Darul Uloom Razviyah, JAMNAGAR V. The Income Tax Officer, Ward-3(1), JAMNAGAR

ITA 28/RJT/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0055 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 08-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 12A; 143(1); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: SHRI R. P. TOLANI, JUDICIAL MEMBER AND S H RI AMARJIT SINGH , ACCOUNTANT MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] DARUL ULOOM RAZVIYAH, MANDVI TOWER MASJID, JAMNAGAR, PAN: AAATD1690B (APPELLANT) VS THE ASSESSING OFFICER, WARD - 3(1), JAMNAGAR (RESPONDE NT) REVENUE BY : MRS USHA N. SHORTE , SR. D . R. ASSESSEE BY: S H RI T.D. JOSHI , A.R. DATE OF HEARING : 11 - 1 1 - 2 016 DATE OF PRONOUNCEMENT : 08 - 12 - 2 0 16 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THI S REVENUE S APPEAL FOR A.Y. 2011 - 12 , AR ISES FROM ORDER OF THE CIT(A), JAMNAGAR DATED 06 - 11 - 2013 IN APPEAL NO. CIT(A) / JAM/180/12 - 13/655 , IN PROCEEDINGS UNDER SECTION 143(1 ) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 28 / RJT /20 14 A SSESSMENT YEAR 2011 - 12 I.T.A NO. 28 /RJT /20 14 A.Y. 2011 - 12 PAGE NO DARUL ULOOM RAZVIYAH VS. ASSESSING OFFICER 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUND OF APPEAL: - THAT THE LD. C.I.T(A) HAS ERRED IN LAW AND ON FACTS BY UPHOLDING THE ORDER OF THE A.O. MAKING ADJUSTMENT IN THE TOTAL INCOME OF THE APPELLANT AND DISALLOWING THE BENEFITS OF SEC. 11 & 12 FOR NON - FULFILLMENT OF THE REQUIREMENT S SPECIFIED UNDER S. 12A. 3. THE ASSESSEE IS A PUBLIC RELIGIOUS TRUST. THE ASSESSEE HAS FILED RETURN OF INCOME ON 26 TH JUNE, 2011 DECLARING NIL INCOME. DURING THE COURSE OF PROCESSING OF RETURN OF I NCOME U/S. 143(1), THE ASSESSING OFFICER HAD DISALLOWED THE EXPENSES INCURRED BY THE ASSESSEE AS WELL AS DEDUCTION CLAIMED U/S. 11(1) AND 11(2) OF THE ACT AND ASSESSED TOTAL INCOME OF THE ASSESSEE AT RS. 24,21,854/ - . 4. AGGRIEVED AGAINST THE ORDER OF THE ASSESSING OFFICER, ASSESSE FILED APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX(A). THE LD. COMMISSIONER OF INCOME TAX(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE STATING THAT HE IS NOT AGREED WITH THE ASSESSEE S SUBMISSION AS THERE IS NO MISTAKE APPAR E NT FROM THE RECORD W HICH REQUIRE D RECTIFICATION. THE DECISION OF THE LD. COMMISSIONER OF INCOME TAX(A) IS REPRODUCED AS UNDER: - 6. I HAVE DULY CONSIDERED THE SUBMISSION OF THE APPELLANT AND ALSO GONE THROUGH THE FACTS OF THE CASE. 6.1 I DON'T AGREE WIT H THE APPELLANT'S SUBMISSION AS THERE IS NO MISTAKE APPARENT FROM RECORD WHICH REQUIRES RECTIFICATION. WHETHER THE TRUST IS REGISTERED UNDER SEC. 12A OF THE I.T. ACT OR NOT IS A MATTER OF VERIFICATION. HENCE THIS CANNOT BE SAID TO BE A MISTAKE APPARENT FRO M RECORD. 7. IN THE RESULT, APPEAL IS DISMISSED. I.T.A NO. 28 /RJT /20 14 A.Y. 2011 - 12 PAGE NO DARUL ULOOM RAZVIYAH VS. ASSESSING OFFICER 3 5. