Maheshwari Bhavan charitable Trust Secunderabad , Hyderabad V. Commissioner of Income Tax, (Exemptions), Hyderabad

ITA 1842/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0701 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: misc
• Appeal Filed On: 20-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA GUPT
• Keywords: Charitable institution; Non compliance
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1842/HYD/2019 MAHESHWARI BHAVAN CHARITABLE TRUST SECUNDERABAD [PAN: AAGTM1881R] VS COMMISSIONER OF INCOME TAX(EXEMPTIONS), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SUNIL KUMAR JAIN, AR FOR REVENUE : SMT. AMISHA GUPT, DR DATE OF HEARING : 19-05-2021 DATE OF PRONOUNCEMENT : 15-07-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL ARISES FROM THE CIT(EXEMPTION S)- HYDERABADS ORDER DATED 10-10-2019 PASSED IN F.NO.CIT(E)/HYD/29(04)/12A/2019-20, IN PROCEEDINGS U/S.12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 [IN SH ORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. BOTH THE LEARNED REPRESENTATIVES TAKE US TO THE CIT(E) S DETAILED DISCUSSION DECLINING SECTION 12AA REGISTRATION TO THE ASSESSEE AS UNDER: ITA NO. 1842/HYD/2019 :- 2 -: 2. A NOTICE DATED 31.08.2019 WAS ISSUED TO THE APP LICANT, TO THE ADDRESS MENTIONED IN FORM 10A, TO APPEAR AND PRODUC E ITS ORIGINAL MEMORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERI FICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS ON 12.0 9.2019. IN RESPONSE THERETO, THE ASSESSEE VIDE LETTER DATED 11.09.2019 REQUESTED FOR ADJOURNMENT OF THE CASE. ON CONSIDERING THE REQUEST , THE CASE WAS ADJOURNED TO 24.09.2019' AND THE SAME WAS NOTED BY THE ASSESSEE ON 11.09.2019. ON THE SCHEDULE DATE OF HEARING, THE ASSESSEE VIDE LETTER DT.24.09.2019 REQUESTED FOR ADJOURNMENT OF T HE CASE. ON CONSIDERING THE REQUEST, THE CASE WAS ADJOURNED TO 04.10.2019 AND THE SAME WAS INTIMATED TO THE ASSESSEE VIDE MAIL DT .25.09.2019 TO THE MAIL-ID GIVEN WHILE FILING FORM 10A I.E., [e-mail]. BUT, THE ASSESSEE NE ITHER APPEARED FOR THE HEARING NOR FILED ANY DOCUMENTARY EVIDENCE. 3. NON COMPLIANCE: SINCE THE ORIGINAL TRUST DEED / MOA AND ACCOUNTS HAVE NOT BEEN FILED, IT IS NOT POSSIBLE TO VERIFY T HE GENUINENESS OF THE OBJECTS AND ACTIVITIES OF THE ASSESSEE. HENCE, THE AIMS & OBJECTS OF THE SOCIETY / TRUST COULD NOT BE VERIFIED IN THE AB SENCE OF ORIGINAL MOA / TRUST DEED. AS PER RULE 17A, APPLICANT HAS TO FILE COPY OF INCOME & EXPENDITURE ACCOUNT. HOWEVER, THE ASSESSEE HAS NOT FILED ANY COPY OF THE INCOME & EXPENDITURE ACCOUNT. THUS, IT HAS VIOLATED RULE 17A. FURTHER, IN ABSENCE OF THE BILLS/VOUCHERS AND BOOKS OF ACCOUNTS FOR VERIFICATION WHICH IS THE REQUIREMENT AS PER THE RU LE 17A, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED . THEREFORE, THE GENUINENESS OF THE OBJECTS AND GENUINENESS OF THE A CTIVITY IS IN DOUBT. 4. IN VIEW OF ALL THE ABOVE FADS, I AM OF THE VIEW THAT THE APPLICANT IS NOT FIT FOR GRANT OF REGISTRATION U/S.12AA OF THE A CT. HENCE, THE APPLICATION IN FORM NO.10A FILED BY THE ABOVE APPLI CANT IS HEREBY REJECTED. 3. IT IS SUFFICIENTLY CLEAR FROM A PERUSAL OF THE CIT (E)S ORDER UNDER CHALLENGE THAT HE HAS NOWHERE CONSIDERED THE ASSESSEES OBJECTS IN ITS TRUST DEED AS TO UNDER WHICH L IMB THEY FALL U/S.2(15) OF THE ACT. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE TO RESTORE THE IMPUGNED SOLE ISSUE BACK TO TH E CIT(E) TO BE ADJUDICATED AFRESH IN LIGHT OF HON'BLE AP EX COURTS DECISION IN M/S.ANANDA SOCIAL AND EDUCATIONAL TRUST VS. CIT (2020) 426 ITR 340 (SC) THAT COMMENCEMENT OF CHARITABLE ITA NO. 1842/HYD/2019 :- 3 -: ACTIVITIES BY THE ASSESSEE CONCERNED IS NOWHERE A M ANDATORY PRE-CONDITION FOR THE PURPOSE OF GRANTING SECTION 1 2AA REGISTRATION. 4. THE ASSESSEE OR ITS AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE CIT(E) ON OR BEFORE 30-11-2021 WITH ALL RELEVANT DETAILS; AT ITS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES. 5. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JULY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 15-07-2021 TNMM ITA NO. 1842/HYD/2019 :- 4 -: COPY TO : 1.MAHESHWARI BHAVAN CHARITABLE TRUST, H.NO.8-1-96, SIVAJI NAGAR, SECUNDERABAD. 2.THE CIT(EXEMPTIONS), HYDERABAD. 3.THE ADDL.CIT(EXEMPTIONS)-HYDERABAD. 4.D.R. ITAT, HYDERABAD. 5.GUARD FILE.