Naitik Jigar Eductional Trust, Botad V. The DIT.,(Exemp.), Ahmedabad

ITA 2827/AHD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76666 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2014
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 21-04-2014
• Assessment Year: misc
• Appeal Filed On: 13-12-2012
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD 0 00 0 0 00 0 , , , , !' !' !' !' # # # #0 00 0 0 00 0 $# $# $# $#, , , , % % % % & & & & BEFORE SHRI D.K. TYAGI, JUDICIAL MEMBER & SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 2827/AHD/2012 NAITIK JIGAR EDUCATIONAL TRUST 236, RATNADEEP COMPLEX, HIRA BAZAR, AVEDA GATE, BOTAD-364710. PAN: AABTN6409P V/S DIRECTOR OF INCOME TAX (EXEMPTION), AHMEDABAD. (APPELLANT)/ '( (RESPONDENT)/ ) '( APPELLANT BY/ '( * + : SH. RAJIV SAHAI WITH SH. A.L. THAKKAR, AR RESPONDENT BY/ ) '( * + : SHRI O.P. VAISHNAV, DR -#!. * /% / DATE OF HEARING : 21-04-2014 012 * /% / DATE OF PRONOUNCEMENT : 25-04-2014 ( 3 3 3 3 )/ ORDER PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTION), AHMEDABAD DA TED 23.10.2012 BY RAISING THE FOLLOWING GROUNDS OF APPE AL: 1. THE LEARNED DIRECTOR OF INCOME TAX(EXEMPTION) HAS ERRED IN PASSING AN EX-PARTE ORDER REJECTING THE REGISTRATION APPLICATION FILED BY THE APPELLANT TRUST AND REFUSING THE REGISTRATION TO THE TRUST U/S. 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 WITHOUT GIVING A REASONABLE OPPORTUNITY OF BEING ITA NO. 2827/AHD/2012 NAITIK JIGAR EDU. TRUST VS..DIT(EXEM.),AHD - 2 - HEARD TO THE APPELLANT HENCE THE SAME IS ILLEGAL AND BAD IN LAW. 2. THE LEARNED DIRECTOR OF INCOME TAX(EXEMPTION) HAS ERRED IN REFUSING THE REGISTRATION OF THE TRUST ONLY ON THE GROUND THAT THE TRUST HAS NOT YET COMMENCED ANY ACTIVITIES. 2. THE FIRST GROUND OF APPEAL OF THE ASSESSEE IS D IRECTED AGAINST THE ORDER OF DIRECTOR OF INCOME TAX(EXEMPTI ON) THAT THE ASSESSEE WAS NOT ALLOWED REASONABLE OPPORTUNITY OF HEARING BEFORE PASSING EX-PARTE ORDER AND REJECTING THE REGISTRATI ON APPLICATION FILED BY THE ASSESSEE. 3. THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE D IRECTOR OF INCOME TAX(EXEMPTION) VIDE LETTER DATED 01.10.20 12 REQUIRED THE ASSESSEE TO FURNISH DETAILED NOTE ON THE ACTIVI TIES CARRIED OUT BY THE TRUST AS WELL AS SUBMISSION OF CERTIFIED ENGLIS H VERSION OF TRUST DEED/M.O.A., COPY OF BANK ACCOUNT, COPY OF AUDITED ACCOUNT IN CASE TRUST HAD COMPLETED ONE OR MORE YEARS, DETAILS OF T RUSTEES WITH PAN AND CIRCLE/WARD WHERE TRUSTEES WERE ASSESSED, DOCUM ENTARY EVIDENCE OF CHARITABLE ACTIVITIES CARRIED OUT BY TH E TRUST AND EVIDENCES OF AMOUNTS SETTLED/TRANSFERRED TO TRUST. THEREAFTER, THE DIRECTOR OF INCOME TAX(EXEMPTION) HAD REJECTED THE APPLICATION FOR REGISTRATION OF THE TRUST ON THE GROUND THAT HE WAS UNABLE TO ARRIVE AT THE SATISFACTION OF THE GENUINENESS OF THE ACTIV ITIES OF THE TRUST AS THE ASSESSEE HAD NOT COMMENCED ANY ACTIVITIES. 