SLUM REHABILITATIN SOCIETY ( FORMERLY TPS III BANDRA SLUM REHABILITATION SOCIETY, MUMBAI V. DIT (E), MUMBAI

ITA 3926/MUM/2009

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71852 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 05-11-2013
• Assessment Year: misc
• Appeal Filed On: 19-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S D SHRIVASTAVA
• Assessee Lawyers: S S PHADKAR; VISHWAS V MEHENDALE
• Section: 12A; 12AA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL J JJ J BENCH, BENCH, BENCH, BENCH, MUMBAI MUMBAI MUMBAI MUMBAI , . , . , ! ! ! ! '# '# '# '# BEFORE BEFORE BEFORE BEFORE SHRI SHRI SHRI SHRI VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM & & & & SHRI SHRI SHRI SHRI D. KARUNAKARA RAO D. KARUNAKARA RAO D. KARUNAKARA RAO D. KARUNAKARA RAO, AM , AM , AM , AM ./ I.T.A. NO. I.T.A. NO. I.T.A. NO. I.T.A. NO.3926/MUM/2009 3926/MUM/2009 3926/MUM/2009 3926/MUM/2009 ( $% $% $% $% & & & & / ASSESSMENT YEAR :) SLUM REHABILITATION SOCIETY (ORMERLY TPS III, BANDRA SLUM REHABILITATION SOCIETY), THE MANAGING TRUSTEE, SLUM REHABILITATION SOCIETY, SWAPNA SAFALYA, A WING, GR. FL., 25 TH ROAD, TPS-III, BANDRA (WEST) MUMBAI-400050 % % % % / VS. THE DIRECTOR OF INCOME TAX (EXEMPTIONS) MUMBAI #' ! ./ ( ./ PAN/GIR NO. :AAATS0866J ( ') / APPELLANT APPELLANT APPELLANT APPELLANT) .. ( *+') / RESPONDENT RESPONDENT RESPONDENT RESPONDENT) $% $%$% $% ,- ,- ,- ,- . / . / . / . / /ASSESSEE BY : SHRI S. S. PHADKAR & SHRI VISHWAS V. MEHENDALE # # # # . / . / . / . / / REVENUE BY : SHRI S. D SHRIVASTAVA % % % % . .. . -! -! -! -! / DATE OF HEARING : 28 TH NOVEMBER 2013 01& 01& 01& 01& . .. .-! -! -! -! /DATE OF PRONOUNCEMENT: 28 TH NOVEMBER 2013 '2 / O R D E R PER : , . . / VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 6.4.2009 PASSED BY DIT (EXEMPTION) WHEREBY THE REGI STRATION GRANTED U/S 12A WAS WITHDRAWN. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN THIS APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON. DIRECTOR OF INCOME TAX (EXEMPTION), MUMBAI ERR ED IN WITHDRAWING APPELLANTS REGISTRATION U/S 12A OF THE INCOME TAX ITA NO.3926/M/2009 SLUM REHABILITATION SOCIETY 2 ACT, 1961, WITHOUT GIVING PROPER OPPORTUNITY TO THE APPELLANTS TO EXPLAIN THEIR CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE HON. DIRECTOR OF INCOME TAX (EXEMPTION), MUMBAI, ER RED IN IGNORING THE LEGAL POSITION THAT, INTIMATION OF TH E CHANGE OF OBJECTS OR A NAME IS NOT A STATUTORY REQUIREMENT U NDER THE INCOME TAX ACT, 1961. HENCE, THE APPELLANTS DELAY IN COMMUNICATING THE SAME TO THE OFFICE OF THE DIT(EXE MPTION), MUMBAI SHOULD HAVE BEEN CONSIDERED TO BE A RECTIFIA BLE TECHNICAL DEFECT. 