Addor Foundation, Ahmedabad V. CIT (Exemption ), , Ahmedabad

ITA 2336/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5653 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 30-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIONOD TANWANI
• Keywords: Opportunity of being heard; Set aside
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER 1. ./ I.T.A. NO.1754/AHD/2018 2. ./ I.T.A. NO.2336/AHD/2018 ( / ASSESSMENT YEAR : N.A.) ADDOR FOUNDATION C/O. MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I NR.GANDHIGRAM RLY STATION OFF ASHRAM ROAD AHMEDABAD / VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) AHMEDABAD-380 009 ./ ./ PAN/GIR NO. : AAFTA 1287 J ( / APPELLANTS ) .. ( / RESPONDENTS ) / APPELLANT BY : SHRI PRAKASH D.SHAH, AR / RESPONDENT BY : SHRI VIONOD TANWANI, CIT-DR / DATE OF HEARING 21/01/2021 !'# / DATE OF PRONOUNCEMENT 19/04/2021 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER BOTH THESE APPEALS FILED BY THE ASSESSEE ARE DIRE CTED AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX ( EXEMPTIONS) [CIT(E) IN SHORT], AHMEDABAD DATED 20/07/2018 AND 20/09/2018. SINCE THE APPEALS PERTAIN TO SAME ASSESSEE, THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.1754/AHD/2018 & 2336/AHD/2018 ADDOR FOUNDATION VS. CIT(E) -2- 2. FIRST, WE TAKE UP THE ASSESSEES APPEAL IN ITA N O.1754/AHD/2018 FOR ADJUDICATION. 2.1. THIS APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(E), AHMEDABAD DATED 20/07/2018 FOR REJECTING THE REGIST RATION U/S.12AA OF THE INCOME TAX ACT, 1961. THIS IS A SECOND ROUND BEFOR E THE ITAT. IN THE FIRST ROUND, TRIBUNAL ALLOWED THE ASSESSEES APPEAL ON 27 /05/2019 HOLDING THAT SECTION 12AA(2) OF THE ACT PROVIDES THAT EVERY ORD ER GRANTING OR REFUSING REGISTRATION UNDER CLAUSE(B) OF SUB-SECTION (1) OF SECTION 12AA SHALL BE PASSED BEFORE THE EXPIRY OF SIX MONTHS FROM THE END OF THE MONTH IN WHICH SUCH APPLICATION WAS RECEIVED UNDER SECTION 12A(1) OF TH E ACT. THE HONBLE SUPREME COURT IN THE CASE OF SOCIETY FOR THE PROMN. OF EDN.(SUPRA) HAS ALSO HELD THAT REGISTRATION SHALL BE DEEMED TO BE GRANTED BY OPERATION OF LAW ON EXPIRY OF SIX MONTHS WHERE DEPARTMENT HAS FAILED TO RESPOND T O THE APPLICATION OF THE ASSESSEE. IN THE INSTANT CASE, THE CIT(E) HAS WRON GLY RECORDED THE DATE OF RECEIPT OF APPLICATION FOR REGISTRATION TO BE 23/01 /2018 INSTEAD OF 23/01/2017 AND ACCORDINGLY THE ENQUIRY INITIATED ON EXPIRY OF SIX MONTHS RUNS CONTRARY TO THE PROVISIONS OF THE ACT AS WELL AS THE LAW LAID D OWN BY HONBLE SUPREME COURT. THUS, IN PARITY WITH THE DECISION OF THE CO ORDINATE BENCH IN THE CASE OF M/S.KANCHIPURAM VANIGA VAISYA DHARMA PARIPALANA SAN GAM(SUPRA), WE DIRECTED THE CIT(E) TO GRANT REGISTRATION UNDER S.1 2AA OF THE ACT FROM THE DATE OF EXPIRY OF PERIOD OF THE SAID SIX MONTHS. 3. THEREAFTER, AGAINST THE ORDER OF THE TRIBUNAL, REVENUE FILED TAX APPEAL NO.783 OF 2019 BEFORE THE HONBLE GUJARAT HIGH COU RT PASSED DETAILED ORDER DATED 04/02/2020 AND SET ASIDE THE TRIBUNAL ORDER DATED 27/05/2019 AND ITA NOS.1754/AHD/2018 & 2336/AHD/2018 ADDOR FOUNDATION VS. CIT(E) -3- DIRECTED THE ITAT TO DECIDE THE MATTER ON MERIT AFT ER GIVING AN OPPORTUNITY OF BEING HEARD TO BOTH THE SIDES. 4. AT THE OUTSET, LD.AR REQUESTED THAT IN VIEW OF THE HONBLE HIGH COURT ORDER, MATTER MAY BE RESTORED BACK TO THE FILE OF LD.CIT(E ). SINCE NO PAPER-BOOK HAS BEEN FILED BEFORE US, SO IN THE ABSENCE OF COMPLETE DETAILS, WE CANNOT DECIDE THE APPEAL AT OUR END. THUS, IN THE INTEREST OF JUSTI CE, WE SET ASIDE THE MATTER BACK TO THE FILE OF LD.CIT(E) TO DECIDE THE MATTER AS PE R LAW WITHIN SIX MONTHS FROM THE RECEIPT OF THIS ORDER AFTER GIVING AN OPPORTUNI TY OF BEING HEARD TO THE APPELLANT. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA N O.1754/AHD/2018 IS ALLOWED FOR STATISTICAL PURPOSES. 6. NOW WE TAKE UP ASSESSEES APPEAL IN ITA NO.233 6/AHD/2018 FOR GRANT OF APPROVAL U/S.80G(5) OF THE INCOME TAX ACT, 1961. 7. WE HAVE GONE THROUGH THE RELEVANT RECORD AND H EARD BOTH THE PARTIES. THE LD.CIT(E) ASKED APPELLANT TO SUBMIT 30 DOCUMENTS AS MENTIONED IN THE ORDER OF LD.CIT(E) DATED 14/06/2018 AS WELL AS HELD THAT APP LICANT NEITHER CARRIED OUT ANY CHARITABLE/RELIGIOUS ACTIVITIES NOR ESTABLISHED CORPUS TO UNDERTAKE THE CHARITABLE ACTIVITIES AND HE ALSO FOUND THAT TRUST -DEED WAS DEFECTIVE TO THE EXTENT THAT IT DOES NOT CONTAIN SIGNATURE OF ALL TH E TRUSTEES. HE ALSO NOTICED THAT TRUST IS NOT DULY APPROVED BY THE CHARITY COMMISSIO NER AND APPLICANT DID NOT SUBMIT CERTIFIED COPY OF INCOME AND EXPENDITURE ACC OUNT, RECEIPTS AND PAYMENT ACCOUNTS AND BALANCE-SHEET, ETC. FOR THE F.YS. 2015 -16, 2016-17, 2017-8 AND IN THE ABSENCE OF AFORESAID FORMALITIES/DOCUMENTS REQU EST FOR REGISTRATION WAS ITA NOS.1754/AHD/2018 & 2336/AHD/2018 ADDOR FOUNDATION VS. CIT(E) -4- DECLINED BY HIM. EVEN APPELLANT HAS NOT FILED C OMPLETE DETAILS BEFORE US, IN SUCH CIRCUMSTANCES, WE CANNOT DECIDE THE MATTER ON MERIT AT OUR END. HOWEVER, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE MATTER BACK TO THE FILE OF THE LD.CIT(E) TO DECIDE THE MATTER WITHIN SIX MONTHS FR OM THE DATE OF RECEIPT OF THIS ORDER. NEVERTHELESS TO SAY AN OPPORTUNITY SHA LL BE GIVEN TO THE APPELLANT BEFORE DISPOSING OF APPLICATION OF THE APPELLANT. THUS, IN VIEW OF THE ABOVE, APPEAL OF THE APPELLANT IS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE COMBINED RESULT, ASSESSEES APPEALS ( IT A NO.1754/AHD/2018 AND ITA NO.2336/AHD/2018) BOTH ARE ALLOWED FOR STATIST ICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 19 04/2021 SD/- SD/- ( PRADIP KUMAR KEDIA ) ( MAHAVIR PRA SAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 19/ 04 /2021 &.. , .'../ T.C. NAIR, SR. PS !'#' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ()* + / CONCERNED CIT 4. + ( ) / THE CIT(E)-AHMEDABAD 5. ./0 '')* , )*# , ( / DR, ITAT, AHMEDABAD 6. 034 5 / GUARD FILE. / BY ORDER, . ' //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD