Shree Swaminarayan Mandir, RAJKOT-GUJARAT V. The Commissioner of Income Tax-III, RAJKOT-GUJARAT

ITA 224/RJT/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50049 (ITAT-RAJKOT)
• Duration Of Justice: 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-06-2011
• Assessment Year: misc
• Appeal Filed On: 13-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DR ADHIA
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH SMC, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) I.T.A. NO.224/RJT/2011 SHRI SWAMINARAYAN MANDIR VS THE CIT-III TIMBADI, DIST : AMRELI RAJKOT PAN :AAJTS1920Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DR ADHIA RESPONDENT BY : SHRI MK SINGH O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF COMMISSIONER OF INCOME-TAX-II, RAJKOT DATED 22-12-2 010. THE GROUND RAISED IN THE APPEAL IS IN AGAINST REFUSAL OF REGISTRATION U/ S 12A OF THE ACT. 2. THE ASSESSEE TRUST HAS BEEN CREATED ON 09-02-196 6. AN APPLICATION FOR REGISTRATION U/S 12AA HAS BEEN FILED BEFORE THE CIT ON 07-06-2010. THE CIT REJECTED THE ASSESSEES APPLICATION OBSERVING THAT THE TRUST HAD NOT FILED ANY INCOME-TAX RETURN FOR THE LAT THREE YEARS AND THAT THERE WAS NO FORMAL TRUST DEED OF THE ASSESSEE TRUST. THE CIT ALSO OBSERVED THAT THE ASSESSEE INCURRED EXPENDITURE OF LESS THAN 85% OF THE INCOME IN FINAN CIAL YEAR 2008-09. 3. I HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES, RECORD PERUSED. AN ADJOURNMENT APPLICATION HAS BEEN FILED BY THE LD .AR WHICH WAS REJECTED AND THE MATTER WAS HEARD ON MERIT. WHEN AN ASSESSEE FI LES AN APPLICATION U/S 12A, THE CIT HAS TO ADOPT THE PROCEDURE FOR REGISTRATION AS LAID DOWN UNDER SECTION 12AA OF THE ACT. ACCORDING TO THE SAID SECTION, TH E MAIN THING TO BE SEEN WHILE GRANTING REGISTRATION IS THAT THE CIT SHOULD SATISF Y HIMSELF ABOUT THE OBJECT OF THE TRUST AND GENUINENESS OF THE ACTIVITIES. IN THE CA SE UNDER CONSIDERATION THERE IS NO FINDING BY THE CIT REGARDING THE GENUINENESS OF THE TRUST AND ITS ACTIVITIES. ITA NO.224/RJT/2011 2 WITHOUT GIVING SUCH FINDING, THE CIT CANNOT REJECT THE REGISTRATION APPLICATION U/S 12AA OF THE ACT. I, THEREFORE, IT PROPER TO SEND B ACK THIS MATTER TO THE FILE OF THE CIT WITH DIRECTION TO DECIDE THE ISSUE AFRESH IN AC CORDANCE WITH SECTION 12AA AFTER GIVING PROPER OPPORTUNITY TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 10-06-2011. SD/- (A.L. GEHLOT) ACCOUNTANT MEMBER RAJKOT, DT : 10 TH JUNE, 2011 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-III, RAJKOT 4. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT