Supath Rural Development Foundation, Himatnagar V. The DIT(Exemp.), Ahmedabad

ITA 2686/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2075 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-05-2013
• Assessment Year: misc
• Appeal Filed On: 29-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P VERMA SR D R
• Assessee Lawyers: PAURAV K MEHTA
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI, PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.2686/AHD/2012 SUPATH RURAL DEVELOPMENT FOUNDATION, 4 TH FLOOR, AVISHKAR BUILDING, B MOTIPURA CIRCLE, HIMATNAGAR [ PAN NO. AAPCS 8580H ] V/S . DIRECTOR OF INCOME TAX (EXEMPTIONS), AHMEDABAD 2 ND FLOOR, NATURE VIEW BUILDING, ASHRAM ROAD, AHMEDABAD 380009 / APPELLANT .. / RESPONDENT) /BY APPELLANT SHRI PAURAV K MEHTA, AR /BY RESPONDENT SHRI Y.P. VERMA, SR-DR /DATE OF HEARING 01-05-2013 /DATE OF PRONOUNCEMENT 10-05-2013 / // / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF DIRECTOR OF INCOME TAX (EXEMPTIONS), AHMEDABAD DATED 28-09-2012 . THE ASSESSEE HAS RAISED FOLLOWING EFFECTIVE GROUNDS:- THE LD. DIT HAS NOT CONSIDERED THE MATTER IN RIGHT SPIRIT AND ERRONEOUSLY / WRONGLY REJECTED THE CLAIM FOR REGISTRATION. 2. BRIEFLY STATED FACTS ARE THAT ASSESSEE-TRUST FIE LD AN APPLICATION FOR REGISTRATION OF TRUST U/S 12AA OF THE INCOME-TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) IN FORM NO. 10A UNDER RULE 11AA OF THE ACT. THIS APPLICATION ITA NO.2686/AHD/2012 SUPATH RURAL DEVELOPMENT FOUNDATION V. DIT (E) ABD PAGE 2 WAS REJECTED BY THE DIT(E). AGAINST THIS ORDER ASSE SSEE FILED PRESENT APPEAL BEFORE THE TRIBUNAL. 3. LD. AR OF THE ASSESSEE SUBMITTED THAT LD. DIT HA S NOT CONSIDERED THE SUBMISSION IN RIGHT PERSPECTIVE. HE SUBMITTED THAT LOAN IS GIVEN TO THE WEAKER AND POOR SECTION OF SOCIETY WHO ARE IN RURAL AND RE MOTE AREA FOR THEIR UPLIFTMENT FOR STARTING VERY SMALL BUSINESS FOR THE IR LIVELIHOOD. HE ALSO SUBMITTED THAT ANOTHER GROUND FOR REJECTION OF APPL ICATION WAS THAT LD. DIT OBSERVED THAT THERE WAS NO EVIDENCE OF COMMENCEMENT OF ACTIVITIES WHICH COULD BE VERIFIED. ON THE CONTRARY, LD. SR-DR OF TH E REVENUE SUPPORTED THE ORDER OF LD. DIT AND ARGUED THAT LD. DIT HAS RIGHTL Y REJECTED THE APPLICATION SINCE THE ASSESSEE COULD NOT PLACE ON RECORD ANY MA TERIAL IN SUPPORT OF ITS CLAIM. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT LD. DIT HAS OBSERVED IN HIS ORDER THAT THE ASSESSEE- TRUST MADE CASH DEPOSITS AND WITHDRAWAL, HOWEVER, N O DETAILS HAVE BEEN FURNISHED AS TO HOW THE CASH WITHDRAWALS HAVE BEEN UTILIZED TOWARDS OBJECT OF TRUST. SINCE NO PROOF OF SUCH ACTIVITY SUBMITTED TH AT THE CONDITION IS NOT SATISFIED. LD. DIT FURTHER OBSERVED THAT THERE IS N O COMMENCEMENT OF ACTIVITY WHICH CAN BE VERIFIED AND REJECTED THE APPLICATION OF ASSESSEE-TRUST. WE FIND THAT AS PER U/S. 12AA OF THE ACT THE DIRECTOR OF IN COME-TAX (EXEMPTION) IS EMPOWERED TO CALL FOR SUCH DOCUMENT OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINK NECESSARY IN ORDER TO SATIS FY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTI ON AND MAKE SUCH INQUIRIES AS HE DEEM NECESSARY IN THIS REGARD. LD. DIT REJECTED THE APPLICATION ON THE BASIS THAT NO DETAILS HAVE BEEN FURNISHED AS TO HOW THE CASH WITHDRAWALS HAVE BEEN UTILIZED TOWARDS THE OBJECT OF THE ASSESS EE-TRUST AND ALSO ON THE BASIS THAT THERE WAS NO EVIDENCE OF COMMENCEMENT OF ACTIVITIES WHICH COULD BE VERIFIED. THE CONTENTION OF LD. AR OF THE ASSESS EE IS THAT LOAN IS GIVEN TO UPLIFTMENT OF WEAKER SECTION OF SOCIETY AND IT IS A LSO SUBMITTED OF THE ITA NO.2686/AHD/2012 SUPATH RURAL DEVELOPMENT FOUNDATION V. DIT (E) ABD PAGE 3 ASSESSEE-TRUST THAT THERE ARE 259 SELF-HELP GROUPS COVERING 2,900 BENEFICIARIES. THE KYC ARE TAKEN FOR ALL THESE 2,90 0 BENEFICIARIES. WE FEEL THAT IN THE INTEREST OF JUSTICE THIS MATTER BE RESTORED BACK TO THE FILE OF LD. DIT FOR FRESH DECISION AFTER VERIFYING THE DETAILS GIVEN BY THE ASSESSEE-TRUST. NEEDLESS TO SAY, THAT LD. DIT SHALL GIVE SUFFICIENT OPPORTUN ITIES OF HEARING TO THE ASSESSEE-TRUST IN SUPPORT OF ITS CLAIM OF ACTIVITIE S BEING CARRIED OUT IN ACCORDANCE TO THE PROVISIONS OF 11AA OF THE ACT. TH IS GROUND OF ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES AS INDIC ATED ABOVE. 5. IN THE RESULT, ASSESSEES APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SD/- SD/- (PRAMAD.KUMAR) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP !' #- 10/05/2013 *+, - ../ ../ ../ ../ 0/ 0/ 0/ 0/ / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. ','.2 3 / CONCERNED CIT 4. 3- / CIT (A) 5. /56 ...2, .2 , *+, / DR, ITAT, AHMEDABAD 6. 69: ;< / GUARD FILE. BY ORDER/ , /TRUE COPY/ =/* '> .2 , *+, - STRENGTHEN PREPARATION & DELIVERY O F ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 02/05 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE NO 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 02/05 ITA NO.2686/AHD/2012 SUPATH RURAL DEVELOPMENT FOUNDATION V. DIT (E) ABD PAGE 4 4) DATE OF CORRECTION 06/05 5) DATE OF FURTHER CORRECTION - - 6) DATE OF INITIAL SIGN BY MEMBERS 06/05 7) ORDER UPLOADED ON 10/05 8) ORIGINAL DICTATION PAD-PART HAS BEEN ENCLOSED IN THE FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 10/05