M/s. Trinity Prayer House Trust, CHENNAI V. ITO, Coimbatore

ITA 1763/CHNY/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73601 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-01-2014
• Assessment Year: misc
• Appeal Filed On: 26-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN C BHARAT
• Assessee Lawyers: A S SRIRAMAN
• Section: 12A; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO.1763/MDS/2012 M/S. TRINITY PRAYER HOUSE TRUST, 14, SUNDAR NAGAR, RAMANATHAPURAM, COIMBATORE-641 045. PAN: AAATT4110G VS. THE INCOME TAX OFFICER, COMPANY WARD-I, COIMBATORE. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. A.S.SRIRAMAN, AD VOCATE RESPONDENT BY : MR. ARUN C.BHARAT, CIT DATE OF HEARING : 1 ST JANUARY, 2014 DATE OF PRONOUNCEMENT : 13 TH JANUARY, 2014 O R D E R PER CHALLA NAGENDRA PRASAD, JM : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-I, COIMBATORE DAT ED 31.07.2012 IN REJECTING THE APPLICATION FOR REGISTR ATION UNDER SECTION 12A OF THE ACT. 2. ON A READING OF THE IMPUGNED ORDER, WE FIND THA T THE COMMISSIONER OF INCOME TAX HAS REFUSED REGISTRATION FOR THE REASONS THAT THE ASSESSEE HAD EARLIER APPROACHED TH E DEPARTMENT FOR REGISTRATION UNDER SECTION 12A AND I T WAS ITA NO.1763 /MDS/2012 2 REFUSED REGISTRATION BY ORDER DATED 28.9.2007. THE REGISTRATION WAS MAINLY REFUSED ON THE GROUND THAT NOBODY APPEARED BEFORE THE COMMISSIONER OF INCOME TAX WHEN THE MATTER WAS POSTED FOR HEARING. THE COMMISSIONER O F INCOME TAX ALSO OBSERVED THAT ASSESSEE CLAIMED EXEMPTION U NDER SECTION 10 / 11 OF THE ACT FOR THE ASSESSMENT YEAR 2008-09, 2009-10 AND 2010-11, NOTWITHSTANDING THE REFUSAL OF REGISTRATION UNDER SECTION 12A OF THE ACT. IT WAS A LSO THE FINDING OF THE COMMISSIONER OF INCOME TAX THAT ASSE SSEE HAS NOT FURNISHED ANY EVIDENCE FOR CARRYING OUT ANY ACT IVITIES EXCEPT A NOTE FILED BY THE ASSESSEE ABOUT ACTIVITIE S OF THE TRUST. THEREFORE, COMMISSIONER OF INCOME TAX WAS OF THE VIEW THAT CORRECTNESS OF THE CLAIM OF CHARITABLE ACTIVIT IES BY THE TRUST WAS NOT SATISFIED AND THE GENUINENESS OF THE TRUST WAS IN DOUBT. 3. THE COUNSEL FOR THE ASSESSEE SUBMITS THAT THE COMMISSIONER OF INCOME TAX SHOULD HAVE GIVEN SOME M ORE OPPORTUNITY FOR PRODUCING EVIDENCES OF CARRYING OUT CHARITABLE ACTIVITIES BY THE ASSESSEE TRUST. THEREFORE, HE REQ UESTS FOR ITA NO.1763 /MDS/2012 3 REMITTING THE MATTER BACK TO THE COMMISSIONER OF I NCOME TAX FOR CONSIDERING THE ISSUE AFRESH. COUNSEL SUBMITS T HAT IF OPPORTUNITY IS GIVEN SUFFICIENT EVIDENCES WILL BE P RODUCED BEFORE THE COMMISSIONER OF INCOME TAX IN PROOF OF C ARRYING OUT CHARITABLE ACTIVITIES BY THE TRUST. 4. THE DEPARTMENTAL REPRESENTATIVE SUPPORTED THE OR DER OF THE COMMISSIONER OF INCOME TAX IN REFUSING REGIS TRATION. 5. HEARD BOTH SIDES. PERUSED THE ORDER OF THE COMMISSIONER OF INCOME TAX. THE COMMISSIONER OF INC OME TAX MAINLY REFUSED REGISTRATION ON THE GROUND THAT ASSESSEES APPLICATION FOR REGISTRATION WAS EARLIER REJECTED AND NO EVIDENCES WERE PRODUCED BY THE ASSESSEE TO S ATISFY THE CORRECTNESS OF THE CLAIM OF CONDUCTING CHARITAB LE ACTIVITIES BY THE ASSESSEE TRUST. THE COMMISSIONER OF INCOME TAX WAS ALSO OF THE VIEW THAT ASSESSEE HAS CLAIMED EXEM PTION UNDER SECTION 10 / 11 OF THE ACT IN RESPECT OF ASS ESSMENT YEARS 2008-09 TO 2010-11, THEREFORE HE DID NOT GRA NT REGISTRATION UNDER SECTION 12A OF THE ACT. THE COM MISSIONER OF INCOME TAX HAS NOT GONE INTO THE OBJECTS OF THE TRUST AS TO ITA NO.1763 /MDS/2012 4 WHETHER OBJECTS ARE CHARITABLE OR NOT. WE SEE THAT APPLICATION FOR REGISTRATION WAS REFUSED EARLIER ONLY FOR WANT OF NON- REPRESENTATION FROM ASSESSEES SIDE AS STATED BY TH E COMMISSIONER OF INCOME TAX. TAKING INTO TOTALITY O F THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO SUBSTANTIATE ITS CLAIM THAT THE TRUST IS A PUBLIC C HARITABLE TRUST AND THE TRUST IS CONDUCTING CHARITABLE ACTIVITIES, ACCORDING TO ITS OBJECTS. THEREFORE, WE REMIT THE FILE BACK TO T HE COMMISSIONER OF INCOME TAX FOR CONSIDERING THE APPL ICATION FOR REGISTRATION OF THE ASSESSEE TRUST AFRESH BY GI VING ONE MORE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 1 3 TH DAY OF JANUARY, 2014 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY ) (CHALLA NAGENDRA PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI. DATED THE 13 TH, JANUARY, 2014. SOMU ITA NO.1763 /MDS/2012 5 COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.