M/s. Peace Trust, Kanyakumari V. CIT, Madurai

ITA 1949/CHNY/2009

• Counselvise Citation: 194921714 RSA 2009
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-08-2011
• Assessment Year: misc
• Appeal Filed On: 29-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I VIJAYAKUMAR
• Assessee Lawyers: N QUADIR HOSEYN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A.NO. 1949/MDS/2009 M/S. PEACE TRUST, HIGH GROUNDS, ANJUKOOTUVILLAI ROAD, KANYAKUMARI 629702. PAN AABTP 3446 G VS. THE COMMISSIONER OF INCOME-TAX, MADURAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N. QUADIR HOSEYN, ADVOCATE RESPONDENT BY : DR. I. VIJAYAKUMAR, CIT-DR DATE OF HEARING : 18 TH AUGUST, 2011 DATE OF PRONOUNCEMENT : 18 TH AUGUST, 2011 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL I S DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX I, MADURAI, DATED 13.11.2007 REJECTING THE APPLICATION FOR REGI STRATION FILED BY THE ASSESSEE UNDER SEC.12AA OF THE INCOME-TAX ACT, 1961. ITA 1949/09 :- 2 -: 2. IN THIS CASE, THE TRUST WAS CONSTITUTED THROUGH A DEED DATED 19.6.1986 AND A SUPPLEMENTARY DEED WAS ALSO EXECUTE D ON 17.10.2007. THE ASSESSEE APPLIED FOR REGISTRATION UNDER SEC.12AA, AFTER A DELAY OF 19 YEARS, 9 MONTHS AND 1 0 DAYS. WHEN ASKED FOR, THE ASSESSEE EXPLAINED BEFORE THE COMMISSIONER OF INCOME-TAX THAT THE ASSESSEE-TRUST IS MAINLY ENGAGED IN CONDUCTING SEMINARS AND CONFERENCES, WRI TING ARTICLES, PRESENTING PAPERS ETC. AND ALL THE TRUSTEES ARE VER Y OLD AND WORKING ON A HONORARY CAPACITY AND IN SUCH CIRCUMST ANCES, THE DELAY WAS OCCURRED. THESE REASONS WERE FOUND TO B E INSUFFICIENT TO THE COMMISSIONER OF INCOME-TAX. HE ACCORDINGLY GRANTED REGISTRATION UNDER SEC.12AA WITH EFFECT FROM 1 ST APRIL, 2007, BUT DID NOT GRANT REGISTRATION RETROSPECTIVELY AS PRAYE D FOR BY THE ASSESSEE. 3. THE ASSESSEE IS AGGRIEVED AND THEREFORE, THE APP EAL BEFORE US. 4. THERE IS NO DISPUTE REGARDING THE ACTIVITIES CAR RIED ON BY THE ASSESSEE-TRUST AND THERE IS NO DISPUTE ON THE FACT THAT THE ACTIVITIES CARRIED ON BY THE ASSESSEE-TRUST ARE CHA RITABLE IN NATURE. THAT IS WHY THE COMMISSIONER OF INCOME-TAX WAS PLEA SED TO GRANT ITA 1949/09 :- 3 -: REGISTRATION TO THE ASSESSEE UNDER SEC.12AA WITH EF FECT FROM 1 ST APRIL, 2007. 5. BUT HE COULD NOT GRANT REGISTRATION RETROSPECTIV ELY FOR THE REASON THAT THE CIRCUMSTANCES EXPLAINED BY THE ASSE SSEE IN CAUSING DELAY IN PLACING THE APPLICATION BEFORE THE COMMISSIONER OF INCOME-TAX WERE NOT APPLICABLE TO HIM. WE FIND THAT IT IS A FACT ON RECORD THAT THE ASSESSEE HAS BEEN CARRYING ON CH ARITABLE ACTIVITIES SINCE ITS INCEPTION IN 1986. THE COMMIS SIONER OF INCOME-TAX WAS ALSO KIND ENOUGH TO GRANT REGISTRATI ON TO THE ASSESSEE WITH EFFECT FROM 1 ST APRIL, 2007. THEREFORE, IS IT FAIR ON THE PART OF THE AUTHORITIES TO DENY REGISTRATION RE TROSPECTIVELY WHEN THE DELAY CAUSED IN FILING THE APPLICATION WAS REAS ONABLY EXPLAINED BY THE ASSESSEE-TRUST? THE TRUST IS RUN BY SENIOR CITIZENS ON A HONORARY BASIS. THEY ARE NOT WORKING FOR ANY REMUNERATION. THEY ARE MORE CONCERNED WITH THE ACT IVITIES OF THE TRUST INVOLVING CONDUCTING OF SEMINARS AND STUDY CL ASSES AND PUBLISHING OF BOOKS AND ARTICLES. THEY ARE NOT CAR RYING ON ANY SORT OF BUSINESS. AS SOON AS THEY CAME TO KNOW THA T IT IS MANDATORY FOR THEM TO REGISTER UNDER SEC.12AA TO AV AIL THE BENEFITS OF SEC.11 OF THE INCOME-TAX ACT, 1961, THE Y APPLIED FOR ITA 1949/09 :- 4 -: THE REGISTRATION. THE ASSESSEE-TRUST IS ALSO NOT W ORKING IN A METROPOLITAN CITY WHERE EVERYBODY TRIES TO GET UPDA TED. HERE THE ASSESSEE IS A TRUST CARRYING ON ITS ACTIVITIES IN A FAR-FLUNG AREA OF KANYAKUMARI. IF ALL THESE FACTORS ARE TAKEN INTO C ONSIDERATION, IT IS POSSIBLE TO COME TO A CONCLUSION THAT THE ASSESSEE- TRUST HAS NOT BEEN AVOIDING REGISTRATION ON FLIMSY GROUNDS. ASSE SSEE IS GOING TO EARN NOTHING OUT OF THE DELAY. THEREFORE, IN TH E FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT EVEN THE DELAY OF 19 YEARS COULD BE SEEN AS A VERY VERY INORDINATE DELAY, THE GRAVITY OF THE SITUATION HAS BEEN DILUTED BY THE CIRCUMSTANCES EXPLAINED BY THE ASSESSEE-TRUST. 6. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, AND TO FAIR AND JUST, WE ARE OF THE CONSIDERED VIEW THA T THE ASSESSEE SHOULD BE GIVEN REGISTRATION RETROSPECTIVELY. ACCO RDINGLY, WE DIRECT THE COMMISSIONER OF INCOME-TAX TO GRANT THE ASSESSEE REGISTRATION RETROSPECTIVELY UNDER SEC.12AA OF THE INCOME-TAX ACT, 1961. 7. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA 1949/09 :- 5 -: ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING, ON THURSDAY, THE 18 TH DAY OF AUGUST, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 18 TH AUGUST, 2011 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR