Ramnathpara Sandhi Sunny Muslim Jamat Trust, RAJKOT-GUJARAT V. The Commissioner of Income Tax, Rajkot-II, RAJKOT-GUJARAT

ITA 50/RJT/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67254 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 22-02-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N R SONI
• Section: 12A; 12AA

Judgement Text

0 I : : IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT . . , . . , BEFORE SHRI T K SHARMA, JM AND SHRI D K SRIVASTAVA, AM ITA NO. 50 /RJT /2013 R R / ASSESSMENT YEAR : 2012 - 13 RAMNATHPARA SANDHI SUNNI MUSLIM JAMAT TRUST .APPELLANT V. COMMISSIONER OF INCOME - TAX, RAJKOT II, RAJKOT RESPONDENT DATE OF HEARING: 11.04.2013 DATE OF PRONOUNCEMENT: 30 .05.2013 A SSESSEE BY: NONE REVENUE BY: SHRI N R SONI, CIT - DR / ORDER D. K. SRIVASTAVA: THE APPEAL FILED BY THE ASSESSEE - TRUST IS DIRECTED AGAINST THE ORDER PASSED BY THE LD COMMIS SIONER OF INCOME - TAX, RAJKOT - II U/S 12AA OF THE INCOME - TAX ACT ON 26 . 12 .2 01 2 ON THE FOLLOWING GROUNDS: - 1. THE CIT - II, RAJKOT ERRED IN REJECTING THE APPLICATION FOR REGISTRATION OF TRUST U/S 12AA WITHOUT PROVIDING ADEQUATE OPPORTUNITY TO SUBSTANTIATE ITS CLAIMS ON THE GROUNDS THAT IT WAS CREATED OR ESTABLISHED FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY. 2. THE CIT - II, RAJKOT ERRED IN IGNORING THE FACT THAT THE SANDHI SUNNI MUSLIMS HAVE BEEN NOTIFIED BY THE STATE GOVERNMENT AS SCHEDULED CASTS/BACKWARD CLASSES AND THEREFORE, IS WITHIN THE PURVIEW OF E XPLANATION 2 TO SE CTION 13 OF THE INCOME - TAX ACT, 1961. 2. PERUSAL OF THE RECORD SHOWS THAT THE ASSESSEE - TRUST HAD APPLIED FOR REGISTRATION U/S 12A OF THE INCOME - TAX ACT ON 11.03.2011 BEFORE THE COMMISSIONER OF INCOME - TAX, RAJKOT - II, RAJKOT. BY HIS ORDER DATED 28.09.2011 , THE COMMISSIONER DECLINED TO REGISTER THE TRUST ON THE GROUND THAT THE TRUST HAS BEEN CREATED FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY/CAST E, I.E. , SANDHI SUNNY MUSLIM. AGGRIEVED BY THE AFORESAID ORDER PASSED BY THE COMMISSIONER, THE ASSESSEE FILED 2 ITA 50 /RJT/201 3 APPEAL BEFORE THIS TRIBUNAL ON THE GROUND THAT THE CASE OF THE ASSESSEE WAS COVERED BY E XPLANATION 2 TO SECTION 13 OF THE INCOME - TAX ACT IN AS MUCH AS THE ASSESSEE - TRUST WAS CREATED FOR THE BENEFIT OF SANDHI SUNNI MUSLIMS, WHICH FALL UNDER THE CATE GORY OF SCHEDULED CAST ES /BACKWARD CLASSES. IN ORDER TO ENABLE THE ASSESSEE TO PROVE ITS CLAIM BEFORE THE COMMISSION ER THAT ITS CASE IS COVERED BY E XPLANATION 2 TO SECTION 13 OF THE INCOME - TAX ACT, THE AFORESAID ORDER PASSED BY THE COMMISSIONER WAS SET ASID E BY THIS TRIBUNAL VIDE ITS ORDER DATED 30.10.2012 AND THE MATTER WAS RESTORED TO THE FILE OF THE COMMISSIONER WITH THE FOLLOWING OBSERVATIONS: - WE HAVE HEARD BOTH THE PARTIES. IT IS QUITE EVIDENT THAT THE TRUST HAS BEEN CREATED FOR RELIGIOUS PURPOSES A ND THEREFORE HIT BY THE PROVISIONS OF SUB - SECTION (1) OF SECTION 13 OF THE I - T ACT. THE LD COMMISSIONER IS THEREFORE JUSTIFIED IN REJECTING TO REGISTER THE TRUST U/S 12AA OF THE GROUND THAT IT WAS CREATED OR ESTABLISHED FOR THE BENEFIT OF A PARTICULAR RELI GIOUS COMMUNITY. HIS ORDER TO THE AFORESAID EXTENT IS CONFIRMED. THE ALTERNATIVE SUBMISSION OF THE TRUST THAT EXPLANATION 2 TO SECTION 13 OF THE INCOME - TAX ACT ADEQUATELY PROTECTS THE ASSESSEE FROM THE R I GOURS OF SUB - SECTION (1) OF SECTION 13 DESERVES CO NSIDERATION. IT IS TRUE THAT THE APPELLANT - TRUST HAS NOT BEEN ABLE TO FILE RELEVANT EVIDENCE BEFORE THE LD. COMMISSIONER OF INCOME - TAX TO SUBSTANTIATE ITS CLAIM THAT SANDHI SUNNI MUSLIMS HAVE BEEN NOTIFIED BY THE GOVERNMENT AS SCHEDULED CASTES/BACKWARD CLA SSES. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE HOWEVER SUBMITS THAT THE TRUST WOULD FILE RELEVANT EVIDENCE IN SUPPORT OF ITS CLAIM BEFORE THE LD. COMMISSIONER OF INCOME - TAX IF IT IS GIVEN AN OPPORTUNITY TO DO SO. IN THE LARGER INTEREST OF JUSTICE , WE CONSIDER IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. COMMISSIONER OF INCOME - TAX. 3 . IN VIEW OF THE AFORESAID DIRECTIONS, O PPORTUNIT Y OF HEARING WAS GIVEN TO THE ASSESSEE - TRUST BY THE LD COMMISSIONER TO ESTABLISH ITS CASE IN TE RMS OF EXPLANATION 2 TO SECTION 13. HOWEVER, THE ASSESSEE DID NOT FILE RELEVANT EVIDENCE BEFORE THE LD. 3 ITA 50 /RJT/201 3 COMMISSIONER W ITH THE RESULT, THE LD COMMISSIONER HAS DECLINED TO REGISTER THE ASSESSEE - TRUST WITH THE FOLLOWING OBSERVATIONS: - 3. IN COMPLIANCE TO HON BLE ITATS DIRECTIONS, A LETTER DATED 27.11.2012 WAS ISSUED AND SERVED UPON THE ASSESSEE BY RPAD (ACKNOWLEDGEMENT OF SERVICE OF LETTER IS KEPT ON RECORD) FIXING THE HEARING ON 05.12.2012. THE ASSESSEE WAS REQUESTED TO PRODUCE THE RELEVANT EVIDENCE BEFORE THE UNDERSIGNED TO SUBSTANTIATE ITS CLAIM THAT SANDHI SUNNY MUSLIMS HAVE BEEN NOTIFIED BY THE GOVERNMENT AS SCHEDULED CASTES/BACKWARD CLASSES. HOWEVER, THE ASSESSEE TRUST HAS FAILED TO RESPOND TO THIS LETTER. ANYBODY NEITHER TURNED UP NOR WAS ANY WRITTEN S UBMISSION RECEIVED. ACCORDINGLY, IT IS PRESUMED THAT THE ASSESSEE TRUST HAS NOTHING TO SAY OR SUBMIT EVIDENCE TO SUBSTANTIATE ITS CLAIM. THEREFORE UNDERSIGNED LEFT NO ALTERNATIVE EXCEPT MAINTAIN THE STATUS - CO FOR REGISTRATION U/S 12A OF THE ACT AND HENCE, THE STATUS OF THE APPLICATION OF THE TRUST FOR REGISTRATION U/S 12A OF THE IT ACT, 1961 REMAINS REJECTED. 4. THIS ORDER IS PASSED IN RESPONSE TO THE HONBLE ITAT, RAJKOTS ORDER ITA NO.393/RJT/2011 DATED 30.10.2012 FOR GRANT OF REGISTRATION U/S 12A OF TH E IT ACT, 1961. 4 . THE APPEAL WAS LISTED FOR HEARING ON 11 - 04 - 2013. ON THE AFORESAID DATE OF HEARING, I.E., 11.4.2013, APPLICATION FOR ADJOURNMENT WAS RECEIVED ON THE LETTER HEAD OF A FIRM OF CHARTERED ACCOUNTANTS, NAMELY, M/S M. J. RINDANI & ASSOCIATES . NO CAUSE OR REASON WAS GIVEN IN THE SAID APPLICATION FOR SEEKING ADJOURNMENT. IT WAS THEREFORE REJECTED AND THE APPEAL WAS HEARD EX - PARTE QUA THE ASSESSEE. 5 . ON CAREFUL PERUSAL OF THE RECORD IT SEEMS THAT THE ASSESSEE - TRUST HAS PERSISTENTLY FAILED TO E STABLISH THAT ITS CASE IS COVERED BY EXPLANATION 2 TO SECTION13 OF THE INCOME - TAX ACT IN SPITE OF SEVERAL OPPORTUNITIES AVAILABLE TO IT. AT THE ORIGINAL STAGE, THE ASSESSEE - TRUST HAD THE OPPORTUNITY TO ESTABLISH ITS CLAIM BEFORE THE COMMISSIONER BUT IT DID NOT AVAIL THAT OPPORTUNITY WITH THE RESULT THAT REGISTRATION APPLIED FOR WAS DECLINED BY THE COMMISSIONER. THE ASSESSEE FILED APPEAL BEFORE 4 ITA 50 /RJT/201 3 THIS TRIBUNAL AGAINST THE AFORESAID ORDER OF THE COMMISSIONER. THE ASSESSEE THUS HAD ANOTHER OPPORTUNITY TO FILE EV IDENCE BEFORE THIS TRIBUNAL TO SUBSTANTIATE ITS CLAIM. THE ASSESSEE - TRUST DID NOT AVAIL THAT OPPORTUNITY ALSO. AT THE INSTANCE OF THE ASSESSEE AND IN ORDER TO PROVIDE ANOTHER INNING TO THE ASSESSEE - TRUST TO ESTABLISH ITS CLAIM , THE MATTER WAS RESTORED TO T HE FILE OF THE COMMISSIONER. DESPITE THE OPPORTUNITY GIVEN BY THE COMMISSIONER, THE ASSESSEE - TRUST DID NOT MAKE ANY ATTEMPT TO SUBSTANTIATE ITS CLAIM EVEN IN THE SECOND ROUND OF PROCEEDINGS BEFORE THE COMMISSIONER WITH THE RESULT THAT THE REGISTRATION HAS BEEN DECLINED ONCE AGAIN BY HIM. THE ASSESSEE - TRUST HAS AGAIN APPROACHED THIS TRIBUNAL. BUT NEITHER THE ASSESSEE - TRUST NOR ITS AUTHORIZED REPRESENTATIVE TURNED UP FOR HEARING. IN THE ABSENCE OF ANY EVIDENCE ON RECORD TO SUPPORT THE CLAIM OF THE ASSESSEE IN TERMS OF EXPLANATION 2 TO SECTION 13, WE ARE UNABLE TO INTERFERE WITH THE ORDER PASSED BY THE LD. COMMISSIONER. HIS ORDER IN THIS BEHALF IS THEREFORE CONFIRMED. A PPEAL FILED BY THE ASSESSEE - TRUST IS DISMISSED. I ; 30 .0 5 . 2013 I ORDER PRONOUNCED ON 30 .05 . 201 3 SD/ - SD/ - ( 0 . . R / T. K. SHARMA) ( . . . / D. K. SRIVASTAVA) . / JUDICIAL MEMBER / ACCOUNTANT MEMBER RAJKOT: 30 .05 .2013 BT T / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT RAMNATHPARA SANDHI SUNNY MUSLIM JAMAT TRUST, RAJKOT 2 . NR / RESPONDENT - CIT - I I, RAJKOT 3 . I V / CONCERNED CIT 4 . NI , 0 I , / DR, ITAT, RAJK OT 5 . R / GUARD FILE. / BY ORDER , TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT