Appeal details
Counselvise Citation
[2011] 134 COUNSELVISE.COM (IT) 4945 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
09-06-2011
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
09-06-2011
Assessment Year
misc
Appeal Filed On
02-12-2010
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI (BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER) .. I.T.A. NOS. 2037 & 2038/MDS/2010 M/S REHOBOTH EDUCATIONAL CHARITABLE TRUST, WARD II, VINOBAJI COLONY, BODINAICKANUR 625 513. PAN : AABTR3116M (APPELLANT) V. THE INCOME TAX OFFICER, WARD I(1), THENI. (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR RESPONDENT BY : SHRI SHAJI P. JACOB O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THESE ARE APPEALS BY THE ASSESSEE AGAINST ORDERS D ATED 27.8.2010 OF COMMISSIONER OF INCOME TAX-I, MADURAI, WHEREBY HE REJECTED AN APPLICATION FILED BY THE ASSESSEE FOR R EGISTRATION UNDER SECTION 12AA OF INCOME-TAX RULES, 1962 (HEREINAFTER CALLED THE ACT) AND ALSO DENIED IT APPROVAL SOUGHT UNDER SECTION 80 G OF THE ACT. I.T.A. NOS. 2037 & 2038/MDS/10 2 2. LEARNED COUNSEL FOR THE ASSESSEE-TRUST HAS FILED AN APPLICATION FOR ADJOURNMENT, BUT, THERE ARE NO PROPER REASONS M ENTIONED IN THE SAID APPLICATION. HENCE, SAID APPLICATION IS REJEC TED. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE ON ITS APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND APPROVAL UNDER SECTION 80G, HAD ENTERED APPEARANCE ON 27.8.2010 BEFORE THE LD. CIT, PURSUANT TO NOTICES OF HEARING ISSUED BY HIM. NEVERTHELESS, AS PER THE LD. COUNSEL, ASSESSEE WAS UNABLE TO PRODUCE COPIES OF ACCOUNTS FOR FINANCIAL YEARS 2008 -09 AND 2009-10 ON ACCOUNT OF VARIOUS DIFFICULTIES IN COMPLETING TH E AUDIT WORK. AS PER LD. COUNSEL, LD. CIT REFUSED TO GIVE THE REGISTRATI ON AND APPROVAL FOR A REASON THAT ASSESSEE COULD NOT ESTABLISH GENUINENES S OF THE TRUST, NOR IT COULD PROVE WITH DOCUMENTARY EVIDENCE ANY CH ARITABLE ACTIVITIES CARRIED ON BY IT, AS PER THE TERMS OF TRUST DEED. AS PER THE LD. COUNSEL, LD. CIT WAS NOT JUSTIFIED IN DENYING REGIS TRATION UNDER SECTION 12AA OF THE ACT AND IN REFUSING APPROVAL UNDER SECT ION 80G OF THE ACT. LD. COUNSEL SUBMITTED THAT GIVEN ONE MORE OPP ORTUNITY, ASSESSEE WOULD BE ABLE TO PROVE THE GENUINENESS OF ITS ACTIVITIES AND I.T.A. NOS. 2037 & 2038/MDS/10 3 CAN ALSO PROVIDE THE AUDITED ACCOUNTS FOR ASSESSMEN T YEARS 2008-09 AND 2009-10 TO LD. CIT. 4. LEARNED D.R. DID NOT RAISE ANY SERIOUS OBJECTION FOR THE MATTER BEING SENT BACK FOR FRESH CONSIDERATION BY THE LD. CIT. 5. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL C ONTENTIONS. LD. CIT HAD REFUSED GRANTING REGISTRATION TO THE AS SESSEE-TRUST UNDER SECTION 12AA OF THE ACT AND APPROVAL SOUGHT UNDER S ECTION 80G OF THE ACT, HOLDING THAT AN APPLICATION EARLIER FILED BY THE ASSESSEE WAS REJECTED AND THE NEW APPLICATION FILED BY THE ASSES SEE DID NOT RECTIFY THE DEFICIENCIES MENTIONED IN THE EARLIER ORDER REF USING THE REGISTRATION. NO DOUBT, AN ASSESSEE HAS TO ESTABLI SH ITS GENUINENESS AND A CIT VIDE SUB-SECTION (1) OF SECTION 12AA IS E MPOWERED TO CALL FOR DOCUMENTS AND INFORMATION FROM TRUST SO AS TO P ROVE THE GENUINENESS OF ITS ACTIVITIES. NEVERTHELESS, WE FI ND THAT ASSESSEES APPLICATIONS WERE REJECTED FOR A SOLE REASON THAT I T COULD NOT ESTABLISH WITH DOCUMENTARY EVIDENCE ITS CHARITABLE ACTIVITIES . THERE IS NO FINDING BY THE CIT THAT OBJECTS OF THE ASSESSEE-TRU ST WERE NON- CHARITABLE IN NATURE. WE ARE, THEREFORE, OF THE OP INION THAT THE MATTER I.T.A. NOS. 2037 & 2038/MDS/10 4 REQUIRES RE-VISIT BY THE CIT. WE, THEREFORE, SET A SIDE THE ORDERS OF LD. CIT REFUSING REGISTRATION UNDER SECTION 12AA AND RE FUSING APPROVAL UNDER SECTION 80G OF THE ACT AND REMIT THE ISSUES B ACK TO HIS FILE FOR DISPOSAL DE NOVO . ASSESSEE HAS TO CO-OPERATE AND FURNISH THE DOCUMENTS CALLED FOR BY LD. CIT AND PROVE GENUINENE SS OF ITS ACTIVITIES. LD. CIT SHALL PASS ORDERS IN ACCORDANC E WITH LAW. 6. IN THE RESULT, BOTH THE APPEALS FILED BY ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON THE NINTH DAY OF JUNE, 2011. SD/- SD/- (GEORGE MATHAN) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 9 TH JUNE, 2011. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT-I, MADURAI (4) D.R. (5) GUARD FILE
