MAXTALENT SPORTS & EDUCATION INSTITUTE TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 2112/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9576 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 05-07-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 15-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN
• Keywords: Charitable institution; Competent authority
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 2112 / MUM/20 1 3 ( ASSESSMENT YEAR : 2013 - 14 ) M/S. MAXTALENT SPORTS & EDUCATION INSTITUTE TRUST, 303, SUSENHA, POPCO SOCIETY FISHERIE S, UNIVERSITY ROAD , VERSOVA, ANDHERI (W) , MUMBAI 400 061 VS. DIT (E) 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI 400 012 PAN/GIR NO. AADTM0134G APPELLANT ) .. RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI V. JUSTIN DATE OF HEARING 06 / 09 /201 7 DATE OF PRONOUNCEME NT 13 / 09 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE AS SESSEE AGAINST THE ORDER OF DIT(EXEMPTION) - MUMBAI DATED 23/08/2012 FOR THE A.Y.2013 - 14 IN THE MATTER OF OR DER PASSED U/S.12AA(1)(B)(II) OF THE IT ACT. 2. NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF ISSUE OF NOTICE BY RPAD. EVEN ON EARLIER OCCASIONS APPEAL WAS FIXED ON 30/06/2016, 13/02/2017 AND 05/07/2017, NOBODY APPEARED ON BEHALF OF THE ASSESSEE. UN DER T H ESE FACTS AND CIRCUMSTANCES , THE BENCH DECIDED TO HEAR THE LEARNED DR AND DISPOSE OF THE APPEAL AFTER CONSIDERING THE MATERIAL PLACED ON RECORD. ITA NO. 2112/MUM/2013 M/S. MAXTALENT SPORTS & EDUCATION INSTITUTE TRUST 2 3. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE ASSESSEE TRUST HAS FI LED A N APPLICATION IN FORM NO. 10 A ON 21.02.2012 FOR REGISTRATION U/ S .12A OF THE I.T. ACT, 1961. THE TRUST HAS BEEN CON S TITUTED ON 16.05 .2 0 11 BY THE TRUST DEED. ON VERIFICATION OF THE DETAILS FILED IT IS SEEN THAT THE TRUST HAS NOT CARRIED OUT ANY CHARITABLE AC TIVITIES TILL DATE. HENCE VIDE ORDER SHEET NOTING DATED 13.08.2012 THE A SSESSEE TRUST WAS ASKED TO EXPLAIN ABOUT THE DETAILS OF ACTIVITIES CARRIED OUT BY THE TRUST WITH PROOF OF EXPENSES INCURRED TOWARDS OBJECTS. THE DATE OF HEARING WAS FIXED ON 23.08.2012 . THE TRUSTEE SHRI RAJEEV B. BHATTACHARYA ATTENDED AND SUBMITTED LETTER DATED 22.08.2012 AND STATED THAT THE TRUST IS CURRENTLY ON THE LOOK OUT FOR A SUITABLE GROUND TO START COACHING ACTIVITY AND THE ACTIVITY HAS NOT YET STARTED. 4. IN VIEW OF THE ABOVE, T HE DIT (EXEMPTION) CONCLUDED THAT THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITIES TILL DATE. THE PROVISIONS TO SECTION 12AA OF THE I.T. ACT DEALS WITH THE PROCEDURE FOR GRANT OF REGISTRATION TO THE TRUST. THE AFORESAID PROVISIONS REQUIRES SATISFACTIO N OF THE COMPETENT AUTHORITY BEFORE GRANT OF REGISTRATION AS TO WHETHER THE ACTIVITIES OF THE TRUST OR INSTITUTION HAS BEEN CARRIED OUT GENUINELY AND IN ACCORDANCE WITH THE OBJECT OF THE TRUST AS PER THE TRUST DEED. 5. BY OBSERVING AS UNDER, DIT (EXEMPTION ) DECLINED ASSESSEES CLAIM OF REGISTRATION U/S.12AA. AS PER PRO VISION S OF SECTION 12AA MAINLY TWO CONDITIONS ARE REQUIRED TO BE SATISFIED BEFORE GRANT OF REGISTRATION BY THE CIT/DIT ITA NO. 2112/MUM/2013 M/S. MAXTALENT SPORTS & EDUCATION INSTITUTE TRUST 3 (I) THE OBJECTS OF THE TRUST OR INSTITUTION ARE CHARITABLE IN NATUR E (II) GENUINENESS OF THE ACTIVITIES AS CARRIED ON BY THE TRUST OR INSTITUTION IN PURSUANCE OF ITS OBJECTS. IN THE INSTANT CASE THE APPLICANT HAS NOT YET STARTED ANY ACTIVITY IN PURSUANCE OF HIS OBJECTS AS LAID DOWN IN THE TRUST DEED AND AS SUCH THERE IS NO MATERIAL BEFORE ME FOR WHICH THE UNDERSIGNED COULD COME TO THE CONCLUSION ABOUT THE GENUINENESS OF THE ACTIVITIES AS CARRIED ON BY THE TRUST IN PURSUANCE OF ACHIEVEMENT OF ITS OBJECTS. DECISIONS OF VARIOUS HIGH COURTS SUPPORTS THE ABOVE VIEW. THE RE LIANCE IS PLACED ON THE FOLLOWING CASE LAWS: - (I) CIT VS. AGRICULTURE PRODUCE AND MARKET COMMITTEE, 291 ITR 419 (BOM) (II) S.H. GOWDA CHARITABLE TRUST VS. DIT(EJ ( WARD - 2, 285 ITR 327 (KAR ) (III) CIT VS. RED ROSE SCHOOL, 212 CTR 394 (ALL) IN ALL THE ABOVE DECISIONS THE HON'BLE HIGH COURTS THOUGH ALLOWED THE REGISTRATION TO THE TRUST AS THE TRUSTS/INSTITUTIONS HAD CARRIED OUT ACTIVITIES WHICH WERE PURSUANCE OF THE OBJECTS BUT NEVERTHELESS LAID STRESS THAT THE GRANTING AUTHORITY I.E. CIT/DIT IS REQUIRED TO BE SATISFIED BY THE ASSESSEE TRUST ABOUT CHARITABLE OBJECTS OF THE TRUST AND GENUINENESS OF ITS ACTIVITIES. 7. AS REGARDS THE POINT THAT WHETHER THIS ISSUE CAN BE TAKEN UP AT THE STAGE OF REGISTRATION PROCEEDINGS IT IS POINTED OUT THAT WITH THE INTRODUCTION OF SECTION 12AA W.E.F. 01.04.1997 THE REQUIREMENTS FOR REGISTRATION HAVE CHANGED. SECTION 12AA(L)(A) PROVIDES THAT THE COMMISSIONER AFTER SATISFYING HIMSELF ABOUT THE OBJECT OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, SHALL PASS ORD ER FOR REGISTRATION. IT CLEARLY SHOWS THAT THE COMMISSIONER SHOULD EXAMINE THE OBJECT OF THE TRUST. WHAT IS TO BE EXAMINED HAS NOT BEEN MENTIONED. FURTHER, SECTION 12A HAS THE CAPTION 'CO NDITION FOR APPLICATION OF SEC.11 AND 12'. THE CAPTION HAS ALSO BEEN INSERTED BY THE FINANCE ACT, 2007, W.E.F. 01.06.2007. SECTION 12A PROVI DES THAT THE PROVISIONS OF SEC.11 AND SEC.12 SHALL NOT APPLY IN RELATION TO THE INCOME OF ANY TRUST OR INSTITUTION UNLESS THE CONDITION OF REGISTRATION IS FULFILLED. 8. THE APPLICANT H AS NOT COMPLIED PROPERLY WITH THE REQUIREMENTS NECESSARY FOR REGISTRATION U/S.12A OF THE ACT. THERE IS, THUS, NO MATERIAL BEFORE ME TO SATISFY MYSELF ABOUT THE GENUINENESS OF ITS ACTIVITIES, THE CONDITION PRECEDENT TO GRANT REGISTRATION IN THIS CASE IS NOT SATISFIED. IN VIEW OF THE ABOVE, REGISTRATION CANNOT BE GRANTED TO THE APPLICANT TRUST. ITA NO. 2112/MUM/2013 M/S. MAXTALENT SPORTS & EDUCATION INSTITUTE TRUST 4 6. WE HAVE CAREFULLY GONE THROUGH THE ORDER OF THE DIT (EXEMPTION) U/S.12AA(1)(B)(II) AND DO NOT FIND ANY INFIRMITY IN HIS ORDER FOR DECLINE OF REGISTRATION U/S.12AA. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 13 / 09 /2017 S D/ - ( SANDEEP GOSAIN ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 13 / 09 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//