M/s Travancore Foundation, Trichur V. CIT, Kottayam

ITA 322/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58296 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 14-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: K I JOHN
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

1 ITA NO.322/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 322/COCH/2010 (ASSESSMENT YEAR 2009-10) TRAVANCORE FOUNDATION VS COMMISSIONER OF INCOME-T AX, CHAMPAKARA PO, KARUKACHAL KOTTAYAM PAN : AABTT7189C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.I. JOHN RESPONDENT BY : SMT. VIJAYAPRABHA DATE OF HEARING : 29-02-2012 DATE OF PRONOUNCEMENT : 02-03-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE ADMINISTRATIVE COMMISSIONER, KOTTAYAM REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT AS CHARITABLE INSTITUTION. 2. SHRI K.I. JOHN, THE LD.REPRESENTATIVE FOR THE ASS ESSEE SUBMITTED THAT THE ASSESSEE TRUST WAS CONSTITUTED IN PURSUANCE TO A DE ED DATED 17-09-2009. THE ASSESSEE APPLIED FOR REGISTRATION U/S 12A ON 15-10-20 09 BEFORE THE COMMISSIONER OF INCOME-TAX FOR REGISTRATION U/S 12A OF THE ACT. ACCORDING TO THE LD.REPRESENTATIVE, THE MAIN OBJECT OF THE TRUST IS TO PROVIDE FOOD, SHELTER, CLOTHING AND OTHER FACILITIES FOR SENIOR CITIZEN AND FOR THO SE NEEDING ASSISTANCE OR 2 ITA NO.322/COCH/2010 INDEPENDENT LIVING, ETC. THE APPLICATION OF THE AS SESSEE WAS REJECTED BY THE COMMISSIONER ON THE GROUND THAT THE ASSESSEE HAS NO T RECOGNIZED ANY ACTIVITY. THE COMMISSIONER HAS ALSO FOUND THAT THE ASSESSEE D OES NOT EVEN POSSESS LAND, BUILDING, ETC. FOR CARRYING OUT ITS CHARITABLE ACTI VITY. ACCORDING TO THE LD.REPRESENTATIVE, THE ASSESSEE HAS TAKEN LAND ON LE ASE AND IN FACT HAS COMMENCED ITS ACTIVITY. THE DOCUMENTS FILED BEFORE THE COMMISSIONER TO SHOW THAT THE ACTIVITY OF THE TRUST WAS COMMENCED, HAS N OT BEEN CONSIDERED BY THE COMMISSIONER. THE ASSESSEE HAS FILED BEFORE THIS T RIBUNAL THE COPIES OF THE AGREEMENT FOR SALE AND THE PLAN FOR PROPOSED BUILDI NG, COPIES OF RECEIPT OF TAX PAID TO LOCAL PANCHAYAT TO SHOW THAT THE ACTIVITY W AS ALREADY COMMENCED. 3. ON THE CONTRARY, SMT. VIJAYAPRABHA, THE LD.DR SU BMITTED THAT THE ASSESSEE HAS NOT COMMENCED ITS ACTIVITY. UNLESS THE ASSESSE E COMMENCES ITS ACTIVITY, THE GENUINENESS OF THE TRUST CANNOT BE ASCERTAINED BY T HE COMMISSIONER. IN THE ABSENCE OF ANY MATERIAL, ACCORDING TO THE LD.REPRES ENTATIVE, THE COMMISSIONER HAS RIGHTLY REJECTED THE CLAIM OF THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AS RIGHTLY SUBMI TTED BY THE LD.REPRESENTATIVE FOR THE ASSESSEE, THE COMMISSIONER REJECTED THE APP LICATION OF THE ASSESSEE ON THE GROUND THAT THE ACTIVITY OF THE ASSESSEE WAS NO T COMMENCED. THE FACT REMAINS IS THAT THE TRUST WAS ESTABLISHED ON 17-09-20 09 AND THE APPLICATION FOR REGISTRATION WAS FILED ON 15-10-2009. THE ASSESSEE E NTERED INTO AN AGREEMENT FOR SALE ON 31-10-2009. THE COPY OF THE AGREEMENT FO R SALE IS AVAILABLE ON RECORD. THIS WAS NOT CONSIDERED BY THE COMMISSIONER WHILE R EJECTING THE APPLICATION. THEREFORE, THIS TRIBUNAL IS OF THE OPINION THAT THE MATTER NEEDS TO BE RECONSIDERED BY THE COMMISSIONER IN THE LIGHT OF TH E AGREEMENT FOR SALE AND 3 ITA NO.322/COCH/2010 OTHER DOCUMENT FILED BEFORE THIS TRIBUNAL. ACCORDI NGLY, THE ORDERS OF THE COMMISSIONER IS SET AIDE AND THE ISSUE OF REGISTRAT ION U/S 12A IS REMITTED BACK TO THE FILE OF THE COMMISSIONER. THE COMMISSIONER SHA LL RE-CONSIDER THE ISSUE OF REGISTRATION U/S 12A AFRESH IN THE LIGHT OF DOCUMEN TS FILED BEFORE THIS TRIBUNAL BY THE ASSESSEE AND THEREAFTER DECIDE THE SAME IN ACCO RDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 02 ND DAY OF MARCH, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 02 ND MARCH, 2012 PK/- COPY TO: 1. TRAVANCORE FOUNDATION, CHAMPAKARA PO, KARUKACHAL 2. THE COMMISSIONER OF INCOME-TAX, KOTTAYAM 3. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH