Institute of Engineering & Management Trust, Delhi, Kolkata V. CIT (Exemption), Kolkata, Kolkata

ITA 2053/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2739 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 15-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G MALLIKARJUNA CIT LD
• Assessee Lawyers: RAVI TULSYAN FCA LD
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

1 ITA NO . 2053/KOL/2017 INSTITUTE OF ENGINEERING & MANAGEMENT TRUST, DELHI THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOLKATA BEFORE: SHRI P. M. JAGTAP , ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO. 2053/KOL/2017 INSTITUTE OF ENGINEERING & VS. COMMIS SIONER OF MANAGEMENT TRUST, DELHI INCOME - TAX (EXEMPTION) PAN: AABTI 3769H KOLKATA [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI RAVI TULSYAN, FCA , LD. AR FOR THE RESPONDENT : S HRI G.MALLIKARJUNA, CIT, LD.SR.DR DATE OF HEARING : 20 - 06 - 2018 DATE OF PRONOUNCEMENT : 29 - 08 - 201 8 ORDER SHRI S.S. VISWANETHRA RAVI ,JM: TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DT. 16 - 08 - 2017 PASSED BY THE COMMISSIONER OF INCOME TAX ( EXEMPTION) , KOLKATA . 2. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE CIT(EXEMPTION) REJECTED THE APPLICATION FOR GRANTING OF REGISTRATION U/S. 12AA OF THE ACT ON THE GROUND THAT THE ASSESSE IS YET TO START ITS ACTIVITY BY PLACING RELIANC E ON THE DECISION OF HONBLE HIGH COURT OF KERALA IN CASE OF SELF EMPLOYERS SERVICE SOCIETY VS. CIT REPORTED IN 247 ITR 018(2001). THE LD. AR SUBMITTED THAT THE FACTS OF THE HONBLE HIGH COURT OF KERALA IN THE CASE OF SUPRA ARE DIFFERENT FROM THE FACTS OF THE PRESENT CASE. THE ASSESSE CAME INTO EXISTENCE AS A TRUST ON 06 - 06 - 2007 VIDE DEED OF TRUST. THE ASSESSE IS THE SPONSORING BODY OF UNIVERSITY OF ENGINEERING & MANAGEMENT, JAIPUR, WHICH REQUESTED T HE CONCERNED AUTHORITY OF RAJASTHAN ( PR. SECRETARY OF HI GHER EDUCATION, 2 ITA NO . 2053/KOL/2017 INSTITUTE OF ENGINEERING & MANAGEMENT TRUST, DELHI GOVT. OF RAJASTHAN) TO REPLACE ITS NAME IN THE NAME OF ASSESSE. THUS, THE ASSESSE FILED APPLICATION IN FORM 10A FOR GRANTING REGISTRATION AS CHARITABLE INSTITUTION U/S. 12AA AND FORM 10G FOR APPROVAL ALONG WITH DETAILED EVIDENCES I.E CERTIF IED COPY OF TRUST DEED, LIST OF TRUSTEES, OFFICE ACCOMMODATION AND BANK ACCOUNT ETC. THE CIT - E DID NOT RAISE ANY OBJECTION IN RESPECT OF INFORMATION FURNISHED BY THE ASSESSE. BUT, HOWEVER, REJECTED THE PLEA OF ASSESSE ONLY ON THE GROUND THAT IT YET TO STAR T ITS ACTIVITIES . THE LD. DR DID NOT CONTROVERT THE SAME AND RELIED ON THE IMPUGNED ORDER OF THE CIT - E. WE FIND THAT THE ASSESSE HAS TAKEN A PLEA OF EXISTENCE OF U NIVERSITY OF ENGINEERING & MANAGEMENT, JAIPUR AND APPLIED FOR REGISTRATION U/S. 12AA OF THE ACT. ON PERUSAL OF RECORD, IT IS OBSERVED THAT THE ASSESSE FILED BEFORE US THE DETAILS OF TRUST DEED, CERTIFIED COPY OF SUPPLEMENTA L TRUST DEED ALONG WITH LIST OF TRUSTEES, THEIR IDENTITY PROOF, BANK DETAILS BY WAY OF PAPER BOOK AT PAGES 6 TO 53. T HE LD . AR POINTED OUT THAT THE CIT - E DID NOT DISCUSS IN RESPECT OF SAID DETAILS IN HIS ORDER. BEFORE US THE LD. AR BY WAY OF PAPER BOOK PAGES 54 TO 87 IN SUPPORT OF ASSESSEES SUBMISSIONS RELIED ON VARIOUS CASE LAWS AND ARGUED THAT THE HONBLE HIGH COURT OF KARNATAKA IN THE CASE OF MEENAKSHI AMMA ENDOWMENT TRUST REPORTED IN (2013) 354 ITR 219 (KAR), WHEREIN IT WAS HELD THAT TRUST CANNOT BE DEN IED REGISTRATION FOR NON - COMMENCEMENT OF CHARITABLE ACTIVITY. MOREOVER, THE LD. COUNSEL FOR THE ASSESSE HAS SUBMI TTED THAT THE ASSESSE NOW HAS STARTED THE CHARITABLE ACTIVITY BY TAKING OVER THE EXISTING UNIVERSITY. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER BY THE LD. CIT - E AND REMIT THE MATTER BACK TO HIM FOR RE - CONSIDERATION OF ASSESSEES CLAIM FOR REGISTRATION U/ S. 12A. THE ASSESSE E IS AT LIBERTY TO FILE NECESSARY EVIDENCES/EXPLANATION IN SUPPORT OF THE CONTENTION AND CLAIM. GROUNDS RAISED BY THE ASSESSE ARE ALLOWED FOR STATISTICAL PURPOSE. 3 ITA NO . 2053/KOL/2017 INSTITUTE OF ENGINEERING & MANAGEMENT TRUST, DELHI 3. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATIST ICAL PURPOSE . ORDER PRONOUNCED IN THE OPEN COURT ON 29 - 0 8 - 2018 SD/ - SD/ - P. M. JAGTAP S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29 - 0 8 - 2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. A PPELLAN T /ASSESSEE : INSTITUTE OF ENGINEERING & MANAGEMENT TRUST, DELHI, 120 SDF BUILDING, SALT LAKE, SECTOR - V, KOLKATA - 91. 2 RESPONDENT /REVENUE : THE COMMISSIONER OF INCOME TAX (EXEMPTION), 10B, MIDDLETON ROW, KOLKATA - 71. 3 . 5. CIT , KOL KATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS/H.O.O ITAT KOLKATA