ANAND CHARITABEL TRUST, THANE V. DIT (E) (CIT-II), THANE

ITA 3470/MUM/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1170 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 19-03-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 16-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R P MEENADR
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.3470/MUM /2012 ASSESSMENT YEAR-2012-13 ANAND CHARITABLE TRUST, 601 SAMARTH GANGA, NEAR SHIVSENA OFFICE, GOVIND BACCHAJI ROAD, CHARAI, THANE (W) / VS. DIT(EXEMPTION), CIT-II 09 TH FLOOR, VARDAAN, MIDC, WAGLE ESTATE, THANE-400604 PAN NO. AAATL7829C ( / ASSESSEE) ( / REVENUE) / ASSESSEE BY NONE / REVENUE BY SHRI R.P.MEENA-DR / DATE OF HEARING : 12/04/2017 / DATE OF ORDER: 12/04/2017 ITA NO.3470/MUM/2012 ANAND CHARITABLE TRUST 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 07/03/2012 OF THE LD. COMMISSIONER OF INCOME TAX, THANE, DENYING REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) TO THE ASSESSEE TRU ST. 2. DURING HEARING, NOBODY WAS PRESENT FOR THE ASSESSEE. IT IS SEEN THAT THIS APPEAL WAS FILED BY THE ASSESSEE ON 16/05/2012. REGISTERED NOTICES OF HEARI NG WERE SENT TO THE ASSESSEE. ON 19/03/2015, THE APPEA L WAS ADJOURNED AT THE REQUEST OF THE ASSESSEE, LIKEWISE, ON 22/11/2016 ALSO, AT THE REQUEST FOR THE ASSESSEE, T HE APPEAL WAS ADJOURNED FOR TODAY I.E. 12/04/2017. THE ASSESSEE NEITHER APPEARED NOR MOVED APPLICATION FOR ADJOURNMENT. IT SEEMS THAT THE ASSESSEE IS NOT INTE REST TO PURSUE ITS APPEAL, IN SUCH A SITUATION, IT CANNOT B E KEPT PENDING INDEFINITELY, THEREFORE, WE HAVE NO OPTION BUT TO PROCEED ON THE BASIS OF MATERIAL AVAILABLE ON RECOR D. THE LD. CIT-DR, SHRI R.P. MEENA, DEFENDED THE IMPUGNED ORDE R BY CONTENDING THAT THE ASSESSEE WAS FOUND ENGAGED IN RELIGIOUS ACTIVITIES, WHICH IS NOT THE OBJECTS OF T HE ASSESSEE AND OUT OF THE TOTAL RECEIPT OF RS.21,63,500/-, THE ASSESSEE SPEND RS.18,97,160/- ON CELEBRATING FESTIVALS LIKE DAHI HANDI AND NAVRATRI. THEREFORE, THE TRUST IS NOT DOI NG THE ACTIVITIES, FOR WHICH IT WAS CREATED I.E. EDUCATION AL ACTIVITIES. ITA NO.3470/MUM/2012 ANAND CHARITABLE TRUST 3 2.1. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. CIT - DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. TH E FACTS, IN BRIEF, ARE THAT THE ASSESSEE TRUST, WAS CREATED ON 16/07/2010, REGISTERED UNDER BOMBAY PUBLIC TRUST AC T, 1950, APPLIED FOR REGISTRATION U/S 12A OF THE ACT O N FORM NO.10A ON 30/08/2011. THIS IS THE FIRST YEAR OF OP ERATION OF THE ASSESSEE TRUST. ON GOING THROUGH THE INCOME AND EXPENDITURE ACCOUNT, IT WAS FOUND THAT THE ASSESSEE RECEIVED DONATION TO THE TUNE OF RS.21,63,500/- OUT OF WHICH, THE ASSESSEE EXPENDED RS.8,86,260/- TOWARDS DAHI HANDI CELEBRATION, RS.10,10,900/- ON NAVRATRI EXPEN SES AND RS.13,036/- ON MISCELLANEOUS EXPENSES. HOWEVER, THE OBJECTS OF THE TRUST FOR WHICH IT WAS ESTABLISHED S EEMS TO BE TO OPEN, RUN, ESTABLISH MONETARY ASSISTANCE TO UNIV ERSITY, SCHOOL, COLLEGES, POLYTECHNIC INSTITUTION, ETC FOR IMPARTING EDUCATION AND TRAINING TO STUDENTS. WE HAVE PERUSED THE OBJECTS OF THE ASSESSEE TRUST, WHICH HAS BEEN ENUME RATED ON PAGE-1 ONWARDS OF THE IMPUGNED ORDER. THE MAIN O BJECT OF THE TRUST WAS TO PROMOTE/PROVIDE EDUCATION IN VA RIOUS FIELDS ALONG WITH MEDICAL CARE AND ACTIVITIES OF SO CIAL AND CHARITABLE PURPOSES. THERE IS A FINDING IN THE IMPU GNED ORDER THAT THE TRUST DEED DOES NOT MENTION OF RELIG IOUS ACTIVITIES. IN VIEW OF THIS FACTUAL MATRIX, THE OFF ICE OF THE LD. CIT ISSUED SHOW-CAUSE NOTICE TO THE ASSESSEE TRUST ON 27/02/2012 FOR PERSONAL HEARING AND ALSO TO EXPLAIN AS TO WHY THE APPLICATION FILED FOR REGISTRATION U/S 12A OF THE ACT MAY NOT BE REJECTED. CONSIDERING THE OBJECTS/ACTIVI TY OF THE ASSESSEE TRUST, THE LD. CIT WAS NOT SATISFIED WITH THE ITA NO.3470/MUM/2012 ANAND CHARITABLE TRUST 4 GENUINENESS OF THE ACTIVITY OF THE TRUST, THEREFORE , THE REGISTRATION U/S 12A/12AA OF THE ACT WAS DENIED. D URING HEARING, BEFORE THIS TRIBUNAL, THE ASSESSEE NEITHER REPRESENTED ITSELF NOR MOVED ANY ADJOURNMENT PETITI ON. IT SEEMS THAT THE ASSESSEE HAS NOTHING TO SAY. CONSIDE RING THE TOTALITY OF FACTS, AVAILABLE ON RECORD, WE FIND NO INFIRMITY IN THE CONCLUSION AND THE FINDING DRAWN IN THE IMPU GNED ORDER. WE AFFIRM THE SAME. FINALLY, THE APPEAL OF THE ASSESSEE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN IN THE PRESENCE OF LD. CIT-DR AT THE CONCLUSION OF THE HEA RING ON 12/04/2017. SD/- SD/ - (RAJENDRA) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER MUMBAI; # DATED : 12/04/2017 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. %& '( / THE APPELLANT (RESPECTIVE ASSESSEE) 2. )*'( / THE RESPONDENT. 3. + + , ( %& ) / THE CIT, MUMBAI. 4. + + , / CIT(A)- , MUMBAI, 5. /01 )2 , + %& %23 , / DR, ITAT, MUMBAI 6. 14 5 / GUARD FILE. / BY ORDER, */& ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI