Sahkar Manav Seva Trust, Valsad V. The CIT, Valsad

ITA 2835/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5823 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-05-2017
• Assessment Year: 2014-2015
• Appeal Filed On: 21-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIBHA BHALLA
• Section: 12A; 12AA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 2835/AHD/2014 / A.Y. 2014-2015 SAHKAR MANAV SEVA TRUST, RAHILA APARTMENT, NANA TAIWAD, VALSAD-396001 PAN : AALTS 0560 J VS COMMISSIONER OF INCOME-TAX, VALSAD / (APPELLANT) / (RESPONDENT) BY ASSESSEE : MR. MEHUL SHAH, AR BY REVENUE : MS. VIBHA BHALLA, SR DR / DATE OF HEARING : 16/05/2017 /DATE OF PRONOUNCEMENT: 18/05/2017 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER :- THIS ASSESSEES APPEAL ARISES FROM THE CIT, VALSAD S ORDER DATED 28.08.2014 PASSED IN CASE NO.CIT/VLS/TECH/12A/SMST/2 014- 15/1824 REJECTING ITS APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. 2. WE NOTICE THAT THE ABOVE ORDER UNDER CHALLENGE R EADS AS FOLLOWS:- 2. THE ASSESSEE IS A TRUST AND HAD FILED AN APPLIC ATION FOR REGISTRATION U/S 12A OF THE I.T. ACT, 1961, ON 28.02.2014. IN OR DER TO VERIFY THE GENUINENESS OF THE TRUST AND ITS ACTIVITIES, THE AS SESSING OFFICER HAD REQUIRED THE TRUST TO FURNISH SPECIFIC DETAILS FOR VERIFICATION. HOWEVER, THE ASSESSING OFFICER HAS REPORTED THAT THE TRUST H AS NOT MADE ANY COMPLIANCE TO HIS LETTER DATED 21.03.2014, 18.06.20 14 AND 22.08.2014. KEEPING THIS NON-COMPLIANCE IN VIEW, THE ASSESSING OFFICER HAS NOT RECOMMENDED FOR THE REGISTRATION OF THE TRUST U/S.1 2AA OF THE INCOME TAX ACT. ITA NO. 2835/AHD/2014 SAHKAR MANAV SEVA TRUST VS. CIT A.Y : 2014-15 - 2 - 3. OPPORTUNITY WAS ALSO GRANTED TO THE TRUST VIDE TH IS OFFICE LETTER NO.CIT/VLS/12A/SMST/2014-15, DATED 22.08.2014. THE SHOW CAUSE NOTICE WAS ISSUED TO THE TRUST REQUESTING IT TO FURN ISH SPECIFIC INFORMATION ABOUT THE ACTIVITIES OF THE TRUST AND O THER DETAILS ON OR BEFORE 28.08.2014, FAILING IN WHICH THE APPLICATION FOR REGISTRATION WOULD BE DECIDED ON MERITS. THE NOTICE WAS SERVED TO THE TRUST THROUGH NOTICE SERVER ON 25.08.2014. THE TRUST HAS NOT FURNISHED ANY REPLY TO THIS OFFICE TILL DATE. 4. IT IS EVIDENT FROM THE ABOVE THAT IN SPITE OF SE VERAL OPPORTUNITIES, THE TRUST HAS FAILED TO FURNISH NECE SSARY INFORMATION REQUIRED FOR THE VERIFICATION OF ITS ACTIVITIES. UN DER THE CIRCUMSTANCES IT IS NOT POSSIBLE TO ASCERTAIN THE OBJECTS OF THE TRUST AND THE GENUINENESS OF ITS ACTIVITIES. THEREFORE, THE APPLI CATION OF THE TRUST DATED 28.02.2014 MADE FOR REGISTRATION U/S. 12AA OF THE I.T. ACT IS HEREBY REJECTED. 3. HEARD BOTH THE PARTIES. CASE FILE PERUSED. IT E MERGES FROM THE ABOVE EXTRACTED PORTION THAT THE LD. CIT HAS REJECT ED ASSESSEES APPLICATION SEEKING THE IMPUGNED REGISTRATION AFTER QUOTING ITS FAILURE TO FILE THE ABOVE REQUISITE INFORMATION REG ARDING ITS ACTIVITIES AND OTHER DETAILS. IT ADMITTEDLY FAILED TO PRODUCE THE SAME ON RECORD. LD. COUNSEL REPRESENTING ASSESSEE SUBMITS THAT THE ASSESSEE DOES HAVE IN ITS POSSESSION ALL THE SAID DETAILS FOR BEI NG PART OF THE PAPER- BOOK AND IT IS VERY MUCH READY TO EXPLAIN THE RELEV ANT DETAILS BEFORE THE LD. CIT. WE FIND FROM THE ABOVE STATED PAPER-B OOK THAT THE ASSESSEE HAS COMPILED ITS CERTIFICATE OF REGISTRATI ON, TRUSTEES DETAILS, TRUSTS OBJECTS, CONSTITUTION, AGREEMENTS, TRUSTEES CERTIFICATE REGARDING TRUSTS ACTIVITIES, AUDIT REPORT ALONG WITH AUDITED FINANCIAL STATEMENTS FOR ASSESSMENT YEAR 2012-13 AND 2013-14 AS FOLLOWED BY LEDGE ACCOUNT OF LEGAL EXPENSES FOR ASSESSMENT YEAR 2012- 13. LD. CIT HAS ADMITTEDLY NOT BEEN ABLE TO EXAMINE/VERIFY CORRECTN ESS THEREOF. WE ITA NO. 2835/AHD/2014 SAHKAR MANAV SEVA TRUST VS. CIT A.Y : 2014-15 - 3 - THUS DEEM IT APPROPRIATE IN THE LARGER INTEREST OF JUSTICE THAT THE CIT NEEDS TO PASS A DETAILED ORDER KEEPING IN MIND THE ABOVE RELEVANT EVIDENCE AS PER LAW AFTER AFFORDING ADEQUATE OPPORT UNITY OF HEARING TO ASSESSEE. IT IS MADE CLEAR THAT THE ASSESSEE/APP LICANT WOULD BE ENTITLED FOR FILING ADDITIONAL SUBMISSIONS, IF ANY, IN THE COURSE OF CONSEQUENTIAL PROCEEDINGS. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 18 TH MAY , 201 7 AT AHMEDABAD SD/- SD/- (PRADIP KUMAR KEDIA) (S.S. GODAR A) ACCOUNTANT MEMBER JU DICIAL MEMBER AHMEDABAD, DATED 18/05/2017 *BT ! '! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ' $ / CONCERNED CIT 4. $ ( ) / THE CIT(A) 5. ' **' , ' , / DR, ITAT, AHMEDABAD 6. / / GUARD FILE. / BY ORDER, TRUE COPY / (DY./ASSTT.REGISTRAR) ' (, / ITAT, AHMEDABAD