RISE INFINITY FOUNDATION, MUMBAI V. CIT (EXEMPTIONS), MUMBAI

ITA 2736/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0394 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 29-05-2017
• Assessment Year: 2016-2017
• Appeal Filed On: 13-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH E, MU MBAI BEFORE SHRI P.K. BANSAL, VICE-PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 2736/MUM/2016 (ASSESSMENT YEAR- 2016-17) RISE INFINITY FOUNDATION, A/14/21/22, MANISH NAGAR, J.P. ROAD, ANDHERI (W), MUMBAI-400053 PAN: AACTR5551M VS. CIT (E), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI NITESH JOSHI- ADVOCATE REVENUE BY : SHRI ANAND MOHAN (CIT- DR) DATE OF HEARING : 12.06.2017 DATE OF PRONOUNCEMENT : 16.06.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY ASSESSEE U/S. 253 OF THE INCOME-TAX ACT (THE ACT) IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPT IONS) [THE CIT(E)], MUMBAI DATED 18.02.2016 FOR THE ASSESSMENT YEAR 2016-17. T HOUGH THE ASSESSEE HAS RAISED AS MANY AS FIVE GROUNDS OF APPEAL, HOWEVER, AS PER OUR CONSIDERED OPINION, THE SOLE GROUND OF APPEAL IS IF THE LD. CIT(E) ERRE D IN REJECTING THE APPLICATION OF ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST, REGISTERED WITH CHARITY COMMISSIONER, MUMBAI VIDE REGISTRATION NO. E31052 ( MUM) DATED 17.03.2015. THE ASSESSEE FILED AN APPLICATION IN FORM NO. 10A O N 10.08.2015 FOR REGISTRATION U/S 12A OF THE ACT. THE ON APPLICATION OF THE ASSES SEE, THE LD. CIT(E) REQUIRED ITA NO.273 6/M/2016- RISE INFINITY FOUNDATION 2 CERTAIN INFORMATION/DETAILS VIDE NOTICE DATED 15.09 .2015. THE ASSESSEE FURNISHED THE NECESSARY INFORMATION AND DOCUMENT TO LD. CIT(E ). THE LD CIT(E) AFTER EXAMINING THE DETAILS ISSUED AS SHOW-CAUSE NOTICE D ATED 21.12.2015 REQUIRING MORE INFORMATION ABOUT THE OBJECT AND THE ACTIVITI ES OF THE ASSESSEE . THE ASSESSEE FILED ITS REPLY DATED 04.01.2015 EXPLAINING THE OBJ ECT AND THE ACTIVITIES CARRIED BY THEM. AFTER CONSIDERING THE SUBMISSION OF THE ASSES SEE AND THE VARIOUS DOCUMENTS SHOWING THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE, THE LD. CIT(E) REJECTED THE APPLICATION OF ASSESSEE HOLDING THAT THE ACTIVITIES OF ASSESSEE IS PURELY COMMERCIAL ON CONTRACT BASIS ON BEHALF OF BRITISH COUNCIL. THE LD CIT(E) FURTHER OBSERVED THAT THE ACTIVITIES CONDUCTED BY ASSESSEE ARE NOT CHARIT ABLE IN NATURE AND DOES NOT FALL WITHIN THE DEFINITION OF SECTION 2(15) OF THE ACT V IDE ORDER DATED 18.02.2016. THUS, AGGRIEVED BY THE ORDER OF LD. CIT(E), THE ASSESSEE FILED THE PRESENT APPEAL BEFORE US. 3. WE HAVE HEARD SH. NITESH JOSHI LD. COUNSEL/ AR FOR THE ASSESSEE AND LD. DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE AN D PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. AR OF THE ASSESSEE ARG UED THAT AS PER THE PROCEDURE FOR REGISTRATION U/S 12A OF THE ACT, THE LD. CIT(E) WHI LE CONSIDERING THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A IS REQUIRE TO EX AMINE WHETHER THE APPLICATION IS MADE IN ACCORDANCE WITH REQUIREMENT OF THAT SECTION R.W. RULE 17A AND THE REQUIREMENT PRESCRIBED IN FORM NO. 10A HAS BEEN PRO PERLY COMPLIED WITH OR NOT? THE LD. CIT(E) MUST EXAMINE THE OBJECT OF THE TRUS T AND THE GENUINENESS OF ITS ACTIVITIES ONLY. IT WAS FURTHER ARGUED THAT WHETHER THE TRUST FULFILL THE CONDITION PRESCRIBED IN SECTION 2(15) OF THE ACT IS NOT TO BE SEEN AT THE TIME OF REGISTRATION, ITA NO.273 6/M/2016- RISE INFINITY FOUNDATION 3 WHICH CAN BE SUBJECT MATTER OF ASSESSMENT AFTER REG ISTRATION OF THE TRUST OR THE INSTITUTION AT THE TIME OF THE ASSESSMENT. ON THE O THER HAND, THE LD. DR FOR THE REVENUE SUPPORTED THE ORDER OF AUTHORITIES BELOW. I T WAS ARGUED THAT LD. CIT(E) PASSED THE DETAILED ORDER AFTER GIVING FULL OPPORTU NITY TO THE ASSESSEE. THE ASSESSEE FAILED TO PROVE ITS GENUINENESS OF ITS ACTIVITIES C ARRIED DURING THE RELEVANT FINANCIAL YEAR. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF THE PART IES AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. FOR THE PURPOSE OF REG ISTRATION U/S 12AA OF THE ACT, THE LD. CIT(E) HAS TO SATISFY HIMSELF ABOUT THE OBJ ECT OF THE TRUST AND ITS GENUINENESS OF ITS ACTIVITIES. AS PER OUR VIEW THE LD. CIT(E) IS NOT ENTITLED TO SEE THAT THE ACTIVITIES CONDUCTED BY ASSESSEE DOES NOT FALL WITHIN THE DEFINITION OF SECTION 2(15) OF THE ACT AT THE TIME OF REGISTRATIO N OF TRUST OR INSTITUTION. WE HAVE NOTICED THAT THE LD. CIT(E) HAS NOT GIVEN ANY FINDI NG ABOUT THE OBJECT OF THE TRUST AND THE GENUINENESS OF ITS ACTIVITIES RATHER OBJECT ED THAT ACTIVITIES OF THE TRUST IS COMMERCIAL. THE HONBLE PUNJAB & HARYANA HIGH COURT IN CASE OF CIT V/S SPRING DALE EDUCATIONAL SOCIETY (2011) 16 TAXMAN.COM HELD THAT WHILE EXAMINING THE APPLICATION FOR SEEKING REGISTRATION U/S 12AA, MANN ER OF APPLICATION OF FUND OF TRUST DO NOT FALL WITHIN THE PURVIEW OF COMMISSIONE R. THE COMMISSIONER SHOULD ONLY SATISFY HIMSELF ABOUT THE GENUINENESS OF AIMS AND OBJECT OF THE TRUST OR INSTITUTION AND GENUINENESS OF ITS ACTIVITIES AS EN UMERATED IN CLAUSE-(B) OF SUB- SECTION 1 OF SECTION 12AA OF THE ACT. THUS, WE ARE OF THE CONSIDERED VIEW THAT THE ORDER PASSED BY LD. CIT(E) SUFFER FROM INFIRMITY AN D NOT IN ACCORDANCE WITH THE TWIN CONDITION AS ENUMERATED U/S 12AA(1)(B) OF THE ACT. HENCE, WE DEEM IT ITA NO.273 6/M/2016- RISE INFINITY FOUNDATION 4 APPROPRIATE TO RESTORE THE MATTER TO THE FILE OF LD . CIT(E) TO RE-CONSIDER THE MATTER AFRESH AND PASS THE ORDER IN ACCORDANCE WITH LAW. N EEDLESS TO SAY THAT THE LD. CIT(E) SHALL GRANT SUFFICIENT OPPORTUNITY TO THE AS SESSEE BEFORE PASSING THE ORDER AFRESH. CONSIDERING THE FACT THAT THE ASSESSEE APPL IED FOR REGISTRATION IN THE YEAR 2015, WE DEEM IT APPROPRIATE TO GIVEN THE DIRECTION TO LD. CIT(E) TO MAKE ALL ENDEAVOR TO PASS THE ORDER WITHIN SIX MONTH OF RECE IPT OF THIS ORDER. THE ASSESSEE IS ALSO GIVEN LIBERTY TO FILE ANY OTHER DOCUMENTS O R INFORMATION WHICH MAY BE PROPER FOR CONSIDERATION OF THE APPLICATION OF THE ASSESSEE. WITH THESE OBSERVATION THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AL LOWED 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH DAY OF JUNE 2017. SD/- SD/- (P.K. BANSAL) (PAWAN SINGH) VICE-PRESIDENT JUDICIAL MEMBER MUMBAI; DATED 16/06/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT.REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/