JAMIAT ULAMA-E-RELIEF FOUNDATION, Mumbai V. CIT (EXEMPTION), Mumbai

ITA 4647/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2148 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 09-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PURUSHOTTAM TRIPURI
• Keywords: Source of fund; Set aside
• Section: 12A; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO.4647/M/2019 ASSESSMENT YEAR: 2012-13 M/S. JAMIAT ULAMA-E- RELIEF FOUNDATION, OPP BIT CHAWL NO.1, IMAMWALA COMPOUND,, IMAMWADA ROAD, MUMBAI - 400009 PAN: AABTJ5386R VS. CIT (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI - 400012 (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI HARIDAS BHATT, A.R. REVENUE BY : SHRI S. PURUSHOTTAM TRIPURI, D.R. DATE OF HEARING : 31.03.2021 DATE OF PRONOUNCEMENT : 28.06.2021 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 14.05.2019 OF THE COMMISSIO NER OF INCOME TAX (EXEMPTION) [HEREINAFTER REFERRED TO AS THE CIT(E)] RELEVANT TO ASSESSMENT YEAR 2012-13. 2. THE ASSESSEE IN VARIOUS GROUNDS OF APPEAL HAS RA ISED THE ISSUE OF REJECTION OF REGISTRATION UNDER SECTION 12 A OF THE ACT WITHOUT GRANTING REASONABLE OPPORTUNITY TO THE ASSE SSEE. 3. THE FACTS IN BRIEF ARE THAT THE TRUST WAS CONSTI TUTED BY MEMORANDUM OF ASSOCIATION DATED 29.06.2011 AND DULY REGISTERED WITH ASSISTANT REGISTRAR OF SOCIETIES, M UMBAI ON ITA NO.4647/M/2019 M/S. JAMIAT ULAMA-E-RELIEF FOUNDATION 2 08.08.2011 AND ALSO WITH CHARITY COMMISSIONER, MUMB AI ON 17.11.2011. SUBSEQUENTLY, THE TRUST FILED AN APPLI CATION FOR REGISTRATION UNDER SECTION 12A WITH DIRECTOR OF INC OME TAX (EXEMPTION), MUMBAI, HOWEVER, THE SAME WAS REJECTED BY THE LD. CIT(E) VIDE ORDER DATED 30.09.2013 PASSED UNDER SECTION 12AA(1)(B)(II). THE VARIOUS DECISIONS CITED FOR RE JECTION OF THE APPLICATION INTER ALIA INCLUDE PROVIDING FINANCIAL ASSISTANCE IN THE FORM OF FINANCIAL AID, SEED CAPITAL VENTURE WHI CH WAS CONSIDERED A COMMERCIAL OBJECT, SOURCE OF FUND NOT PROVED BY THE ASSESSEE AND MEMBERSHIP BEING GIVEN TO PARTICUL AR RELIGIOUS COMMUNITY AND FINALLY THE ASSESSEE IS PROVIDING LEG AL HELP TO ACCUSED OF SEVERAL TERRORIST ACTIVITIES WHICH IS NO T HELD TO BE CHARITABLE IN NATURE. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE OBSERVE THAT THE LD. CIT(E) HAS GONE INT O THE SOURCE OF FUNDS AND APPLICATION THEREOF WITHOUT ASCERTAINI NG THE GENUINENESS OF THE OBJECTS OF THE TRUST. WE ARE, T HEREFORE, OF THE OPINION THAT LD. CIT(E) NEEDS TO EXAMINE THE GENUIN ENESS OF THE TRUST ON THE BASIS OF AIMS AND OBJECTIVES OF THE TR UST AND ACCORDINGLY CONSIDER THE ISSUE OF GRANTING REGISTRA TION UNDER SECTION 12A. WE ARE, THEREFORE, OF THE CONSIDERED VIEW THAT THE ENDS OF JUSTICE WOULD BE MET, IF THE ISSUE IS RESTO RED TO THE FILE OF THE LD. CIT(E) TO CONSIDER THE ISSUE AFRESH AND DEN OVO AFTER TAKING INTO ACCOUNT THE OBJECTS OF THE ASSESSEE AND ALSO THE VARIOUS EVIDENCES WHICH MAY BE FILED BY THE ASSESSE E BEFORE LD. CIT(E) AND THEN DECIDE THE ISSUE ON THE MERITS OF T HE CASE. ACCORDINGLY, WE SET ASIDE THE ORDER OF LD. CIT(E). ITA NO.4647/M/2019 M/S. JAMIAT ULAMA-E-RELIEF FOUNDATION 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.06.2021. SD/- SD/- ( AMARJIT SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 28.06.2021. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.