Shri Pindarad Gauseva & Charitable Trust, V. The Commissioner of Income Tax, JAMNAGAR

ITA 210/RJT/2013

• Counselvise Citation: 21024914 RSA 2013
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-11-2013
• Assessment Year: misc
• Appeal Filed On: 07-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M L MEENA
• Assessee Lawyers: CHETAN AGARWAL
• Keywords: Charitable institution; Non compliance
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 210/RJT/2013 SHRI PINDARA GAUSEVA & CHARITABLE TRUST PINDARA, TAL: KALYANPUR, JAMNAGAR PAN : AALTS 9233 L ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX JAMNAGAR / RESPONDENT / ASSESSEE BY SHRI CHETAN AGARWAL, CA / REVENUE BY DR M L MEENA, DR / DATE OF HEARING 21.11.2013 !'# / DATE OF PRONOUNCEMENT 22.11.2013 / ORDER THIS APPEAL BY THE ASSESSEE-TRUST IS AGAINST THE OR DER DATED 17.04.2013 OF COMMISSIONER OF INCOME-TAX, JAMNAGAR REFUSING TO GR ANT REGISTRATION SOUGHT BY THE ASSESSEE-TRUST U/S 12AA OF THE INCOME-TAX ACT, 1961 . 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE-TRUST WAS CREATED ON 25.07.2012. IT IS REGISTERED UNDER THE BOMBAY PUBLIC TRUST ACT, 1950 WITH THE ASST. CHARITY COMMISSIONER, JAMNAGAR VIDE REGISTRATION NO.F/1001/ JAMNAGAR DTD. 30.08.2012. THE ASSESSEE-TRUST HAS MADE AN APPLICATION FOR REGI STRATION U/S 12A(A) ON 31.10.2012. ON VERIFICATION OF THE TRUST DEED, THE LD COMMISSIONER OF INCOME-TAX, JAMNAGAR OBSERVED THAT TRUST DEED DOES NOT CONTAIN PROVISIONS IN THE EVENT OF ITS DISSOLUTION TO THE EFFECT THAT UPON THE DISSOLUTION , IF ANY PROPERTY REMAINS AFTER SATISFACTION OF ITS DEBTS AND LIABILITIES, THE SAME SHALL BE TRANSFERRED TO THE TRUST HAVING SIMILAR OBJECTS. HE, THEREFORE, REFUSED TO GRANT REGISTRATION FOR THE DETAILED REASON GIVEN IN PARAGRAPH NOS. 3 AND 4 OF THE IMPUG NED ORDER, WHICH READ AS UNDER:- 3. THEREFORE, A NOTICE DTD. 01.04.2013 WAS ISSUED TO THE TRUST, WHEREBY IT WAS REQUESTED TO PRODUCE THE ORIGINAL DOCUMENTS FOR VERIFICATION & EXPLANATION REGARDING DISCREPANCIES NOTED ABOVE. HOWEVER, THE T RUST HAS NOT COMPLIED WITH THE SAID NOTICE TILL DATE. NON COMPLIANCE ON T HE PART OF THE APPLICANT TRUST PROVES THAT THE TRUST IS NOT INTERESTED IN GETTING REGISTRATION U/S 12AA OF THE ACT. 4. IN VIEW OF THE ABOVE FACTS, THE REGISTRATION SOU GHT U/S 12AA OF THE ACT CANNOT BE GRANTED. HOWEVER, THE TRUST MAY MAKE A FR ESH APPLICATION FOR REGISTRATION U/S 12AA WITH REQUISITE MODIFICATION I N THE TRUST DEED AND AFTER RECTIFICATION OF THE ABOVE REFERRED LACUNAS, IF IT WISHES SO. 2 210-RJT-2013 - SHRI PINDARA GAUSEVA & CHARITABLE TRUST (SMC) AGGRIEVED WITH THE ORDER OF LD. COMMISSIONER OF IN COME-TAX, JAMNAGAR, THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL, ON THE FOLLOWING GROUNDS:- 1. HON. CIT ERRED IN LAW AS WELL ON FACT OBSERVED THAT TRUST DEED DOES NOT CONTAIN PROVISION IN THE EVENT OF ITS DISSOLUTI ON TO THE EFFECT THAT THE UPON THE DISSOLUTION, IF ANY PROPERTY REMAINS AFTER SATI SFACTION OF DEBT AND LIABILITIES, THE SAME SHALL BE TRANSFERRED TO THE TRUST HAVING S IMILAR OBJECT. HOWEVER, PARA NO.25 OF THE TRUST DEED CONTAINS THE PROVISION OF DISSOLUTION OF TRUST I.E. IF CIRCUMSTANCES REQUIRES DISSOLUTION O F TRUST, THEN AS PER PROVISIONS OF THE SOCIETY REGISTRATION ACT, 1860 IT WILL BE DI SSOLVED. 2. HON. CIT ERRED IN LAW AS WELL ON FACT IN REFUSIN G TO GRANT REGISTRATION U/S 12AA OF THE ACT ON WRONG APPRECIATION OF FACT THAT TRUST HAS NOT SUBMITTED THE DOCUMENTS REQUIRED IN NOTICE DATED 01.04.2013, HOWE VER, IN FACT TRUST HAS SUBMITTED ALL THE DOCUMENTS ON 16.04.2013. 3. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E-TRUST, SHRI CHETAN AGARWAL, CA, APPEARED AND POINTED OUT THAT THE ASSESSEE-TRUS T HAS SUBMITTED VARIOUS DETAILS AND DOCUMENTS IN THE OFFICE OF THE LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR ON 16.04.2013. THE DETAILS AND DOCUMENTS SUBMITTED BY THE ASSESSEE-TRUST BEFORE THE LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR RUN INTO 1 8 PAGES AND SUMMARY OF THE SAME IS AS FOLLOWS:- POINT SUBMISSION / REPLY PAGE NO. 1 PLEASE FIND ENCLOSED HEREWITH THE SELF CERTIFIED COPY OF TRUST DEED AS REQUIRED BY YOUR HONOURS 1-14 2 PLEASE FIND ENCLOSED HEREWITH THE CERTIFICATE U/S 13(1)(C) SIGNED BY THE ALL THE TRUSTEE AS REQUIRED BY YOUR HONOURS 15-16 3 YOUR HONOURS MAY KINDLY NOTE THAT TRUST BECOMES I N OPERATION FROM 25.07.2012 AND NOT CARRIED OUT ANY SUCH ACTIVITIES. PLEASE FIND ENCLOSED HEREWITH THE COPY TRUST DEED DISCLOSING OBJECT CLAUSES FOR YOUR HONOURS READY REFERENCE. --- 4 NOT APPLICABLE SINCE THE DATE OF INCORPORATION OF TRUST IS 25.07.2012 --- 5 PLEASE FIND ENCLOSED HEREWITH THE REGISTRATION CERTIFICATE OF TRUST GRANTED UNDER BOMBAY PUBLIC TR UST ACT, 1950 17-18 HOWEVER, IN THE IMPUGNED ORDER DATED 17.04.2013, T HE LD COMMISSIONER OF INCOME-TAX, JAMNAGAR HAS NOT CONSIDERED THE AFORESA ID DETAILS WHICH WERE SUBMITTED BY THE ASSESSEE ON 16.04.2012. THE LD. COUNSEL OF T HE ASSESSEE ACCORDINGLY POINTED OUT THAT THE IMPUGNED ORDER OF LD. COMMISSIONER OF INCOME-TAX BE SET ASIDE AND HE MAY BE DIRECTED TO PASS A FRESH ORDER U/S 12AA OF T HE INCOME-TAX ACT, 1961 AFTER CONSIDERING THE AFORESAID DETAILS/DOCUMENTS SUBMITT ED BY THE ASSESSEE-TRUST ON 16.04.2013. AS AGAINST THIS, THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT 3 210-RJT-2013 - SHRI PINDARA GAUSEVA & CHARITABLE TRUST (SMC) SINCE THE DETAILS WERE NOT FURNISHED ON THE DATE GI VEN BY THE LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR, THE ORDER OF THE LD. COMMISSI ONER OF INCOME-TAX, JAMNAGAR BE UPHELD. 4. AFTER HEARING BOTH THE SIDES, I HAVE CAREFULLY G ONE THROUGH THE IMPUGNED ORDER OF LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR. IT IS PERTINENT TO NOTE THAT THE IMPUGNED ORDER IS PASSED ON 17.04.2013. WHEN THIS O RDER WAS PASSED, THE DETAILS AS CALLED FOR FROM THE ASSESSEE-TRUST WERE AVAILABL E AS THOSE WERE FILED ON 16.04.2013 AND THE SAME WERE DULY RECEIVED AND ACKN OWLEDGED BY THE OFFICE OF LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR. ACKNOWLEDGME NT IN THIS REGARD HAS ALREADY BEEN PLACED ON RECORD. IN THIS VIEW OF THE MATTER, I SET ASIDE THE IMPUGNED ORDER AND DIRECT THE LD. COMMISSIONER OF INCOME-TAX, JAMNAGAR TO PASS A FRESH ORDER ON THE APPLICATION OF THE ASSESSEE U/S 12AA OF THE INCOME- TAX ACT. THE ASSESSEE IS A CHARITABLE TRUST AND ISSUANCE OF REGISTRATION U/S 1 2AA IS A PRIMARY CONDITION FOR THE START OF THE CHARITABLE ACTIVITY OF THE TRUST, THER EFORE ITS CASE HAS TO BE DECIDED ON PRIORITY BASIS. I, THEREFORE, DIRECT THE ASSESSEE-T RUST TO SUO MOTU APPEAR BEFORE THE LD COMMISSIONER OF INCOME-TAX, JAMNAGAR WITHIN 15 DAYS ON RECEIPT OF THIS ORDER OF THE TRIBUNAL WITHOUT WAITING FOR ANY NOTICE FROM THE RE VENUE DEPARTMENT AND SUBMIT ALL THE NECESSARY DETAILS/DOCUMENTS WHICH ARE REQUIRED BY THE LD COMMISSIONER OF INCOME-TAX, JAMNAGAR. THEN AFTER THE LD COMMISSIONE R OF INCOME-TAX, JAMNAGAR SHALL PASS AN APPROPRIATE ORDER AS PER LAW AS DEEME D FIT WITHIN A REASONABLE TIME. WITH THESE DIRECTIONS, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 22.11.2013 !$ /RAJKOT *BT 4 210-RJT-2013 - SHRI PINDARA GAUSEVA & CHARITABLE TRUST (SMC) / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- SHRI PINDARA GAUSEVA & CHARITABLE TRU ST PINDARA, TAL: KALYANPUR, JAMNAGAR 2. / RESPONDENT- THE COMMISSIONER OF INCOME-TAX, JAMN AGAR 3. ,0,1 * * 2 / CONCERNED JT. CIT, RANGE 1, JAMNAGAR 4 . 345 1, * 1#, !$ / DR, ITAT, RAJKOT 5 . 57 89 / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT