SHRI SIDHESHWAR SHIV MAMDIR TRUST, V. COMMISSIONER OF INCOME TAX- II,Nagpur, Nagpur

ITA 487/NAG/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2214 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-04-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 25-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D RAVI KUMAR
• Section: 12AA

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH: NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 487 /NAG/20 1 4 ASSESSMENT YEAR: 200 9 - 20 1 0 SHRI SIDDHESHWAR SHIV MANDIR TRUST AT PO.SARUL, BHAGWA DI, TAL - BABULGAON DIST - YAVATMAL PAN:A ANTS5212M VS COMMISSIONER OF INCOME TAX - II SARAF CHAMBERS, SADAR , NAGPUR - 44000 1 (APPELLANT) (RESPONDENT) APPELLANT BY SHRI MAHAVIR ATAL , A.R. RESPONDENT BY SHRI D.RAVIKUMAR, D.R. DATE OF HEARING: 04 - 0 5 - 201 6 D ATE OF PRONOUNCEMENT: - 31 /05 /2016 O R D E R PER MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATING FROM THE ORDER OF LD. CIT - (II),NAGPUR PASSED U/S.12AA(1) DATED 23.09.2014. THE APPELLANT HAS RAISED FOLLOWING GROUNDS: - 1. ON THE FACTS AND ON THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT - II, NAGPUR ERRED IN BOTH LAW AND FACTS IN DENYING THE REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 AND REJECTING THE APPLICATION UNDER SECTION 12AA (1) (B)(II). 2. THE LEARNED CIT - II , NAGPUR FAILED TO APPRECIATE THE FACT THAT THE ACTIVITIES OF THE APPELLANT TRUST ARE BEING GENUINELY CARRIED OUT IN ACCORDANCE WITH THE OBJECT OF THE TRUST AND CONSEQUENTLY ERRED IN REJECTING THE APPROVAL PETITION. 3. THE ACT OF CIT REJECTING REGISTRATION I S ONLY ON THE BASIS OF THE PERVERSE FINDING THAT THE CASH HAS NOT BEEN DEPOSITED IN BANK, AND IN BALANCE SHEET ONLY AGRICULTURAL LAND AND HALF CONSTRUCTED BUILDING IS SHOWN AS AN ASSET. THIS OBSERVATION DRAWN BY THE LEARNED CIT IS NEITHER CONCEPTUAL NOR CO NTEX TUAL AND IT IS INDEED OUTSIDE THE FOUR CORNER OF THE LAW, THEREBY SURPASSING THE POWER GRANTED BY THE STATUTE, WHICH IS LIMITED ONLY TO THE EXTENT OF SATISFYING HERSELF ABOUT OBJECTS OF THE TRUST AND GENUINENESS OF ACTIVITIES CARRIED ON. - 2 - ITA NO. 487 /NAG/201 4 2. AT THE OUTSET, IT IS WORTH TO MENTION THAT A CRYPTIC ORDER WAS PASSED BY THE LD. COMMISSIONER AND THE APPLICATION U/S.12A WAS REJECTED. THE LD. COMMISSIONER HAS MENTIONED THAT THE TRUST HAS NOT PLACED ON RECORD THE EVIDENCES IN RESPECT OF THE CHARITABLE ACTIVITIE S CARRIED OUT. AN OBSERVATION HAS BEEN MADE BY THE LD. COMMISSIONER WHILE REJECTING THE APPLICATION THAT DONATIONS HAVE ALSO NOT BEEN RECEIVED BY THE TRUST. AS AGAINST THAT THE APPELLANT HAS PLEADED THAT FOR T HE PURPOSE OF REGISTRATION U/S.12A THE REQUISIT E DOCUMENTS SUCH AS TRUST DEE D , AUDIT REPORTS, REGISTRATION WITH CHARITY COMMISSIONER AND THE PROOF OF CHARITABLE ACTIVITIES HAVE BEEN SUBMITTED. THE LD. AR HAS EMPHASISED THAT THE DULY AUDITED ACCOUNT HAVE NOT BEEN APPRECIATED BY THE LD. COMMISSIONER. 3. ON HEARING THE SUBMISSION OF BOTH SIDES , WE ARE OF THE CONSIDERED OPINION THAT A PROCEDURE HAS BEEN LAID DOWN U/S.12AA FOR REGISTRATION OF A TRUST. AS PER THE SAID PROVISION THE LD. COMMISSIONER IS REQUIRED TO CALL FOR SUCH DOCUMENTS OR INFORMATION IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVIT Y AND AFTER SATISFYING ABOUT THE OBJECTS OF THE TRUST SHALL PASS AN ORDER IN WRITING REGISTERING THE TRUST. CONSIDERING THE MANNER IN WHICH THE LD. COMMISSIONER HAS REJECTED THE APPLICATION OF REGISTRA TION, I T APPEARS THAT THE OBJECTS OF THE TRUST AS WELL AS THE ACTIVITIES OF THE TRUST HAVE NOT BEEN CORRECTLY EXAMINED. THE APPELLANT HAS PLACED BEFORE US THE LIST OF DOCUMENTS WHICH WERE FURNISHED BEFORE THE LD. COMMISSIONER AND PLEADED THAT THE CONDITION AS PRESCRIBED U/S.12AA WAS DULY COMPLIED WITH. IN THIS SITUATION WE DEEM IT PROPER AS WELL AS JUSTIFIABLE TO RESTORE THIS ISSUE OF REGISTRATION U/S.12AA BACK TO THE FILE OF LD. COMMISSIONER, SO THAT THE DOCUMENTS CAN BE EXAMINED AND THE ISSUE OF GROUND OF REGISTRATION CAN BE RE - ADJUDICATED UPON , N EEDLESS TO SAY, AFTER PROVIDING AN ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. SINCE THE MATTER HAS BEEN RESTORED BACK TO BE DECIDED AFRESH AS PER LAW, HENCE THE GROUNDS RAISED BY THE ASSESSEE MAY BE TREATE D AS ALLOWED BUT FOR STATISTICALLY PURPOSE ONLY. 5. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STAT IST ICALLY PURPOSE. ORDER PRONOU NCED IN THE OPEN COURT ON THIS 31 ST DAY OF MAY , 2016 SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: - 31 / 05 /2016 MANGESH BODKHE/ PS - 3 - ITA NO. 487 /NAG/201 4 COPY FORWARDED TO : 1. SHRI SIDDHESHWAR SHIV MANDIR TRUST AT PO.SARUL, BHAGWADI, TAL - BABULGAON DIST - YAVATMAL - 445001 2. COMMISSIONER OF INCOME TAX - II SARAF CHAMB ERS, SADAR, NAGPUR - 440001 3. C.I.T., ___________, NAGPUR 4. CIT ( APPEALS) - I I , NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR MANGESH BODKHE/ PS