Agri & Rural Development Trust, CHENNAI V. CIT, CHENNAI

ITA 1891/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96574 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 19-11-2015
• Assessment Year: misc
• Appeal Filed On: 25-08-2015
• Court: TRIBUNAL
• Department Lawyers: DR U ANJANEYALU
• Assessee Lawyers: S SRIDHAR
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.1891/MDS/2015 / ASSESSMENT YEAR : N.A M/S AGRI & RURAL DEVELOPMENT TRUST NO.1, 221, NEAR RAILWAY GATE MARANDAHALLI VILLAGE & POST DHARMAPURI 636 806 VS. THE COMMISSIONER OF INCOME - TAX (EXEMPTIONS) CHENNAI [PAN AACTA 6745 Q ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE /RESPONDENT BY : DR. U. ANJANEYALU, CIT / DATE OF HEARING : 19 - 1 1 - 2015 ! / DATE OF PRONOUNCEMENT : 09 - 12 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (EXEMPTIONS), CHENN AI, DATED 30.6.2015. 2. SHRI S. SRIDHAR, LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ASSESSEE APPLIED FOR REGISTRATION U/S 12AA OF THE ACT. THE CIT(EXEMPTIONS) FOUND THAT THE TRUST DEED PROVIDES FOR OPENING OF BANK ACCOUNT IN ANY OF THE BANK. THE CIT(EXEMPT IONS) FOUND THAT ITA NO. 1891/15 :- 2 -: THE DEPOSITS SHALL BE MADE WITH A SCHEDULED BANK OR A CO-OPERATIVE BANK. ACCORDING TO THE LD. COUNSEL, IN INDIA, WE H AVE ONLY SCHEDULED BANK, NATIONALIZED BANK AND CO-OPERATIVE BANK AND N O OTHER BANK IS AVAILABLE. THEREFORE, THE ASSESSEE HAS NO CHOICE TO OPEN THE ACCOUNT OTHER THAN THE NATIONALIZED BANK, SCHEDULED BANK OR CO-OPERATIVE BANK, THEREFORE, THAT CANNOT BE A REASON TO REJECT THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. THE LD. COUNSEL FURTHER SUBMITTED THAT THE CIT(EXEMPTIONS) HAS NOT EXAMINED THE OBJEC TS OF THE ASSESSEE AND OTHER CONDITIONS WHICH ARE REQUIRED FO R GRANT OF REGISTRATION. THEREFORE, HE SUBMITTED THAT THE MAT TER MAY BE REMITTED BACK TO THE FILE OF THE CIT(EXEMPTIONS). 3. ON THE CONTRARY, DR. U. ANJANEYALU, LD. DEPARTMENTA L REPRESENTATIVE SUBMITTED THAT AS RIGHTLY POINTED OU T BY THE LD. COUNSEL FOR THE ASSESSEE, IN INDIA, WE HAVE ONLY NATIONALIZ ED BANK, SCHEDULED BANK AND CO-OPERATIVE BANK AND NO OTHER BANK IS AVA ILABLE. SINCE THE CIT(EXEMPTIONS) HAS NOT EXAMINED THE OBJECTS OF THE TRUST AND OTHER PRECONDITIONS FOR GRANT OF REGISTRATION, ACCORDING TO THE LD. DR, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE CIT( EXEMPTIONS) FOR RECONSIDERATION. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AD MITTEDLY, THE ITA NO. 1891/15 :- 3 -: CIT(EXEMPTIONS) HAS NOT CONSIDERED THE OBJECTS OF T HE TRUST AND OTHER PRECONDITIONS REQUIRED FOR GRANT OF REGISTRATION U /S 12AA OF THE ACT. MERELY BECAUSE THERE WAS CLAUSE IN THE TRUST DEED W HICH ENABLES THE ASSESSEE TO OPEN BANK ACCOUNT IN ANY BANK, THE CIT( EXEMPTIONS) HAS REJECTED THE APPLICATION. AS RIGHTLY SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE AND THE LD. DR, ONLY NATIONALIZED BANK , SCHEDULED BANK AND CO-OPERATIVE BANK IS AVAILABLE IN INDIA, THEREF ORE, ANY OTHER BANK DOES NOT MEAN OTHER THAN THE NATIONALIZED/SCHEDULED /CO-OPERATIVE BANK. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT WHEN THE TRUST DEED GIVES AN OPTION BY REFERRING TO ANY OTHER BAN K, IT MEANS AN OPTION WAS GIVEN TO THE TRUST TO OPEN AN ACCOUNT EI THER IN NATIONALIZED BANK OR SCHEDULED BANK OR CO-OPERATIVE BANK. THERE FORE, THAT CANNOT BE A REASON TO REJECT THE REGISTRATION. SINCE THE CIT(EXEMPTIONS) HAS NOT CONSIDERED THE OBJECTS OF THE TRUST AND OTHER P RE-CONDITIONS FOR GRANT OF REGISTRATION, THIS TRIBUNAL IS OF THE CON SIDERED OPINION THAT THE MATTER NEEDS TO BE RECONSIDERED BY THE CIT(EXEMPTIO NS). ACCORDINGLY, THE ORDER OF THE CIT(EXEMPTIONS) IS SET ASIDE AND T HE ENTIRE ISSUE OF REGISTRATION IS REMITTED BACK TO THE FILE OF THE CI T(EXEMPTIONS). THE CIT(EXEMPTIONS) SHALL RE-EXAMINE THE ISSUE IN THE L IGHT OF THE MATERIAL FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE SA ME IN ACCORDANCE WITH LAW AFTER GIVING SUFFICIENT OPPORTUNITY TO THE ASSESSEE. ITA NO. 1891/15 :- 4 -: 5. IN THE RESULT, THE APPEAL OF THE APPEAL OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH DECEMBER, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 9 TH DECEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 3. +,' / CIT(A) 5. )-. / / DR 2. / RESPONDENT 4. + / CIT 6. .01 / GF