Association of Self Financed Institution of Gujarat State(GNM), Ahmedabad V. The Director of Income tax(Exemption), Ahmedabad

ITA 2664/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0537 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 28-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SINGH
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , , BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.2664/AHD/2012 ( / ASSESSMENT YEAR : 2012-13) ASSOCIATION OF SELF FINANCED INSTITUTION OF GUJARAT STATE (GNM) MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I, ASHRAM ROAD AHMEDABAD-380 009 / VS. THE DIRECTOR OF INCOME TAX (EXEMPTIONS) AHMEDABAD ' ./#$ ./ PAN/GIR NO. : AADAT 2188 G ( '% / APPELLANT ) .. ( &''% / RESPONDENT ) '% ( / APPELLANT BY : SHRI PRAKASH D.SHAH, AR &''% ) ( / RESPONDENT BY : SHRI D.K.SINGH, SR.D.R. * ) / DATE OF HEARING : 22/01/2013 +,-. ) / DATE OF PRONOUNCEMENT : 15/03/13 / / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING F ROM THE ORDER OF DIRECTOR OF INCOME TAX (EXEMPTIONS)-AHMEDABAD DATED 26/09/2012 PASSED FOR ASST.YEAR 2012-13. THE ASSESSEE HAS RAI SED THE FOLLOWING GROUND:- ITA NO.2664/AHD /2012 ASSOCIATION OF SELF FINANCED INSTITUTION OF GUJARA T STATE (GNM) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) ASST.YEAR - 2012-13 - 2 - 1. THAT THE LEARNED DIRECTOR OF INCOME TAX (EXEMP TIONS), HAS ERRED IN LAW AND FACTS BY REJECTING THE APPLICATION FOR THE REGISTRATION UNDER 12AA OF THE ACT AND PASSING ORDE R UNDER SECTION 12AA OF THE ACT AND THEREFORE IT IS PRAYED TO QUASH THE ORDER PASSED U/S.12AA OF THE ACT AND DIRECT THE LD. DIT(EXEM.) TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. THE ORDER U/S.12AA OF THE IT ACT WAS PASSE D AND THE REGISTRATION WAS REFUSED IN THE FOLLOWING MANNER:- 2. A LETTER DATED 13/09/2012 WAS ISSUED TO THE AP PLICANT TO FURNISH DETAILED NOTE ON THE ACTIVITIES ACTUALLY CA RRIED OUT BY THE TRUST AS WELL AS THE FOLLOWING DOCUMENTS: I) COPY OF PAN CARD II) COPY OF BANK ACCOUNT. III)COPY OF AUDITED ACCOUNTS IN CASE TRUST HAS COM PLETED ONE OR MORE YEARS. IV)PAN OF TRUSTEES AND CIRCLE/WARD WHERE TRUSTEES A SSESSED. V) NOTE AND EVIDENCE ON GENUINENESS OF THE ACTIVIT IES CARRIED OUT BY THE TRUST SI NCE INCEPTION OF TRUST TILL DATE. THE ABOVE-MENTIONED INQUIRY ABOUT THE ACTUAL ACTIVI TIES OF THE TRUST IS NECESSARY IN VIEW OF THE MANDATORY PROVISI ONS OF THE PROCEDURE FOR REGISTRATION U/S.12AA ACCORDING TO WH ICH THE DIT (EXEMPTION) SHALL- (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM TH E TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATI SFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTI TUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THI S BEHALF; AND (B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE (I) SHALL PAS ON ORDER IN WRITING REGISTERING THE TRUST OR INSTITUTION; ITA NO.2664/AHD /2012 ASSOCIATION OF SELF FINANCED INSTITUTION OF GUJARA T STATE (GNM) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) ASST.YEAR - 2012-13 - 3 - (II) SHALL, IF HE IS NOT SO SATISFIED, PASS AN OR DER IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION. AND A COPY OF SUCH ORDER SHALL BE SENT TO THE APPL ICANT: PROVIDED THAT NO ORDER UNDER SUB-CLAUSE (II) SHALL BE PASSED UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNI TY OF BEING HEARD. IN RESPONSE TO THIS QUERY LETTER, THE APPELLANT TRU ST SUBMITTED A WRITTEN REPLY AND REQUESTED FOR ADJOURNMENT TO 24/9 /2012 AND HENCE THE CASE WAS ADJOURNED TO 24/9/2012. HOWEVER , NO COMPLIANCE IN ANY MANNER HAS BEEN RECEIVED IN THE O FFICE. 3. LOOKING TO THE ABOVE FACTS, I AM UNABLE TO ARRI VE AT THE SATISFACTION OF THE GENUINENESS OF THE ACTIVITIES. THE TRUST HAS LISTED MANY OBJECTS TO WHICH IT PROPOSES TO DEDICAT E ITS EFFORTS. HOWEVER, NONE OF THE OBJECTS ARE BEING PURSUED ACTI VELY SINCE THERE IS NO EVIDENCE OF THE COMMENCEMENT OF ACTIVIT IES WHICH CAN BE VERIFIED 4. IN THE LIGHT OF THE ABOVE, I AM NOT SATISFIED A BOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. CONSEQ UENTLY, THE REGISTRATION APPLICATION CANNOT BE ACCEPTED. IT IS ACCORDINGLY REFUSED U/S.12AA(1)(B)(II) OF THE ACT. 3. NOW BEFORE US, LD.AR MR.PRAKASH D.SHAH APPEAR ED AND VEHEMENTLY ARGUED THAT THE FORMNO.10A WAS FILED ALONG WITH THE NECESSARY ANNEXURES. A COPY OF THE TRUST-DEED HAS ALSO BEEN FURNISHED. THE ASSESSEE HAS ALSO OBTAINED A REGISTRATION CERTIFICA TE ISSUED BY CHARITY COMMISSIONER. HE HAS ALSO ARGUED THAT IN THE LIGHT OF THE DECISION OF HONBLE KARNATAKA HIGH COURT PRONOUNCED IN THE CASE OF DIRECTOR OF INCOME TAX (EXEMPTIONS) VS. MEENAKSHI AMMA ENDOWMEN T TRUST [2011] 50 DTR 243 (KAR.) AND CIT VS. KUTCHI DASA OS WAL MOTO PARIWAR ITA NO.2664/AHD /2012 ASSOCIATION OF SELF FINANCED INSTITUTION OF GUJARA T STATE (GNM) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) ASST.YEAR - 2012-13 - 4 - AMBAMA TRUST [2013] 29 TAXMANN.COM 228 (GUJARAT), THE ASSESSEE SHOULD HAVE BEEN GRANTED THE REGISTRATION. FROM TH E SIDE OF THE REVENUE, LD.SR.DR MR.D.K.SINGH HAS SUPPORTED THE RE JECTION OF REGISTRATION. 4. WE HAVE HEARD THE SUBMISSIONS OF BOTH THE S IDES. WE HAVE BEEN INFORMED THAT A TRUST WAS CREATED ON 13.6.2011 VIDE A TRUST-DEED FOR IMPARTING EDUCATION BY RUNNING SCHOOL OF NURSING IN GUJARAT. WE HAVE BEEN INFORMED THAT BECAUSE OF THE NON-GRANT OF THE REGISTRATION THE DAY-TO-DAY FUNCTIONING OF THE TRUST HAS BEEN HAMPER ED. ON DUE CONSIDERATION OF THE IMPUGNED ORDER, WE ARE OF THE OPINION THAT THE SAME HAS BEEN REJECTED IN A SUMMARILY MANNER. WE HAVE A LSO NOTED THAT THE ASSESSEE-TRUST HAS NOT FULLY CO-OPERATED WITH THE I NVESTIGATION. UNDER THESE CIRCUMSTANCES, WE HEREBY DIRECT THE ASSESSEE- TRUST ON ONE HAND TO CO-OPERATE WITH THE REVENUE DEPARTMENT BY SUO MOTU APPEARING BEFORE THE CONCERNED OFFICER WITHIN 15 DAYS ON RECEIPT OF ORDER OF THIS TRIBUNAL ALONG WITH REQUISITE DOCUMENTS AND THE DETAILS AS R EQUIRED FOR THE PURPOSE OF REGISTRATION OF THE TRUST. ON THE OTHER HAND, W E ALSO REQUEST THE CONCERNED OFFICER TO PROVIDE A REASONABLE OPPORTUNI TY OF HEARING TO THE ASSESSEE-TRUST AND AFTER DUE VERIFICATION OF ALL TH E FACTS AS PRESCRIBED UNDER THE PROVISIONS OF THE ACT FOR THE PURPOSE OF REGISTRATION OF THE TRUST, AN ORDER SHALL BE PASSED AS PER LAW WITHIN A REASON ABLE TIME. IN THIS MANNER, THE ISSUE RAISED THROUGH THE GROUNDS OF AP PEAL IS HEREBY RESTORED BACK TO THE FILE OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS), HENCE MAY BE TREATED AS ALLOWED FOR STATISTICAL PUR POSES. ITA NO.2664/AHD /2012 ASSOCIATION OF SELF FINANCED INSTITUTION OF GUJARA T STATE (GNM) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) ASST.YEAR - 2012-13 - 5 - 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- ( ) ( ) ( ANIL CHATURVEDI ) ( M UKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JU DICIAL MEMBER AHMEDABAD; DATED 15/ 03 /2013 0.., .../ T.C. NAIR, SR. PS !'#$ %$' / COPY OF THE ORDER FORWARDED TO : 1. '% / THE APPELLANT 2. &''% / THE RESPONDENT. 3. 123 4 / CONCERNED CIT/DIRECTOR OF IT(EXEMPTIONS) 4. 4 () / THE CIT(A)-CONCERNED 5. 789 &23, 23., :1 / DR, ITAT, AHMEDABAD 6. 9;< =* / GUARD FILE. & / BY ORDER, '7 & //TRUE COPY// '/ () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION DATED 13.3.13(DICTATION-PAD 5 PAGES ATTACHED) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.3.13 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S15.3.13 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 15.3.13 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER