MARATHWADA MITRA MANDAL , MUMBAI V. CIT(E), MUMBAI

ITA 221/MUM/2020

• Counselvise Citation: [2020] 109 COUNSELVISE.COM (IT) 8672 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Appeal Filed On: 08-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALIL MISHRA
• Keywords: Non compliance
• Section: 12A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI SHRI SHAMIM YAHYA (AM) & SHRI AMARJIT SINGH(JM) I.T.A. NO. 221/MUM/2020 (ASSESSMENT YEAR 2017-18) MARATHWADA MITRA MANDAL CTS NO. 633, OPP CHETANA COLLEGE, BANDRA EAST MUMBAI-400 051. PAN : AACTM2309N VS . CIT(EXEMPTION) PIRAMAL CHAMBERS 6 TH FLOOR, PAREL MUMBAI-400 012. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI NARENDRA SHARMA DEPARTMENT BY SHRI SALIL MISHRA DATE OF HEARING 13.10.2020 DATE OF PRONOUNCEMENT 10.12.2020 O R D E R PER SHAMIM YAHYA (AM) :- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [IN SHORT LEAR NED CIT(A)] DATED 1.11.2017 REJECTING THE ASSESSEES APPLICATION FOR REGISTRATION U/S. 12A OF THE INCOME TAX ACT (IN SHORT ACT). 2. THE GROUNDS OF APPEAL READ AS UNDER :- 1) THE LEARNED ASSESSING OFFICER IS NOT JUSTIFIED IN NO T AFFORDING ANOTHER OPPORTUNITY TO THE APPELLANT TRUST (AND TO THE AUTHORIZE D CA ONLY) TO PRESENT THE DOCUMENTARY EVIDENCES FOR NON COMPLIANCES OF THE REQUIREMENTS. EXCEPT BALANCE SHEET AND INCOME & EXPEND ITURE ACCOUNT, OTHER DOCUMENTS AS DESIRED, WERE IN POSSESSION OF THE TRUST, WHICH SHOULD HAVE BEEN SUBMITTED, HAD IT BEEN INFORMED TO THE TRUST ALSO. THE AUTHORIZED CA FAILED TO INFORM THE TRUST OF THE REQUI REMENTS BY THE OFFICE OF CIT (EXEMPTIONS). 2) NON CO-OPERATION OF THE AUDITORS WHO WAS AUTHORIZED REPRESENTATIVE OF THE TRUST SHOULD NOT RESULT IN ANY SORT OF PRIVILEGE IN THE INTEREST TO THE TRUST. 3. BRIEF FACTS OF THE CASE THE ASSESSEE-TRUST FILED AN APPLICATION FOR REGISTRATION U/S.12A OF THE I.T. ACT 1961 IN THE PR ESCRIBED FORM NO. 10A ON 2 11.5.2017. THE TRUST WAS CONSTITUTED BY A TRUST DEE D DATED 28.09.1966. IT WAS REGISTERED WITH THE OFFICE OF THE ASSISTANT CHARITY COMMISSIONER, MUMBA I ON 08.10.1988 VIDE REGISTRATION NO. F-12722(MUMBAI) . HOWEVER DUE TO NON- SUPPLY OF DETAILS SOUGHT, THE LEARNED CIT(A) REJECT ED THIS APPLICATION BY CONCLUDING AS UNDER :- THUS, FOR WANT OF NON SUBMISSION OF DETAILS WITH RESP ECT TO PROPERTY SHOWN IN THE BALANCE SHEET ALONGWITH THE SUPPORTING DOCUME NT, DETAILS WITH RESPECT TO LOAN FROM M/S. SAMRUDDHI ARCADE PVT. LTD. AND THE IN COME & EXPENDITURE ACCOUNT AND BALANCE SHEET FOR THE A.Y. 2011-12, 2012- 13, 2016-17 AND 2017-18, THE GENUINENESS OF THE ACTIVITY OF THE TRUS T CANNOT BE PROVED BEYOND DOUBT. AS THE APPLICANT TRUST HAS FAILED TO FUL FILL THE MANDATORY PROCEDURAL REQUIREMENTS PRESCRIBED U/S.12AA READ WITH RULE 17A, AND THEREFORE, ITS APPLICATION FOR GRANT OF REGISTRATION IS REJECTED. 4. AGAINST THE ABOVE ASSESSEE IS IN APPEAL BEFORE U S. LEARNED COUNSEL OF THE ASSESSEE HAS SUMMARIZED THE REASONS FOR THE FAI LURE OF THE ASSESSEE IN COMPLYING WITH THE REQUIREMENT OF LEARNED CIT(A) AS UNDER :- 1. ABSOLUTE NON CO-OPERATION BY AUDITORS M/S. L W. KALE, THE CHARTERED ACCOUNTANTS - AN AUTHORISED REPRESENTATIVE OF OUR TRUST FOR 12 A REGISTRATION MATTER IN NON SUBMISSION OF REVISED AUDITED STATEMEN TS FOR THE FY 2013-14 AND SUBSEQUENT YEAR AUDIT REPORT AND AUDITED INCOME & EXPENDITURE ACCOUNT AND BALANCE SHEET, RESULTING IN GETTING AUDITS LATE FOR THE SUBSEQUENT YEARS. 