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, LEARNED COUNSEL OF THE ASSESSEE HAS CONTENDED THAT THE LD. COMMISSIONER OF INCOME TAX(A) HAS ERRED IN LAW AND IN FACTS IN UPHOLDING THE ORDE R OF THE ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT THE ASSESSING OFFICER HAD PROCESSED THE RETURN OF INCOME U/S. 143(1 ) (A) AND DISALLOWED THE EXPENSES INCURRED FOR THE PURPOSE OF THE TRU ST ON THE GROUND THAT ASSESSEE HAS NOT MENTIONED REGISTRA TION NUMBER OF THE TRUST. THE LEARNED COUNSEL FURTHER STATED THAT ASSESSEE BEING A PUBLIC RELIGIOUS TRUST HA D MADE AN APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT ON 6 TH FEBRUARY, 1984 AND THE ASSESSEE HAS NOT RECEIVED ANY REGISTRATION NO. TILL DATE. THE ASSESSEE HAS FILED RETURN OF INCOME CLAIMING DEDUCTION U/S. 11 AND 12 OF THE INCOME TAX ACT. DURING THE YEAR, THE INCOME OF THE TRUST WAS RS. 12,10,927/ - AND EXPENSES INCURRED WERE RS. 7 ,46,108/ - . THE ASSSESSEE HA D CLAIMED DEDUCTION U/S. 11(1) RS. 1 , 8 1, 639/ - AND U/S. 11(2) RS. 2,83,180/ - RESPECTIVELY WHICH RESULTED IN NIL INCOME OF THE ASSESSEE. THE ASSESSING OFFICER HAS DISALLOWED THE EXPENSES AS WELL AS DEDUCTION CLAIMED U/S. 11(1) AND 11(2) AND ASSESSED THE TOTAL INCOME AT RS. 2481854/ - WHICH W A S TWICE THE INCOME OF THE YEAR. ON THE OTHER HAND, LD. D.R. RELIED ON THE OTHER ORDER OF THE LD. COMMISSIONER OF INCOME TAX(A). 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THIS IS THE CASE WHERE THE RETURN OF THE AS SES SEE WAS PROCESSED U/S 143(1) BY THE ASSESSING OFFICER. THE ASSESSING OFFICER HA D DISALLOWED THE EXPENDITURE AND DEDUCTION CLAIMED BY THE ASSESSEE ON THE GROUND THAT REGISTRATION NO. WAS NOT MENTIONED IN I.T.A NO. 28 /RJT /20 14 A.Y. 2011 - 12 PAGE NO DARUL ULOOM RAZVIYAH VS. ASSESSING OFFICER 4 THE RETURN OF INCOME. WE HAVE ALSO CONSIDERED T HE SUBMISSION OF THE LEARNED COUNSEL THAT ASSESSEE HAD MADE AN APPLICAT ION FOR REGISTRATION U/S. 12A ON 16 TH FEBRUARY,1984 OF THE TRUST IN THE PRESCRIBED FORM. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAD BROUGHT TO THE KNOWLEDGE OF THE ASSESSING OFFICER THAT THE TRUST HAS NOT RECEIVED THE REGISTRATION NO. SO FAR FROM THE INCOME TAX AUTHORITY. WE HAVE PERUSED THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(A) AND NOTICED THAT NO INFORMATION AND CLARIFICATION WAS OBTAINED FROM THE REGI STRATION AUTHORITY ABOUT THE ACTUAL STATUS OF THE PROLONGED PENDING APPLICATION OF THE ASSESSEE FOR REGISTRATION . IN VIEW OF THE ABOVE MENTIONED FACTS AND CIRCUMSTANCES, WE RESTORE THIS MATTER TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX(A) FOR DEC IDING THIS MATTER AFRESH AFTER GETTING CLARIFICATION FROM THE REGISTRATION AUTHORITY & AFTER CONSIDERING THE LEGAL PROVISION &PROCEDURE RELATING TO REGISTRATION TO PASS SPEAKING ORDER AFTER PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE. 7. IN THE RE SULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 08 - 12 - 201 6 SD/ - SD/ - (R.P. TOLANI ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : D ATED 08 /12 /2016 I.T.A NO. 28 /RJT /20 14 A.Y. 2011 - 12 PAGE NO DARUL ULOOM RAZVIYAH VS. ASSESSING OFFICER 5 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT