Shri L.Ganapathi Asari Karuppayee Ammal Trust, Karaikudi V. CIT, Madurai

ITA 2199/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0750 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 04-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: T VASUDEVAN
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE DR. O. K. NARAYANAN, VICE PRESIDENT AND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA NOS. 2199/MDS/2012 ASSESSMENT YEAR : - SHRI L. GANAPATHI ASARI KARUPPAYEE AMMAL TRUST, NO.5, SUBRAMANIAPURAM 3 RD STREET, SOUTH EXTENSION, KARAIKUDI. V. THE COMMISSIONER OF INCOME-TAX-I, MADURAI. (PAN : AAKTS3923L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. VASUDEVAN, ADVOCATE RESPONDENT BY : SHRI S. DASGUPTA, SR. DR DATE OF HEARING : 19.0 2.2013 DATE OF PRONOUNCEMENT : 26.02.201 3 O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE OR DER OF THE COMMISSIONER OF INCOME-TAX-I, MADURAI DATED 28-09-2 012 PASSED UNDER SECTION 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 ('THE ACT' FOR SHORT). 2. FACTS IN BRIEF ARE THAT THE ASSESSEE TRUST FILED AN APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT ON 02-03-2012. THE APPLICATION WAS REJECTED ON THE GROUND THAT THE ASS ESSEE DID NOT PRODUCE THE ORIGINAL TRUST DEED AND BOOKS OF ACCOUNT FOR VE RIFICATION. IT WAS ITA NO. 2199/MDS/2012 : 2 : OBSERVED BY THE COMMISSIONER OF INCOME TAX THAT THE ASSESSEE HAS NOT CARRIED ON ANY CHARITABLE ACTIVITIES. 3. ON BEING AGGRIEVED, THE ASSESSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TRUST WAS CREATED ONLY IN THE YEAR UNDER CONSIDERAT ION AND THE ASSESSEE WAS YET TO START THE CHARITABLE ACTIVITIES AND THER EFORE IT IS PREMATURE FOR THE CIT TO COME TO THE CONCLUSION THAT ASSESSEE IS NOT CARRYING ON ANY CHARITABLE ACTIVITIES. IT WAS FURTHER SUBMITTED TH AT ALL THE RELEVANT DOCUMENTS HAVE BEEN SUBMITTED FOR GRANT OF REGISTRA TION U/S 12AA OF THE ACT. 4. ON THE OTHER HAND, THE LEARNED DR SUBMITTED THAT THE ASSESSEE HAS NOT PRODUCED THE ORIGINAL TRUST DEED AND BOOKS OF ACCOUNTS FOR VERIFICATION. THEREFORE, THE LEARNED CIT HAS RIGHT LY REJECTED THE APPLICATION UNDER SECTION 12AA OF THE ACT. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE C IT HAS REJECTED THE REGISTRATION U/S 12AA TO THE ASSESSEE ON THE GROUND THAT THE ASSESSEE DID NOT PRODUCE THE ORIGINAL TRUST DEED AND BOOKS O F ACCOUNTS. HE ALSO OBSERVED THAT THE ASSESSEE IS NOT CARRYING ON ANY C HARITABLE ACTIVITIES. 6. INSOFAR AS THE CIT REJECTING THE APPLICATION FOR REGISTRATION ON THE GROUND THAT THE ORIGINAL TRUST DEED AND BOOKS OF AC COUNTS WERE NOT PRODUCED, THE CIT IS JUSTIFIED IN REJECTING THE APP LICATION FOR REGISTRATION. INSOFAR AS THE CHARITABLE ACTIVITIES ARE CONCERNED, THE ASSESSEE IS IN THE INITIAL DAYS OF CARRYING ON THE OBJECTS AND THEREFO RE THE CIT OUGHT NOT TO ITA NO. 2199/MDS/2012 : 3 : HAVE COME TO SUCH A CONCLUSION THAT THE ASSESSEE IS NOT DOING ANY CHARITABLE ACTIVITIES. WE THEREFORE DIRECT THE CIT TO EXAMINE THE OBJECTS OF THE TRUST AND THE BOOKS OF ACCOUNT AND DECIDE TH E ISSUE AFRESH IN ACCORDANCE WITH LAW. WE THEREFORE SET ASIDE THE OR DER PASSED BY THE CIT. WE ALSO DIRECT THE ASSESSEE TO PRODUCE THE OR IGINAL TRUST DEED AND BOOKS OF ACCOUNT ETC. BEFORE THE CIT FOR VERIFICATI ON. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, THE 26 TH OF FEBRUARY, 2013, AT CHENNAI. SD/- SD/- (DR. O. K. NARAYANAN) (V.DURGA RAO) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 26 TH FEBRUARY, 2013. H. COPY TO: ASSESSEE/AO/CIT(A)/CIT/D.R./GUARD FILE