PURBHOODAS JEEVANDAS CHARITIES, MUMBAI V. DIT (E), MUMBAI

ITA 3004/MUM/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 5031 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 04-09-2013
• Assessment Year: misc
• Appeal Filed On: 15-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NEERAJ SETH IZRFKHZ DH LS
• Section: 80G; 12A; 12

Judgement Text

PURBHOODAS JEEVANDAS CHARITIES - 1 - VK;DJ VIHYH; VF/KDJ.K LH U;K;IHB EQACBZ ESAA IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUM BAI JH VKJ- DS- XQIRK] U;KF;D LNL; ,OA JH JKTSUNZ FLAG YS[KK LNL; DS LE{K BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER AND SHRI RAJ ENDRA SINGH ACCOUNTANT MEMBER VK;DJ VIHY LA[;K /ITA NO.3004/MUM/2010 FU/KKZJ.K O'KZ @ ASSESSMENT YEAR: - PURBHOODAS JEEVANDAS CHARITIES. 1103, STOCK EXCHANGE TOWER, DALAL STREET, FORT MUMBAI 400 012. CUKE@ VS. DIRECTOR OF INCOME TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI 400 012. PAN:- AAATP4123F VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VIHYKFKHZ DH VKSJ LS @ APPELLANT BY SHRI NEERAJ SETH IZR;FKHZ DH VKSJ LS @ RESPONDENT BY SHRI A.C. TEJPAL VKNS'K@ VKNS'K@ VKNS'K@ VKNS'K@ ORDER PER RAJENDRA SINGH, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 8.2.2010 OF DIRECTOR OF INCOME TAX (EXEMPTION) REFU SING TO GRANT CERTIFICATE U/S 80G OF THE INCOME TAX ACT. THE ASSESSEE DISPUTE D THE DECISION OF DIT(E) TO REJECT THE APPLICATION FILED BY THE ASSES SEE U/S 80G OF THE INCOME TAX ACT. 2. THE FACTS IN BRIEF ARE THAT THE ASSESSEE TRUST W AS ALREADY REGISTERED U/S 12 A OF THE INCOME TAX ACT DATED 29.9.1975. THE ASSESSEE FILED APPLICATION U/S 80G ON 20 TH MAY 2009. DIT(E) ON EXAMINATION OF DETAILS NOTED THAT THE CHARITY COMMISSIONER HAD PASSED THE ORDER U/S 50A(I) OF THE LQUOKBZ DH RKJH[K @ DATE OF HEARING 4-09-2013 ?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT 13-09-2013 PURBHOODAS JEEVANDAS CHARITIES - 2 - BPT ACT IN WHICH THERE WERE AMENDMENTS TO THE SCHEM E OF THE TRUST AND INSERTION OF NEW OBJECTS OF THE TRUST WERE APPROVED . DIT(E) OBSERVED THAT SINCE THE OBJECTS WERE AMENDED, FRESH REGISTRATION U/S 12A WAS REQUIRED TO BE OBTAINED BY THE ASSESSEE. HE, THEREFORE, ASKED T HE ASSESSEE TO EXPLAIN AS TO WHY THE APPLICATION U/S 80G SHOULD NOT BE REJECT ED. AS PER THE DIT(E) NO SUBMISSIONS HAD BEEN MADE BY THE ASSESSEE. HE, T HEREFORE, PROCEEDED TO DECIDE THE APPLICATION ON MERIT. HE REFERRED TO JUDGMENT OF HONBLE HIGH COURT OF MADRAS IN CASE OF SAKTHI CHARITIES. V. COMMISSIONER OF INCOME-TAX (149 ITR 624) TO POINT OUT THAT OBJECTS OF THE TRUS T CAN BE AMENDED ONLY WITH THE APPROVAL OF HIGH COURT. HE ALSO REFERRED T O THE JUDGMENT OF HONBLE HIGH COURT OF ALLAHABAD IN CASE OF ALLAHABA D AGRICULTURAL INSTITUTE AND ANOTHER VS. UNION OF INDIA ( 291 ITR 116), IN W HICH IT HAS BEEN HELD THAT ONCE THE OBJECTS ON THE BASIS OF WHICH REGISTR ATION HAD BEEN GRANTED ARE ALTERED AFTER SUCH GRANT OF REGISTRATION, THE VERY FOUNDATION OF THE REGISTRATION HAVING BEEN REMOVED BY THE VOLUNTARY A CT OF THE ASSESSEE, THE REGISTRATION WOULD NOT SURVIVE. DIT(E), THEREFORE, HELD THAT IN THE ABSENCE OF FRESH REGISTRATION U/S 12A, EXEMPTION U/S 80G COULD NOT BE GRANTED. HE, THEREFORE, REJECTED THE APPLICATION, AGGRIEVED BY W HICH THE ASSESSEE IS IN APPEAL BEFORE TRIBUNAL. 3. BEFORE US, LEARNED AR FOR THE ASSESSEE SUBMITTED THAT DIT(E) BEFORE DECIDING THE MATTER HAD NOT GIVEN PROPER OPPORTUNIT Y OF HEARING TO THE ASSESSEE. IT WAS, THEREFORE, REQUESTED THAT THE MAT TER MAY BE SENT BACK TO DIT(E) FOR FRESH ORDER AFTER ALLOWING PROPER OPPORT UNITY OF HEARING TO THE ASSESSEE. IT WAS ALSO SUBMITTED THAT THE CASE OF TH E ASSESSEE WAS COVERED BY THE DECISION OF MUMBAI BENCH OF TRIBUNAL IN CASE OF MEHTA JIVRAJ MAKANDAS & PAREKH GOVINDAJI KALYANJI MODH VANIK VID YARTHI PUBLIC TRUST VS. DIT(E) IN (ITA 2212/MUM2010). THE LEARNED DR HA D NO OBJECTION IF THE MATTER WAS SENT BACK TO DIT(E). 4. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE M ATTER CAREFULLY. THE DISPUTE IS REGARDING GRANT OF CERTIFICATE U/S 8 0G OF THE INCOME TAX ACT. THE ASSESSEE TRUST WAS ALREADY REGISTERED U/S 12A OF THE INCOME TAX ACT. ON 29-9-1975. SUBSEQUENTLY, IT APPEARS, THAT THERE WERE CHANGES IN THE PURBHOODAS JEEVANDAS CHARITIES - 3 - OBJECTS IN VIEW OF THE ORDER PASSED BY THE CHARITY COMMISSIONER. DIT(E), THEREFORE, ISSUED A SHOW-CAUSE NOTICE TO THE ASSES SEE TO EXPLAIN THE MATTER AS TO WHY THE APPLICATION SHOULD NOT BE REJECTED AN D THE ASSESSEE HAD SOUGHT ADJOURNMENT TO 19.12.2009. IT APPEARS FROM T HE ORDER THAT THERE WERE NO RESPONSES FROM THE SIDE OF THE ASSESSEE AND THE DIT(E) ALSO HAD NOT GIVEN ANY FINAL OPPORTUNITY BEFORE REJECTING TH E APPLICATION. THE ASSESSEE HAS ALSO PLACED BEFORE US A COPY OF THE OR DER DATED 11.3.2011 OF THE TRIBUNAL IN CASE OF MEHTA JIVRAJ MAKANDAS & PAR EKH GOVINDAJI KALYANJI MODH VANIK VIDYARTHI PUBLIC TRUST VS. DIT(E) (SUPRA ), WHICH ACCORDING TO IT, IS RELEVANT FOR DECIDING THE ISSUE. WE, THEREFO RE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE SET ASIDE THE ORDER O F DIT(E) AND RESTORE THE MATTER BACK TO HIM FOR PASSING AFRESH ORDER AFTER N ECESSARY EXAMINATION AND AFTER ALLOWING OPPORTUNITY OF HEARING TO THE AS SESSEE. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 13 -9-2013 SD/- SD/- (R.K. GUPTA) (RAJENDRA SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER SKS SR. P.S, MUMBAI DATED .9.2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI