Nishita Varsha Charity Trust, Ahmedabad V. The DIT(Exmp.), Ahmedabad

ITA 2458/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0536 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-01-2013
• Assessment Year: misc
• Appeal Filed On: 02-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PANDEY
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT M EMBER NISHITA VARSHA CHARITY TRUST, AKSHAY, 53, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD PAN NO. AABTN 6267 F (APPELLANT) VS DIT (EXEMPTION) 2 ND FLOOR, NATURE VIEW BLDG., ASHRAM ROAD, AHMEDABD (RESPONDENT) REVENUE BY: SRI A.K. PANDEY, SR. D.R. ASSESSEE BY: NONE DATE OF HEARING : 11-03-2013 DATE OF PRONOUNCEMENT : 15-03- 2013 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. DIT(EXEMPTIONS), AHMEDABAD DATED 23-10-2012 REJECTI NG APPLICATION FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE APPLIE D FOR REGISTRATION OF THE TRUST U/S 12AA OF THE ACT ON 04-05-2012. OFFICE O F DIT(EXEMPTION) VIDE ITS LETTER DATED 01-10-2012 ASKED THE ASSESSEE TO S UBMIT DETAILS ABOUT ACTIVITIES OF THE TRUST. IN REPLY THE TRUST SUBMIT TED THAT NO ACTIVITY HAS BEEN ITA NO. 2458/AHD/2012 I.T.A NO.2458/AHD/2012 PAGE NO NISHITA VARSHA CHARITY TRUST VS. DIT(EXEMPTION) 2 STARTED BY THE TRUST DUE TO PENDENCY OF REGISTRATIO N APPLICATION U/S 12AA OF THE ACT. LD. DIT(EXEMPTION) REJECTED THE REGISTRAT ION APPLICATION OF THE ASSESSEE AS HE IS NOT SATISFIED ABOUT THE GENUINENE SS OF THE ACTIVITIES OF THE TRUST. 3. BEFORE US VIDE WRITTEN SUBMISSIONS DATED 26-12-2 012 THE CONTENTION OF THE ASSESSEE-TRUST IS THAT THE TRUST IS YET TO S TART ITS ACTIVITIES AS TRUST WAS CREATED ONLY ON 09-02-2012 AND WAS GOT REGISTERED W ITH CHARITY COMMISSIONER GUJRAT ON 22-03-2012. SINCE TRUST IS YET TO COMMENCE ITS ACTIVITIES, THE GENUINENESS OF THE ACTIVITIES OF TH E TRUST CANNOT BE CRITERIA FOR ITS REGISTRATION U/S 12AA OF THE ACT. FOR MAKING T HIS SUBMISSION RELIANCE WAS PLACED ON THE DECISION OF THIS TRIBUNAL IN THE CASE OF PANNA LALBHAI FOUNDATION DATED 20-07-2012 THE COPY OF WHICH WAS A LSO FURNISHED. ON THE BASIS OF THIS SUBMISSION IT WAS PRAYED THAT LD. DIT (EXMPTION) BE DIRECTED TO GIVE REGISTRATION TO ASSESSEE-TRUST U/S 12AA OF THE ACT. LD. D.R. HOWEVER RELIED ON THE ORDER OF LD. DIT(EXEMPTION). 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT THERE IS NO DISPUTE ABOUT THE FACT THAT TRUST WAS C REATED ONLY ON 09-02-2012 AND APPLIED FOR REGISTRATION U/S 12AA OF THE ACT ON 04-05-2012. THUS THE TRUST WAS AT INFANT STAGE AND WAS YET TO START ITS ACTIVITIES. LD. DIT(EXECMPTION) HAS REJECTED THE REGISTRATION APPLI CATION ONLY ON THE GROUND THAT HE IS NOT SATISFIED ABOUT THE GENUINENE SS OF THE ACTIVITIES. HOWEVER HE HAS NOT FOUND ANYTHING FROM THE RECORD THAT OBJECTS OF THE TRUST WERE NOT CHARITABLE. ON SIMILAR FACTS THIS BENCH O F THE TRIBUNAL IN THE CASE OF PANNALAL BHAI FOUNDATION FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF MEENAKSHI AMMA ENDOWMENT TRUST (2011) 50 DTR (KAR) 243 HELD THAT NO ADVERSE INFERENCE SHOULD BE GATHERED TO REFUSE I.T.A NO.2458/AHD/2012 PAGE NO NISHITA VARSHA CHARITY TRUST VS. DIT(EXEMPTION) 3 THE REGISTRATION U/S 12AA OF THE ACT. FOLLOWING TH E SAME THE DIT(EXEMPTION) IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE-TRUST U/S 12AA OF THE ACT. 5. ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K.TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 15/03/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '# STRENGTHENED PREPARATION & DELIVERY OF ORDERS IN TH E ITAT 1) DATE OF TAKING DICTATION 14-03-2013 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE N.A. 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 15-03-2013 4) DATE OF CORRECTION XXXX 5) DATE OF FURTHER CORRECTION XXXX 6) DATE OF INITIAL SIGN BY MEMBERS XXXX 7) ORDER UPLOADED ON 01-04-2013 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE YES 9) ORDER SENT TO BENCH CLERK 15/03/2013