Rajpipla Dashalad Vanik Gnyati, V. The CIT-III, Baroda

ITA 350/AHD/2008

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9997 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-08-2010
• Assessment Year: misc
• Appeal Filed On: 31-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U S RAINA
• Assessee Lawyers: R N VEPARI
• Keywords: Condonation of delay; Ignorance of law
• Section: 12A; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' BEFORE SHRI MUKUL SHRAWAT, JM & SHRI A N PAHUJA,AM ITA NO.350/AHD/2008 SHRI DASHALAD VANIK GNYATI, RAJPIPLA C/O ARVINDBHAI PAREKH, PAREKH KHADKI, DARBAR ROAD, RAJPIPLA (DISTRICT: NAVSARI) [PAN :AAATH 1356 B] V/S COMMISSIONER OF INCOME- TAX-III, BARODA [APPELLANT] [RESPONDENT] ASSESSEE BY :- SHRI R N VEPARI, AR REVENUE BY:- SHRI U S RAINA, DR O R D E R A N PAHUJA: THIS APPEAL BY THE ASSESSEE-TRUST AGAINST AN ORDER DATED 23-11-2007 OF THE LD. COMMISSIONER OF INCOME- TAX-III, BARODA,RAISES THE FOLLOWING GROUND: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CO MMISSIONER OF INCOME- TAX-III, BARODA WAS NOT JUSTIFIED IN NOT CONDONING DELAY IN MAKING APPLICATION U/S 12A OF THE ACT. 2. FACTS, IN BRIEF, AS PER RELEVANT ORDER ARE THAT THE ASSESSEE- TRUST SHRI DASHALAD VANIK GNYATI STATED TO HAVE BEE N CREATED ON 19- 6-1953 AND REGISTERED WITH THE ASSISTANT CHARITY C OMMISSIONER, BARODA ALSO ON 19-6-1953, SUBMITTED AN APPLICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE INCOME-TAX ACT, 1961 [H EREINAFTER REFERRED TO AS THE ACT] IN FORM NO. 10A ON 24-5- 2007 ALONG WITH TWO PHOTOSTAT COPIES OF SCHEDULE 2 FILED BEFORE THE ASST. CHARITY COMMISSIONER, COPY OF REGISTRATION CERTIFICATE AND COPIES OF AUDI TED ACCOUNTS FOR THREE YEARS. IT WAS SUBMITTED THAT SINCE COPIES OF THEIR APPLICATIO N OR REGISTRATION CERTIFICATE GRANTED U/S.12A(A) OF THE ACT WERE NOT TRACEABLE, TO AVOID UNDUE HARDSHIP TO THE TRUST FOR WANT OF REGISTRATION, FRESH APPLICATION FOR REGISTRATION WAS FILED. THE COMMISSIONER OF INCOME-TAX-III, BARODA VIDE HER OR DER DATED 23-11- 2007 U/S 12AA(1)(B)(II) READ WITH SECTION 12A(A) OF THE ACT, ALLOWED REGISTRATION IN THE FOLLOWING TERMS:- ITA NO.350/AHD/2008 2 2 THE APPLICATION HAS BEEN MADE BEYOND THE STATUTO RY PERIOD OF ONE YEAR FROM THE DATE OF THE CREATION OF THE TRUST. TH E APPLICANT HAS REQUESTED FOR CONDONATION OF DELAY ON THE GROUND OF IGNORANCE OF LAW RELATING TO REGISTRATION U/S 12A. THE REASONS GIVEN ARE VAGUE A ND GENERAL IN NATURE AND DO NOT CONSTITUTE SUFFICIENT MATERIAL FOR CONDO NATION OF DELAY IN TERMS OF CLAUSE (I) OF THE PROVISO TO SECTION 12A(A). THE REGISTRATION IS ACCORDINGLY GRANTED WITH EFFECT FROM 01-04-2007 I.E. THE FIRST DAY OF THE FINANCIAL YEAR IN WHICH THE APPLICATION WAS MADE. IN VIEW OF CLAUSE ( II) OF THE PROVISO TO SECTION 12A(A), THE PROVISIONS OF SECTION 11 AND 12 SHALL APPLY IN RELATION TO THE INCOME OF THE TRUST WITH EFFECT FROM 1-4-200 7, SUBJECT TO FULFILLMENT OF OTHER CONDITIONS LAID DOWN THEREIN. 3 THE APPLICATION IS ENTERED UNDER NO. BRD/CIT-III /TECH/110-24- S/2007-08 IN THE REGISTER OF APPLICATION U/S 12A(A) MAINTAINED IN THIS OFFICE. 3. THE APPLICANT TRUST IS NOW IN APPEAL BEFORE US AGAINST THE AFORESAID FINDINGS OF THE LD. CIT. THE LD. AR ON BE HALF OF THE TRUST WHILE INVITING OUR ATTENTION TO A DECISION DATED 2 8.5.2010 OF THE ITAT AHMEDABAD BENCH [CAMP AT SURAT] IN ITA NOS.320 TO 323, 325 TO 327 AND 400/AHD/2008 IN THE CASE OF SHRI MAHALAX MI MATANU MANDIR,SURAT & OTHERS, CONTENDED THAT AT LEAST REG ISTRATION SHOULD HAVE BEEN GRANTED W.E.F. 1.4.2003, ESPECIALLY WHEN THEIR RETURNS FOR THE AY1990-91 TO 2007-08, CLAIMING BENEFITS OF PROV ISIONS OF SEC. 11 & 12 OF THE ACT, HAVE BEEN ACCEPTED BY THE AO. THE LEARNED DR, ON THE OTHER HAND, SUPPORTED THE ORDER OF THE LD. CIT. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE FACTS OF THE CASE AS ALSO THE AFORESAID DECISION DATED 28.5. 2010 OF THE ITAT IN ITA NOS.320 TO 323, 325 TO 327 AND 400/AHD/2008. THERE IS NO DISPUTE AS TO THE ESTABLISHMENT OF TRUST AND ITS REGISTRATION BY THE ASSISTANT CHARITY COMMISSIONER ,BARODA, ON 19.6.1953. HOWEVER , COPY OF THE RELEVANT TRUST DEED HAS NOT BEEN PLACED BEFORE US BY THE ASSESSEE NOR ANY DATE HAS BEEN SPECIFED IN THE COPY OF APPLICATION WITH EFFECT FRO M WHICH REGISTRATION WAS SOUGHT . THE LD. AR APPEARING BEFORE US NOW SEEKS REGISTRATI ON W.E.F 1.4.2003. THE LD. CIT HAS REJECTED THE REQUEST FOR CONDONATION OF DEL AY ON THE GROUND THE REASONS ADDUCED WERE VAGUE AND GENERAL IN NATURE AND THERE FORE, DID NOT CONSTITUTE ITA NO.350/AHD/2008 3 SUFFICIENT MATERIAL FOR CONDONATION OF DELAY. ADMIT TEDLY, THERE IS NOTHING TO SUGGEST AS TO WHETHER OR NOT THE APPLICANT TRUST HA D EVER SUBMITTED ANY APPLICATION FOR ITS REGISTRATION U/S 12A(A) OF THE ACT PRIOR TO THE APPLICATION UNDER CONSIDERATION WHILE THEIR RETURNS FOR THE AYS 1990- 91 ONWARDS, CLAIMING BENEFITS OF PROVISIONS OF SEC. 11 & 12 OF THE ACT SEEM TO HA VE BEEN ACCEPTED. THE LD. CIT IN HER ORDER HAS NOWHERE COMMENTED UPON THE GENU INENESS OF ACTIVITIES OF THE TRUST IN THE RELEVANT YEARS OR ON THEIR OBJECTS NOR RECORDED THE FACTS AND CIRCUMSTANCES IN WHICH RETURNS FOR THE AFORESAID AS SESSMENT YEARS SEEM TO HAVE BEEN ACCEPTED. THE LD. CIT HAS MERELY REGISTERED T HE TRUST U/S 12A(A) OF THE ACT W.E.F 1.4.2007. 4.1. IN VIEW OF THE FOREGOING, ESPECIALLY WHEN U NDISPUTEDLY RETURNS FOR THE AY 1990-91 ONWARDS ,CLAIMING EXEMPTION U/S 11 & 12 OF THE ACT, SEEM TO HAVE BEEN ACCEPTED WHILE THE DETAILS RELATING TO OBJECTS OF THE TRUST OR ITS ACTIVITIES IN THE RELEVANT YEARS HAVE NOT BEEN PLACED BEFORE US NOR F IND ANY MENTION IN THE IMPUGNED ORDER OF THE CIT, WE CONSIDER IT FAIR AND APPROPRIATE TO RESTORE THE MATTER RELATING TO RETROSPECTIVE REGISTRATION W.E. F. 1.4.2003 TO THE FILE OF THE LD. CIT WITH THE DIRECTIONS TO RE-EXAMINE THE MATTER IN THE LIGHT OF VARIOUS OBJECTS OF THE TRUST STIPULATED IN THE TRUST DEED AND AFTER SATISFYING HIMSELF ABOUT THE GENUINENESS OF OBJECTS OF THE TRUST AND ITS ACTIVI TIES IN THE RELEVANT YEARS, PASS APPROPRIATE ORDERS IN ACCORDANCE WITH LAW WITH SUF FICIENT OPPORTUNITY TO THE ASSESSEE TRUST. WITH THESE DIRECTIONS GROUND NO. 1 IN THE APPEAL IS DISPOSED OF. 5. NO ADDITIONAL GROUND HAVING BEEN RAISED IN TER MS OF THE RESIDUARY GROUND NO.2, ACCORDINGLY, THIS GROUND IS DISMISSED. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT TODAY ON 31 -08-2010 SD/- SD/- (MUKUL SHRAWAT) JUDICIAL MEMBER (A N PAHUJA) ACCOUNTANT MEMBER DATE : 31-08-2010 ITA NO.350/AHD/2008 4 COPY OF THE ORDER FORWARDED TO: 1. SHRI DASHALAD VANIK GNYATI, RAJPIPLA C/O ARVINDBHAI PAREKH, PAREKH KHADKI, DARBAR ROAD, RAJPIPLA (DISTRICT: NAVSARI) 2. CIT CONCERNED 3 DR, BENCH-A, ITAT, AHMEDABAD 4. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT, AHMEDABAD