Shree Sanskar Adayayan Kanya Shibir Public Charitable Trust, Ahmedabad V. The Pr. CIT (Exemptions), , Ahmedabad

ITA 2583/AHD/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9159 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 22-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA A GARWAL
• Keywords: Charitable institution; Principle of natural justice; Corroborative evidences; Competent authority

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 2583/AHD/2017 ( ASSESSMENT YEAR : 2017-18) SHREE SANSKAR ADAYAYAN KANYA SHIBIR PUBLIC CHARITABLE TRUST MEHTA LODHA & CO. CHARTER5ED ACCOUNTANTS 105, SAKAR-I, NEAR GANDHIGRAM RAILWAY STATION, OFF. ASHRAM ROAD, AHMEDABAD - 380009 / VS. THE PRINCIPAL COMMISSIONER OF INCOME TAX (EXEMPTIONS) AHMEDABAD ./ ./ PAN/GIR NO. : AADTS3137P ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI PRAKASH D. SHAH, A.R. / RESPONDENT BY : SMT. APARNA AGARWAL, CITD.R. DATE OF HEARING 03/12/2018 !'# / DATE OF PRONOUNCEMENT 19/12/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE PRINCIPAL COMMISS IONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD (CIT(E) IN SHORT), DA TED 18.09.2017 WHEREBY THE REGISTRATION SOUGHT UNDER S.12AA OF THE INCOME TAX ACT, 1961 (THE ACT) FOR REGISTRATION OF TRUST WAS DECLIN ED. ITA NO. 2583/AHD/17 [SHREE SANSKAR A. K. S. P. CHARITABLE TRUST VS. PR.CIT(E)] AY 2017-18 - 2 - 2. AGGRIEVED BY THE REJECTION OF APPLICATION FOR RE GISTRATION UNDER S.12AA OF THE ACT, THE ASSESSEE PREFERRED APPEAL BE FORE THE TRIBUNAL. 3. HEARD BOTH THE SIDES ON THE ISSUE. THE ASSESSEE HAS IMPUGNED THE ACTION OF THE PR.CIT(E) FOR EXERCISING DISCRETION A GAINST THE ASSESSEE FOR REGISTRATION OF THE APPLICANT TRUST. AS STATED ON BEHALF OF THE ASSESSEE, THE PR.CIT(E) HAS DENIED THE REGISTRATION MAINLY ON TWO GROUNDS; (I) DETAILS OF ACTUAL ACTIVITIES CARRIED O UT ALONGWITH SUPPORTING EVIDENCES IN SUPPORT OF THE CLAIM FOR RE GISTRATION WAS NOT PROVIDED & (II) CERTIFIED COPIES OF THE TRUST DEED WAS NOT FILED. IN THIS REGARD, WE NOTICE THE AVERMENTS MADE ON BEHALF OF THE ASSESSEE THAT THE APPLICANT TRUST IS CREATED IN 1981 AND IS REGISTERED WITH THE COMPETENT AUTHORITY UNDER THE GENERAL LAW. IT IS S UBMITTED ON BEHALF OF THE ASSESSEE THAT NONE OF THE OBJECTS ARE OF THE RELIGIOUS NATURE, THE OBJECTS ARE CHARITABLE AND FOR PUBLIC AT LARGE WITH OUT ANY DISCRIMINATION ON THE BASIS OF CASTES, CREED OR REL IGION. IT IS ALSO THE CLAIM OF THE ASSESSEE THAT PROFITS OF THE TRUST ARE TO BE APPLIED ONLY FOR THE OBJECT OF THE TRUST WHICH IS IRREVOCABLE. THE SUBMISSION BEFORE THE PR.CIT(E) CLAIMS THAT TRUST IS ARRANGING KANYA SHIBIR OR SANSKAR ADAYAYAN ACTIVITY IN A SMALL WAY AS EVIDE NCED BY THE AUDITED ACCOUNTS. 4. FROM A READING OF THE ORDER OF THE PR.CIT(E), TH E REGISTRATION HAS BEEN MAINLY REJECTED ON THE GROUND THAT REQUISI TE DOCUMENTARY EVIDENCES WERE NOT PLACED TO SATISFY HIM ABOUT THE GENUINENESS OF THE ACTIVITIES AND WHETHER THE ACTIVITIES ARE IN CONSON ANCE WITH ITS OBJECTIVES. 5. IN THE CIRCUMSTANCES, WHERE THE ASSESSEE HAS ADM ITTEDLY FURNISHED CERTAIN DETAILS AND IS NOT GROSSLY NEGLIG ENT IN FURNISHING THE INFORMATION, IT WILL BE DESIRABLE THAT ONE MORE OPP ORTUNITY IS GRANTED ITA NO. 2583/AHD/17 [SHREE SANSKAR A. K. S. P. CHARITABLE TRUST VS. PR.CIT(E)] AY 2017-18 - 3 - TO THE ASSESSEE TO SATISFY THE DESIGNATED AUTHORITY I.E. PR.CIT(E) FOR ITS ENTITLEMENT FOR REGISTRATION OF TRUST IN ACCORDANCE WITH LAW. THIS WILL PROMOTE FAIR PLAY AND WILL ACCORD WITH PRINCIPLES O F NATURAL JUSTICE. 6. CONSEQUENTLY, WE SET ASIDE THE ORDER OF THE PR.C IT(E) DATED 18.09.2017 AND RESTORE THE ISSUE BACK TO THE FILE O F THE PR.CIT(E) FOR DE NOVO CONSIDERATION OF ALL ASPECTS IN THE LIGHT OF FACTS INVOLVED AS WELL AS THE JUDICIAL PRECEDENTS RENDERED IN THE CON TEXT. NEEDLESS TO SAY, THE MATTER SHALL BE DISPOSED OF BY THE PR.CIT( E) AFTER GRANTING PROPER OPPORTUNITY TO THE APPLICANT ASSESSEE IN THI S REGARD. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 19/12/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 19/12/201 8