M/s. Vishwanathan Medical Foundation, New Delhi V. DIT(Exemptions), New Delhi

ITA 358/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8203 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 18-04-2016
• Assessment Year: misc
• Appeal Filed On: 20-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARMITA M BISWAS
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI: JUDICIAL MEMBER ITA NO. 358/DEL/2014 U/S 12AA(1)(B) R.W.S. 12 VISHWANATHAN MEDICAL VS. DIT(EXEMPTIONS), FOUNDATION L-22, HAUZ KHAS ENCLAVE NEW DELHI. NEW DELHI. PAN: AAATV 4664 M ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SH. RAJAN BHATIA ADV. RESPONDENT BY : SMT. PARMITA M. BISWAS CIT(DR) DATE OF HEARING : 18-04-2016 DATE OF ORDER : 21-04-2016. O R D E R PER S.V. MEHROTRA, A.M:- THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 2 2.11.2013 PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), NEW DELHI U/S 12AA(1)(B) R.W.S. 12A OF THE INCOME-TAX ACT, 1961, REJECTING ASSESSEE S APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE TRUST IS A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860. AS PER REGISTRATION CERTIFICATE DATED 12.6.2002, THE ASSESSEE HAD FILED AN APPLICAT ION ON 3.5.2013 IN FORM 2 NO. 10A, SEEKING REGISTRATION U/S 12A BEFORE THE DI RECTOR OF INCOME-TAX (EXEMPTIONS), NEW DELHI. LD. DIT(EXEMPTION) HAS DEN IED THE REGISTRATION, GRANTING LIBERTY TO ASSESSEE TO MOVE A FRESH APPLIC ATION FOR REGISTRATION U/S 12A, PRIMARILY FOR THE FOLLOWING REASONS: (A) THE ASSESSEE HAD NOT FURNISHED THE REQUIRED DETAILS AS MENTIONED IN HER ORDER. (B) AS PER RULE 17A OF THE INCOME-TAX RULES, THE ASSESS EE WAS REQUIRED TO PRODUCE THE ORIGINAL MEMORANDUM OF ASSOCIATION A ND REGISTRATION CERTIFICATE. 3. LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY REBUTTED THE OBSERVATIONS MADE IN DIT(EXEMPTIONS)S ORDER AND POINTED OUT THA T ASSESSEE HAD FILED ENTIRE DETAILS WHICH ARE CONTAINED IN THE PAPER BOO K FILED BEFORE US. HE POINTED OUT THAT ASSESSEE IS PRESENTLY CLAIMING EXE MPTION U/S 10(23C)(IIIAE) OF THE INCOME-TAX ACT AND, ACCORDINGLY, FILING RETU RN OF INCOME AT NIL. HE FILED BEFORE US A COPY OF THE ASSESSMENT ORDER FOR AY 1990-91 IN ASSESSEES OWN CASE, WHEREIN, AFTER DETAILED DISCUSSION, THE A SSESSEE WAS GIVEN EXEMPTION U/S 11 VIDE ORDER DATED 18.3.2002. LD. CO UNSEL FURTHER REFERRED TO PAGES 130 AND 131 OF THE PB, WHEREIN THE ASSESSMENT ORDER DATED 15.1.2016 FOR AY 2013-14 IS CONTAINED, IN WHICH ASSESSEES CL AIM U/S 10(23C)(IIIAE) HAS BEEN ACCEPTED. LD. COUNSEL FURTHER REFERRED TO RULE 17A OF THE INCOME- 3 TAX RULES AND POINT4ED OUT THAT AS PER PROVISO TO C LAUSE (A), CERTIFIED COPY OF THE MEMORANDUM OF ASSOCIATION COULD BE FURNISHED BY ASSESSEE IN LIEU OF THE ORIGINAL. 4. LD. CIT(DR) SUBMITTED THAT THE MATTER MAY BE RES TORED BACK TO THE FILE OF LD. CIT AS ASSESSEE HAS NOT MADE COMPLIANCE . 5. IN THE REJOINDER LD. COUNSEL SUBMITTED THAT MATT ER NEED NOT BE RESTORED BACK BECAUSE THE ASSESSEE HAD MADE COMPLETE COMPLIA NCE AND THE OBJECTS OF ASSESSEE ARE CHARITABLE IN NATURE AND, THEREFORE, R EGISTRATION SHOULD BE GRANTED. 