Rarha Bhumi, Purulia V. Commissioner of Income-tax- Asansol, Asansol

ITA 2689/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4578 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 02-12-2013
• Court: TRIBUNAL
• Department Lawyers: NIRAJ KUMAR
• Assessee Lawyers: P K RAY
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI N. V. VASUDEVAN, JM & SHRI M. BALAGAN ESH, AM] I.T.A NOS.2689 & 2690/KOL/2013 ASSESSMENT YEARS: ----- RARHA BHUMI VS. COMMISSIONER OF INCOME-TAX, (PAN: AABAP1080B) ASANSOL ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 08.06.2016 DATE OF PRONOUNCEMENT: 08.07.2016 FOR THE APPELLANT: SHRI P. K. RAY, ADVOCATE FOR THE RESPONDENT: SHRI NIRAJ KUMAR, CIT, DR ORDER PER SHRI M. BALAGANESH, AM: BOTH THESE APPEALS BY ASSESSEE ARE ARISING OUT OF S EPARATE ORDERS PASSED BY CIT, ASANSOL U/S. 12AA AND 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE M. NOS. CIT/ASL/12A/2013-14/4419 -21 & CIT/SL/80G(5)(VI)/2013- 14/4416-18 BOTH DATED 26.09.2013. 2. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSEE I S A TRUST REGISTERED UNDER THE ADDL. REGISTRAR OF ASSURANCE-III, KOLKATA, WEST BENGAL IN BOOK IV ON 28.01.2013. THE TRUST CAME INTO EXISTENCE W.E.F. 01.01.2013 IN ORDE R TO CARRY ON EDUCATIONAL, CHARITABLE AND PHILANTHROPIC ACTIVITIES AMONGST OTHERS. THE AP PLICATIONS IN FORM NO. 10A AND FORM NO. 10G WERE PREFERRED BY THE ASSESSEE ON 25.0 3.2013 BEFORE THE COMMISSIONER OF INCOME-TAX, ASANSOL FOR SEEKING REGISTRATION U/S . 12AA AND EXEMPTION U/S. 80G OF THE ACT. THE LD. CIT, ASANSOL DISPOSED OF THE APPL ICATION U/S. 12AA OF THE ACT BY OBSERVING AS UNDER: THE SECRETARY OF RARHA BHUMI, FILED APPLICATION FO R REGISTRATION U/S. 12A OF THE I. T. ACT, 1961 IN FORM NO. 10A ON 25.03.2013. THE REPORT WAS CALLED FOR FROM ACIT, CIR-3, ASANSOL ALONG WITH INSPECTORS REPORT ON 30.03.2013 . THE SAID REPORT WAS SUBMITTED BY THE ACIT, CIR-3, ASANSOL WITH COMMENT MAY NOT BE A LLOWED ON 19.09.2013. THE APPLICATION FOR REGISTRATION IS HEREBY REJECTED DUE TO THE FOLLOWING DISCREPANCIES:- THE ASSESSEE HAS NOT FILED ANY AUDITED ACCOUNTS ALO NG WITH THE APPLICATION & DURING THE ENQUIRY MADE BY THE INSPECTOR ON 12.09.2013. IN AB SENCE OF THE SAME THE REGISTRATION U/S. 12A IS NOT GRANTED. 2 ITA NOS.2689 & 2690/K/2013 RARHA BHUMI THE LD. CIT, ASANSOL ALSO DISPOSED OF THE APPLICATI ON U/S. 80G OF THE ACT BY OBSERVING AS UNDER: THE SECRETARY OF RARHA BHUMI, FILED APPLICATION FO R EXEMPTION U/S. 80G(VI) OF THE I. T. ACT, 1961 IN FORM NO. 10G ON 25.03.2013. THE REPOR T WAS CALLED FOR FROM ACIT, CIR-3, ASANSOL ALONG WITH INSPECTORS REPORT ON 30.03.2013 . THE SAID REPORT WAS SUBMITTED BY THE ACIT, CIR-3, ASANSOL WITH COMMENT MAY NOT BE A LLOWED ON 19.09.2013. THE APPLICATION FOR EXEMPTION IS HEREBY REJECTED DUE TO THE FOLLOWING DISCREPANCIES:- THE ASSESSEE HAS NOT FILED ANY AUDITED ACCOUNTS ALO NG WITH THE APPLICATION & DURING THE ENQUIRY MADE BY THE INSPECTOR ON 12.09.2013. IN AB SENCE OF THE SAME THE EXEMPTION U/S.80G(VI) IS NOT GRANTED. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE US ON THE F OLLOWING COMMON GROUNDS: 1) THAT THE IMPUGNED ORDER OF THE LD. COMMISSIONER OF INCOME TAX, ASANSOL IS ARBITRARY, ILLEGAL AND IN EXCESS OF HIS JURISDICTION WHILE ISS UING THE ORDER. 