3. WE HAVE HEARD THE LD. A.R AS WELL AS LD. D.R AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE LD. A.R HAS POINTE D OUT THAT THE REGISTRATION HAS BEEN CANCELLED BY THE DIT ON THE G ROUND THAT THE ASSESSEE HAS CHANGED ITS OBJECTS. THE LD. A.R HAS C ONTENDED THAT THE REGISTRATION U/S 12A CAN BE CANCELLED ONLY ON THE S ATISFACTION OF THE CONDITIONS AS PROVIDED U/S 12AA(3) OF THE INCOME TA X ACT. HE HAS REFERRED THE OBJECTS OF THE ASSESSEE TRUST AND SUBMITTED THA T THE OLD OBJECTS AND THE AMENDED OBJECTS ARE SAME IN SUBSTANCE AND THE A MENDMENT IS ONLY IN THE FORM OF MORE SPECIFIC IN NATURE AND HAS NOT RES ULTED ANY MATERIAL CHANGE IN THE ORIGINAL OBJECTS OF THE TRUST. HE HAS FURTHER POINTED OUT THAT A NEW CERTIFICATE U/S 12AA HAS BEEN ISSUED TO THE A SSESSEE SUBSEQUENT TO THE IMPUGNED ORDER AND FURTHER THE ASSESSEE TRUST H AS ALSO BEEN APPROVED U/S 80G. THEREFORE, THE OBJECTS EVEN AFTER THE ALLEGED AMENDMENT ARE FOUND TO BE CHARITABLE IN NATURE. ON THE OTHER HAND, THE LD. D.R HAS RELIED UPON THE IMPUGNED ORDER AND SUBM ITTED THAT IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN CAS E OF ALLAHABAD AGRICULTURAL INSTITUTE AND ANOTHER VS UNION OF INDI A 291 ITR 116. THE DIT (EXEMPTION) IS JUSTIFIED IN CANCELLING THE REGISTRA TION U/S 12A OF THE ASSESSEE. ITA NO.3926/M/2009 SLUM REHABILITATION SOCIETY 3 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD WE NOTE THAT THE DIT HAS CANCELLED THE RE GISTRATION GRANTED U/S 12A WITHOUT ANALYSING THE CONDITION AS PRESCRIBED U /S 12AA(3) OF THE INCOME TAX ACT. SECTION 12AA(3) STIPULATES TWINE CO NDITIONS AND IF THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF TR UST/INSTITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION, HE SHALL PASS AN ORDER IN WRI TING CANCELLING THE REGISTRATION OF SUCH TRUST OR INSTITUTION. HOWEVER, NO ORDER UNDER THIS SUB- SECTION SHALL BE PASSED UNLESS A REASONABLE OPPORTU NITY OF BEING HEAD GIVEN TO SUCH TRUST OR INSTITUTION. WE NOTE THAT TH E REGISTRATION OF THE ASSESSEE HAS BEEN CANCELLED ON A LETTER/APPLICATION FILED BY THE ASSESSEE ITSELF FOR BRINGING ON RECORD CHANGE OF NAME IN THE REGISTRATION. WE FURTHER NOTE THAT THE SUBSTANCE OF THE ORIGINAL OBJECTS AS WELL AS AMENDED OBJECTS REMAINS SAME. THE COMPARATIVE OBJECTS ARE AS UNDER: OLD OBJECTS NEW OBJECTS 1. TO REMOVE HEALTH HAZARDS AND OTHER SOCIAL EVILS THAT THREATEN HUTMENT DWELLERS AND OTHER RESIDENTS OF T.P.S III, BANDRA AND WHICH ARE MAINLY DUE TO THE EXISTENCE OF UNCARED FOR SLUM POCKETS. TO PROVIDE ACCOMMODATION WITH SANITARY REQUIREMENTS FOR HUTMENT DWELLERS AND OTHER LOW INCOME GROUPS OF GREATER BOMBAY, MORE PARTICULARLY OF BANDRA(W) 2. TO BEAUTIFY THIS SUBURB AND MAKE LIVING CONDITIONS FOR ALL RESIDENTS MORE WHOLESOME. TO WORK FOR THE UPLIFT OF HUTMENT DWELLERS AND OTHER LOW INCOME GROUPS OF GREATER BOMBAY, MORE PARTICULARLY OF BANDRA(W) 3. TO IMPROVE THE STANDARDS OF CLEANLINESS AND CIVIL AMENITIES FOR ALL RESIDENTS WITH THE COOPERATION OF THE MUNICIPALITY AND OTHER ITA NO.3926/M/2009 SLUM REHABILITATION SOCIETY 4 GOVERNMENT AUTHORITIES. 4. IN PARTICULAR, TO PROVIDE ACCOMMODATION WITH SANITARY REQUIREMENTS FOR HUTMENT DWELLERS OF GREATER BOMBAY, MORE PARTICULARLY TO T.P.S III, BANDRA. 5. TO WORK FOR THE UPLIFT OF THE FAMILIES LIVING IN THE SLUMS OF GREATER BOMBAY, MORE PARTICULARLY OF T.P.S III, BANDRA 5. FROM THE OLD OBJECTS AS WELL AS NEW OBJECTS IT A PPEARS THAT THE NEW OBJECTS ARE NOT ALTERATION OF THE OLD OBJECTS BUT T HE FOCUS IS RESTRICTED ONLY TO THE MAIN OBJECTS OF THE TRUST. IN THE CASE OF AL LAHABAD AGRICULTURAL INSTITUTION AND ANOTHER VS UNION OF INDIA (SUPRA) T HE HONBLE HIGH COURT HAS OBSERVED THAT IN A SITUATION WHERE THE OBJECTS OF THE TRUST OR INSTITUTION HAD BEEN ALTERED WHOLESALE AFTER GRANT OF REGISTRATION AND INTIMATION OF THE ALTERATION HAD NOT GIVEN TO THE C OMMISSIONER, THE ORDER OF THE ASSESSING AUTHORITY ON THE ASSUMPTION THAT T HE REGISTRATION WHICH WAS GRANTED ON THE BASIS OF A PARTICULAR REPRESENTA TION HELD GOOD, WOULD NOT CALL FOR INTERFERENCE. IN THE CASE IN HAND THER E IS NO ALTERATION IN THE OBJECTS BUT THE SUBSTANCE OF THE OBJECTS REMAIN SAM E AND FURTHER THE ASSESSEE ITSELF BROUGHT THE CHANGE IN THE NOTICE OF THE DIT. THEREFORE, THE DECISION IN CASE OF ALLAHABAD AGRICULTURAL INSTITUT ION AND ANOTHER VS UNION OF INDIA (SUPRA) WOULD NOT HELP OF THE CASE OF THE REVENUE. SINCE THE DIT HAS NOT CONSIDERED THE ISSUE OF CANCELLATION IN THE LIGHT OF SECTION 12AA(3) AND FURTHER THERE ARE DEVELOPMENTS OF GRANTING REGI STRATION BY ISSUING A NEW CERTIFICATE U/S 12AA THEREFORE, IN THE FACTS AN D CIRCUMSTANCES OF THE ITA NO.3926/M/2009 SLUM REHABILITATION SOCIETY 5 CASE AND IN THE INTEREST OF JUSTICE WE SET ASIDE TH E IMPUGNED ORDER AND REMIT THE MATTER TO THE RECORD OF THE DIT/COMMISSIO NER TO RECONSIDER AND DECIDE AFRESH AFTER GIVING AN OPPORTUNITY OF HEARIN G TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING I.E. 28 TH DAY OF NOVEMBER 2013 SD/- SD/- ( . ) ! '# (D. KARUNAKARA RAO) ACCOUNTANT MEMBER ( ) $ '# (VIJAY PAL RAO) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 28 TH NOVEMBER 2013 SUBODH COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI