Gujarat Kalyan Parishad, Surendranagar V. CIT (Exemptions), Ahmedabad

ITA 1972/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8744 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 18-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GUPTA
• Keywords: Set aside
• Section: 12AA; 12

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.1972/AHD/2018 GUJARAT KALYAN PARISHAD C/O. CHANDRAKANT A. DAVE KESHAV KRUPA NR.MISTRY GARAGE STREE NO.3 DALMIL ROAD DIST. SURENDRANAGAR. PAN : AACTG 2782 P VS. CIT (EXEMPTIONS) AHMEDABAD. ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI CHIRAG SHAH, AR REVENUE BY : SHRI SANJEEV GUPTA, CIT-DR / DATE OF HEARING : 23/03/2021 / DATE OF PRONOUNCEMENT: 25/03/2021 !'/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: THIS IS ASSESSEES APPEAL AGAINST ORDER OF THE LD.CIT(EXEMPTIONS), AHMEDABAD DATED 21.8.2018 PASSE D UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. SOLE ISSUE RAISED IN THE GROUNDS OF APPEAL OF TH E ASSESSEE IS THAT THE LD.CIT(EXEMPTIONS) IS ERRED IN REJECTING APPLIC ATION OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SECTION 12 AA IN THE ABSENCE OF SUBMISSION OF REQUISITE DETAILS DURING THE PROCEEDI NGS. ITA NO.1972 /AHD/2018 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST ENGAGED IN EDUCATIONAL ACTIVITIES AS WELL AS PROVIDING MEDICAL RELIEF TO THE NEEDY PERSONS. ASSESSEE TRUST HAS FILED AN APPLICATION FOR REGISTRATION OF THE TRUST UNDER SECTION 12AA OF THE INCOME TAX ACT IN F ORM NO.10A ON 2.2.2018 ALONG WITH COPY OF REGISTRATION CERTIFICAT E ISSUED BY THE CHARITY COMMISSIONER. PURSUANT TO THAT, DEPARTMENT HAS ISSUED A LETTER DATED 10.4.2018 ASKING THE ASSESSEE-TRUST TO FURNISH A DETAILED NOTE ON THE ACTIVITIES OF THE TRUST AS WELL AS DOCU MENTS AS MENTIONED IN THE SAID LETTER. HOWEVER, NO COMPLIANCE WAS REC EIVED FROM THE ASSESSEE IN RESPONSE TO THE LETTER OF THE DEPARTMEN T NOR PUT APPEARANCE ON BEHALF OF THE ASSESSEE, DESPITE PROVIDING OPPORT UNITY TO THE ASSESSEE. IN THE ABSENCE OF THE DETAILS, THE LD.CI T(E) REJECTED THE APPLICATION OF THE ASSESSEE-TRUST FOR GRANT OF REGI STRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. AGGRIEVED BY AC TION OF THE LD.CIT(E), THE ASSESSEE IS NOW BEFORE THE TRIBUNAL. 4. BEFORE US, THE ASSESSEE HAS FILED PAPER BOOK CON TAINING PAGES RUNNING OVER 62 PAGES. THIS PAPER BOOK CONTAINS, INTER ALIA , COPY OF THE TRUST DEED, COPY OF BANK STATEMENTS, AUDIT REPO RTS, AFFIDAVIT OF THE TRUST FOR NON-SUBMISSION OF DETAILS EARLIER. THE LD .COUNSEL FOR THE ASSESSEE SUBMITTED THAT NECESSARY DETAILS COULD NOT BE FURNISHED TO THE DEPARTMENT DUE TO CALLOUS ATTITUDE OF THE ASSESSEE S ACCOUNTANT, WITH WHOM THE ASSESSEE HAD A DISPUTE WITH REGARD FIXATIO N OF HIS SALARY. THE ASSESSEE TRUST HAD GIVEN REQUISITE THE INFORMAT ION AND DETAILS AS CALLED FOR BY THE DEPARTMENT TO THE SAID ACCOUNTANT FOR HANDING OVER THE SAME TO THE CONSULTANT CHARTERED ACCOUNTANT OF THE ASSESSEE FOR SUBMISSION OF THE SAME BEFORE THE LD.CIT(EXEMPTION) FOR ITA NO.1972 /AHD/2018 3 CONSIDERATION OF ITS APPLICATION FOR REGISTRATION U NDER SECTION 12AA OF THE ACT. THE ASSESSEE WAS UNDER THE IMPRESSION TH AT THE SAID ACCOUNTANT HAD COMPLIED WITH THE REQUIREMENT OF THE DEPARTMENT, BUT HE DID NOT DO SO. THEREFORE, IT IS BECAUSE OF INSE NSITIVENESS ON THE PART THE ASSESSEES ACCOUNTANT, THE ASSESSEE COULD NOT C OMPLY WITH THE REQUIREMENT OF THE DEPARTMENT, RESULTING REJECTION OF THE APPLICATION OF THE ASSESSEE-TRUST FOR ITS REGISTRATION. IT IS PRAYED THAT THE ORDER OF THE LD.CIT(E) MAY BE SET ASIDE AND THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO FURNISH DETAILS AND INFORMATION REQUIRED FOR CONSIDERATION OF ITS APPLICATION FOR REGISTRATION U NDER SECTION 12AA OF THE ACT. ASSESSEE HAS PLACED ON RECORD AN AFFIDAV IT DATED 9.2.2021 TO THIS EFFECT. ON THE OTHER HAND, THE LD.DR SUPPORTED THE ORDER OF THE LD.CIT(E). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE RECORD CAREFULLY. AS WE NOTED HEREIN, ASSESSEE IS STATED TO BE ENGAGED IN EDUCATIONAL ACTIVITIES. IT HAS REGISTERED WITH C HARITY COMMISSIONER. WE FIND THAT LD.CIT(EXEMPTION) HAS REJECTED APPLICA TION OF THE ASSESSEE FOR GRANT OF REGISTRATION IN THE ABSENCE O F DETAILS, WHICH HE SOUGHT FROM THE ASSESSEE FOR CONSIDERATION OF APPLI CATION FOR REGISTRATION. BEFORE US, THE ASSESSEE HAS FILED A PAPER BOOK CONTAINING COPIES OF TRUST DEED, BOOKS ACCOUNTS, AUDITORS REP ORT ETC. IT HAS ALSO FILED AN AFFIDAVIT DULY SWORN IN BY SHRI MANHARSINH PRABHATSINGH ZALA, TRUSTEE OF THE ASSESSEE-TRUST, DEPOSING THEREIN THE REASONS FOR NON- SUBMISSIONS OF REQUISITE DETAILS CALLED FOR BY THE DEPARTMENT FOR PROCEEDINGS UNDER SECTION 12AA OF THE ACT. IT SEEM S TO US THAT UPTO THE DATE OF HEARING, THE ASSESSEE DID NOT FILE THE DETAILS. THE LD.CIT ITA NO.1972 /AHD/2018 4 HAS GIVEN OPPORTUNITY UPTO 19.7.2018. THOUGH THE A CTION OF THE LD.CIT IN REJECTING THE APPLICATION OF THE ASSESSEE MAY BE JUSTIFIED TO SOME EXTENT, BUT LOOKING TO THE REASONS NARRATED BY THE TRUSTEE OF THE ASSESSEE-TRUST IN HIS AFFIDAVIT DATED 9.2.2021 PLAC ED ON RECORD I.E. NON- COOPERATION OF ITS ACCOUNTANT WHO IS LOOKING AFTER ACCOUNTING AND OTHER RELATED WORK OF THE TRUST IN TIMELY SUBMISSIO N OF REQUISITE DETAILS BEFORE THE LD.CIT(E) DURING 12AA PROCEEDING S, LITTLE LENIENCY FOR LARGER INTEREST OF JUSTICE IS TO BE SHOWN TO TH E ASSESSEE, WHICH IS A TRUST SAID TO BE ENGAGED IN EDUCATIONAL ACTIVITIES AND PROVIDING MEDICAL RELIEF TO THE NEEDY SECTIONS OF THE SOCIETY . THUS, WE ARE OF THE VIEW THAT ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTU NITY TO SUPPORT ITS CASE, AND THEREFORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE ISSUE BACK TO THE FI LE OF THE LD.CIT(E) FOR RECONSIDERATION OF ITS APPLICATION FOR REGISTRA TION AFTER PROVIDING REASONABLE OPPORTUNITY TO THE ASSESSEE. ASSESSEE I S ALSO DIRECTED TO COOPERATE AND ENSURE TIMELY SUBMISSION OF DETAILS/C LARIFICATIONS AS AND WHEN CALLED FOR BY THE CIT (EXEMPTIONS). WE ACCORDI NGLY ALLOW GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICAL P URPOSE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 25 TH MARCH, 2021 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT AHMEDABAD; DATED 25/03/2021