M/s St.Catharine's Parish Church Trust , Goa V. Commissioner of Income TAx (Exemptions) , Bangalore

ITA 2102/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7746 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 02-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V K GURUNATHAN
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P. BOAZ , ACCOUNTANT MEMBER I TA NO. 2 1 0 2/BANG/2017 ASSESSMENT YEAR : N.A. ST. CATHERINES PARISH CHURCH TRUST, ELLA, OLD GOA, GOA 403 402. PAN: AAQTS 5400A VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI V.K. GURUNATHAN, ADVOCATE RE SPONDENT BY : SHRI C.H. SUNDAR RAO, CIT(DR - I )(ITAT), BENGALURU. DATE OF HEARIN G : 11 .06 .201 8 DATE OF PRONOUNCEMENT : 06.07.2018 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINS T THE ORDER OF THE CIT(EXEMPTION), BANGALORE [CIT(E)] DATED 20.09.201 7 PASSED U/S 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 [THE AC T] WHEREIN THE APPLICATION FOR REGISTRATION U/S. 12A OF THE TRUST WAS REJECTED. 2. THE ASSESSEE ST. CATHERINES PARISH CHURCH TRUST , FILED AN APPLICATION ON 07.03.2017 FOR REGISTRATION U/S 12A OF THE ACT. 3. THE CIT(E) HELD THAT THE ASSESSEE DID NOT GIVE T HE NECESSARY DETAILS AND DOCUMENTS CALLED FOR BY HIM IN THE ABSENCE OF R ELEVANT DETAILS, IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE OBJECTS A ND ACTIVITIES OF TRUST AND BY PLACING RELIANCE ON CERTAIN DECISIONS, HE HELD T HAT:- ITA NO.2102/BANG/2017 PAGE 2 OF 4 (A) THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF G ANJAM NAGAPPA & SON TRUST VS DIT(E) REPORTED IN 269 ITR 5 9 HAVE HELD THAT 'GRANT OF EXEMPTION OR RENEWAL IS NOT AUT OMATIC IN CHARACTER. (B) THE HON'BLE 1TAT, BANGALORE IN THE CASE OF DBA IN STITUTION VIDE ITS ORDER IN ITA NO.667(BNG)/08 DATED 27-01-20 09, HAS HELD THAT THE D1T(E) WAS WITHIN HIS JURISDICTION TO REJECT THE APPLICATION OF THE ASSESSEE TRUST FOR GRANT OF REGI STRATION UNDER SECTION 12AA SINCE THE APPLICANT TRUST COULD NOT S UBSTANTIATE ITS CLAIM BY BRINGING OUT THE CARRYING ON OF CHARITABLE ACTIVITY' & PROCEEDED TO UPHOLD THE ORDER OF THE DIT(E) IN REJE CTING THE APPLICATION U/ S 12AA. (C) HON'BLE KERALA HIGH COURT IN THE CASE OF SELF EMP LOYEES INSTITUTION VS CIT REPORTED IN 247 ITR 18 HAS HELD THAT WHERE THERE IS NO MATERIAL BEFORE THE COMMISSIONER TO BE SATISFIED OF THE GENUINENESS OF THE ACTIVITIES OF THE TRUST IS A VALID REASON FOR REJECTION. 4. THE CIT(E) ALSO HELD THAT THE ASSESSEE IS NOT I NTERESTED IN PROSECUTION OF THIS APPLICATION AND THEREFORE, DESE RVES TO BE DISMISSED ON THIS ACCOUNT ALONE. THE LAW ASSISTS THOSE WHO ARE V IGILANT AND NOT THOSE WHO SLEEP OVER THEIR RIGHTS. THIS PRINCIPLE IS EMBE DDED IN THE WELL KNOWN DICTUM VIGILANTUS NON DORMANTIBUSJURA SUBVENIUNT. C OURTS IN SEVERAL CASES HAVE UPHELD THIS DICTUM. LACK OF DILIGENCE AND FOLL OW UP ON THE PART OF THE ASSESSEE HAS BEEN FROWNED UPON BY VARIOUS COURTS AS UNDER:- A) 106 ITR 653(SC) (B) 118 ITR 461(SC) C) 286 ITR 688 (MP) (D) 257 ITR 301(DEL.) & E) 130 TAXMAN 61 (MAD.) 5. AGGRIEVED BY THE ORDER OF CIT(E), THE ASSESSEE I S IN APPEAL BEFORE US. THE FOLLOWING ARE THE GROUNDS OF APPEAL OF THE ASSESSEE:- 1. THE CIT ERRED IN FACTS AND LAW IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. ITA NO.2102/BANG/2017 PAGE 3 OF 4 2. THE CIT ERRED IN LAW IN REFUSING TO GRANT REGIST RATION UNDER SECTION 12AA DUE TO THE REASON THAT THE TRUST DEED OF THE APPELLANT CONTAINED MIXED OBJECTS. 3. THE CIT ERRED IN REJECTING THE APPLICATION FOR REGISTRATION FILED UNDER SECTION 12A OF THE ACT DUE TO THE REASO N THAT GENUINENESS OF THE OBJECTS AND THE ACTIVITIES OF TH E APPELLANT COULD NOT BE VERIFIED THOUGH THE REQUISIT E DETAILS INCLUDING COPY OF TRUST DEED, PROOF OF ACTIVITIES W ERE ENCLOSED TO THE APPLICATION FILED UNDER SECTION 12A OF THE ACT. 4. THE CIT ERRED IN FACTS IN REJECTING THE APPLICAT ION FOR REGISTRATION FILED UNDER SECTION 12A OF THE ACT ON THE GROUND OF NON-PROSECUTION OF THE APPLICATION, THOUG H NO QUERIES/NOTICE/COMMUNICATION SEEKING FURTHER DETAIL S/ CLARIFICATIONS WAS RECEIVED FROM THE OFFICE OF THE CIT OR HIS CONNECTED OFFICE SUBSEQUENT TO FILING OF APPLICATIO N FOR REGISTRATION UNDER SECTION 12A ON 07.03.2017. 5. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URG ED AT THE TIME OF HEARING. THE APPELLANT PRAYS THAT THE APPEA L MAY BE ALLOWED. 6. WE HAVE HEARD THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, SHRI GURUNATHAN, WHO SUBMITTED BEFORE THE BENCH THA T THE CIT(E) DID NOT ISSUE ANY NOTICE TO THE ASSESSEE CALLING FOR ANY DE TAILS. THE LD. DR COULD NOT CONTROVERT THE SUBMISSION OF THE LD. COUNSEL FO R THE ASSESSEE. IN THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE IMPUGNED ORDER OF THE CIT(E) HAS TO BE SET ASIDE AND THE QUESTION OF GRANTING RE GISTRATION U/S. 12A OF THE ACT HAS TO BE REMANDED TO THE CIT(E) FOR CONSIDERAT ION AFRESH. ACCORDINGLY, THE ISSUE IS REMANDED TO THE FILE OF T HE CIT(E) TO EXAMINE THE QUESTION OF GRANTING REGISTRATION TO THE ASSESSEE U /S. 12A OF THE ACT AFRESH, AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE TO PRES ENT ITS CASE. THE CIT(E) SHALL THEREAFTER GRANT REGISTRATION U/S. 12A OF THE ACT IN ACCORDANCE WITH THE LAW. ITA NO.2102/BANG/2017 PAGE 4 OF 4 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 6 TH DAY OF JULY, 2018. SD/- SD/- ( JASON P. BOAZ ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 6 TH JULY, 2018. / D ESAI S MURTHY / COPY TO: 1. APP ELL ANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.