Patel Seva Singh, Bokaro Steel City V. CIT (Exemption), Patna

ITA 224/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3299 (ITAT-RANCHI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 30-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH
• Assessee Lawyers: ANIL KUMAR JHA
• Section: 12AA; 201; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 224 / RAN / 201 9 PATEL SEVA SANGH C/O SARDAR PATL PUBLIC SCHOOL, SETOR-9B, BOKARO STEEL CITY, JHARKHAND- 827009 [ PAN NO. AABTP 2202 N ] V/S . COMMISSIONER OF INCOME TAX (EXEMPTION) CENTRAL REVENUE BUILDING, BEER CHAND PATEL MARG, PATNA-800 001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI ANIL KUMAR JHA, CA /BY RESPONDENT SHRI INDERJEET SINGH CIT-DR /DATE OF HEARING 02-03-2020 /DATE OF PRONOUNCEMENT 02-03-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSI ONER OF INCOME TAX (EXEMPTION)-PATNAS ORDER DATED 13.03.2019, DENYING REGISTRATION IN PROCEEDINGS U/S. 12AA OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. CASE FILE SUGGESTS THAT THE CIT(EXEMPTION) HAS D ECLINED THE ASSESSEES SEC. 12AA REGISTRATION FILED ON 05.11.2018 BY HIS T WIN FOLDED REASONING THIS TRUST HAS BEEN SET UP TO PROVIDE BENEFITS TO ONLY P ATEL COMMUNITY AND ITS ACTIVITIES ARE NOT GENUINE; RESPECTIVELY. WE DO NOT ANY MERIT IN EITHER OF THESE FINDINGS. HONBLE GUJARAT HIGH COURT IN (2014) 42 T AXMANN.COM 181 (GUJ) COMMISSIONER OF INCOME TAX, RAJKOT-II VS. LEUVA PAT EL SEVA SAMAJ TRUST HOLDS THAT THE FORMER QUESTION OF A TRUST SET UP FO R PROVIDING BENEFITS TO A ITA NO.224/RAN/2019 PATEL SEVA SANGHA VS. CIT(EX), PATNA PAGE 2 PARTICULAR COMMUNITY DOES NOT AVAIL GROUND TO DENY SEC. 12AA REGISTRATION SINCE THE ISSUE ARISES DURING THE COURSE OF EXEMPTI ON PROCEEDINGS U/S 11 ONLY. 3. COMING TO LATTER ASPECT OF THE NON-GENUINE OF AC TIVITIES, WE TAKE NOTE OF HONBLE APEX COURTS JUDGMENT IN M/S ANANDA SOCIAL & EDUCATIONAL TRUST VS. CIT IN CIVIL APPEAL NOS. 5437-5438 OF 2012 DATED 19.02.2020 THAT ONLY AN ASSESSEES OBJECTS HAVE BE EXAMINED AT THE TIME OF GRANTING SEC.12AA REGISTRATION AND NOT ACTIVITIES. WE THUS REVERSE TH E CIT(EXEMPTION)S TWIN REASONING AND HOLD THE ASSESSEE AS ENTITLED FOR THE IMPUGNED SEC. 12AAA REGISTRATION. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON MONDAY, 2 ND MARCH, 2020 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP SR.P.S $- 02 / 03 /20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-PATEL SEVA SANGHA C/O SARAR PATEL PUBLIC SCHOOL, SECTOR-9B, BOKARO STEEL CITY , JHARKHAND-827009 2. /RESPONDENT-CIT(EX) CENTRAL REVENUE BUILDING, BEER CHAND PATEL MARG, PATNA PIN-800 001 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 5 ##/, /, / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR.PS, (ON TOUR), RANCHI