6. WE HAVE CONSIDERED RIVAL SUBMISSIONS OF THE PART IES AND PERUSED THE RECORD OF THE CASE. ADMITTEDLY THE ASSESSEES INCOM E IS EXEMPT U/S 10(23C)(IIIAE), AS IS EVIDENT FROM THE ASSESSMENT O RDER FOR AY 2013-14. FURTHER, ASSESSEE HAS BEEN ALLOWED EXEMPTION U/S 11 IN ASSESSMENT YEAR 1990-91 ALSO, AS NOTED EARLIER. FROM THESE FACTS IT IS EVIDENT THAT THERE IS NO QUARREL AS REGARDS CHARITABLE ACTIVITIES BEING CARR IED ON BY ASSESSEE. LD. COMMISSIONERS OBSERVATION THAT ASSESSEE HAS NOT CO MPLIED WITH THE INFORMATION SOUGHT FOR IS NOT CORRECT, MORE PARTICU LARLY BECAUSE ASSESSEE HAS FILED ALL THE INFORMATIONS BEFORE THE ITO, HEAD QU ARTERS (EXEMPTIONS), WHICH ARE CONTAINED IN THE PAPER BOOK FILED BY ASSE SSEE. 4 7. LD. COUNSEL REFERRED TO PAGE 95 ONWARDS, WHEREIN THE CONFIRMATIONS FROM DOCTORS ARE CONTAINED, WHICH WAS ONE OF THE IN FORMATIONS SOUGHT FOR BY LD. COMMISSIONER. IN THE PAPER BOOK THE ASSESSEE HA S FILED ITS FINANCIAL STATEMENT FOR THE YEAR ENDING MARCH 2010 TO MARCH 2 012. FURTHER, COPIES OF INCOME-TAX RETURNS ARE ALSO ENCLOSED IN THE PB. 8. RULE 17A OF THE INCOME-TAX RULES IS AS UNDER: APPLICATION FOR REGISTRATION OF CHARITABLE OR RELIG IOUS TRUSTS, ETC . 17A. AN APPLICATION UNDER 99[CLAUSE (AA) OF SUB-SEC TION (1)] OF SECTION 12A FOR REGISTRATION OF A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION SHALL BE MADE IN DUPLICATE IN FORM N O.1 OA AND SHALL BE ACCOMPANIED BY THE FOLLOWING DOCUMENTS, NA MELY:- (A) WHERE THE TRUST IS CREATED, OR THE INSTITUTION IS ESTABLISHED, UNDER AN INSTRUMENT, THE INSTRUMENT IN ORIGINAL, TO GETHER WITH ONE COPY THEREOF; AND WHERE THE TRUST IS CREATED, O R THE INSTITUTION IS ESTABLISHED, OTHERWISE THAN UNDER AN INSTRUMENT, THE DOCUMENT EVIDENCING THE CREATION OF THE TRUST O R THE ESTABLISHMENT OF THE INSTITUTION, TOGETHER WITH ONE COPY THEREOF: PROVIDED THAT IF THE INSTRUMENT OR DOCUMENT IN ORIGINAL CAN NOT CONVENIENTLY BE PRODUCED, IT SHALL BE OPEN TO THE COMMISSIONER TO ACCEPT A CERTIFIED COPY IN LIEU OF THE ORIGINAL; B) WHERE THE TRUST OR INSTITUTION HAS BEEN IN EXIST ENCE DURING ANY YEAR OR YEARS, PRIOR TO THE FINANCIAL YEAR IN W HICH THE APPLICATION FOR REGISTRATION IS MADE, TWO COPIES OF THE ACCOUNTS OF THE TRUST OR INSTITUTION RELATING TO SUCH PRIOR YEAR OR YEARS (NOT BEING MORE THAN THREE YEARS IMMEDIATELY PRECED ING THE YEAR IN WHICH THE SAID APPLICATION IS MADE) FOR WHI CH SUCH ACCOUNTS HAVE BEEN MADE UP.] 5 9. LD. COMMISSIONER REFERRING TO RULE 17A CONCLUDED THAT ASSESSEE HAD NOT FURNISHED ORIGINAL MOA, WHICH REQUIREMENT CAN B E DISPENSED WITH AFTER ASSESSEE HAS FILED CERTIFIED COPIES OF ORIGINAL MOA AND REGISTRATION CERTIFICATE. LD. COMMISSIONER HAS NOT AT ALL REFERR ED TO THE CERTIFIED DOCUMENTS FURNISHED BY ASSESSEE. UNDER SUCH CIRCUMS TANCES, WE ARE OF THE CONSIDERED OPINION THAT THE REGISTRATION WAS WRONGL Y DENIED TO ASSESSEE AND, THEREFORE, WE DIRECT FOR GRANT OF REGISTRATION U/S 12A TO THE ASSESSEE. 10. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 21-04-2016. SD/- SD/- (BEENA A. PILLAI) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: _21-04-2016. MP: C OPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR