmedabad V. CIT (Exemption ), , Ahmedabad

ITA 1754/AHD/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4943 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 06-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH BINS
• Assessee Lawyers: HITESH SHAH AR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1754/AHD/2018 ( / ASSESSMENT YEAR : - ) ADDOR FOUNDATION C/O. MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I NR.GANDHIGRAM RLY STATION OFF ASHRAM ROAD, AHMEDABAD / VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) AHMEDABAD-380 009 # ./ ./ PAN/GIR NO. :AAFTA 1287 J ( #& / APPELLANT ) .. ( '#& / RESPONDENT ) #&( / APPELLANT BY : SHRI HITESH SHAH, AR '#& )( / RESPONDENT BY : SHRI SUBHASH BINS, CIT-DR *+ ), / DATE OF HEARING 15/05/2019 -./0 ), / DATE OF PRONOUNCEMENT 27/ 05/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANC E OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS)- AHMEDABAD, [CIT(A) IN SHORT] DATED 20/07/2018. ITA NO.1754/AHD /2018 ADDOR FOUNDATION VS.CIT (E) - 2 - 2. THE EFFECTIVE GROUND OF APPEALS RAISED BY THE REVENUE READ AS UNDER:- 1. THAT THE LEARNED CIT(E) HAS ERRED IN LAW AND F ACTS BY REJECTING OUR APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND THEREFORE THE LD.CIT(E) BE DIRECTED TO GRANT REGIST RATION UNDER SECTION 12AA OF THE ACT. 2. THE LEARNED CIT(E) HAS NOT DECIDED THE APPLICAT ION WITHIN SIX FROM THE END OF MONTH IN WHICH THE APPLICATION FOR REGIS TRATION UNDER SECTION 12AA OF THE ACT HAS BEEN MADE AND THEREFORE THE LD. CIT(E) BE DIRECTED TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT . 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD .AR FOR THE ASSESSEE, AT THE OUTSET, POINTED OUT THAT THE APPLI CATION FOR REGISTRATION OF CHARITABLE TRUST UNDER SECTION 12(1) OF THE ACT WAS MADE IN PRESCRIBED FORM NO.10A ON 23/01/2017 ELECTRONICALLY. HOWEVER , CIT(E) AHMEDABAD WHILE DENYING THE REGISTRATION UNDER S.12 AA OF THE ACT WRONGLY OBSERVED THAT APPLICATION FOR REGISTRATION WAS RECEIVED ELECTRONICALLY ON 21/01/2018. TO ASSERT ITS CLAIM FOR UPLOADING FORM NO.10A, THE LD.AR REFERRED TO THE COMPUTER GENERATE D ACKNOWLEDGEMENT RECEIPT ISSUED BY THE INCOME TAX DEPARTMENT. ADVER TING FURTHER, THE LD.AR REFERRED TO THE DECISION OF HONBLE SUPREME C OURT IN CIT VS. SOCIETY FOR THE PROMN.OF EDN. (2016) 238 TAXMAN 033 0 (SC) AND CONTENDED THAT ONCE AN APPLICATION IS MADE UNDER TH E SAID PROVISION AND IN CASE THE SAME IS NOT RESPONDED TO BY THE INCOMER TAX DEPARTMENT WITHIN SIX MONTHS, IT WOULD BE TAKEN THAT APPLICATI ON IS REGISTERED UNDER ITA NO.1754/AHD /2018 ADDOR FOUNDATION VS.CIT (E) - 3 - THE PROVISION. THE LD.AR SUBMITTED THAT WHEN THE S IX MONTHS ARE RECKONED FROM THE DATE OF ACKNOWLEDGEMENT I.E. 23/0 1/2017, THE ENQUIRY SHOULD HAVE BEEN COMPLETED IN A TIME BOUND MANNER F ROM THAT DATE FOR THE PURPOSES OF GRANTING REGISTRATION. THE LD.AR T HEREAFTER SUBMITTED THAT THE CIT(E) HAS ISSUED ENQUIRY LETTER ON 05/02/ 2018 I.E. AFTER THE WINDOW OF SIX MONTHS AVAILABLE FOR ENQUIRY FOR THE PURPOSES OF REGISTRATION UNDER S.12AA OF THE ACT WHICH IS NOT P ERMISSIBLE IN LAW. THE LD.AR THUS SUBMITTED THAT A DIRECTION SHOULD BE GIVEN FOR DEEMED REGISTRATION OF THE TRUST IN TERMS OF THIS DECISION OF HONBLE SUPREME COURT. THE LD.AR THEREAFTER REFERRED TO THE DECISI ON OF THE COORDINATE BENCH IN M/S.KANCHIPURAM VANIGA VAISYA DHARMA PARIP ALANA SANGAM VS. CIT (E) ORDER DATED 21/01/2019 IN ITA NO.1892/C HNY/2015 WHERE THE COORDINATE BENCH HAS DIRECTED THE CIT(E) TO GRA NT REGISTRATION UNDER S.12AA FROM THE DATE OF EXPIRY OF PERIOD OF SIX MON THS IN CONSONANCE WITH THE DECISION OF HONBLE SUPREME COURT. THE LD .AR ACCORDINGLY PRAYED FOR SIMILAR RELIEF. 4. THE LD.DR, ON THE OTHER HAND, SUBMITTED THAT THE DEPARTMENT HAS NOT VERIFIED THE BASIC FEATURES OF THE TRUST NAMELY , THE OBJECTS, GENUINENESS, ETC. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. SECTION 12AA(2) OF THE ACT PROVIDES THAT EVERY ORDER GRANTI NG OR REFUSING ITA NO.1754/AHD /2018 ADDOR FOUNDATION VS.CIT (E) - 4 - REGISTRATION UNDER CLAUSE(B) OF SUB-SECTION (1) OF SECTION 12AA SHALL BE PASSED BEFORE THE EXPIRY OF SIX MONTHS FROM THE END OF THE MONTH IN WHICH SUCH APPLICATION WAS RECEIVED UNDER SECTION 1 2A(1) OF THE ACT. THE HONBLE SUPREME COURT IN THE CASE OF SOCIETY FO R THE PROMN.OF EDN.(SUPRA) HAS ALSO HELD THAT REGISTRATION SHALL B E DEEMED TO BE GRANTED BY OPERATION OF LAW ON EXPIRY OF SIX MONTHS WHERE D EPARTMENT HAS FAILED TO RESPOND TO THE APPLICATION OF THE ASSESSEE. IN THE INSTANT CASE, THE CIT(E) HAS WRONGLY RECORDED THE DATE OF RECEIPT OF APPLICATION FOR REGISTRATION TO BE 23/01/2018 INSTEAD OF 23/01/2017 AND ACCORDINGLY THE ENQUIRY INITIATED ON EXPIRY OF SIX MONTHS RUNS CONT RARY TO THE PROVISIONS OF THE ACT AS WELL AS THE LAW LAID DOWN BY HONBLE SUPREME COURT. THUS, IN PARITY WITH THE DECISION OF THE COORDINATE BENCH IN THE CASE OF M/S.KANCHIPURAM VANIGA VAISYA DHARMA PARIPALANA SAN GAM(SUPRA), WE DIRECT THE CIT(E) TO GRANT REGISTRATION UNDER S.12A A OF THE ACT FROM THE DATE OF EXPIRY OF PERIOD OF THE SAID SIX MONTHS. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 27 / 0 5 /201 9 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 27/ 05 /2019 4..*,.*../ T.C. NAIR, SR. PS ITA NO.1754/AHD /2018 ADDOR FOUNDATION VS.CIT (E) - 5 - !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 567, 8, / CONCERNED CIT 4. 8, ( ) / THE CIT(E)-, AHMEDABAD 5. 9:;,*67 , 67 0 , 5 / DR, ITAT, AHMEDABAD 6. ; + / GUARD FILE. / BY ORDER, '9,, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 15.5.19(DICTATION-PAD 11- PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 17.5.19 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.27.5.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.5.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER