Basanti Devi and Shri Chakkan Garg Education Trust, New Delhi V. DIT(E), New Delhi

ITA 3015/DEL/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1109 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-09-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 01-10-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J P JARGID
• Assessee Lawyers: R K KAPOOR
• Keywords: Condonation of delay
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `A : NEW DELHI) BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER ITA NO.3015/DEL./2008 (ASSESSMENT YEAR : 2001-02) SMT. BASANTI DEVI & VS. DIT(EXEMPTION), SH. CHAKKAN GARG EDUCATION TRUST, NEW DELHI B-1/9, HAUZ KHAS, NEW DELHI. (PAN/GIR NO.ABCTS1341L) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. KAPOOR, CA REVENUE BY : SHRI J.P. JARGID, SR.DR ORDER PER K.D. RANJAN: AM THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 2001 -02 ARISES OUT OF THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), NEW DEL HI AGAINST THE ORDER PASSED U/S 12A(1)(B) READ WITH SECTION 12A OF THE I.T. ACT, 19 61 ON APPLICATION FILED FOR REGISTRATION ON 31.5.2007. 2. THE FACTS OF THE CASE STATED IN BRIEF ARE THAT SMT. BASANTI DEVI & SH. CHAKKAN GARG EDUCATION TRUST WAS CREATED ON 8.2.2001. THE ASSESSEE FILED APPLICATION IN FORM NO.10A ON 19.3.2002 FOR REGISTRATION U/S 12AA OF TH E ACT. THIS APPLICATION WAS REJECTED BECAUSE OF THE FAILURE ON THE PART OF THE ASSESSEE IN FURNISHING THE DETAILS/REPLIES CALLED BY THE DIT(E). SUBSEQUENTLY, THE ASSESSEE FILED A FRESH APPLICATION ON 28.11.2003 AND REGISTRATION WAS ACCORDINGLY GRANTED W.E.F. 1 ST DAY OF FINANCIAL YEAR IN WHICH APPLICATION WAS FILED I.E. 1.4.2003. THE DIT(E) FURTHER NOTED THAT ASSESSEE DID NOT FILE ANY APPLICATION FOR CONDONATION OF APPEAL AT THE TIME O F MAKING APPLICATION FOR REGISTRATION U/S 12A OF THE ACT, THE REQUEST AT THAT TIME WAS AN AFTER THOUGHT TO AVOID THE RIGOUR OF LAW AND TO COVER ITS DEFAULT UNDER THE ACT WHEREIN THE ASSESSEE COULD SEEK CONDONATION OF DELAY BY MAKING THE APPLICATION BEFORE DIT(E), ONCE IT WAS ALREADY REGISTERED U/S 12A. THE DIT(E) ACCORDINGLY REJECTED THE REQUEST FOR CON DONATION OF DELAY. I.T.A. NO.3015/DEL./2008 (A.Y. : 2001-02) 2 3. BEFORE US, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE FILED APPLICATION FOR REGISTRATION U/S 12A ON 19.3.2002, WHEREIN REQUEST FOR CONDONATION OF DELAY WAS MADE. THE DIT(E) ASKED FOR CERTAIN DETAI LS BUT SINCE THE ASSESSEE WAS NOT ABLE TO FILE THE REPLY REGARDING GENUINENESS OF TRUST; I TS OBJECT; AND ACTIVITIES, THE REGISTRATION U/S 12A WAS REFUSED VIDE ORDER DATED 26/27.09.2002. THE ASSESSEE MOVED A FRESH APPLICATION ON 28.11.2003 AND REGISTRATION U/S 12AA (1)(B) WAS GRANTED W.E.F. 1.4.2003 INSTEAD OF 8.2.2001 WHEN THE TRUST WAS REGISTERED. MEANWHILE, ON 18.5.2007, A PRESS NOTIFICATION APPEARED IN THE NEWSPAPER ACCORDING TO WHICH THE ASSESSEE FILED FRESH APPLICATION FOR SEEKING REGISTRATION W.E.F. 8.2.200 1 INSTEAD OF 1.4.2003. BUT, THE DIT(E) VIDE HIS ORDER DATED 22.11.2007 DISMISSED THE APPLI CATION FOR REGISTRATION TO BE ALLOWED FROM 8.2.2001. HE HAD SUBMITTED THAT SINCE ASSESSE E HAD FILED APPLICATION FOR REGISTRATION IN RESPONSE TO NOTICE PUBLISHED IN THE NEWSPAPER, T HE DIT(E) SHOULD HAVE ALLOWED THE REGISTRATION FROM THE DATE ON WHICH THE TRUST WAS C REATED. ON THE OTHER HAND, LD.SR.DR SUPPORTED THE ORDER OF THE DIT(E). 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. IT IS AN UNDISPUTED FACT THAT FIRST APPLICATION FIL ED BY THE ASSESSEE FOR REGISTRATION U/S 12A DATED 19.3.2002 WAS REJECTED BY DIT(E) VIDE ORDER D ATED 26/27.09.2002 AS THE CLARIFICATION ON GENUINENESS OF TRUST AND ITS OBJEC T AND ACTIVITIES COULD NOT BE VERIFIED. NO APPEAL AGAINST THIS ORDER WAS FILED BEFORE ITAT. T HEREFORE, THE ORDER PASSED BY THE DIT(E) DATED 26/27.09.2002 BECAME FINAL. SUBSEQUEN TLY, THE ASSESSEE VIDE APPLICATION DATED 28.11.2003 FILED A FRESH APPLICATION WHEREIN NO REQUEST FOR CONDONATION OF DELAY WAS MADE. THE DIT(E) ALLOWED THE REGISTRATION ON THE BASIS OF THIS APPLICATION VIDE ORDER DATED 17.5.2004 ALLOWING THE REGISTRATION W.E .F. 1.4.2003. THE ASSESSEE ACCEPTED THE REGISTRATION GRANTED BY THE DIT(E) AS NO APPEAL WAS FILED BY THE ASSESSEE AGAINST THIS ORDER SEEKING REGISTRATION FROM 8.2.2001. THEREAFT ER, A PRESS RELEASE APPEARED IN NEWSPAPER STATING THEREIN THAT REGISTRATION GRANTED FOR APPLICATIONS FILED U/S 12A ON THE ACT OR AFTER 1 ST DAY OF JUNE, 2007 WILL ENTITLE THE APPLICANT TO CL AIM EXEMPTION OF INCOME U/S 11 & 12 OF THE I.T. ACT FROM THE FINANCIAL YEAR IN WHICH THE APPLICATION WAS MADE. IT WAS ALSO STATED IN THE SAID NOTICE THAT IF THE ASSE SSEE HAD NOT FILED APPLICATION FOR REGISTRATION WITHIN ONE YEAR OF CREATION FOR ESTABL ISHMENT AND WANT TO AVAIL OF THE I.T.A. NO.3015/DEL./2008 (A.Y. : 2001-02) 3 EXEMPTION FOR EARLIER YEARS, THE APPLICATION WAS TO BE FILED BEFORE 1 ST DAY OF JUNE, 2007. THIS NOTICE APPEARED IN THE NEWSPAPER PERTAINS TO T HE REGISTRATION GRANTED FOR THE APPLICANT WHO FILED APPLICATION U/S 12A ON OR AFTER 1 ST DAY OF JUNE, 2007. THE LANGUAGE OF THE PUBLIC NOTICE IS PLAIN AND CLEAR. IN THE C ASE BEFORE US, THE ASSESSEE FILED THE APPLICATION FOR THE FIRST TIME ON 19.3.2002 AND, TH EREFORE, THE NOTIFICATION APPEARED IN THE NEWSPAPER IS NOT APPLICABLE TO THE FACTS IN THE CAS E OF THE ASSESSEE . SINCE ASSESSEE HAD NOT FILED ANY APPEAL AGAINST THE REGISTRATION ORDER DATED 27.9.2002 AND NO REQUEST FOR CONDONATION OF DELAY WAS MADE IN APPLICATION DATED 28.11.2003 ON THE BASIS OF WHICH REGISTRATION WAS GRANTED TO THE ASSESSEE W.E.F. 1.4 .2003 VIDE ORDER DATED 17.5.2004, THE MATTER THUS BECOME FINAL. SINCE THE ORDER PASSED B Y DIT(E) DATED 27.9.2002 HAS BECOME FINAL, THE CONDONATION OF DELAY IN SEEKING REGISTRA TION CANNOT BE GRANTED SUBSEQUENTLY WHEN REGISTRATION HAS BEEN GRANTED ON THE BASIS OF APPLICATION WHEREIN NO SUCH CONDONATION OF THE DELAY WAS SOUGHT FOR AND REGISTR ATION HAS BEEN ALLOWED FROM THE 1 ST DAY OF APRIL TO THE YEAR IN WHICH THE APPLICATION W AS FILED. ACCORDINGLY, IN OUR CONSIDERED OPINION, THE DIT(E) WAS JUSTIFIED IN REJ ECTING THE GRANT OF REGISTRATION WITH EFFECT FROM THE DATE OF CREATION OF THE TRUST. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 6. ORDER PRONOUNCED IN OPEN COURT ON 30/10/2009. (I.P. BANSAL) (K.D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: OCT. 30 , 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE DIT(E)- NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT I.T.A. NO.3015/DEL./2008 (A.Y. : 2001-02) 4