Govardhan Mahila Vikas Pratishtan, V. Commissioner of Income-tax - 1,

ITA 1917/PUN/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8504 (ITAT-PUNE)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 30-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS M S VARMA
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.1917/PN/2013 SHRI GOVARDHAN MAHILA VIKAS FOUNDATION APPELLANT 1341, SHUKRAWAR PETH, PUNE 411 002 PAN: AABTG0915B VS. CIT-1, PUNE RESPONDENT APPELLANT BY : SHRI ABHAY SHASTRI RESPONDENT BY : MRS. M.S.VARMA DATE OF HEARING : 30.09.2014 DATE OF PRONOUNCEMENT : 30.09.2014 ORDER PER SHAILENDRA KUMAR YADAV : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE CIT(A) I ON FOLLOWING GROUNDS. 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE L EARNED CIT HAS ERRED BOTH ON FACTS AND IN LAW IN HOLDING THE A CTIVITIES CONDUCTED BY THE ASSESSEE AS NOT BEING GENUINE, DES PITE THE ASSESSEE BRINGING ALL THE MATERIAL AND EVIDENCE ON RECORD TO PROVE THE SAME. 2. ON FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, T HE ORDER OF THE COMMISSIONER OF REJECTING REGISTRATION UNDER INCOME TAX UNDER SECTION 12A OF THE ACT WAS BAD IN LAW AS THE ASSESSEE WAS NOT PROVIDED PROPER OPPORTUNITY OF BEI NG HEARD. 3. BECAUSE THE TRUST APPLIED FOR REGISTRATION U/S 12A ON 04.02.2013 FOR F.Y.2013-14 ALONG WITH COPIES OF TRU ST DEED AND BALANCE SHEETS FOR EARLIER THREE YEARS. THE T RUST CARRIED ON ACTIVITIES SOCIAL AS WELL AS VOCATIONAL FOR THE BENEFIT OF DHARAVI SELF HELP GROUP. ITA NO.1917/PN/13 4. THE APPELLANT CRAVES LEAVE TO ADD/MODIFY/DELETE/AME ND ALL/ANY OF THE GROUNDS OF APPEAL. 2. THE APPELLANT TRUST HAS BEEN FORMED FOR THE EDUC ATIONAL AND VOCATIONAL TRAINING PURPOSE FOR THE BENEFITS OF ALL SECTIONS OF SOCIETY IRRESPECTIVE OF CASTE, CREED, RELIGION, ETC. 3. THE SAID TRUST WAS FORMED ON 02/07/2004, WHICH D ATE THE TRUST DEED WAS EXECUTED AND FORMALITIES FOR REGISTR ATION OF TRUST WITH CHARITY COMMISSIONERS OFFICE AS WELL AS OTHER RELEVANT GOVERNMENT AUTHORITIES WAS TAKEN UP. IT WAS REGIS TERED UNDER THE B.P.T.ACT 1950 VIDE A NOTIFICATION DATED 22.09.2004 ISSUED BY THE DY.CHARITY COMMISSIONER, PUNE REGION, PUNE. 4. THE APPELLANT ALSO APPLIED FOR REGISTRATION U/ S 12AA OF THE ITA,1961 VIDE APPLICATION IN PRESCRIBED FORM NO. 10 A SUBMITTED TO THE INCOME TAX DEPARTMENT ON 04.02.2013. CIT-I, REJ ECTED THE APPLICATION OF THE APPELLANT. 5. BEFORE US LD. ASSESSEES REPRESENTATIVE SUBMIT TED THAT CIT HAS ERRED ON FACT AND LAW IN HOLDING THE ACTIVITIE S CONDUCTED BY THE ASSESSEE AS NOT GENUINE DESPITE THE FACT THAT A SSESSEE BROUGHT ALL MATERIAL EVIDENCE ON RECORD. IT WAS ALSO SUBM ITTED ON BEHALF OF ASSESSEE THAT ASSESSEE WAS NOT PROVIDED DUE OPPORTU NITY OF HEARING WHILE REJECTING ASSESSEES CLAIM SO ORDER O F CIT BE SET ASIDE . ON THE OTHER HAND, THE DEPARTMENTS REPRE SENTATIVE SUPPORTED THE ORDER OF THE CIT. 6. AFTER GOING THROUGH THE MATERIAL ON RECORD WE FI ND THAT ASSESSEE HAS FORMED EDUCATIONAL AND EDUCATIONALLY TRAINING PURPOSES CLAIMED TO BE FOR BENEFIT OF ALL SECTIONS OF THE SOCIETY IRRESPECTIVE OF CASTE, CREED, RELIGION ETC. THE S AID TRUST WAS FORMED ON 02/07/2014 ON SAME DATE TRUST DEED WAS EXECUTED AND FORMALITIES FOR REGISTRATION OF TRUST WITH CHARITY COMMISSIONERS ITA NO.1917/PN/13 OFFICE WERE ALSO COMPLETED. IT WAS REGISTERED UND ER B.P.T.ACT 1950 VIDE A NOTIFICATION DATED 22/09/2004 ISSUED BY THE DY.CHARITY COMMISSIONER, PUNE REGION, PUNE. 7. THE ASSESSEE APPLIED FOR REGISTRATION U/S.12AA O F THE INCOME TAX 1961 VIDE APPLICATION IN PRESCRIBED FORM NO. 1 0A SUBMITTED TO THE INCOME TAX DEPARTMENT ON 04/02/2013. THE ASSE SSEE HAS SUBMITTED THE DETAILS AS ASKED FOR BY THE CIT. HO WEVER, THE CIT REJECTED THE SAME OBSERVED AS UNDER. 4. IN ORDER THAT REGISTRATION U/S. 12A CAN BE GRAN TED TO A TRUST OR INSTITUTION, THE COMMISSIONER OF INCOME-TA X HAS TO BE SATISFIED, AMONG OTHER THINGS, ABOUT THE GENUINE NESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION. IN THE APPLICANTS CASE, THE ACTIVITIES COMPRISING IMPARTING OF EDUCAT ION FOR MAKING AYURVEDIC MEDICINES ETC AND PROCURING SUCH MEDICINES AND MARKETING THE SAME CAN BE LIBERALLY T REATED AS GENUINE EVEN THOUGH SUBSTANTIATING DETAILS AND EVID ENCES HAVE NOT BEEN FURNISHED. HOWEVER, THE SAME CANNOT BE SAID OF THE OTHER ACTIVITIES FOR THE REASONS MENTIONED I N THE PRECEDING PARA. ON THE CONTRARY, THE CLAIM REGARD ING SUCH OTHER ACTIVITIES CAN BE FAIRLY CONSIDERED AS NOT GE NUINE. IT HAS BEEN ALREADY STATED THAT THE EXPENSES SHOWN IN RESP ECT OF SUCH OTHER ACTIVITIES CONSTITUTE A MAJOR CHUNK OF T HE TOTAL EXPENSES SHOWN IN THE INCOME & EXPENDITURE ACCOUNTS AS INCURRED ON THE OBJECTS OF THE TRUST. THIS BEING THE CASE, ONE OF THE CONDITIONS LAID DOWN IN SECTIONS 12AA, I.E., SATISFACTION REGARDING GENUINE OF THE ACTIVITIES OF THE TRUST OR INSTITUTION, CANNOT BE CONSIDERED AS FULFILLED IN THE APPLICANT S CASE. HENCE, THE APPLICANTS REQUEST FOR REGISTRATION U/S .12A CANNOT BE ACCEDED TO. AS A RESULT, THE SUBJECT APPLICATIO N IN FORM NO.10A IS HEREBY REJECTED. 8. WE FIND THAT THE CIT HAS DISPUTED THE GENUINENES S OF THE ACTIVITY AND EXPENDITURE THEREON. WHILE ASSESSEE H AS GIVEN THE DETAILS WITH REGARD TO ITS ACTIVITY AS PER OBJECT O F THE TRUST. ACCORDING TO US THE CIT HAS NOT PROVIDED DUE OPPOR TUNITY OF HEARING TO THE ASSESSEE BEFORE REJECTING HIS CLAIM ASSESSEE ASKED FOR. SO IN THE INTEREST OF JUSTICE WE SET ASIDE T HE ORDER OF THE CIT AND RESTORED THE MATTER TO HIM WITH DIRECTION TO DE CIDE THE SAME AS ITA NO.1917/PN/13 PER FACT OF THE LAW AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. SINCE WE ARE RESTORING THE MATTER TO CI T ON PRELIMINARY ISSUE AS DISCUSSED ABOVE SO WE ARE REFRAINING TO CO MMENT ON MERIT OF THE ISSUE AT HAND. 9. IN THE RESULT APPEAL FILED BY THE ASSESSEE AS A LLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 30 TH DAY OF SEPTEMBER, 2014. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 30 TH SEPTEMBER, 2014 ASHWINI COPY TO:- 1) ASSESSEE 2) THE DEPARTMENT 3) THE ADDL.CIT RANGE -1, PUNE 4) THE ITO WARD,1(4), PUNE 5) THE DR, A BENCH, I.T.A.T., PUNE. 6) GUARD FILE BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, PUNE.