Pujaya Dr. Keshwarao Hedgewar Janm Satabdi Sewa Trust, Ghaziabad V. CIT (Exemptions), Lucknow

ITA 5067/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3286 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 26-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIMATI PARMITA TRIPATHY
• Keywords: Charitable institution
• Section: 80G; 12

Judgement Text

PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F: NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 5067/DEL/2016 A Y --- APPEAL AGAINST ORDER U/S 80G (5) (VI) PUJYA DR KESHWARAO HEDGEWAR JANM SHATABDI SEWA TRUST S K 117, SHAHSTRI NAGAR , GAZIA BAD PAN AAATP3147K VS CIT ( EXEMPTIONS) U P INFRASTRUCTURE & DEVELOPMENT CORP. LIMITED TC 46 V , VIBHUTI KHAND GOMTI NAGAR , LUCKNOW (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: SHRIMATI PARMITA TRIPATHY CIT DR DATE OF HEARING 09/01/2018 DATE OF PRONOUNCEMENT 06/03/2018 O R D E R PER PRASHANT MAHARISHI, ACCOUNTANT MEMBER 1. THIS APPEAL IS FILED BY PUJYA DR KESHWARAO HEDGEWAR JANAM SHATABDI TRUST, ASSESSEE , AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW ( THE CIT ) DATED 1/7/2016 PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 2 PASSED UNDER SECTION 80 G (5) (VI) OF THE INCOME TAX ACT ( THE ACT) WHEREIN THE RECOGNITION TO THE ASSESSEE TRUST WAS GRANTED W.E.F. 1/7/2016 WHEREAS THE TRUST APPLIED FOR RECOGNITION V IDE APPLICATION DATED 18/1/2016. 2. THIS APPEAL IS FILED LATE BY 18 DAYS. THE ASSESSEE HAS MADE AN APPLICATION FOR THE CO NDONATION OF DELAY SUPPORTED BY THE AFFIDAVI T OF SECRETARY OF TRUST. IN THE AFFIDAVIT, IT IS STATED THAT IMPUGNED ORDER WAS RECEIVED ON 10/7/2016 AND ASSESSEE WAS UNAWARE ABOUT THE APPEAL PROCEDURE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX WHERE ONLY GRIEVANCE IS OF EFFECTIVE ASSESSMENT YE AR OF APPLICABILITY OF RECOGNITION. IT WAS FURTHER STATED THAT THERE IS NO INTENTION ON THE PART OF THE ASSESSEE TO FILE DELAYED APPEAL BEFORE THE TRIBUNAL. 3. LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY CONTESTED THAT ASSESSEE HAS NOT EXPLAINED THE DELAY OF E ACH DAY AND THEREFORE THE DELAY SHOULD NOT BE CONDONED. 4. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTION AND FIND THAT AS THE DELAY IS NOMINAL AND ASSESSEE WAS NOT AWARE WHETHER APPEAL COULD BE FILED AGAINST THE ORDER OF THE LD. CIT AS THERE IS NO GRIEVA NCE IN GRANTING THE RECOGNITION BUT ONLY GRIEVANCE WAS WITH RESPECT TO THE ASSESSMENT YEAR FROM WHICH APPLICABILITY OF SUCH PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 3 RECOGNITION IS EFFECTIVE . IN VIEW OF THE ABOVE FACTS, WE CONDONE THE DELAY AND PROCEED TO DECIDE THE ISSUE ON MERIT. 5. THE ASSESSEE HA S RAISED THE ONLY GROUND OF APPEAL STATING THAT LD. CIT ( EXEMPTION ) HAS ERRED IN LAW WHILE GIVING APPROVAL W.E.F. THE DATE OF THE ORDER I.E. 1/7/2016 , INSTEAD OF FINANCIAL YEAR IN WHICH APPLICATION UNDER SECTION 80 G (5) (VI) WAS FILED I.E. W.E.F. FINANC IAL YEAR 2015 16 RELEVANT FOR ASSESSMENT YEAR 2016 17. 6. THE BRIEF FACTS IS THAT ASSESSEE IS A CHARITABLE TRUST REGISTERED UNDER SECTION 12 A OF THE INCOME TAX ACT W.E.F. 9/1/198 9 V IDE ORDER DATED 15/3/1989 OF CIT ( EXEMPTION ), MEERUT. ASSESSEE APPLIED FO R RECOGNITION FOR EXEMPTION V IDES ITS APPLICATION DATED 18/1/2016 AND SUBMITTED DETAILED EXPL ANATION BEFORE THE CIT ( EXEMPTION ) ON 12/5/2016. THE LD. CIT DID NOT RAISE ANY FURTHER QUERY HOWEVER GRANTED RECOGNITION W.E.F. 1/7/2016. ASSESSEE ALSO FILED A RECTIFICATION APPLICATION ON 8/9/2016 TO THE LD. CIT, WHICH IS PENDING. 7. DESPITE NOTICE, NONE APPEARED ON BEHALF OF ASSESSEE AND THEREFORE THE ISSUE IS DECIDED ON MERITS OF THE CASE AS PER INFORMATION AVAILABLE ON RECO RD. 8. THE LD. CIT DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THERE IS NO ERROR IN THE ORDER OF THE LD. CIT IN GRANTING R ECOGNITION W.E.F. 1/7/2016. PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 4 9. WE HAVE CAREFULLY CONSIDERED THE ARGUMENT OF THE LD. CIT DR AS WELL AS THE ORDER PASSED BY THE LD. CIT ( EXEMPT ION ) GRANTING RECOGNITION TO THE TRUST UNDER SECTION 80 G (5) (VI). REQUIREMENT FOR APPROVAL OF AN INSTITUTION OR TRUST U /S 80 G OF THE INCOME TAX ACT ARE GOVERNED BY THE PROVISIONS OF RULE 11 AA OF THE INCOME TAX RULES 1962 . ACCORDING TO THE RULE NO. 11AA (4) , IF THE COMMISSIONER IS SATISFIED THAT ALL THE CONDITIONS LAID DOWN IN SECTION 80 G (5) ARE FULFILLED BY THE INSTITUTION OR FUND, HE SHALL RECORD SUCH SATISFACTION IN WRITING AND GRANT APPROVAL TO THE INSTITUTION OR FUND SPECIFYING THE ASSESSMENT YEA R OR YEARS FOR WHICH THE APPROVAL IS VALID. NO DOUBT IN THE PRESENT CASE THE LD. CIT ( EXEMPTION ) HAS GRANTED THE RECOGNITION TO THE ASSESSEE TRUST HOWEVER THE ONLY DISPUTE IS WITH RESPECT TO THE ASSESSMENT YEAR F ROM WHICH THE RECOGNITION IS GRANTED. THE ASSESSEE HAS FILED AN APPLICATION FOR REGISTRATION ON 18/1/2016 THEREFORE APPARENTLY THE ASSESSEE TRUST WAS ASKING FOR RECOGNITION FROM THAT PARTICULAR DATE PERTAINING TO ASSESSMENT YEAR 2016 - 17 HOWEVER THE LD. CIT HAS GRANTED THE RECOGNITION W.E.F. 01/07/ 2016 I.E. APPLICABLE FROM ASSESSMENT YEAR 2017 18. FURTHER LD. CIT HAS ALSO NOT GIVEN ANY REASON FOR NOT GRANTING RECOGNITION TO THE TRUST W.E.F. THE DATE OF APPLICATION WHEN ALL THE CONDITIONS HAVE BEEN SATISFIED. IN VIEW OF THIS, WE SET ASIDE THE ISSU E BACK TO THE FILE OF THE LD. CIT ( EXEMPTION ) WITH A DIRECTION TO GRANT PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 5 REGISTRATION TO THE ABO VE TRUST W.E.F. THE DATE OF APPLICATION SPECIFYING THE ASSESSMENT YEAR FROM WHICH IT APPLIES. ACCORDINGLY, GROUND NO. 1 OF THE APPEAL OF THE ASSESSEE IS ALLOWED WITH ABOVE DIRECTION. 10. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 11. ORDER PRONOUNCED IN THE OPEN COURT ON 06.03.2018 . S D / - S D / - ( SUDHANSHU SRIVASTAVA ) (PRASHANT M AHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 06 /03/2018 *NEHA* COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI PUJYA D R KESHWARAO HEGDEWAR JANM SHATABDI SEWA TRUST V CIT (E), LUCKNOW ITA NO 5067/DEL/2016 APPEAL AGAINST ORDER U/S 80 G (5) OF THE ACT 6