2) THAT THE LD. COMMISSIONER OF INCOME TAX, ASANSOL HAD NOT CONSIDERED THE GRAVITY & DEPTH OF THE CASES. 3) THAT THE LD. COMMISSIONER OF INCOME TAX, ASANSOL HAD NOT TAKEN ANY DOCUMENTARY EVIDENCE IN SUPPORT HIS ORDER. 4) THAT THE LD. COMMISSIONER OF INCOME TAX, ASANSOL HAD NOT CONSIDERED THE OBJECT CLAUSE OF DEED OF TRUST. 5) THAT THE LD. COMMISSIONER OF INCOME TAX, ASANSOL REFUSED THE APPLICATION DUE TO NON SUBMISSION OF AUDITED ACCOUNTS OF THE TRUST, WHICH IS AN ARBITRARY REQUIREMENT FOR GRANTING REGISTRATION AND EXEMPTION ALTHOUGH THE TR UST CREATED ON 01.01.2013. 6) THAT THE LD. COMMISSIONER OF INCOME TAX, ASANSOL HAD NOT CONSIDERED THE PROVISIONS OF THE SECTION 80 G (5) OF THE INCOME TAX ACT, 1961 RE AD WITH THE RULE 11AA (3) OF THE INCOME TAX. THEREFORE, YOUR APPELLANT PRAYS TO THE HON'BLE MEMB ERS OF THE APPELLATE TRIBUNAL FOR REGISTRATION AND EXEMPTION AGAINST DECISION MADE BY THE LD. COMM ISSIONER OF INCOME TAX, ASANSOL. 3. THE LD. AR ARGUED THAT REGISTRATION WAS NOT GRA NTED BY THE LD. CIT, ASANSOL DUE TO NON-SUBMISSION OF AUDITED ACCOUNTS. HE STATED T HAT THE TRUST HAD JUST COMMENCED AND NO AUDITED ACCOUNTS WERE DRAWN FOR A SHORT PERI OD COMMENCING FROM 01.01.2013. HE ARGUED THAT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST WAS NOT DISPUTED BY THE LD. CIT, ASANSOL. INSTEAD THE LD. CIT, ASANSOL MERELY RELIED ON THE REPORT OF ACIT, WHO HAD MADE A COMMENT THAT REGISTRATION MAY NOT BE ALL OWED TO THE ASSESSEE TRUST. BASED ON THIS, THE LD. CIT, ASANSOL REJECTED THE APPLICAT ION WITHOUT ANY INDEPENDENT APPLICATION OF MIND. THE LD. DR STATED THAT THE LD . CIT, ASANSOL HAD PASSED A CRYPTIC 3 ITA NOS.2689 & 2690/K/2013 RARHA BHUMI ORDER WITHOUT GIVING ANY FINDING ON THE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES OF THE TRUST AND PRAYED FOR SETTING ASID E TO LD. CIT FOR FRESH ADJUDICATION. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROU GH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE ARE IN AGREEMENT WITH THE LD. DR THAT LD. CIT HAD PASSED A VERY CRYPTIC ORDER BY MERELY PLACING RELIANCE ON THE REPORT OF A CIT, WHO HAD NOT RECOMMENDED FOR GRANTING OF REGISTRATION U/S. 12AA AND EXEMPTION U/ S. 80G OF THE ACT. THIS SHOWS THAT THE LD. CIT HAD NOT INDEPENDENTLY APPLIED HIS MIND ON THE APPLICATION PREFERRED BY THE ASSESSEE. WE ALSO FIND THAT NO FINDING HAS BEEN GI VEN BY THE LD. CIT WITH REGARD TO THE GENUINENESS OF THE ACTIVITY OF THE TRUST AND AS TO WHETHER THE OBJECTS STATED IN THE TRUST DEED ARE CHARITABLE IN NATURE. IN THESE CIRCUMSTAN CES, WE DEEM IT FIT AND PROPER TO SET ASIDE BOTH THESE APPEALS TO THE FILE OF THE LD. CIT , ASANSOL TO DECIDE THE APPLICATIONS OF THE ASSESSEE AFRESH, IN ACCORDANCE WITH LAW. THE A SSESSEE IS ALSO DIRECTED TO SUBMIT THE AUDITED ACCOUNTS FROM THE INCEPTION OF THE TRUST BE FORE THE LD. CIT. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 08.07.201 6 SD/- SD/- (N. V. VASUDEVAN) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED : 8TH JULY, 2016 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT RARHA BHUMI, VILLAGE BAGDEGA, P.O. MAJH IHIRA, POLICE STATION MANBAZAR, DIST. PURULIA, PIN- 723128, WEST BENGAL 2 RESPONDENT CIT, ASANSOL. 3 . THE CIT(A), ASANSOL 4. 5. ACIT , ASANSOL DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .