ST. XAVIERS VILE PARLE ALUMNI ASSOCIATION, MUMBAI V. DIT (E), MUMBAI

ITA 4290/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2246 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-12-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 29-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P R GHOSH
• Keywords: Opportunity of being heard
• Section: 12A; 11

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, J UDICIAL MEMBER ./ I.T.A. NO. 4290 /MUM/ 201 3 ( / ASSESSMENT YEAR : NA ) ST.XAVIERS VILE PARLE ALUMNI ASSOCIATION C/O GLEN MASCARENHAS, GREENLANDS , GROUND FLOOR, LAJPATRAI ROAD, VILE PARLE (W), MUMBAI - 400056 / VS. DIRECT OR OF INCOME TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI - 400012 ./ PAN : AARCS2448E ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ANIL SATHE / RESPONDENT BY : SHRI P R GHOSH / DATE OF HEARING : 2 .12. 2015 / DATE OF PRONOUNCEMENT : 2 .12. 2015 O R D E R PER B.R.BASKARAN,AM : THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 28.03.2013 PASSED BY LD. DIRECTOR OF INCOME TAX (EXEMPTION) REFUSING TO GRANT REGISTRATION TO THE ASSESSEE U/S 12A OF THE INCOME TAX ACT, 1961. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS A COMPANY INCORPORATED U/S 25 O F THE ACT. THE LD. AR SUBMITTED THAT THE DIRECTOR OF INCOME TAX (EXEMPTION) (DIT(E)) HAS REJECTED THE APPLICATION FILED BY THE ASSESSEE SEEKING REGISTRATION U/S 12A OF THE ACT ON FOLLOWING GROUNDS : ITA NO. 4 290 / MUM/ 201 3 2 (A) THE OBJECTS MENTIONED IN THE MEMORANDUM OF ASSOCIAT ION OF THE ASSESSEE CONTAIN CERTAIN OBJECTS WHICH ARE MEANT FOR MUTUAL BENEFITS OF ITS MEMBERS; (B) THE OBJECTS OF THE ASSESSEE EXTENDS BEYOND THE TERRITORY OF INDIA; AND (C) THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF THE ACTIVITIES CARRIED OUT BY IT. 3. WITH REGARD TO THE FIRST OBJECTION OF LD. DIT(E) , THE LD. AR SUBMITTED THAT THE FIRST AND SECOND CLAUSE OF OBJECTIVES OF THE ASSESSEE WAS INTENDED TO PROMOTE INTERACTION AMONGST THE ALUMNI MEMBERS OF THE ST. XAVIERS HIGH SCHOOL AND HE SUBMI TTED THAT THEY FORM A SECTION OF PUBLIC . ACCORDINGLY HE SUBMITTED THAT THE REGISTRATION SHOULD NOT HAVE BEEN REJECTED BY THE LD. DIT(E) ON THAT GROUND . 3.1 WITH REGARD TO THE SECOND OBJECTION, THE LD.AR PLACED RELIANCE ON THE DECISION RENDERED BY THE C O - ORDINATE BENCH OF THE MUMBAI TRIBUNAL IN CRITICAL ART AND MEDIA PRACTICES V. DIRECTOR OF INCOME - TAX (EXEMPTION), [2015] 56 TAXMANN.COM 118 (MUM - TRIB) AND SUBMITTED THAT THE EXPENDITURE , IF ANY, INCURRED BEYOND THE TERRITOR IES OF INDIA MAY NOT BE ALLOWA BLE AS APPLICATION OF INCOME U/S 11 OF THE ACT AND HENCE THE SAME CANNOT BE A GROUND FOR REJECTION OF RE GISTRATION U/S 12A OF THE ACT. 3.2 WITH REGARD TO THE THIRD OBJECTION, THE LD. AR SUBMITTED THAT THE ASSESSEE HAS FILED THE APPLICATION BEFORE LD C IT IMMEDIATELY AFTER INCORPORATION OF THE ASSESSEE COMPANY. HOWEVER, IT HAS CARRIED OUT MANY ACTIVITIES TILL DATE. 4. ON THE CONTRARY, THE LD. DR SUBMITTED THAT THE ASSESSEE HAS FAILED TO SHOW THAT IT HAS REALLY CARRIED ON THE ACTIVITIES IN ATTAINMENT OF ITS OBJECTS. ITA NO. 4 290 / MUM/ 201 3 3 5. HAVING HEARD THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE APPLICATION FILED BY THE ASSESSEE REQUIRES RECONSIDERATION AT THE END OF LD. DIT(E). THE OBJECT CLAUSE OF MEMORANDUM OF ASSOCIATION OF THE ASSESSEE CONTAINS FOUR OBJECTS, OUT OF WHICH OBJECTS NO.1 AND 2 APPEAR TO PROMOTE MUTUAL INTEREST OF THE MEMBERS , WHEREAS THE OBJECTS NO.3 AND 4 APPEARS TO BENEFIT OF GENERAL PUBLIC AT LARGE. THOUGH WE ARE OF THE VIEW THAT THE LD DIT WAS RIGHT IN OBSERVING THAT THE OBJECTS NO.1 & 2 CANNOT BE TAKEN AS OBJECTS OF CHARITABLE NATURE, YET WE NOTICE THAT THE LD.DIT(E) HAS NOT TAKEN INTO CONSIDERATION ABOUT OBJECTS NO.3 & 4. 5.1 WITH REGARD TO THE OBJECTION ABOUT THE CLAUSE ALLOWING CARRYING ON THE ACTIVITIES BEYOND THE TERRITORIES OF INDIA, THE LD. AR HAS PLACED RELIANCE ON THE DECISION OF CO - ORDINATE BENCH OF MUMBAI TRIBUNAL IN THE CASE OF CRITICAL ART AND MEDIA PRACTICES (SUPRA) 5.2 WITH REGARD TO THE OBJECTION REGARDING RELEVANCE OF GENUINENESS OF THE ACTIVITIES, THE LD. AR SUBMITTED THAT THE ASSESSEE HAS CARRIED OUT MANY ACTIVITIES TILL DATE. 6. IN VIEW OF THE ABOVE, WE ARE OF VIEW THAT THE ASSESSEE SHOULD BE PROVIDED O N E MORE OPPORTUNITY TO EXPLAIN ABOUT ALL THE DEFECTS POINTED OUT BY THE LD DIT. ACCORDINGLY, WE SET ASIDE THE ORDE R OF LD. DIT(E) AND RESTORE ALL THE MATTER S TO HIS FILE WITH A DIRECTION TO CONSIDER THE APPLICATION OF THE ASSESSEE AFRESH , AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO FURNISH ALL THE DETAILS AND EX PLANATION THAT MAY BE CALLED FOR BY LD. DIT(E) FOR SPEEDY DISPOSAL OF THE APPLICATION. ITA NO. 4 290 / MUM/ 201 3 4 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DEC 2015 . SD SD ( / SANDEEP GOSAIN ) ( . . / B.R.BASKARAN) /JUDICIAL MEMBER /ACCOUNTANT MEMBER MUMBAI ; DATED .. 2 ND DEC,2015 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI