Kalol GIDC Industries Association (CETP), Kalol V. The CIT, Gandhinagar

ITA 2654/AHD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0665 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-06-2016
• Assessment Year: misc
• Appeal Filed On: 30-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Condonation of delay
• Section: 12AA

Judgement Text

I.T.A. NO.2654/AHD/2014 ASSESSMENT YEAR: - NOT SPECIFIED PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD I BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM ] I.T.A. NO. 2654/AHD/2014 ASSESSMENT YEAR: - NOT SPECIFIED KALOL GIDC INDUSTRIES ASSOCIATION ...... . .APPELLANT GIDC, KALOL 382 725 [PAN: AABTK8224D] VS. CIT, GANDHINAGAR .. . . RESPONDENT APPEARANCES BY: S N DIVETIA FOR THE APPELLANT SANJAY AGARWAL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JUNE 0 2 , 2016 DATE OF PRONOUNC ING THE ORDER : SEPTEMBER 01 , 2016 O R D E R PER PRAMOD KUMAR , AM : 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 30 TH JUNE 2014 PASSED BY THE COMMISSIONER OF INCOME TAX, GANDHINAGAR, DECLINING REGISTRATION UNDER SECTION 12AA OF THE INCO ME TAX ACT, 1961. 2. THE APPEAL IS TIME BARRED BY 29 DAYS BUT THE ASSESSEE HAS MOVED A PETITION SEEKING CONDONATION OF DELAY WHICH IS STATED TO HAVE BEEN CAUSED DUE TO INADVERTENT MISTAKE ON THE PART OF TAX CONSULTANT SHRI DHRUVIN SHAH. HAVING PERUSED THE PETITION AND HAVING HEARD THE RIVAL CONTENTIONS ON THE SAME, AE ARE SATISFIED THAT THE ASSESSEE WAS PREVENTED FROM FILING THE APPEAL IN TIME BY SUFFICIENT CAUSE. ACCORDINGLY, WE ARE INCLINED TO CONDONE THE DELAY AND TAKE UP THE MATTER ON MERITS. 3. THE ASSESSE HAD MOVED AN APPLICATION, ON 18.12.2003, SEEKING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. THE SHORT REASON FOR WHICH THE I.T.A. NO.2654/AHD/2014 ASSESSMENT YEAR: - NOT SPECIFIED PAGE 2 OF 3 REGISTRATION WAS DECLINED WAS THAT THE ASSESSEE INSTITUTION WAS NOT FOR THE BENEFIT OF PUBLIC AT LARGE BUT FOR THE MUTUAL BENEFIT OF THE ASSOCIATION MEMBERS. THIS ASPECT OF THE MATTER WILL BE CLEAR FROM THE FOLLOWING OBSERVATIONS MADE BY THE LEARNED COMMISSIONER: AFTER CONSIDERING THE SUBMISSIONS OF THE APPLICANT, I AM OF THE VIEW THAT THE ASSESSEE IS NOT CARR YING ON GENUINE BUSINESS ACTIVITIES OF CHARITABLE NATURE BECAUSE THE ASSESSEE IS NOTHING BUT AN ASSOCIATION ALLOWING BENEFITS TO BE GIVEN THE MEMBERS INVOLVED OR HOLDING INTEREST WITH THE MANUFACTURING ACTIVITIES IN THE KALOL GIDC AREA OF GUJARAT STATE. F URTHER ONLY SUCH FIRMS ARE ELIGIBLE FOR LIFE MEMBERSHIP OR SPECIAL MEMBERSHIP, AND NOT THE GENERAL PUBLIC. IF THE ASSESSEE IS ALLOWED REGISTRATION UNDER SECTION 12A, IT WILL BE ABLE TO ACCEPT DONATIONS FROM PUBLIC AND SAME WOULD BE UTILIZED ONLY FOR THE BE NEFIT OF ITS MEMBERS OF THE ASSOCIATION .. 4. IT WAS IN THIS BACKDROP AND PLACING RELIANCE ON A COORDINATE BENCH DECISION IN THE CASE OF MADHAVRAO SCINDIA ENCLAVE RESIDENT WELFARE SOCIETY VS CIT (52 SOT 125) , LEARNED CIT(A) DECLINED THE REGISTRATION UND ER SECTION 12AAA. THE ASSESSEE IS AGGRIEVED AND IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DU LY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 6. WE HAVE NOTED THAT THIS IS A CASE IN WHICH THE APPLICANT INSTITUTION WAS SET UP TO SET UP AN EFFLUENT PLANT AND TAKE CARE OF INDUSTRIAL POLLUTION . THE OBJECTIVES OF THE APPLICANT TRUST CLEARLY AND UNAMBIGUOUSLY SHOW THAT MAIN OBJECTIVES OF THE TRUST BEING SET UP IS TO TAKE ANTI POLL UTION MEASURES FOR MINIMISE THE HARMFUL IMPACT OF POLLUTANTS AND TO ABIDE BY GUIDELINES OF GUJARAT POLLUTION CONTROL AUTHORITY AND CENTRAL POLLUTION CONTROL AUTHORITY. THE MAIN OBJECTIVES NUMBERS 1 TO 11 ARE SPECIFIC OBJECTS IN THIS REGARD. POLLUTION CON TROL IS CERTAINLY AN OBJECT OF PUBLIC CONCERN AND UTILITY. UNDER THESE CIRCUMSTANCES, THE PEDANTIC APPROACH OF THE LEARNED I.T.A. NO.2654/AHD/2014 ASSESSMENT YEAR: - NOT SPECIFIED PAGE 3 OF 3 CIT WAS CLEARLY INCORRECT, AND IT CANNOT MEET ANY JUDICIAL APPROVAL. AS FOR THE COORDINATE BENCH DECISION RELIED UPON BY THE ASSESSEE , IT WAS A MATERIALLY DIFFERENT SITUATION INASMUCH THERE WAS NOTHING TO SHOW THAT A PUBLIC CAUSE WAS SERVED BY THE APPLICANT IN THAT CASE. REVENUE DOES NOT, THEREFORE, GET ANY ADVANTAGE FROM THE SAME. IN THE LIGHT OF THESE DISCUSSIONS, AS ALSO BEARING IN M IND THE ENTIRETY OF THE CASE, WE UPHOLD THE GRIEVANCE OF THE ASSESSEE. THE CIT, ACCORDINGLY, IS DIRECTED TO GRANT THE REGISTRATION UNDER SECTION 12AA. 7. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON 1 ST DAY OF SEPTEMBER, 201 6. SD/ - SD/ - S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: 1 ST DAY OF SEPTEMBER , 2016. COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD