India Serve Minstries, Cuttack V. CIT(Exemption), Hyderabad

ITA 386/CTK/2015

• Counselvise Citation: 38622114 RSA 2015
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-10-2015
• Assessment Year: misc
• Appeal Filed On: 07-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASIT KUMAR MOHAPATRA
• Assessee Lawyers: G NAIKRAJAT KAR
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . . , & , BEFORE S/SHRI P.M.JAGTAP, ACCOUNTANT M EMBER & PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ' ./ ITA NO.386/CTK/2015 INDIA SERVE MINISTRIES, AT: ROBINS HEALTH MAKERBAG, BUXIBAZAR, CUTTACK. VS. THE CIT (EXEMPTION), HYDERABAD. ' ./ # ' ./PAN/GIR NO. AAATI 3749 L ( $ /APPELLANT ) .. ( %&$ / RESPONDENT ) ' * * * * /ASSESSEE BY : S/SHRI G.NAIK/RAJAT KAR + * * * * /REVENUE BY : SHRI ASIT KUMAR MOHAPATRA '+, / DATE OF HEARING : 29 TH OCT. 2015 -./ /DATE OF PRONOUNCEMENT 30 TH OCT. 2015 0 0 0 0 / O R D E R PER PARTHA SARATHI CHAUDHURY, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (EXEMPTION), HYDERABAD D ATED 31.7.2015 PASSED UNDER SECTION 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT), REJECTING THE ASSESSEES APPLICATION FOR REGISTRATI ON UNDER SECTION 12AA OF THE ACT. 2. THE RELEVANT FACTS, IN BRIEF, LEADING TO THE DIS PUTE ARE THAT THE ASSESSEE TRUST FILED AN APPLICATION IN FORM NO.10A ON 20.1.2 015 SEEKING REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COMMISSIONER O F INCOME TAX (EXEMPTION) ITA NO. 386/CTK/2015 2 ASKED THE ASSESSEE TO PRODUCE ITS ORIGINAL MEMORAND UM OF ASSOCIATION FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECI FIC POINTS. HOWEVER, NO COMPLIANCE WAS MADE BY THE ASSESSEE. AGAIN, THE AS SESSEE WAS ASKED TO PROVIDE DETAILS OF AMENDMENT CLAUSE, DISSOLUTION CL AUSE OF THE TRUST DEED ALONGWITH A DETAILED NOTE THEREON. ON PERUSAL OF TH E AMENDMENT CLAUSE, THE LD CIT OBSERVED THAT THERE IS NO INTENTION ON THE PART OF THE ASSESSEE TRUST TO TAKE A PREVIOUS APPROVAL/PERMISSION OF THE CIT(E)PRIOR T O MAKING ANY AMENDMENT WHICH IS NECESSARY FOR THE PURPOSE OF SEEKING REGIS TRATION U/S.12AA OF THE ACT. ON PERUSAL OF THE DISSOLUTION CLAUSE, THE LD CIT(E) WAS OF THE VIEW THAT THERE IS NO INTENTION ON THE PART OF THE ASSESSE TRUST TO TR ANSFER THE ASSETS TO ANOTHER TRUST, WHICH IS HAVING REGISTRATION U/S.12AA OF THE ACT, AND, THEREFORE, REJECTED THE APPLICATION FOR GRANT OF REGISTRATION. HENCE, THE ASSESSEE HAS FILED APPEAL BEFORE US. 3. AT THE TIME OF HEARING, LD COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE LD CIT(E) HAS REJECTED THE APPLICATION U/S.12AA OF THE ACT WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE PRA YED THAT IF THERE IS ANY AMBIGUITY IN THE AMENDMENT OF THE TRUST DEED OR DIS SOLUTION CLAUSE, THAT CAN BE RECTIFIED BY THE ASSESSEE SOCIETY. 4. FROM THE SIDE OF THE REVENUE, LD D.R. HAS ARGU ED THAT THE AMENDMENT CLAUSE AND DISSOLUTION CLAUSE IS VERY IMPORTANT. HE HAS ELABORATED THAT IN A SITUATION WHEN THERE IS NO SPECIFIC AMENDMENT CLAUS E AND DISSOLUTION CLAUSE, THEN A TRUST CAN TAKE AN ADVANTAGE OF TRANSFERRING THE MOVABLE AND IMMOVABLE ITA NO. 386/CTK/2015 3 ASSETS OF A TRUST TO THE PERSONS INTERESTED INSTEAD OF TRANSFERRING THOSE ASSETS ON DISSOLUTION FOR CHARITABLE PURPOSES. HE URGED T O UPHOLD THE ORDER OF THE LD CIT (E). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE RECORD OF THE CASE. THE LD CIT(E) REJECTED THE REGISTRATION ON T HE GROUND THAT IN THE DISSOLUTION CLAUSE, IT IS MENTIONED THAT THERE IS N O INTENTION ON THE PART OF THE SOCIETY TO TRANSFER THE ASSETS TO ANY OTHER SOCIETY , HAVING REGISTRATION U/S.12AA OF THE ACT AS WELL AS ON PERUSAL OF AMENDMENT CLAUS E, HE WAS OPINED THAT THERE IS NO INTENTION ON THE PART OF THE ASSESSEE TRUST T O TAKE A PREVIOUS APPROVAL OF THE CIT(E). BEFORE US, LD AR SUBMITTED THAT THE AS SESSEE SOCIETY WILL MAKE SUITABLE AMENDMENT IN THE AMENDMENT CLAUSE AND DISS OLUTION CLAUSE AS PER THE REQUIREMENT OF THE DEPARTMENT FOR REGISTRATION U/S. 12AA. IN VIEW OF THIS, AND IN THE INTEREST OF JUSTICE, WE DIRECT THE ASSESSEE TO MAKE FRESH APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT AFTER MAKING SUITA BLE AMENDMENT IN THE AMENDMENT TO TRUST DEED AND DISSOLUTION CLAUSE. TH E LD CIT(E) IS ALSO DIRECTED TO RECONSIDER THE APPLICATION OF THE ASSESSEE FOR G RANT OF REGISTRATION AS PER RELEVANT STATUTORY PROVISIONS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /10/2 015 SD/- SD/- . . ,/P.M.JAGTAP , PARTHA SARATHI CHAUDHURY /ACCOUNTANT MEMBER JUDICIAL MEMBER ITA NO. 386/CTK/2015 4 CUTTACK; '' DATED 30/10/2015 B.K.PARIDA, SPS 2 22 2 0 0 0 0 % % % % 4/ 4/ 4/ 4/ / COPY OF THE ORDER FORWARDED TO : 2 22 2 2 22 2 2 22 2 2 22 2 2 22 2 2 22 2 2 22 2 2 22 2 2 22 2 0' 0' 0' 0' / BY ORDER, SR. PRIVATE SECRETARY, , / ITAT, CUTTACK 1. $ / THE APPELLANT : INDIA SERVE MINISTRIES, AT: ROBINS HEALTH MAKERBAG, BUXIBAZAR, CUTTACK. 2. %&$ / THE RESPONDENT. THE CIT (EXEMPTION), HYDERABAD. 3. +5 %' , / DR, ITAT, CUTTACK 4 . 6 7, / GUARD FILE. & % //TRUE COPY//