4. IT WAS THE ARGUMENT OF THE LD. AR OF THE ASSESS EE THAT AT THE TIME OF GRANTING REGISTRATION OF THE TRUST, THE CIT HAS TO SATISFY HIMSELF WHETHER THE OBJECTS OF THE TRUST AR E CHARITABLE AND THE ACTIVITIES OF THE TRUST ARE GENUINE. HE SUBMIT TED THAT IN THE ITA NO. 2827/AHD/2012 NAITIK JIGAR EDU. TRUST VS..DIT(EXEM.),AHD - 3 - ORDER OF THE LD. DIRECTOR OF INCOME TAX(EXEMPTION), THERE IS NO FINDING TO THE EFFECT THAT EITHER THE OBJECTS OF TH E TRUST ARE NOT CHARITABLE OR THE ACTIVITIES OF THE TRUST ARE NOT G ENUINE. HE HAS REJECTED THE APPLICATION FOR REGISTRATION OF THE AS SESSEE TRUST SOLELY ON THE GROUND THAT THE TRUST HAS NOT YET COMMENCED ANY ACTIVITIES. HE, THEREFORE, SUBMITTED THAT THE ORDER OF THE DIRE CTOR OF INCOME TAX(EXEMPTION) SHOULD BE REVERSED AND REGISTRATION SHOULD BE GRANTED TO THE TRUST. 5. ON THE OTHER HAND, THE LD. DR FULLY SUPPORTED T HE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTION). HE SUBMI TTED THAT IN THE GROUND OF APPEAL, THE GRIEVANCE OF THE ASSESSEE IS THAT HE WAS NOT ALLOWED REASONABLE OPPORTUNITY OF HEARING BEFOR E THE APPLICATION FOR REGISTRATION OF THE TRUST WAS REJEC TED BY THE LD. DIRECTOR OF INCOME TAX(EXEMPTION). IN THE CIRCUMST ANCES, IT WAS HIS SUBMISSION THAT THE MATTER SHOULD BE RESTORED B ACK TO THE FILE OF THE LD. DIRECTOR OF INCOME TAX(EXEMPTION) FOR DE NO VO ADJUDICATION OF THE ISSUE. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE MATERIAL ON RECORD, WE FIND THAT THE LD. DIRECTOR O F INCOME TAX(EXEMPTION) CALLED FOR DETAILS AND DOCUMENTS VID E LETTER DATED 01.10.2012 AND THEREAFTER, BEFORE REJECTING THE APP LICATION FOR REGISTRATION OF THE TRUST, DID NOT ALLOW ANY OTHER OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE BEFORE HIM. THEREFORE, IN OUR CONSIDERED OPINION, IT WOULD BE IN THE INTEREST OF JUSTICE TO RESTORE THE MATTER BACK TO THE FILE OF THE DIRECTOR OF INCO ME TAX(EXEMPTION) FOR DE NOVO ADJUDICATION OF THE ISSU E OF GRANTING REGISTRATION TO THE ASSESSEE AFTER ALLOWING REASONA BLE AND PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND ALSO BY PASSING ITA NO. 2827/AHD/2012 NAITIK JIGAR EDU. TRUST VS..DIT(EXEM.),AHD - 4 - SPEAKING ORDER ON THE SUBMISSIONS AND DOCUMENTS FIL ED BY THE ASSESSEE. WE ORDER ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 25 TH OF APRIL, 2014 AT AHMEDABAD. SD/- SD/- (D.K. TYAGI) JUDICIAL MEMBER (N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 25/04/2014 GHANSHYAM MAURYA, SR. P.S. TRUE COPY 3 * )/4 542/ 3 * )/4 542/ 3 * )/4 542/ 3 * )/4 542// COPY OF THE ORDER FORWARDED TO : 1. '( / THE APPELLANT 2. )'( / THE RESPONDENT. 3. '' / -7 / CONCERNED CIT 4. -7 ( ) / THE CIT(A)-III, AHMEDABAD 5. 4!: )/# , , / DR, ITAT, AHMEDABAD 6. ; <. / GUARD FILE. 3#- 3#- 3#- 3#- / BY ORDER, = == =/ // / '> '> '> '> ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD