Association for Welfare Activities and Rural Education, Trichy V. ACIT Company Circle II, TRICHY

ITA 345/CHNY/2008

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5007 (ITAT-CHENNAI)
• Duration Of Justice: 10 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 20-02-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAILENDRA MAMIDI
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH, CHENNAI . , . , BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.345/CHNY/2008 M/S. ASSOCIATION FOR WELFARE ACTIVITIES AND RURAL EDUCATION, C/O. S. SRIDHAR, ADVOCATE, NEW NO.14, OLD NO.82, FLAT NO.5, 1 ST AVENUE, INDIRA NAGAR, ADYAR, CHENNAI 600 020. VS THE ACIT, COMPANY CIRCLE II, TRICHY PAN: AAATA8331N ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE / RESPONDENT BY : SHRI SAILENDRA MAMIDI, PCIT /DATE OF HEARING : 22.01.2019 /DATE OF PRONOUNCEMENT : 31.01.2019 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE HONBLE MADRAS HIGH COURT VIDE ITS ORDER DATED 21.12.2018 IN TAX CASE (APPEAL) NO.622 OF 2009 HAS CONDONED THE DELAY OF 429 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL BY THE ASSESSEE AND DIRECTED THE TRIBUNAL TO ENTERTAIN THE APPEAL AND DECIDE THE MATTER ON MERITS. EARLIER THE TRIBUNAL HAD REJECTED THE CONDONATION PETITION FILED BY THE ASSESSEE AND DISMISSED THE 2 ITA NO.345/CHNY/2008 APPEAL OF THE ASSESSEE VIDE ITS ORDER DATED 13.01.2009 IN ITA NO.345/MDS/2008. IN THE PRESENT CIRCUMSTANCE, RESPECTFULLY FOLLOWING THE DIRECTION OF THE HONBLE MADRAS HIGH COURT, WE HEREBY PROCEED TO HEAR THE APPEAL ON MERITS AND ADJUDICATE THE ISSUES RAISED BY THE ASSESSEE. 2. THE APPEAL RAISED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX -1, TIRUCHIRAPPALLI DATED 19.10.2006 IN C.NO.6162E(3)/06-07/CIT- I/TRY. 3. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS APPEAL HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT HAS ERRED IN NOT GRANTING REGISTRATION U/S.12AA OF THE ACT SINCE ITS INCEPTION. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST REGISTERED ON 22.12.1999 WITH THE MAIN OBJECTS SOCIAL DEVELOPMENT, EDUCATION, MEDICAL RELIEF, ETC., THEREAFTER THE ASSESSEE TRUST FILED AN APPLICATION IN FORM 10A ON 06.04.2006 SEEKING REGISTRATION U/S.12AA OF THE ACT BEFORE THE LD.CIT. THE LD.CIT GRANTED REGISTRATION TO THE ASSESSEE W.E.F. 01.04.2006. 3 ITA NO.345/CHNY/2008 AGGRIEVED BY THE ORDER OF THE LD.CIT THE ASSESSEE IS NOW BEFORE US WITH THE REQUEST TO GRANT REGISTRATION U/S.12AA OF THE ACT FROM THE DATE OF ITS INCEPTION I.E., FROM 22.12.1999 ONWARDS. 4. BEFORE US THE LD.AR MADE THE FOLLOWING SUBMISSIONS:- (I) THE TRUST HAS BEEN FOCUSING ITS ACTIVITIES TOWARDS CONTROL AND PREVENTION OF DISEASE AMONG THE HIV/AIDS VULNERABLE COMMUNITIES SINCE 2000 INCLUDING THEIR REHABILITATION, RE-INTEGRATION, CARE & SUPPORT INFORMATION SERVICES, LIVELIHOOD PROMOTIONS, GIVING FREE MEDICAL CARE, WELFARE AND REHABILITATION, CARE & SUPPORT AND PROVIDING LIVELIHOOD FOR INFLICTED PATIENTS AND RUNNING HOMES & SUPPORT FOR INFANTS OF SUCH AIDS/HIV INFLICTED PATIENTS. (II) THE AUTHOR OF THE TRUST HAS BEEN CONTINUOUSLY SCOUTING FOR PROCUREMENT OF FUNDS FOR CONDUCTING THE ACTIVITIES OF THE TRUST AND DUE TO HIS ILL HEALTH; HE COULD NOT FILE THE PAPERS BEFORE THE INCOME TAX DEPARTMENT FOR OBTAINING REGISTRATION U/S.12AA OF THE ACT FROM THE INCEPTION OF THE TRUST. IT WAS THEREFORE PLEADED THAT THE LD.CIT OUGHT TO HAVE 4 ITA NO.345/CHNY/2008 GRANTED REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE TRUST RIGHT FROM THE DATE OF INCEPTION CONSIDERING THE CASE OF THE ASSESSEE. (III) MOST OF THE RECORDS OF THE TRUST WERE DESTROYED IN THE HEAVY FLOODS DURING 2004-05. LATER IN APRIL 2006, APPLICATION FOR REGISTRATION OF THE TRUST U/S.12AA WAS FILED. THE LD.AR FURTHER SUBMITTED BEFORE US THAT THE ASSESSEE WAS NOT ADVISED BY THE PROFESSIONALS PROPERLY REGARDING FILING OF APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT. THE LD.AR FURTHER ARGUED THAT THE LD.CIT FAILED TO PROVIDE SUFFICIENT OPPORTUNITY TO PRESENT ITS CASE BEFORE HIM AND ABRUPTLY PASSED ORDERS BASED ON THE MATERIALS ON RECORD. HENCE IT WAS PLEADED THAT APPROPRIATE RELIEF MAY BE GRANTED TO THE ASSESSEE. 5. THE LD.DR ON THE OTHER HAND RELIED ON THE ORDERS OF THE LD.CIT AND ARGUED IN SUPPORT OF THE SAME. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE IT APPEARS THAT 5 ITA NO.345/CHNY/2008 THE ASSESSEE HAS PRODUCED THE REQUISITE DOCUMENTS BEFORE THE LD.CIT FROM 01.04.2006 ONWARDS. THEREFORE THE LD.CIT HAS GRANTED REGISTRATION TO THE ASSESSEE FROM 01.04.2006. NO DOUBT, THE OBJECTS OF THE ASSESSEE TRUST AS PER THE TRUST DEED REMAINS THE SAME DURING THE PERIOD 22.12.1999 TO 01.04.2006. HOWEVER THE ACTUAL ACTIVITIES CONDUCTED BY THE ASSESSEE TRUST FOR THE PERIOD 22.12.1999 TO 01.04.2006 IS ALSO REQUIRED TO BE EXAMINED BY THE LD.CIT FOR CONSIDERING THE GRANT OF REGISTRATION U/S.12AA OF THE ACT FROM 22.12.1999. IT APPEARS THAT THE ASSESSEE HAS NOT PROVIDED SUCH INFORMATION TO THE LD.CIT FOR THE ABOVE STATED PERIOD. IT IS PERTINENT TO MENTION THAT IF THE ASSESSEES ACTUAL ACTIVITIES DURING THE PERIOD 22.12.1999 TO 01.04.2006 ARE ALSO IN ACCORDANCE WITH THE OBJECTS OF THE TRUST FOR WHICH THE LD.CIT HAS GRANTED REGISTRATION U/S.12AA OF THE ACT FROM 01.04.2006, THEN WE DO NOT FIND ANY REASON AS TO WHY THE REGISTRATION SHOULD BE DENIED FOR THE PERIOD 22.12.1999 TO 01.04.2006. THEREFORE IN THE INTEREST OF JUSTICE, WE REMIT BACK THE MATTER TO THE FILE OF LD.CIT IN ORDER TO EXAMINE THE ACTUAL ACTIVITIES CONDUCTED BY THE ASSESSEE FOR THE PERIOD 22.12.1999 TO 01.04.2006 AND THEREAFTER DECIDE THE MATTER IN ACCORDANCE WITH LAW AND MERIT AND OUR OBSERVATIONS MADE HEREIN ABOVE. THE ASSESSEE IS ALSO HEREBY DIRECTED TO PROMPTLY 6 ITA NO.345/CHNY/2008 PROVIDE WITH THE REQUISITE INFORMATION AND DOCUMENTS REQUIRED BY THE LD.CIT IN ORDER TO CONCLUDE HIS PROCEEDINGS FAILING WHICH THE LD.CIT SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT BASED ON THE MATERIALS BEFORE HIM. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 31 ST JANUARY, 2019 AT CHENNAI. SD/- SD/- ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATED 31 ST JANUARY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF