M/S. ST. ANNES CHURCH, MIUMBAI V. THE DIT (E), MUMBAI

ITA 482/MUM/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2570 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 21-01-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Assessee Lawyers: B V JHAVERI
• Keywords: Charitable institution
• Section: 12A; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VP & SHRI R.K. PANDA, AM I.T.A. NO. 482/MUM/2008 (ASSESSMENT YEAR : N.A.) ST. ANNES CHURCH PALI HILL, BANDRA (W) MUMBAI-400 050 PAN: AABTS6449J VS. DIRECTOR OF INCOME-TAX (EXEMPTION) 6 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI-400 012 APPELLANT RESPONDENT APPELLANT BY: SHRI B.V. JHAVERI RESPONDENT BY: SHRI NAVEEN GUPTA O R D E R DATE OF HEARING: 23.12.2009 DATE OF ORDER: 23.12.2009 PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 19 TH NOVEMBER, 2007 OF THE DIRECTOR OF INCOME-TAX (EXEM PTION), MUMBAI. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN TAKEN THEY A LL RELATE TO THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTION) REFUSING REGISTRATION U/S.12A OF THE INCOME-TAX ACT, 1961 (THE ACT) TO TH E ASSESSEE TRUST. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A CHARITABLE TRUST REGISTERED U/S. 12A OF THE ACT UNDER SR. NO. TR/742 DATED 13 TH OCTOBER, 1977. SINCE THE ABOVE CERTIFICATE WAS MISPLACED TH E ASSESSEE FILED A FRESH APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT ON 31 ST MAY, 2007. THE DIRECTOR OF INCOME-TAX (EXEMPTION) OBSERVED THAT TH E APPLICATION FILED BY THE ASSESSEE ALONG WITH CERTIFIED COPY OF THE TRUST DEED AND COPIES OF ACCOUNTS FOR THREE YEARS ARE BEYOND THE STIPULATED PERIOD AND NO SPECIFIC REQUEST HAS BEEN MADE TO ACCORD REGISTRATION RETROS PECTIVELY. HE OBSERVED FROM THE DETAILS FILED BY THE ASSESSEE THA T IT WAS EARNING HUGE INCOME IN THE PREVIOUS YEARS BUT WAS NOT PAYING ANY TAX ON IT. THOUGH THE APPLICANT IS NOT HAVING CERTIFICATE/REGISTRATION U/ S. 12A OF THE ACT YET IT IS I.T.A. NO. 482/MUM/2008 ST. ANNES CHURCH ================= 2 CLAIMING EXEMPTION OF ITS INCOME U/S. 11 AND 12 OF THE ACT AND THEREBY EVADING TAX ON LARGE SCALE. SINCE THE ASSESSEE DID NOT PRODUCE THE ORIGINAL DOCUMENTS FOR HIS VERIFICATION AND THE TRUST DEED W AS NOT MADE AVAILABLE TO HIM, THE DIRECTOR OF INCOME-TAX (EXEMPTION) OBSE RVED THAT THE OBJECTS OF THE TRUST ARE NOT VERIFIABLE AND IN TURN THE GEN UINENESS OF THE ACTIVITIES OF THE TRUST ARE ALSO NOT VERIFIABLE NOT BEING SAT ISFIED WITH THE VARIOUS EXPLANATIONS GIVEN BY THE ASSESSEE AND OBSERVING TH AT NO MATERIAL WAS FILED BEFORE HIM TO SATISFY ABOUT THE GENUINENESS O F ITS ACTIVITIES, HE HELD THAT THE CONDITION PRECEDENT TO GRANT REGISTRATION IS NOT SATISFIED IN THE IMPUGNED CASE. HE ACCORDINGLY REFUSED TO REGISTER THE TRUST U/S. 12A OF THE I.T. ACT. AGGRIEVED WITH SUCH ORDER OF THE DIR ECTOR OF INCOME-TAX (EXEMPTION) THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT SUBSEQUENT TO THE RECEIPT OF THE ORDER OF THE DIRECTOR OF INCOME- TAX (EXEMPTION), THE ASSESSEE COULD TRACE OUT THE REGISTRATION NO. IN RE SPECT OF THE REGISTRATION U/S. 12A OF THE ACT FROM ITS OLD RECORDS. THE ASSE SSEE APPLIED UNDER RIGHT TO INFORMATION ACT, 2005 TO ASCERTAIN THE NAME OF T HE TRUST WHICH IS REGISTERED UNDER SR. NO. TR/742 DATED 13 TH OCTOBER, 1977. REFERRING TO PAPER BOOK PAGE 17 HE SUBMITTED THAT THE INCOME-TAX OFFICER (HQ) (EXEMP.) VIDE HIS LETTER DATED 13 TH MAY, 2008 HAS STATED THAT THE NAME OF THE TRUST REGISTERED U/S. 12A OF THE ACT VIDE REGIS TRATION NO. TR/742 IS ST. ANNES CHURCH. HE ACCORDINGLY SUBMITTED THAT SINCE THE TRUST HAS ALREADY BEEN REGISTERED U/S. 12A OF THE ACT, THEREFORE, THE DIRECTOR OF INCOME-TAX (EXEMPTION) WAS NOT JUSTIFIED IN REFUSING REGISTRAT ION AND HIS ORDER DATED 19 TH NOVEMBER, 2007 SHOULD BE QUASHED. 5. THE LEARNED DR, ON THE OTHER HAND, WHILE SUPPORTING THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTION) FAIRLY CONCEDED THAT THE TRUST IS REGISTERED U/S. 12A VIDE REGISTRATION NO. TR/742 WH ICH IS AS PER THE REPLY OF THE I.T.O. (HQ) (EXEMP.), MUMBAI IN RESPONSE TO THE QUERY RAISED BY THE ASSESSEE UNDER THE RIGHT TO INFORMATION ACT, 2005. I.T.A. NO. 482/MUM/2008 ST. ANNES CHURCH ================= 3 6. AFTER HEARING BOTH THE SIDES, WE FIND THAT THE ASSE SSEE TRUST IS REGISTERED UNDER SECTION 12A OF THE ACT VIDE REGISTRATION NO. TR/742 WHICH IS AS PER THE LETTER ISSUED BY THE I.T.O. (HQ) (EXEMP.), MUMBAI I N RESPONSE TO THE APPLICATION UNDER RIGHT TO INFORMATION ACT, 2005 BY THE ASSESSEE, A COPY OF WHICH IS AVAILABLE IN PAPER BOOK PAGE 17. SINCE TH E ASSESSEE TRUST IS ALREADY REGISTERED U/S. 12A OF THE ACT, THEREFORE, THERE WA S NO NECESSITY ON THE PART OF THE ASSESSEE TO FILE A FRESH APPLICATION. ACCORDIN GLY, THE ORDER PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTION) ON THE BASIS OF THE APPLICATION FILED BY THE ASSESSEE UNDER A MISTAKEN BELIEF BECOMES INFRUC TUOUS AND ACCORDINGLY THE SAME IS QUASHED. THE APPEAL FILED BY THE ASSESSEE AGAINST SUCH INFRUCTUOUS ORDER BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON 23 RD DECEMBER, 2009. SD/- (D. MANMOHAN) VICE PRESIDENT SD/- (R.K. PANDA) ACCOUNTANT MEMBER MUMBAI, DATED 23 RD DECEMBER, 2009 COPY TO: (1) THE APPELLANT, (2) THE RESPONDENT, (3) THE I.T.O. (HQ) (EXEMP.), MUMBAI, (4) THE DR, E BENCH, ITAT, MUMBAI. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI TPRAO