Niraj Prabhu Thomas Educational and Charitable Trust, CHENNAI V. ITO, Nagercoil

ITA 32/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95909 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 08-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN C BHARAT
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , . ' #$ , % & BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ ITA NO.32/MDS/2015 M/S NIRAJ PRABHU THOMAS EDUCATIONAL AND CHARITABLE TRUST, 50A, AMBROSE STREET, PALACE ROAD, NAGERCOIL, KANYAKUMARI DISTRICT 629 001. PAN : AAATN 9700 C V. THE INCOME TAX OFFICER, WARD I(1), NAGERCOIL. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE +,)* - . / RESPONDENT BY : SHRI ARUN C. BHARAT, CIT ' - / / DATE OF HEARING : 11.08.2015 01 - / / DATE OF PRONOUNCEMENT: 19.08.2015 2 I.T.A. NO.32/MDS/15 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME TAX-I, MADURAI, DATED 09.10.2014. 2. THERE IS A DELAY OF 23 DAYS IN FILING THE APPEAL . THE LD.COUNSEL FOR THE ASSESSEE FILED A PETITION FOR CO NDONATION OF THE DELAY ALONG WITH AN AFFIDAVIT AND SUBMITTED THAT TH E ORDER PASSED BY THE CIT DATED 09.10.2014 WAS RECEIVED BY THE STAFF OF THE PETITIONER AND HANDED OVER TO THE CHARTERED ACCOUNTANT FOR ADV ICE. DUE TO THE ILLNESS OF THE CHARTERED ACCOUNTANT IN THE ENSU ING MONTHS, THE SAME WAS NOT ATTENDED TO. HE FURTHER SUBMITTED THA T DURING THE COURSE OF THE MEETING ARRANGED WITH THE COUNSEL ON RECORD IN THE MONTH OF OCTOBER, 2014, THE PETITIONER WAS INFORMED ABOUT THE PROVISIONS GOVERNING FURTHER APPEAL IN THE MATTER O F REJECTION OF THE REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX A CT, 1961 (IN SHORT 'THE ACT'). THEREAFTER, THE APPEAL WAS PREFE RRED IMMEDIATELY. THE LD.COUNSEL SUBMITTED THAT THE DELAY IN FILING T HE APPEAL WAS NOT INTENDED BY THE ASSESSEE AND IT WAS BEYOND ITS CONT ROL. 3 I.T.A. NO.32/MDS/15 3. ON THE CONTRARY, THE LD. DEPARTMENTAL REPRESENTA TIVE HAS NOT RAISED ANY SERIOUS OBJECTION. 4. WE FIND THAT THERE IS A SUFFICIENT REASON FOR NO T FILING THE APPEAL WITHIN THE STIPULATED PERIOD AND WE FIND THA T THIS IS A FIT CASE TO CONDONE THE DELAY. ACCORDINGLY, THE DELAY OF 23 DAYS IS CONDONED AND THE APPEAL IS ADMITTED. 5. SO FAR AS MERIT OF THE CASE IS CONCERNED, THE AS SESSEE-TRUST FILED THE APPLICATION FOR GRANT OF REGISTRATION UND ER SECTION 12AA OF THE ACT ON 13 TH MAY, 2014. AS PER THE COPY OF THE TRUST DEED APPENDED TO FORM NO.10A, THE TRUST HAS BEEN CREATED ON 15.09.2014. THE CIT-I, MADURAI, AFTER CALLING FOR THE INFORMATION FROM THE LOWER AUTHORITIES, REFUSED TO GRANT REGIST RATION UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT THE APP LICANT-TRUST DID NOT SUBMIT THE DETAILS CALLED FOR TO SUBSTANTIATE I TS CLAIM OF ACTIVITIES. ON PERUSAL OF RECORDS, IT IS FOUND TH AT THE TRUST FURNISHED THE DETAILS IN THE RETURN OF INCOME FOR ASSESSMENT YEAR 2010-11 ONLY. IT IS ALSO FOUND THAT THE TRUST NEITHER FILE D ACCOUNT DETAILS FOR THE FINANCIAL YEARS 2012-13 AND 2013-14 NOR THE ACT IVITY RECORDS OF THESE YEARS. HENCE, THE ACTIVITIES OF THE ASSESSEE DURING FINANCIAL YEARS 2012-13 AND 2013-14 COULD NOT BE VERIFIED. 4 I.T.A. NO.32/MDS/15 6. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER IN APPEAL BEFORE US. 7. THE LD.COUNSEL FOR THE ASSESSEE HAS SUBMITTED TH AT ALL THE DETAILS WERE AVAILABLE WITH THE LD. CIT AND PRAYED FOR ONE MORE OPPORTUNITY TO SUBSTANTIATE THE ASSESSEES CASE BEF ORE THE COMMISSIONER FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 8. ON THE CONTRARY, THE LD. D.R. RELIED ON THE ORDE R OF THE COMMISSIONER. 9. WE HAVE HEARD BOTH SIDES AND PERUSED THE RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ASSESSEE IS A TRUST CREATED ON 15.09.2004 AND MADE AN APPLICATION BEFORE THE CIT-I, MADURAI, FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COMMISSIONER, AFTER CALLING FOR THE RECORDS FROM TH E LOWER AUTHORITIES AND ALSO ON THE BASIS OF NOT FILING THE RETURN FOR THE FINANCIAL YEARS 2012-13 AND 2013-14, DENIED THE REG ISTRATION UNDER SECTION 12AA OF THE ACT. WE FIND THAT THE ASSESSEE HAS NOT FILED NECESSARY DETAILS BEFORE THE COMMISSIONER. IN THIS RESPECT, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE DETAILS ARE AVAILABLE WITH HIM AND ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO FILE BEFORE THE COMMISSIONER. WE FIND THAT IN THE 5 I.T.A. NO.32/MDS/15 INTEREST OF JUSTICE, ASSESSEE SHOULD BE GIVEN ONE M ORE OPPORTUNITY. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE C IT(APPEALS) AND WE DIRECT THE ASSESSEE TO FILE ALL NECESSARY DETAIL S AND THEREAFTER, THE COMMISSIONER IS DIRECTED TO DECIDE THE ISSUE DE NOVO IN ACCORDANCE WITH LAW. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 19 TH AUGUST, 2015 AT CHENNAI. SD/- SD/- ( . ) ( . ' #$ ) (A. MOHAN ALANKAMONY) (V. DURGA RAO) /ACCOUNTANT MEMBER % /JUDICIAL MEMBER /CHENNAI, > /DATED, THE 19 TH AUGUST, 2015. KRI. ? - +%/@A BA1/ /COPY TO: 1. )* /APPELLANT 2. +,)* /RESPONDENT 3. ' C/ /CIT, MADURAI 4. A D# +%/% /DR 5. #$ E /GF.