2. NON ATTENDANCE BY L. W. KALE, THE CHARTERED ACC OUNTANT ON 13.10.2017, A DATE, FIXED FOR SUBMISSION OF PROPERTY DOCUMENTS AND ACCOUNT DETAILS OF SAMRUDDHI ARCADE PVT. LTD. AS WAS DESIRED FROM HIM B Y THE OFFICE OF CIT (EXEMPTION), MUMBAI. 3. SUBMISSION OF PROPERTY DOCUMENTS AND ACCOUNT D ETAILS OF SAMRUDDHI ARCADE PVT. LTD. AS WAS DESIRED FROM HIM BY THE OFF ICE OF CIT (EXEMPTION), MUMBAI COULD HAVE BEEN SUBMITTED BY L. W. KALE, THE C HARTERED ACCOUNTANT AS THESE DOCUMENTS WERE AVAILABLE WITH THE TRUST. HE DI D NOT BOTHER TO INFORM THE TRUST OF THE REQUIREMENTS OF THESE DOCUMENTS. 4. NON INFORMING BY THE AUTHORIZED CA, THE TRUST AB OUT THE REQUIREMENTS RAISED IN CONNECTION WITH THE APPLICATION FOR THE GRANT O F REGISTRATION U/S. 12 A OF THE INCOME TAX ACT, 1961 ON 28.09.2017 AND DELIB ERATELY BE ABSENT ON 13.10.2017. 5. OFF TOO MUCH LATE, ON 16.02.2018, L. W. KALE, T HE CHARTERED ACCOUNTANTS, INFORMED IN WRITING THEIR INABILITY TO COMPLETE THE AUD IT FOR THE FY 2013-14 AND 2014-15. 3 6. THE TRUST WAS FORCED TO APPOINT NEW FIRM OF CHART ERED ACCOUNTANTS FOR THE RE-AUDIT OF ACCOUNTS FOR THE FY 2013-14 AND CONDUC T THE AUDIT OF REMAINING SUBSEQUENT YEARS. THE AUDITS WERE COMPLETED ON 28.10. 2019. 7. SUBMISSION OF AUDIT REPORTS AND INCOME AND EXPEN DITURE ACCOUNTS AND BALANCE SHEETS AND ITR'S ARE PRE-REQUISITIONS FOR AN APPLICATION FOR THE GRANT OF REGISTRATION U/S. 12 A OF THE INCOME TAX ACT, 19 61 WAS KNOWN TO CA. 8. HAVING OCCUPIED THE POST OF AN AUDITOR, HOLDING POWER OF ATTORNEY AND DELIBERATE NON CO-OPERATION FROM HIM BACKED BY LATE SUBMISSION OF RELUCTANCE TO CONTINUE AS AUDITORS, FORCING THE TRUST TO APPOINT NEW FIRM OF CHARTERED ACCOUNTANTS AND GETTING THE AUDITS DONE FOR T HE PERIOD FROM 2013- 14 TO 2018-19 ARE THE MAJOR REASONS OF TRUST FOR GENU INELY SEEKING FOR CONDONATION OF DELAY. 9. A COMPLAINT OF MISCONDUCT AGAINST M/S. L. W. KA LE, THE CHARTERED ACCOUNTANTS HAS ALSO BEEN FILED WITH INSTITUTE OF CHART ERED ACCOUNTANTS, MUMBAI. 5. UPON HEARING BOTH THE COUNSEL AND PERUSING THE R ECORDS, IN OUR CONSIDERED OPINION THE NON-COMPLIANCE BY THE ASSESS EE IS FULLY ATTRIBUTABLE TO THE CONDUCT OF THE CONSULTANT. IN THE SUBSTANCE IN TEREST OF JUSTICE, WE REMIT THE ISSUE TO THE FILE OF LEARNED CIT(A). LEARNED CI T(A) SHALL GIVE THE ASSESSEE ONE MORE OPPORTUNITY FOR THE COMPLIANCE OF HIS QUER IES. THEREAFTER HE SHALL DECIDE AS PER LAW. THE ASSESSEE IS ALSO DIRECTED TO PROVIDE FULL COOPERATION. 6. IN THE RESULT, APPEAL BY THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED UNDER RULE 34(4) OF THE ITAT RULE S BY PLACING THE RESULT ON NOTICE BOARD ON 10.12.2020. SD/- SD/- (AMARJIT SINGH) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 10/12/2020 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 4 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR) PS ITAT, MUMBAI