Patna Sahib Charitable Education Trust, Mohali V. CIT II, Chandigarh

ITA 3/CHANDI/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2328 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 03-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.3 /CHD/2013 (UNDER SECTION 12AA) PATNA SAHIB CHARITABLE VS. THE C.I.T.-II, EDUCATION TRUST, CHANDIGARH. MOHALI. PAN: AABAP7125K (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI RAVI SHANKAR B.M.MONGA ROHIT KAURA RESPONDENT BY : SMT.JYOTI KUMARI, CIT DR DATE OF HEARING : 17.04.2013 DATE OF PRONOUNCEMENT : 29.04.2012 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX-II, CHANDIGARH DATED 27. 11.2012 AGAINST THE ORDER PASSED U/S 12AA OF INCOME TAX ACT, 1961 ( IN SHORT THE ACT). 2. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINS T NON GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON 9.5.2012. THE COMMISSIONER OF INCOME TAX. CHANDIGA RH CALLED FOR A REPORT FROM THE CONCERNED ASSESSING OFFICER AS WE LL AS THE JCIT OF INCOME TAX, RANGE-VI, MOHALI IN ORDER TO VERIFY THE ACTIVITIES OF THE TRUST AND GENUINENESS OF THE OBJECTIONS. BO TH THE ASSESSING OFFICER AND THE JT.COMMISSIONER OF INCOME TAX RECOM MENDED NON- GRANT OF REGISTRATION TO THE TRUST. THE ASSESSEE W AS AFFORDED AN 2 OPPORTUNITY OF HEARING BY THE COMMISSIONER OF INCOM E TAX AND THE COPIES OF THE REPORT OF THE ASSESSING OFFICER AND J CIT WERE ALSO FORWARDED TO THE ASSESSEE FOR EXPLANATION. THE LEA RNED COUNSEL FOR THE ASSESSEE TRUST ATTENDED THE PROCEEDINGS AND FIL ED WRITTEN SUBMISSIONS EXPLAINING THAT THE TRUST WAS REGISTERE D WITH THE SOCIETIES REGISTRATION ACT DATED 15.12.2010. THE R EGISTERED OFFICE OF THE ASSESSEE WAS AT HOUSE NO.656, PHASE-II, MOHA LI AND THE WORKS WERE STATED TO BE AT VILLAGE BANTHU, P.O. BHA GWANPUR, DISTT. VAISHALI, PATNA, BIHAR. THE COMMISSIONER OF INCOME TAX APPRISED THE ASSESSEE WITH THE REPORT OF THE ASSESSING OFFIC ER WHERE NONE ATTENDED THE PROCEEDINGS BEFORE THE ASSESSING OFFIC ER AND THE SPOT ENQUIRIES WERE MADE THROUGH INSPECTOR OF INCOME TAX , WHO REPORTED THAT THE ADDRESS WAS THAT OF RESIDENTIAL HOUSE AND NO CHARITABLE ACTIVITIES WERE BEING CARRIED OUT FROM THE SAID HOU SE. THE COMMISSIONER OF INCOME TAX FURTHER OBSERVED THAT TH E SAID FACTS COULD NOT BE REBUTTED/ADDRESSED BY THE ASSESSEE IN ITS REPLY FILED ON 5.11.2012. THE COMMISSIONER OF INCOME TAX THUS HEL D AS UNDER: 4. FROM THE FACTS REPORTED BY THE A.O., IT IS NOTED THAT THE REGISTERED OFFICE OF THE TRUST DOES NOT EXIST AT THE ADDRESS MENTIONED IN ITS APPLICATION. NO CHARITABLE ACTIVITIES OF THE TRUST WERE FOUND TO HAVE BEEN CARRIED OUT FROM THE ADDRESS GIVEN BY THE APPLICANT TRUST. IN THIS WAY, THE VERY EXISTENCE OF THE TRUST BECOMES DOUBTFUL. IN VIEW OF THESE FACTS, THE APPLICANT TRUST IS NOT ELIGIBLE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. THE APPLICATION OF THE TRUST FOR REGISTRATION U/S 12AA OF THE ACT IS, THEREFORE, REJECTED. 4. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT TH AT EXTENSIVE WRITTEN SUBMISSIONS DATED 5.11.2012 WERE FILED BEFO RE THE COMMISSIONER OF INCOME TAX WHICH ARE PLACED AT PAGES 30 TO 35 OF THE PAPER BOOK ALONGWITH ANNEXURE I.E. CERTIFICATE OF REGISTRATION OF THE SOCIETY WITH REGISTRAR OF SOCIETIES, TITLE DEEDS OF LAND PURCHAS ED IN PATNA FOR WHICH LAND USER CERTIFICATE WAS ISSUED BY BIHAR GOVERNMEN T AND AFFILIATION WITH ALL INDIA COUNCIL FOR TECHNICAL EDUCATION ALON WITH COPY OF SANCTION LETTER ISSUED BY STATE BANK OF INDIA SANCT IONING THE LOAN TO 3 BUILD EDUCATIONAL INSTITUTE AT PATNA AND ALSO TH E LIST OF TEACHING STAFF AND NON-TEACHING STAFF PLACED AT PAGES 36 TO 81 OF THE PAPER BOOK. THE LEARNED A.R. FOR THE ASSESSEE FAIRLY ADMITTED THAT THE PROCEEDINGS BEFORE THE ASSESSING OFFICER WERE NOT ATTENDED BY THE ASSE SSEE BECAUSE OF UNAVOIDABLE REASONS. 5. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF THE COMMISSIONER OF INCOME TAX. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST REFUSAL TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT. FROM THE PERUSAL OF THE DOCUMENTS FILED BY THE ASSESSEE IT TRANSPIRES THAT BESIDES THE REGISTE RED OFFICE AT MOHALI THE ASSESSEE IS PLACING RELIANCE ON CARRYING ON THE ACT IVITIES IN DISTT. VAISHALI, PATNA. HOWEVER, WE FIND THAT THE ASSESSE E FAILED TO APPEAR BEFORE THE ASSESSING OFFICER AND ALL THE DOCUMENTS HAVING BEEN REFERRED TO BY THE LEARNED A.R. FOR THE ASSESSEE WERE NOT PR ODUCED BEFORE THE LOWER AUTHORITIES AND THUS A REPORT BY BOTH THE ASS ESSING OFFICER AND JCIT TO THE EFFECT THAT THE ASSESSEE TRUST WAS NOT IN EXISTENCE. HOWEVER, IN THE INTEREST OF JUSTICE, WE DEEM IT FIT TO RESTO RE THE ISSUE BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX TO ADJUDICAT E THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT DE-NO VO AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE A ND AFTER CONSIDERING THE EVIDENCE/DOCUMENTS AVAILABLE WITH THE ASSESSEE TO ESTABLISH ITS CASE OF THE AIMS AND OBJECTS OF THE TRUST AND ALSO THE G ENUINENESS OF THE ACTIVITIES OF THE SAID TRUST. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE AND APPEAR BEFORE THE AUTHORITIES IN ORDER TO FACIL ITATE THE REVENUE TO COMPLETE THE ENQUIRY AND INVESTIGATION IN RELAT ION TO GRANT OF 4 REGISTRATION UNDER SECTION 12AA OF THE ACT. THUS THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF APRIL, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 29 TH APRIL, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH