Kutch Ahir Education & Charitable Trust, Anjar, RAJKOT-GUJARAT V. The Commissioner of Income Tax, Rajkot-1, RAJKOT-GUJARAT

ITA 363/RJT/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 72632 (ITAT-RAJKOT)
• Duration Of Justice: 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-11-2013
• Assessment Year: misc
• Appeal Filed On: 03-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M L MEENA
• Assessee Lawyers: KALPESH DOSHI
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 363/RJT/2013 M/S KUTCH AHIR EDUCATION & CHARITABLE TRUST, VASANTVADI, AHIR BOARDING, ANJAR KUTCH PAN : AABTK 9390 A ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX-I RAJKOT / RESPONDENT / ASSESSEE BY SHRI KALPESH DOSHI, CA / REVENUE BY DR. M. L. MEENA, DR / DATE OF HEARING 12.11.2013 !'# / DATE OF PRONOUNCEMENT 13.11.2013 / ORDER THIS APPEAL BY THE ASSESSEE-TRUST IS AGAINST THE OR DER DATED 25.07.2013 OF COMMISSIONER OF INCOME-TAX, RAJKOT-I, RAJKOT U/S 12 AA(1)(B)(II) OF THE INCOME-TAX ACT REJECTING THE APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE-TRUST NAMELY M/S. KUTCH AHIR EDUCATION & CHARITABLE TRUST MADE AN APPLICATION FO R REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961 ON 06.03.2013 IN FORM NO.10A. THIS APPLICATION WAS REJECTED BY THE LD COMMISSIONER OF INCOME-TAX, RAJKOT-I VIDE HIS ORDER DATED 25.07.2013 PASSED U/S 12AA(1)(B)(II) OF THE INCOME-TAX ACT. TH E DETAILED REASON GIVEN BY HIM IN PARAGRAPHS 2 AND 3 OF THE IMPUGNED ORDER, WHICH REA D AS UNDER:- 2. AS PER THE TRUST DEED OF THE TRUST, THE OBJECTS ARE EDUCATIONAL, MEDICAL, ENVIRONMENT, HUMAN AND ANIMAL WELFARE AND OTHER VAR IOUS ACTIVITIES. IN ORDER TO VERIFY THE FACTS STATED IN THE APPLICATION, THE TRUST WAS ASKED TO PRODUCE TRUST DEED, BOOKS OF ACCOUNTS AND MINUTES BOOK IN ORIGINA L ON 28.06.2013 VIDE THIS OFFICE NOTICE NO.S.A.A.RAJ-I/&/12A/MKAT/2013-14 DAT ED 28.06.2013. THE NOTICE WAS SERVED THROUGH RPAD. HOWEVER, TILL DATE NO SUCH VITAL DOCUMENTS WERE PRODUCED FOR VERIFICATION. 3. AS PER THE PROVISIONS OF THE I.T. ACT, 1961, THE COMMISSIONER SHALL SATISFY HIMSELF WITH REGARD TO: I) OBJECTS OF THE TRUST/INSTITUTION AND II) GENUINENESS OF ITS ACTIVITIES AS DISCUSSED ABOVE, THE TRUST FAILED IN PRODUCING A NY EVIDENCE IN SUPPORT OF ITS APPLICATION FOR REGISTRATION U/S 12A OF THE ACT. IN ABSENCE OF SUCH EVIDENCES, GENUINENESS OF THE TRUST IS NOT VERIFIABLE. THUS, T HE TRUST IS NOT FULFILLING THE CONDITIONS LAID DOWN FOR REGISTRATION U/S 12AA OF T HE I.T. ACT, 1961 AND RULE 17A OF THE I.T. RULES, 1962. I THEREFORE, REJECT TH E ASSESSEES APPLICATION FOR REGISTRATION U/S 12A OF THE IT ACT. 2 363-RJT-2013 - KUTCH AHIR EDUCATION & CHARITABLE TURST (SMC) AGGRIEVED WITH THE ORDER OF LD COMMISSIONER OF INC OME-TAX, RAJKOT-I, THE ASSESSEE-TRUST IS NOW IN APPEAL BEFORE THIS TRIBUNA L ON THE FOLLOWING GROUNDS:- 1. THAT, THE LEARNED CIT HAS NOT GRANTED THE PROPE R OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND HAS WRONGLY REJECTED THE REGISTRATION U/S 12A(1) OF THE I.T. ACT. 2. THAT, THE LEARNED CIT-I HAS ERRED ON FACTS AND I N LAW IN REJECTING THE REGISTRATION U/S 12A(1) OF THE I.T. ACT. 3. THAT, THE FINDING OF THE LEARNED CIT-I IS JUSTIF IED AND REQUIRED TO BE DELETED. 3. BEFORE THE TRIBUNAL, ON BEHALF OF THE ASSESSEE-T RUST, SHRI KALPESH DOSHI, CA, APPEARED AND CONTENDED THAT THE LD COMMISSIONER OF INCOME-TAX, RAJKOT-I PASSED THE IMPUGNED ORDER WITHOUT ALLOWING THE ADEQUATE OP PORTUNITY TO THE ASSESSEE-TRUST WHICH IS EVIDENT FROM THE FACT THAT HE ISSUED A NOT ICE DATED 28.06.2013 ASKING THE ASSESSEE-TRUST TO PRODUCE TRUST DEED, BOOKS OF ACCO UNTS AND MINUTES BOOK IN ORIGINAL ON 28.06.2013. THE SAID NOTICE WAS NEVER R ECEIVED BY THE ASSESSEE-TRUST. THE COUNSEL OF THE ASSESSEE SUBMITTED THAT THIS CLE ARLY INDICATE THAT PROPER OPPORTUNITY WAS NOT ALLOWED TO THE ASSESSEE. DR. M. L. MEENA, DR, APPEARED ON BEHALF OF THE REVENUE COULD NOT CONTROVERT THE AFOR ESAID SUBMISSIONS MADE BY THE LD COUNSEL OF THE ASSESSEE. 4. AFTER HEARING BOTH SIDES, I HAVE CAREFULLY GONE THROUGH THE IMPUGNED ORDER OF LD COMMISSIONER OF INCOME-TAX, RAJKOT-I. FROM THIS ORDER ITSELF, IT IS EVIDENT THAT THE LD COMMISSIONER OF INCOME-TAX, RAJKOT-I HAS NOT ALLOWE D ADEQUATE TIME TO THE ASSESSEE-TRUST TO PRODUCE TRUST DEED, BOOKS OF ACCO UNTS AND MINUTES BOOK IN ORIGINAL. I, THEREFORE, SET ASIDE THE IMPUGNED ORDE R DATED 27.07.2013 PASSED BY THE LD COMMISSIONER OF INCOME-TAX, RAJKOT-I U/S 12AA(1)(B) (II) AND DIRECT HIM TO ALLOW ADEQUATE OPPORTUNITY TO THE ASSESSEE-TRUST TO FURNI SH THE DETAILS AND THEREAFTER PASS THE ORDER U/S 12AA(1)(B)(II) OF THE INCOME-TAX ACT AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 13.11.2013 !$ /RAJKOT *BT 3 363-RJT-2013 - KUTCH AHIR EDUCATION & CHARITABLE TURST (SMC) / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- M/S KUTCH AHIR EDUCATION & CHARITABLE TRUST, VASANTVADI, AHIR BOARDING, ANJAR KUTCH 2. / RESPONDENT- THE COMMISSIONER OF INCOME-TAX-I, RA JKOT 3. ,0,1 * * 2 / CONCERNED CIT, GANDHIGHAM 4 . 345 1, * 1#, !$ / DR, ITAT, RAJKOT 5 . 57 89 / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT