Global Education & Charitable Trust, Jasdan V. The Commissioner of Income Tax-II, RAJKOT-GUJARAT

ITA 369/RJT/2013

• Counselvise Citation: 36924914 RSA 2013
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-02-2014
• Assessment Year: misc
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: WRITTEN SUBMISSION
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 369/RJT/2013 GLOBAL EDUCATION & CHARITABLE TRUST, 142, KRISHNA COMPLEX, NR. BUS STATION, JASDAN PAN : AABTG 6432 D ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX-II RAJKOT / RESPONDENT / ASSESSEE BY WRITTEN SUBMISSION / REVENUE BY SHRI M. L. MEENA, DR / DATE OF HEARING 11.02.2014 !'# / DATE OF PRONOUNCEMENT 14.02.2014 / ORDER THIS APPEAL BY THE ASSESSEE-TRUST IS AGAINST THE OR DER DATED 26.07.2013 OF COMMISSIONER OF INCOME-TAX-II, RAJKOT REJECTING THE APPLICATION OF ASSESSEE-TRUST FOR REGISTRATION U/S 12A(AA) OF THE INCOME-TAX ACT, 196 1. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE-TRUST NAMELY GLOBAL EDUCATION AND CHARITABLE TRUST CAME INTO EXISTENCE ON 18.02.2011 BY EXECUTING TRUST DEED. THE TRUST WAS SUBSEQUENTLY REGISTERED WITH THE CHARITY COMMISSIONER ON 12.07.2011. THE TRUST FILED AN APPLICATION IN FROM NO.10A FOR SEEKI NG REGISTRATION U/S 12A(AA) OF THE ACT ON 04.01.2013. IN THE IMPUGNED ORDER, LD. COMMISSIO NER OF INCOME-TAX REJECTED THE APPLICATION FOR THE DETAILED REASON GIVEN IN PARAGR APHS 3 & 4 WHICH READ AS UNDER:- 3. A LETTER DATED 15.07.2013 WAS ISSUED TO THE ASS ESSEE TRUST BY THE I.T.O. WARD 2(2), RAJKOT TO REMIND AND REQUEST TO S UBMIT THE ABOVE REQUIRED DETAILS. HOWEVER, NO COMPLIANCE HAS BEEN MADE. THE A.O. HAS REPORTED THAT THE APPLICATION OF THE ASSESSEE TRUST CANNOT PROCEE D AS THE TRUST HAS NOT SUBMITTED ANY DETAILS AS CALLED FOR. CONSIDERING TH E ABOVE FACT ONE MORE OPPORTUNITY OF BEING HEARD WAS GIVEN TO THE ASSESSE E TRUST BY ISSUING SHOW CAUSE NOTICE DATED 22.07.2013 AND HEARING FIXED ON 26.07.2013 REQUESTING TO SUBMIT NECESSARY DETAILS IN RESPECT OF ITS CLAIM. H OWEVER, THE SAID HEARING NOTICE WAS RETURNED TO THIS OFFICE BY THE POSTAL DE PARTMENT WITH REMARKS THAT REFUSING TO ACCEPT. FURTHER THE ADDL. CIT, RANGE -2, RAJKOT VIDE ENDORSEMENT LETTER DATED 24.07.2013 HAS SUBMITTED ANOTHER REPOR T RECEIVED FROM THE ITO, WD.-2(2), RAJKOT ON 24.07.2013 AFTER EXPIRY OF TIME GIVEN FOR THE SUBMISSION OF THE SAID REPORT. MOREOVER, ON PERUSAL OF THE REPORT , IT IS NOTICED THAT THE AO HAS NOT SUBMITTED ANY DETAILS AS CALLED FOR FROM HI M DUE TO NON-COOPERATION OF THE ASSESSEE TRUST. THE AO HAS SUBMITTED ONLY ENGLI SH TRANSLATION OF TRUST DEED DOCUMENT WHICH DOES NOT HELP TO PROCESSING THE APPLICATION MADE U/S 12A(A) OF THE I.T. ACT. IN ABSENCE OF REQUIRED DETA ILS IT IS DIFFICULT TO ADJUDGE WHETHER THE ACTIVITY OF TRUST ARE GENUINE AND IN CH ARITABLE NATURE OR NOT. 4. IN THE ABOVE CIRCUMSTANCES, I AM UNABLE TO SATIS FY MYSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. ACCORDI NGLY, THE APPLICATION OF THE TRUST FOR REGISTRATION U/S 12A(AA) OF THE IT ACT, 1 961 IS HEREBY REJECTED. 2 369-RJT-2013 - GLOBAL EDUCATION & CHARITABLE TRUST (SMC) AGGRIEVED WITH THE ORDER OF LD. CIT, THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 3. ON THE DATE FIXED FOR HEARING, NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS ALONGWITH PAPER BOOK C ONTAINING 36 PAGES WERE FILED. IN THE WRITTEN SUBMISSIONS, IT WAS POINTED OUT THAT ALL THE DETAILS ASKED BY THE ASSESSING OFFICER WERE DULY SUBMITTED BUT IT SEEMS FROM THE ORDER OF LD. COMMISSIONER OF INCOME-TAX-II, RAJKOT THAT PROPER R EPORTING ARE NOT MADE BY THE I.T.O., WARD 2(2), RAJKOT AND I.T.O. (TECH). IT WAS FURTHER SUBMITTED THAT DUE TO IMPROPER REPORTING BY THE I.T.O., WARD 2(2), RAJKOT AND I.T.O. (TECH); VIDE ORDER DATED 26.07.2013 THE LD. CIT-II, RAJKOT REJECTED TH E APPLICATION OF THE ASSESSEE-TRUST FOR REGISTRATION U/S 12A(AA); THEREFORE, IN THE INT EREST OF JUSTICE, THE IMPUGNED ORDER OF LD. CIT-II, RAJKOT BE SET ASIDE AND HE MAY BE DIREC TED TO CONSIDER THE APPLICATION FOR REGISTRATION OF ASSESSEE-TRUST U/S 12A(AA) AFRESH I N ACCORDANCE WITH LAW. 4. SHRI M.L. MEENA, DR, APPEARED FOR THE REVENUE, C OULD NOT CONTROVERT THE AFORESAID AVERMENTS MADE IN THE WRITTEN SUBMISSIONS . 5. I HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND MATERIAL PLACED BEFORE ME IN THE PAPER BOOK. PRIMA-FACIE IT APPEARS THAT THE ASSESSEE-TRUST HAS COMPLIED WITH ALL THE REQUIREMENTS BUT DUE TO T HE IMPROPER REPORTING BY THE I.T.O., WARD 2(2), RAJKOT AND I.T.O. (TECH); IN THE IMPUGNED ORDER DATED 26.07.2013 THE LD. CIT-II, RAJKOT REJECTED THE APPLICATION OF THE ASSESSEE-TRUST FOR REGISTRATION U/S 12A(AA) OF THE INCOME-TAX ACT. I, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE IMPUGNED ORDER OF LD. CIT-II, RAJKOT AND DIRECT HIM TO RECONSIDER THE APPLICATION OF THE ASSESSEE-TRUST FOR REGISTRATION U/S 12A(AA) OF THE INCOME-TAX ACT. THE ASSESSEE IS AN EDUCATIONAL AND CHARITABLE TRUST AND ISSUANCE OF RE GISTRATION U/S 12AA IS A PRIMARY CONDITION FOR THE START OF THE CHARITABLE ACTIVITY OF THE TRUST, THEREFORE ITS CASE HAS TO BE DECIDED ON PRIORITY BASIS. I, THEREFORE, DIRECT THE ASSESSEE-TRUST TO SUO MOTO APPEAR BEFORE THE LD COMMISSIONER OF INCOME-TAX-II, RAJKOT WITHIN 30 DAYS ON RECEIPT OF THIS ORDER OF THE TRIBUNAL WITHOUT WAITING FOR ANY NOTIC E FROM THE REVENUE DEPARTMENT AND SUBMIT ALL THE NECESSARY DETAILS/DOCUMENTS AS REQUI RED BY THE LD COMMISSIONER OF INCOME-TAX-II, RAJKOT. ON RECEIPT OF THOSE DETAILS/ DOCUMENTS, THE LD COMMISSIONER OF 3 369-RJT-2013 - GLOBAL EDUCATION & CHARITABLE TRUST (SMC) INCOME-TAX-II, RAJKOT SHALL PASS AN APPROPRIATE ORD ER AS PER LAW AS DEEMED FIT WITHIN A REASONABLE TIME. WITH THESE DIRECTIONS, ASSESSEE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 14.02.2014 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- GLOBAL EDUCATION & CHARITABLE TRUST, 142, KRISHNA COMPLEX, NR. BUS STATION, JASDAN 2. / RESPONDENT- THE COMMISSIONER OF INCOME-TAX-II, R AJKOT 3. ,0,1 * * 2 / CONCERNED CIT, RANGE-2, RAJKOT 4 . 345 1, * 1#, !$ / DR, ITAT, RAJKOT 5 . 57 89 / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT