Gayatri Parivar Rachnatmak Trust Devala, Tapi V. The CIT ( Exemption), Ahmedabad

ITA 2231/AHD/2015

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5305 (ITAT-SURAT)
• Duration Of Justice: 5 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 27-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Corroborative evidences
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HON'BLE JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, HON'BLE ACCOUNTANT MEMBER (VIRTUAL HEARING) . . ./ I.T.A NO.2231/AHD/2015 / ASSESSMENT YEAR: - GAYATRI PARIVAR RACHNATMAK TRUST DEVALA, AT & POST DEVALA, TAL: NIZAR, DISTRICT TAPI. [PAN: AABTG 7840 F] VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD. / APPELLANT /RESPONDENT / ASSESSEE BY SHRI ESMAYEEL SAHERWALA AR /REVENUE BY SHRI RITESH MISHRA CIT-DR / DATE OF HEARING: 29.04.2021 / P RONOUNCEMENT ON: 04.05.2021 /O R D E R PER PAWAN SINGH, JUDICIAL MEMEBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD HEREINAFTER REFERRED AS LD.CIT(E) DATED 22.06.2015 PASSED UNDER SECTION 12AA OF THE INCOME TAX ACT. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED CIT (EXEMPTION) HAS ERRED IN LAW AND ON FACTS IN REJECTION OF APPROVAL U/S.12AA OF THE ACT SAYING THAT NO PROVISION OF DISSOLUTION IN THE CONSTITUTION AND NON-SATISFACTION OF GENUINENESS OF THE ACTIVITIES. 2. THE LEARNED CIT (EXEMPTION) HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION WITHOUT GIVING APPROPRIATE OPPORTUNITY AND TIME AND IGNORING THE FACT ABOUT GIVING APPROVAL TO IDENTICAL TRUST RECENTLY. GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 2 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, EDIT, DELETE, MODIFY OR CHANGE ALL OR ANY OF THE GROUNDS OF APPEAL AT THE TIME OF OR BEFORE HEARING OF THE APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST, REGISTERED UNDER THE PROVISION OF BOMBAY PUBLIC TRUST ACT, PROVISIONS OF WHICH IS APPLICABLE TO THE STATE OF GUJARAT. THE ASSESSEE FILED APPLICATION BEFORE LD. CIT(E), UNDER FORM-10A FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON 31.12.2014. ALONG WITH THE APPLICATION THE ASSESSEE FURNISHED COPY OF TRUST DEED SHOWING THE OBJECT OF TRUST AND ITS ACTIVITIES UNDERTAKEN. THE LD. CIT(E) VIDE ITS NOTICE DATED 06.01.2015 ASKED THE ASSESSEE TO FURNISH THE NOTE ON THE ACTIVITIES ACTUALLY CARRIED OUT BY THE ASSESSEE AND THE DOCUMENTS I.E. PAN CARD OF THE TRUSTEES AND THEIR CIRCLES WHERE THEY ARE FILING RETURN OF INCOME. THE COPY OF BANK ACCOUNT OF THE ASSESSEE TRUST FOR LAST THREE YEARS OR FROM THE DATE OF INCEPTION. THE COPY OF TRUST DEED, DETAILS OF THE PREMISES WHERE THE TRUST IS FUNCTIONING, EVIDENCE TO THE FACT THAT CORPUS AMOUNT HAS BEEN TRANSFERRED TO THE TRUST, TO CLARIFY IF THE TRUST IS IN RECEIPT OF AMOUNTS WHICH MAY BE HIT BY FIRST PROVISO TO SECTION 2(15) OF THE ACT. THE ASSESSEE WAS ALSO ASKED TO FURNISH THE ACTIVITIES CARRIED BY THE ASSESSEE AND REGARDING REVOCABILITY OF TRUST DEED. 3. THE LD. CIT (E) IN PARA 3 OF ITS ORDER NOTED THAT THE ASSESSEE VIDE ITS LETTER DATED 27.01.2015 FILED IN HIS OFFICE ON 10.02.2015 FURNISHED DETAILS /DOCUMENTS CALLED FOR. THE LD. GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 3 CIT(E) NOTED THAT ASSESSEE HAS NOT FURNISHED DETAILS WITH RESPECT TO THE DETAILS REQUIRED AT S.NO.9 & 16 OF NOTICE DATED 06.01.2015. IT WAS ALSO NOTED THAT THE ASSESSEE DOES NOT HAVE ANY CLAUSE THAT IT WILL NOT BE DISSOLVED BEING IT IS A PERPETUAL. THE LD.CIT(E) IN PARA 5 OF THE IMPUGNED ORDER FURTHER NOTED THAT ASSESSEE FAILED TO MAKE ANY RESPONSE, THEREFORE, IN ABSENCE OF COMPLETE DETAILS OF THE DOCUMENT THE LD.CIT(E) IS NOT SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES CARRIED BY THE ASSESSEE IN ACCORDANCE WITH ITS OBJECT. ON THE BASIS OF THE AFORESAID OBSERVATION THE LD. CIT(E) REJECTED THE APPLICATION OF ASSESSEE VIDE ORDER DATED 22.06.2015. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED PRESENT APPEAL BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSION OF LD. AUTHORISED REPRESENTATIVE (AR) OF THE ASSESSEE AND THE LEARNED COMMISSIONER OF INCOME TAX- DEPARTMENTAL REPRESENTATIVE (CIT-DR) AND HAVE SEEN THE ORDER OF LD. CIT(E). THE LD. AR FOR THE ASSESSEE SUBMITS THAT THE LD.CIT(E) REJECTED THE APPLICATION ON THE GROUND THAT THERE IS NO CLAUSE RELATED TO THE DISSOLUTION OF TRUST AND THAT ASSESSEE HAS NOT FURNISHED THE EVIDENCE ABOUT THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE. THE LD.AR SUBMITS THAT THE ASSESSEE TRUST IS REGISTERED UNDER BOMBAY PUBLIC TRUST ACT 1950. IN CASE, IF ANY PROVISION IS NOT ENACTED IN THE CONSTITUTION OF THE TRUST, S UO MOTO MODEL PROVISIONS OF BOMBAY PUBLIC TRUST ACT WILL BE APPLICABLE. THE GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 4 PROVISION REGARDING THE DISSOLUTION ARE COVERED UNDER POINT NO.11 OF TRUST DEED, WHICH DIRECTS TO TRANSFER ALL MOVABLE AND IMMOVABLE PROPERTIES TO BE TRANSFERRED TO THE ANOTHER TRUST WITH SIMILAR OBJECT. THUS, THE SETTLER OF THE TRUST HAS NO RIGHT TO CLAIM AMOUNT OR PROPERTY OF TRUST OF DISSOLUTION OF THE TRUST. IF ANY TRUST IS UNABLE TO WORK FOR THE OBJECT OF THE TRUST, THE ENTIRE AMOUNT, IF ANY SHALL TRANSFER TO ANOTHER CHARGEABLE TRUST UNDER THE AUTHORITY OF CHARITY COMMISSIONER. 5. IT WAS SUBMITTED THAT THE LD.CIT(E) BEFORE REJECTING THE REGISTRATION APPLICATION HAS NOT GIVEN ANY OPPORTUNITY TO RECTIFY OR EXPLAIN THE FACTS. THE LD.AR SUBMITS THAT ASSESSEE IS WORKING IN A REMOTE AREA AT POST DEVALA, TAL-NIZR, DIST- TAPI, GUJARAT 394370. THE LD.AR FURTHER SUBMITTED THAT DETAILS OF ACTIVITIES CARRIED OUT BY TRUST WERE FURNISHED WITH THE SUPPORTING EVIDENCE. THE LD.CIT(E) FAILED TO SPECIFY ANY DEFICIENCY IN THE DOCUMENTS ABOUT THE ACTIVITIES. NO SUCH SHOW CAUSE NOTICE THAT ACTIVITIES UNDERTAKING BY ASSESSEE ARE INSUFFICIENT OR NOT IN ACCORDANCE WITH THE OBJECT OF THE TRUST, WAS GIVEN TO THE ASSESSEE. THE LD.AR FURTHER SUBMITS THAT HE IS FILING BRIEF NOTE OF ACTIVITIES CARRIED OUT BY THE ASSESSEE SINCE ITS INCEPTION. THE ASSESSEE WAS UNABLE TO DO LARGE SCALE OF ACTIVITIES IN ABSENCE OF REGISTRATION UNDER SECTION 12AA OF THE ACT, THOUGH ALL ACTIVITIES UNDER TAKEN BY ASSESSEE ARE CHARITABLE AND IN ACCORDANCE OF THE OBJECT OF THE TRUST. THE ASSESSEE IN ITS BRIEF NOTE HAS EXPLAINED THAT ORGANIZED TREE GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 5 PLANTATION IN EVERY MONSOON IN AND AROUND VILLAGE DEVALA. THE ASSESSEE ORGANIZED VILLAGE CLEANING PROGRAMS, CLEANNESS OF ROADS, WATER BODIES, SEWAGE IN AND AROUND THE VILLAGE, PHOTOGRAPHS OF SUCH ACTIVITIES ARE ATTACHED, THE ASSESSEE ORGANIZED VARIOUS ACTIVITIES OF DEVELOPMENT OF SCHOOL GOING CHILDREN FOR MORAL VALUES AND ETHICAL PRACTICE. THE ASSESSEE ALSO FURNISHED COPY OF LAST THREE YEARS AUDIT REPORT. THE ASSESSEE HAS ESTABLISHED A GAYATRI S. VIDYALAYA AND SPENT MORE THAN RS.5.00 LAKHS UP TO 31.03.2020. THE ASSESSEE ALSO UNDERTAKE THE ADULT EDUCATION PROGRAMME TO ERADICATE ILLITERACY. THE LD.AR SUBMITS THAT HE HAS FURNISHED NUMEROUS EVIDENCE TO SHOW THAT ASSESSEE CARRIED OUT ACTIVITY IN ACCORDANCE WITH OBJECT OF THE TRUST. THE LD.AR ON THE BASIS OF AFORESAID SUBMISSION SUBMITTED THAT THE LD.CIT(E) MAY BE DIRECTED TO RECONSIDER THE ISSUE AFRESH. 6. ON THE OTHER HAND, THE LD.CIT-DR FOR THE REVENUE SUBMITS THAT THE LD. CIT(E) REJECTED APPLICATION OF THE ASSESSEE, AS THE ASSESSEE FAILED TO FURNISH COMPLETE THE DETAILS OF GENUINENESS OF ACTIVITIES CARRIED OUT BY THE ASSESSEE IN ACCORDANCE WITH OBJECT OF THE TRUST. 7. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND PERUSED THE ORDER LD.CIT(E). WE HAVE NOTED THAT LD.CIT(E) REJECTED THE APPLICATION OF ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT ASSESSEE FAILED TO FURNISH THE COMPLETE DETAILS ABOUT THE GENUINENESS OF GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 6 ACTIVITIES UNDERTAKING BY THE ASSESSEE IN PURSUANT OF THE OBJECT OF THE TRUST. BEFORE US, THE LD.AR OF THE ASSESSEE VEHEMENTLY SUBMITTED THAT IN RESPONSE TO SHOW CAUSE NOTICE DATED 06.08.2015, THE ASSESSEE FURNISHED COMPLETE DETAILS INCLUDING THE ACTIVITIES OF THE TRUST, THE LD.CIT(E) REJECTED THE APPLICATION OF THE ASSESSEE WITHOUT SPECIFYING ANY DEFICIENCY IN THE EVIDENCE FURNISHED BY THE ASSESSEE. NO SHOW CAUSE NOTICE BEFORE REJECTION, ABOUT THE INSUFFICIENCY OF DOCUMENTARY EVIDENCE FURNISHED BY THE ASSESSEE WAS SERVED ON THE ASSESSEE. BEFORE US, THE LD.AR OF THE ASSESSEE HAS FURNISHED THE NOTE OF DETAILS ON THE VARIOUS ACTIVITIES CARRIED OUT BY THE ASSESSEE SINCE INCEPTION ALONG WITH THEIR DOCUMENTARY EVIDENCES. CONSIDERING THE FACT THAT APPLICATION OF THE ASSESSEE WAS REJECTED IN ABSENCE OF COMPLETE DETAILS ABOUT THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE, THEREFORE WE DEEM IT APPROPRIATE TO RESTORE THE MATTER TO THE FILE OF THE LD.CIT(E) TO RECONSIDER THE MATTER AFRESH AND DECIDE THE APPLICATION IN ACCORDANCE WITH LAW. THE ASSESSEE IS ALSO DIRECTED TO PROVIDE COMPLETE DETAILS AND EVIDENCE REQUIRED BY THE LD.CIT(E) AND NOT TO MAKE ANY DELAY IN FURNISHING SUCH EVIDENCE. IN THE RESULT THE GROUNDS OF THE APPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. GAYATRI PARIVAR RACHNATMAK TRUST DEVALA VS. CIT(E), ITA NO.2231/AHD/2015 7 ORDER PRONOUNCED ON 4 TH MAY 2021 AT THE TIME OF HEARING OF APPEAL. SD/- SD/- (DR.ARJUN LAL SAINI) (PAWAN SINGH) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 4 TH MAY 2021 / #SGR COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT