Shital Education Trust, Panchmahal V. The CIT (Exemption), Ahmedabad

ITA 1823/AHD/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2959 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 09-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGADISH
• Assessee Lawyers: M K PATEL
• Keywords: Set aside
• Section: 12A; 12AA; 13

Judgement Text

- , - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.1823/AHD/2019 SHITAL EDUCATION TRUST CHANDPUR KAKACHIYA KAKACHIYA, LUNAWADA PANCHMAHAL 389 230 GUJARAT. PAN : AAETSS 5713 N VS. CIT (EXEMPTION) AHMEDABAD. ASSESSEE BY : SHRI M.K. PATEL, AR REVENUE BY : SHRI JAGADISH, CIT-DR / DATE OF HEARING : 11/03/2020 ! / DATE OF PRONOUNCEMENT: 13/03/2020 / O R D E R PER RAJPAL YADAV, VICE-PRESIDENT ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF THE LD.CIT(EXEMPTION), AHMEDABAD DATED 25.10.2019 VIDE WHICH THE LD.COMMISSIONER HAS REJECTED THE APPLICATION MOVED UNDER SECTION 12AA OF THE INCOME TAX ACT FOR GRANT OF REGISTRATION. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-TR UST HAS FILED AN APPLICATION IN FORM NO.10A UNDER RULE 17A OF THE I.T.RULES, 196 2 ON 16.4.2019 FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. SEC TION 12AA PROVIDES THE PROCEDURE TO BE FOLLOWED BY THE COMMISSIONER FOR GR ANT OR REFUSAL OF APPLICATION FOR REGISTRATION MADE UNDER SECTION 12A A OF THE ACT. IN ORDER TO SATISFY HIMSELF WITH REGARD TO GENUINENESS OF THE A CTIVITIES OF THE TRUST, THE LD.COMMISSIONER HAD ISSUED A NOTICE ON 7.9.2019. I T WAS ISSUED THROUGH ITA NO.1823/AHD/2019 2 ITBA ON THE E-MAIL ID GIVEN BY THE APPLICANT-TRUST IN ITS ONLINE APPLICATION. THE LD.COMMISSIONER CALLED FOR VARIOUS DETAILS. A FTER GOING THROUGH THOSE DETAILS, HE REJECTED THE APPLICATION OF THE ASSESSE E VIDE ORDER DATED 25.10.2019. 3. THE LD.COUNSEL FOR THE ASSESSEE WHILE IMPUGNING ORDER OF THE COMMISSIONER CONTENDED THAT AS PER THE STAND OF THE ASSESSEE IT HAS UPLOADED THE INFORMATION CALLED FOR BY THE LD.COMMISSIONER. SOMEHOW, CERTAIN ANNEXURES COULD NOT BE DOWN-LOADED BY THE LD.COMMIS SIONER WHILE DECIDING THE APPLICATION OF THE ASSESSEE. FOR POINTING OUT THIS FACT, HE TOOK US THROUGH THE FINDING OF THE LD.COMMISSIONER RECORDED IN PARA GRAPH-6 OF THE IMPUGNED ORDER. HE SUBMITTED THAT ORDER OF THE LD.CIT BE SE T ASIDE AND THE MATTER BE RESTORED FOR RE-ADJUDICATION. THE ASSESSEE UNDERTA KES TO SUBMIT ALL THESE REQUISITE DETAILS. 4. ON THE OTHER HAND, THE LD.CIT-DR CONTENDED THAT SETTING ASIDE THE MATTER WILL NOT SERVE ANY PURPOSE, BECAUSE APART FR OM THESE DETAILS, THE LD.COMMISSIONER HAS GONE THROUGH VARIOUS OTHER DETA ILS, AND THEREAFTER RECORDED A FINDING THAT THE ASSESSEE FAILED TO PROV E GENUINENESS OF ITS ACTIVITIES. 5. WE HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GO NE THROUGH THE RECORD CAREFULLY. A PERUSAL OF THE IMPUGNED ORDER WOULD I NDICATE THAT ACCORDING TO THE ASSESSEE, IT HAS UPLOADED ANNEXURE-D, F & G ALO NG WITH ITS SUBMISSION ON ITBA PORTAL, BUT THESE ANNEXURES COULD NOT BE DOWN- LOADED BY THE LD.COMMISSIONER. THE OBSERVATION OF THE LD.CIT (EX EMPTION) IN THIS REGARD READS AS UNDER: 6. PERUSAL OF THE DETAILS AVAILABLE ON RECORDS, IT REVEALS THAT THE APPLICANT HAS NOT FILED RECEIPT AND PAYMENT ACCOUNT, INCOME & EXPENDI TURE ACCOUNT & AUDITED ACCOUNT FOR THE F.Y. 2018-19 AND UNDERTAKING TO THE EFFECT THAT THE TRUST/INSTITUTION ITA NO.1823/AHD/2019 3 IS COMPLYING ALL THE REQUIREMENTS OF LAW AS ARE MAT ERIAL FOR THE PURPOSE OF ITS OBJECTS AS ENUMERATED IN THE TRUST DEED. THE APPLIC ANT HAS STATED THAT THE REQUIRED UNDERTAKING IS ENCLOSED HEREWITH AS ANNEXURE D. HOW EVER, AFTER DOWNLOADING THE ATTACHMENTS WHICH WAS SUBMITTED BY THE APPLICANT TR UST ON 22.10.2019 ON ITBA PORTAL, IT IS FOUND THAT THERE IS NO ANNEXURE D AS STATED BY THE APPLICANT TRUST. IN SPITE OF SPECIFIC REQUISITIONS, THE APPLICANT HAS N OT SUBMITTED THE REQUISITE DETAILS. THEREFORE, NO VERIFICATION OF THE OBJECTS AS PER TH E TRUST DEED WITH THE ACTIVITIES CARRIED OUT IF ANY COULD BE MADE. THUS, THE GENUINE NESS OF THE ACTIVITIES DOES NOT GET ESTABLISHED. .. .. .. THE REPLY OF THE APPLICANT TRUST CONSIDERED CAREFUL LY BUT IT IS NOT FOUND ACCEPTABLE ON THE GROUND THAT AFTER DOWNLOADING THE ATTACHMENTS WHICH WERE SUBMITTED BY THE APPLICANT TRUST ON 22.10.2019 ON I TBA PORTAL, IT IS FOUND THAT THERE ARE NO ANNEXURE F &G AS STATED BY THE APPLICA NT TRUST. AUDIT REPORT ONLY FOR F.Y. 2015-16 HAD BEEN SUBMITTED WHILE THE APPLI CANT TRUST HAS STATED THAT AUDIT REPORTS FOR F.Y. 2013-14 TO 2015-16 ARE ENCLO SED HEREWITH AS ANNEXURE G. THE AUDIT REPORT FOR THE F.Y. 2015-16 HAS TO BE AU DITED AND ALSO TO BE SUBMITTED WITHIN THE TIME PERIOD I.E. UPTO 30.09.20 16. HOWEVER, THE APPLICANT TRUST IS FAILED TO DO THE SAME. THUS, IT HAS NOT BE EN COMPLIED WITH THE PROVISIONS OF THE IT. ACT, 1961. .. .. .. AS DISCUSSED ABOVE, THE APPLICANT HAS FAILED TO FIL E DOCUMENTARY EVIDENCES TO ENABLE ME TO SATISFY ABOUT THE GENUINENESS OF ITS A CTIVITIES AND TO VERIFY THESE ACTIVITIES ARE IN CONSONANCE WITH ITS OBJECTS. 6. THUS, REGISTRATION UNDER SECTION 12A COULD NOT B E GRANTED TO THE ASSESSEE IN THE ABSENCE OF COMPLETE DETAILS. COPIE S OF THESE DETAILS HAVE ALSO BEEN PLACED BEFORE US ALSO, BUT PAGES NO.71 TO 86 A RE NOT LEGIBLE. THEREFORE, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED OR DER AND REMIT THIS ISSUE TO THE FILE OF THE LD.COMMISSIONER (EXEMPTION). THE A SSESSEE IS DIRECTED TO SUPPLY HARD-COPIES OF ANNEXURE-D, F & G ALONG WITH OTHER DETAILS TO THE LD.COMMISSIONER (EXEMPTION). THE LD.COMMISSIONER W OULD GO THROUGH ALL THESE DETAILS, AND THEREAFTER RE-ADJUDICATE THE APP LICATION OF THE ASSESSEE. THE OBSERVATIONS MADE BY US WILL NOT IMPAIR OR INJU RE THE CASE OF THE AO AND WILL NOT CAUSE ANY PREJUDICE TO THE DEFENCE/ EXPLANATION OF THE ITA NO.1823/AHD/2019 4 ASSESSEE. IN SUPPORT OF ITS CASE, THE ASSESSEE WIL L BE AT LIBERTY TO SUBMIT ANY DETAILS, IF CALL FOR BY THE LD.COMMISSIONER. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 13 TH MARCH, 2020 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT