M E MEERAN MSS IQRA CHARITABLE TRUST, Kochi V. CIT Exemption, Kochi

ITA 19/COCH/2023

AI Insights

The case involves M E Meeran MSS Iqra Charitable Trust appealing against the denial of registration under section 12AA of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemptions), Kochi. The trust had initially received provisional registration but was later informed that certain clauses in the trust deed needed amendment. The trust sought to amend the deed but was informed that such amendments required prior approval from the CIT. The CIT's subsequent rejection of the trust's application for registration was contested in this appeal. The Tribunal found that the CIT had not adequately considered the trust's communication and remanded the matter for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115477 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-09-2023
• Assessment Year: 2021-2022
• Appeal Filed On: 03-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANKITHA V.A.
• Keywords: Charitable institution; Competent authority; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Sanjay Arora, AccountantMemberand Shri Manomohan Das, JudicialMember ITA No. 19/Coch/2023 (Assessment Year: 2021-22) M E Meeran MSS Iqra Charitable Trust No. 2A-34/137A, NH Bypass Edapally P.O. , Kochi 682024 [PAN:AAGTM9544H] vs. CIT (Exemption) 2 nd Floor, Sanjuan Tower Behind CR Building Kochi 682018 (Appellant) (Respondent) Assessee by: Ms. Ankitha V.A., CA Revenue by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing:12.09.2023 Date of Pronouncement:12.09.2023 O R D E R PerSanjay Arora, AM This is an Appeal by the Assessee against the denial of registration under section 12AA of the Income Tax Act, 1961 (hereinafter ‘the Act’) by the Commissioner of Income Tax (Exemptions), Kochi [CIT(E)], the competent authority under the Act, vide it’s order dated 31.10.2022. 2. The brief facts of the case leading to the instant appeal are that the assessee, a trust constituted under Trust Deed dated 08.09.2020 (copy on record), was, on applying, granted provisional registration as a charitable trust u/s.12A of the Act for the previous years relevant to assessment years 2021-22 to 2023-24 by the competent authority on 27.05.2021. Vide it’s communication dated 09.09.2022, the assessee was communicated by it the clauses of the trust deed which were required to be amended. The assessee, accordingly, approached the Sub-Registrar, Edapally, for the purpose, and was informed that, in view of clause 18 of the trust deed, reading as under, any ITANo. 19/Coch/2023 M E Meeran MSS Iqra Chairtable Trust vs. CIT(E) Page 2 amendment to the trust deed would require prior approval from the competent authority: - “18. AMENDMENT This Deed may be amended or modified by the Trustee, by way of a deed of Amendment with the prior approval of the Commissioner of Income Tax having jurisdictions over the Trust. Provided that, the Trustee shall certify in writing that in its opinion such modification or amendment does not materially prejudice the interests of the contributories and does not operate to release the Trustee from any material responsibilities to such contributories.” This was duly communicated by the assessee to the competent authority on 29.9.2022 vide it’s letter dated 27.9.2022 (copy on record). The assessee’s application u/s. 10AB of the Act was, however, rejected vide impugned order for having not carried out the necessary amendments. Aggrieved, the assessee is in appeal. 3. We have considered the rival contentions and perused the material of record. 3.1 The assessee’s case before us was that the impugned order has been passed without considering it’s communication dated 27.9.2022. The impugned order, vide para 2 thereof, duly notes the assessee’s attendance on 27.9.2022. As it, therefore, appears to us, the letter dated 27.9.22, making a request to the competent authority to authorize the amendments stated therein, was not uploaded on the hearing date of 27.9.2022, and which perhaps also explains its submission in physical form on 29.9.2022. 3.2 It is not clear as to what transpired during the hearing on 27.9.2022; the impugned order being silent thereon. In any case, the matter stands decided by the ld. CIT(E) without further reference to the assessee’s application before him and, further, without according approval to the changes suggested, to which, as clarified, the assessee has no objection. As it appears to us, the same has been to save the process issued by completing it within time line prescribed by law. ITANo. 19/Coch/2023 M E Meeran MSS Iqra Chairtable Trust vs. CIT(E) Page 3 4. Under the circumstances, we only consider it appropriate that the matter is restored back to the file of the ld. CIT(E) for being examined afresh, i.e., in light of assessee’s letter dated 27.9.2022. The impugned order is accordingly set aside and the provisional registration restored. The assessee shall be issued fresh notice, and shall accordingly participate in the proceedings, enabling to bring to proper conclusion the process issued, and in accordance with law. We decide accordingly. 5. In the result, the appeal filed by the assessee is allowed on the aforesaid terms. Order pronounced in the open court on the conclusion of the hearing. Sd/- Sd/- (Manomohan Das) (Sanjay Arora) Judicial Member Accountant Member Cochin, Dated: September 12, 2023 Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The CIT-DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin n.p.