Seth Ram Lal Khemka Dharamshala Trust, Delhi V. CIT (Exemptions), New Delhi

ITA 2428/DEL/2017

AI Insights

The case involves the Seth Ram Lal Khemka Dharamshala Trust appealing against the order of the Commissioner of Income Tax (Exemptions), which incorrectly granted registration under Section 12AA for the Assessment Year 2017-18 instead of 2016-17. The Trust had applied for registration on March 14, 2016, electronically, which was intended for the Assessment Year 2016-17. However, due to an administrative error, the registration was granted effective from the Assessment Year 2017-18. The Tribunal found that the Trust's application was not considered correctly and directed the matter to be re-examined by the designated authority.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121712 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 07-02-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 23-04-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.2428/DEL/2017 Seth Ram Lal Khemka Dharamshala Trust, 16, Ground Floor, Sri Ram Road, Civil Lines, Delhi. Vs. Commissioner of Income Tax (E) (HQRS), New Delhi. TAN/PAN: AAPTS6355M (Appellant) (Respondent) Appellant by: Shri Vaneet Makkar, CA Respondent by: Shri Dilip Singh Kothari, CIT-DR Date of hearing: 08 02 2023 Date of pronouncement: 21 02 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a p t i o n e d a p p e a l h a s b ee n f i l e d by t h e A s se ss e e a g a i n st t he o rd e r o f t he C o m m i ss i o n e r o f In c o me T ax ( E x e m pti o n) , D el hi [‘ C IT (A ) ’ i n sh o r t ] da te d 2 0. 0 2. 2 0 1 7 un d e r S e c t i o n 1 2 A A of t h e In c o me T a x A c t , 19 61 ( t h e A c t ). 2. T he g r o un ds o f a pp e a l r ai s e d b y t h e as s es se e re ads a s un d er : “ 1 . I n th e f a c ts a nd ci rc u m st an c e s o f t h e c a se , t h e H o no u r ab l e C I T ( E ) h a s er r e d i n g ra t ni gn R e g i st ra t i o n u / s. 1 2 A A f r o m A s se s s m e n t Y e a r 20 17 - 1 8 i n s t e a d of A s se s s m e n t Y e a r 20 1 6 - 1 7. T h e T r u st a pp li e d f or r e gi s t rat i o n o n 1 4 t h M a r c h, 2 0 16 t h r o ug h e l e c t r on i c u pl o ad i n g a s r e q u i re d u nd e r p r e v a l e nt p roc e d u r e s a s su c h t h e re gi st ra t i o n s h o u l d b e g ra n t e d f o r A s se s s me n t Y ea r 2 01 6- 1 7 . 2 . I n th e f a c ts a nd ci rc u m st an c e s o f t h e c a se , t h e H o no u r ab l e C I T ( E ) ha s e r r e d i n i g n o ri n g t h e ap p l i c at i o n fi l e d on 1 4 t h M a r c h, 2 01 6 f o r g ra n t i n g Re g i st r at i on u / s . 1 2 A A a nd t re at i ng m a nu al f i l i ng of do c u m e n t s a s d at e of f i in g o f ap pl i c a t i o n. I.T.A. No.1850/Del/2021 2 3 . I n t h e f a c t s an d c i r cu m s t a n c e s o f t h e c as e a n d the la w t he a pp l ic a t i o n f i l e d o n 14 t h M a r c h, 2 0 16 f or gr a n t i n g R e g i st r at i o n u nd e r S e c t io n 1 2A A sh o u l d b e de e m e d ap p r ov e d u n d e r S e ct i o n 1 2A A . ” 3. W h e n t he m a t t er w as c a l l e d f or h ea ri n g, t he l d . C ou n s e l f or t he a ss es se e s ub mi t t ed th a t t h e a ss e s se e m o v e d a n a pp l ic a t i on in F or m N o. 10 A f or r e g i s tr a t i o n u nd e r S e c t i o n 12A A r. w . S e ct i on 1 2A o f t h e In c o me T a x A c t o n 1 4. 03 . 2 01 6 fo r w h i c h e - fi l in g a c kn ow l ed ge me nt nu m b e r w a s du l y g e ne ra t e d a s p l a c e d a t p a g e n o. 4 o f th e p ap e r b o o k. It w a s su b m it t e d t ha t t he a p p l i c a t i o n w a s m a d e s e ekin g g ra nt o f re g i s t r a t i o n fr o m A s ses s m e nt Y ea r 2 01 6 -1 7 o nw a r d s. T h e a sse ss ee ma de i nq u i r i e s w i t h t h e D e p a rt me nt i n A u g u s t, 20 16 t o kn o w t h e fa t e o f t h e a pp l i c a t i o n m a d e ea rl i e r a nd fi l ed a p ho t o c o py o f F or m N o. 10 A fo r n ec e s sa ry a c ti o n at t h e e n d o f t he D e p a rt me nt . H ow e ve r, t he D ep a rt me nt t re a t e d t h e p h o t o c o p y o f F o r m n o. 1 0A a s f re sh a pp l i ca t i on a nd i ss u ed n o t i c e re qu i r i n g t h e a s ses see to fi l e ne c e s sa r y do c u me n t s a n d gr a n te d r e gi st ra ti o n w . e . f A sse ss m e n t Y e a r 2 01 7- 1 8 on w a r ds. O n a n e n qu i r y fr o m th e B e n ch , i t w as su b m it t e d t h a t n o fr e sh a pp l i c a ti o n w a s ma d e in F i n a n ci a l Y e ar 2 0 16 -17 a t a l l a nd t he re g i s t r a t i o n ha s b e en g ra n t e d o n th e ba s i s o f a pp l ic at i o n ma d e i n F i na n c i a l Y e a r 2 0 15 - 1 6. T h e l d. c o un s el f or t h e a s se ss ee t h u s su b mi t t e d t ha t t h e T ru st r e q ui r es to be g r a n t e d r e gi st r a t i o n w . e . f A sse s s me nt Y e ar 2 01 7 -1 8 in st ea d o f A sses s me nt Y e a r 2 01 6 -1 7 si n c e t he a pp li c a t i o n ma de fa ll s i n F in an c i a l Y e a r 2 0 1 5- 16 re l e v an t t o A sse s s me nt Y e ar 2 01 6-1 7. Th e l d . c o u n se l t hu s ur g e d for su i t ab le di r e c t i o n s i n a ma t t e r . 4. T he l d. D R fo r t h e R e v e n u e d i d n o t c o n t e st t h e av e r me nt s ma de on b eh a l f o f t h e a s se ss ee bu t ho w e v e r s u b m i tt ed t ha t a n e nq u i r y w ou l d b e p e rt in e n t a t t h e e n d o f t h e de si gnat e d a u t h or it y t o a sc e r t a i n t h e fa c t u a l m at ri x . I.T.A. No.1850/Del/2021 3 5. W e ha ve c a re fu ll y c on si d e r e d t he r iv a l s ub m i ss i ons. F r o m t he do c u me n t s f i le d o n b e h a l f o f t h e a sse ss e e, i t ap pe ar s t ha t t he a pp l i ca t i on fo r re gi st r a t io n w a s ma de i n t he F in an cia l Y e a r 20 1 5 -1 6 re l ev an t t o A s se s s me nt Y e a r 2 0 1 6- 17 . H ow e ve r, t he re g i st r at i o n ha s be e n gr an te d w . e . f F i na nc i a l Y e a r 2 0 1 6- 17 r el e v a n t t o A sse s s me nt Y ea r 2 0 1 7- 18. In th e p ro ce ss, t h e r e g i s tr a ti on w i t h re s p ec t t o F i na n c i a l Y e a r 20 1 5- 1 6 (A ss e s s m e n t Y e a r 20 1 6 -1 7) w as d ep r i v e d t o t he a ss e s se e w i t h o ut a n y fa u l t a t tr i b ut a bl e t o a ss es se e. W e th us c on si de r i t e x p e d i e nt t o re st or e t h e is s ue ba c k to t he f il e o f t he CI T ( E ) / d e s i g n a te d a ut ho ri t y e m p o w er e d t o g r a nt r e g is t ra t i o n, fo r re - e xa mi ni ng t he i ss u e a n d t a k e a p p ro pr i a t e a c t i on. It s h a l l b e op e n t o t he a ss e s se e to p la c e a l l t he fa c t s b e f or e t he de sig n a t e d au t h o r i t y t o su p p or t i t s e nt i tl e me nt f or r e g i s tr at i on w . e . f. F i nan ci a l Y e a r 2 01 5 - 16 , i . e . , A sse ss m e nt Y e a r 2 0 1 6 - 1 7 o nw a rd s. T he de s ig n at e d a ut ho r i t y s ha ll p a s s a n s p e a k i n g or de r i n a cc or d a n ce w i t h l a w an d sha l l gr an t re g i st r a t i o n a s e n t i t l e d t o t h e a s s es see o n be in g sa t i s fi e d t ow a r ds t h e fu l fi l l me nt o f p r e - re q u i s it e s for o bt a in in g re g i s t r a t i o n un d e r S e c t i o n 1 2 A A r . w . S e ct i on 12 A o f t h e A c t . Wi th t h e se di r e c t i o n s, th e m at t e r i s r e st or e d ba c k t o t h e fi le o f t h e CI T ( E ) / d e s i g n a te d a u t h o ri t y. 6. I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a l low e d fo r st a t i st ic a l pu r p os e s . Order pronounced in the open Court on 21/02/2023. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /02/2023 Prabhat