Bhumijal Seva Trust, RAJKOT-GUJARAT V. The Commissioner of Income Tax-I, RAJKOT-GUJARAT

ITA 383/RJT/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 72629 (ITAT-RAJKOT)
• Duration Of Justice: 26 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: 18-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT B JHAVERI
• Assessee Lawyers: DM RINDANI
• Section: 12; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 383/RJT/2013 BHUMIJAL SEVA TRUST 4, AMRUT CHAMBER, STATION ROAD, BJUJ-KUTCH PAN : AAAAB 7264 J ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX-I RAJKOT / RESPONDENT / ASSESSEE BY SHRI D M RINDANI, CA / REVENUE BY DR JAYANT B JHAVERI, 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 23.09.2013 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 BHUMIJAL SEVATRUST MADE AN APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961 ON 19.03.2013. THIS APPLICATION WAS ACCOMPANIED WITH THE XEROX COPY OF THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATI ON OF THE FOUNDATION AND REGISTRATION CERTIFICATE UNDER THE SOCIETIES REGIST RATION ACT DATED 19.02.2013. THE AFORESAID APPLICATION WAS REJECTED BY THE LD COMMIS SIONER OF INCOME-TAX, RAJKOT-I VIDE HIS ORDER DATED 23.09.2013 PASSED U/S 12AA(1)( B)(II) OF THE INCOME-TAX ACT. THE DETAILED REASON IS GIVEN BY HIM IN PARAGRAPHS 2 AND 3 OF THE IMPUGNED ORDER, WHICH READ 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 18.09.2013 VIDE THIS OFFICE NOTICE NO.S.A.A.RAJ-I/&/12A/R-1/61/2013-14 D ATED 10.09.2013. 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 2 383-RJT-2013 BHUMIJAL SEVA TRUST (SMC) 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. 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. THE LEARNED COMMISSIONER OF INCOME TAX-I, RAJKO T ERRED IN REJECTING THE APPLICATION FOR REGISTRATION U/S12A ON THE GROU ND THAT THE TRUST FAILED TO PRODUCE EVIDENCE IN SUPPORT OF ITS APPLICATION AND HENCE IT IS NOT FULFILLING THE CONDITION U/S 12AA OF THE ACT. 2. THE LEARNED COMMISSIONER OF INCOME TAX-I, RAJKOT IS NOT CONSIDERING THAT THE TRUST HAD MADE SUBSTANTIAL COMPLIANCE OF T HE DOCUMENTS REQUIRED BY THE ITO IN SUPPORT OF ITS APPLICATION. 3. THE LEARNED COMMISSIONER OF INCOME TAX-I, RAJKOT ERRED IN NOT GRANTING ADEQUATE OPPORTUNITY TO THE TRUST ALTHOUGH THE TIME GIVEN WAS SHORT AND FURTHER THE TRUST HAD APPLIED FOR ADJOURNMENT W ITH REASON. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, WI THDRAW ANY GROUND OF APPEAL ANYTIME UPTO THE HEARING OF THIS APPEAL. RELIEF CLAIMED IN APPEAL THE ORDER OF CIT-U/S 12AA MAY KINDLY BE SET ASIDE, AND THE APPELLANT BE GRANTED REGISTRATION U/S 12A OF THE ACT IN VIEW OF THE EVIDENCE ON RECORD. 3. BEFORE THE TRIBUNAL, ON BEHALF OF THE ASSESSEE-T RUST, SHRI D.M. RINDANI, CA, APPEARED AND FILED A PAPER-BOOK CONTAINING 28 PAGES , WHICH INTER-ALIA INCLUDED A COPY OF LETTER DATED 19.09.2013 ADDRESSED BY THE TR UST TO THE COMMISSIONER OF INCOME-TAX, RAJKOT-I REQUESTING FOR ADJOURNMENT ON THE GROUND THAT THE PRESIDENT OF THE TRUST IS OUT OF STATION. THE LD COUNSEL OF THE ASSESSEE, RELYING ON THE ADJOURNMENT APPLICATION, POINTED OUT THAT LD COMMIS SIONER OF INCOME-TAX, RAJKOT-I ISSUED A LETTER DATED 10.09.2013 ASKING ASSESSEE-TR UST TO PRODUCE TRUST DEED, BOOKS OF ACCOUNTS AND MINUTES BOOKS IN ORIGINAL ON 18.09. 2013. SINCE ADEQUATE TIME WAS NOT ALLOWED, THE ASSESSEE-TRUST MADE A REQUEST TO G RANT MORE TIME, BUT THE LD COMMISSIONER OF INCOME-TAX, RAJKOT-I, INSPITE OF GR ANTING MORE TIME, PASSED THE IMPUGNED ORDER REJECTING THE APPLICATION FOR REGIST RATION U/S 12A OF THE INCOME-TAX ACT, 1961. THE LD COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE-TRUST IS WILLING TO MAKE AVAILABLE ALL THE REQUIRED DOCUMENTS; THERE FORE IN THE INTEREST OF JUSTICE, THE LD COMMISSIONER OF INCOME-TAX BE DIRECTED TO ALLOW ONE MORE OPPORTUNITY TO PRODUCE THE VARIOUS DOCUMENTS WHICH WERE REQUIRED BY HIM VI DE HIS LETTER DATED 10.09.2013. THE LD DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT HE HAS NO OBJECTION IN THIS REGARD. 3 383-RJT-2013 BHUMIJAL SEVA TRUST (SMC) 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 CAN BE SEEN THAT HE HAS NOT ALLOWED ADEQUATE TIME TO THE ASSESSEE-TRUST TO PRODUCE THE VARIOUS DOCUMENTS REQUIRED BY HIM VIDE HIS LETTER DATED 10. 09.2013. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER DATED 23.09.2013 PASSED BY THE L D COMMISSIONER OF INCOME-TAX, RAJKOT-I U/S 12AA(1)(B)(II) AND DIRECT HIM TO ALLOW ADEQUATE OPPORTUNITY TO THE ASSESSEE-TRUST TO PRODUCE THE VARIOUS DETAILS AND D OCUMENTS, WHICH WERE REQUIRED VIDE HIS LETTER DATED 10.09.2013 AND 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 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- BHUMIJAL SEVA TRUST, 4, AMRUT CHAMBER , STN ROAD, BJUJ-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