Lala Chhedilal Trust , Kanpur V. Commissioner of Income Tax- 1, Kanpur

ITA 528/LKW/2012

• Counselvise Citation: 52823714 RSA 2012
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-08-2014
• Assessment Year: misc
• Appeal Filed On: 15-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.528/LKW/2012 ASSESSMENT YEAR:N.A. LALA CHHEDILAL TRUST, 96/6, CHUNNIGANJ, KANPUR. PAN:AAATL5881A VS. C.I.T. - 1, KANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY SHRI VIVEK MISHRA, CIT, D.R. DATE OF HEARING 08/08/2014 DATE OF PRONOUNCEMENT 1 8 /09/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT - I, KANPUR DATED 14/09/2012 U/S 12AA OF THE I.T. ACT, 1961. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. BECAUSE THE L D. COMMISSIONER OF INCOME - TAX HAS ERRED IN LAW AND ON FACTS IN MAKING AN OBSERVATION THAT THE ASSESSEE HAS FAILED TO PRODUCE A TRUE COPY AND AUTHENTICATED COPY OF THE TRUST DEED/WILL OF S H. CHHEDILAL WHEREAS IT THE COPY OF THE ORIGINAL TRUST IN URDU AND IT S TRANSCRIPTION IN DEVANAGARI WAS DULY SUBMITTED. 2. BECAUSE THE L D. COMMISSIONER OF INCOME - TAX HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT 'THE ASSESSEE TRUST IS NOT CARRYING OUT ITS ACTIVITIES, NOR IS PLANNING ITS FUTURE ACTIVITIES, STRICTLY IN ACCORDANCE WITH ITS 2 ORIGINAL/STATED OBJECTS' AS PER DEVANAGARI TRANSLATIO N OF THE WILL/DEED. 3. BECAUSE THE L D. COMMISSIONER OF INCOME - TAX HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT NEITHER THE NATURE OF THE OBJECTS AS PER TRUST DEED COULD BE ASCERTAINED NOR WOULD GENUINENESS OF ITS ACTIVITIES BE ASCERTAINED WHEREAS THE WIL L/TRUST DEED, AUDITED BOOKS OF ACCOUNT, INCOME & EXPENDITURE STATEMENT AS SUBMITTED TO HIM DULY REFLECT THE RELIGIOUS/CHARITABLE NATURE OF THE OBJECTS WITHIN THE PURVIEW OF SECTION 2 (15)/11 OF THE INCOME - TAX ACT AND GENUINENESS OF ITS ACTIVITIES ALONG WIT H APPLICATION OF SUCH INCOME ON SUCH OBJECTS. 4. BECAUSE THE L D. COMMISSIONER OF INCOME - TAX HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE ASSESSEE TRUST IS NOT ELIGIBLE TO REGISTRATION UNDER SECTION 12AA (1) OF THE INCOME - TAX ACT WITH REFERENCE TO ITS OBJECTS AND ITS ACTIVITIES. 3. IT IS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE ASSESSEE TRUST WAS CREATED ON 13/04/1917 AND HENCE , IT IS UNDISPUTED FACT THAT THE PRESENT ASSESSEE TRUST WAS CREATED MUCH BEFORE COMING INTO FORCE OF THE INCOME TAX ACT, 1961. HE SUBMITTED THAT AS PER THESE FACTS, THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT ARE NOT APPLICABLE IN THE PRESENT CASE. HE P LACED RELIANCE ON THE FOLLOWING JUDICIAL PRONOUNCEMENTS: ( I ) CIT VS. SHRI MAHESHWARI AGRAWAL MARWARI [1982] 136 ITR 556 (MP) ( II ) RAJKOT VISHA SHRIMALI JAIN SAMAJ VS. INCOME TAX OFFICER [2007] 109 TTJ (RAJ) 286 4. AS AGAINST THIS, LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT. 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE IN DISPUTE WAS DECIDED BY LEARNED CIT AS PER PARA 6, 6.1 AND 7 OF HIS ORDER, WHICH ARE REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE: 6. THE SUBM ISSIONS OF THE ASSESSEE AND OTHER MATERIAL ON RECORD HAVE BEEN DULY CONSIDERED BY ME. IT IS OBSERVED THAT ASSESSEE HAS FAILED TO PRODUCE A TRUE AND AUTHENTICATED COPY OF THE TRUST DEED/ WILL OF SH. CHHEDILAL. AS NOTED EARLIER (PARA 4.2 ABOVE) THE DEVNAGARI TRANSLATION SUBMITTED BY ASSESSEE IS INCOMPLETE, SINCE VARIOUS SUB CLAUSES IN THE OBJECTS CLAUSE HAVE APPARENTLY BEEN OMITTED. FOR THIS REASON, IT IS NOT POSSIBLE TO EXAMINE THE OBJECTS OF THE TRUST IN THEIR ENTIRETY OR TO IDENTIFY THE EXACT OBJECTS FOR W HICH THE TRUST HAS BEEN SET UP. 6.1 EVEN WITH REGARD TO THE DISCLOSED OBJECTS OF THE ASSESSEE TRUST, AS STATED IN THE PARA 3 OF THE DEVNAGARI TRANSLATION OF THE WILL/DEED (SEE PARA 4.1 ABOVE), IT IS OBSERVED THAT THE ASSESSEE TRUST IS NOT CARRYING OUT ITS ACTIVITIES NOR IS PLANNING ITS FUTURE ACTIVITIES STRICTLY IN ACCORDANCE WITH ITS ORIGINAL/ STATED OBJECTS. THIS IS APPARENT FROM A PERUSAL OF ITS REPLY (REPRODUCED AT PARA 5, ABOVE). 7. IN THE CIRCUMSTANCES, I AM UNABLE TO SATISFY MYSELF EITHER ABOUT THE NATURE AND EXTENT OF THE DIFFERENT OBJECTS LAID DOWN FOR THE ASSESSEE TRUST UNDER THE ORIGINAL WILL OF SH. CHHEDILAL, OR ABOUT THE GENUINENESS OF THE ACTIVITIES BEING CARRIED OUT BY ASSESSEE, WHICH ARE NOT STRICTLY IN ACCORDANCE WITH THE OBJECTS STATED IN THE TRANSLATED VERSION OF THE WILL/TRUST DEED. 6. WE FIND THAT THIS IS NOT THE BASIS OF THE DECISION OF LEARNED CIT THAT BECAUSE OF THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT, HE HAS DENIED THE CLAIM OF THE ASSESSEE FOR REGISTRATION. THE BASIS OF T HE DECISION OF LEARNED CIT IS THAT THE ASSESSEE TRUST IS NEITHER CARRYING OUT ITS ACTIVITIES NOR IS PLANNING ITS FUTURE ACTIVITIES IN ACCORDANCE WITH ITS ORIGINAL/STATED OBJECTS. BUT HE HAS NOT GIVEN ANY BASIS F OR SAYING SO THAT HOW THE ACTIVITIES BEING C ARRIED ON BY THE ASSESSEE ARE NOT IN ACCORDANCE WITH THE ORIGINAL/STATED 4 OBJECTS. BUT IT IS ALSO SEEN THAT CORRECT ENGLISH TRANSLATION OF THE TRUST DEED WAS NOT MADE AVAILABLE TO HIM AND FOR THIS REASON, IT WAS NOT POSSIBLE FOR HIM TO PASS A WELL REASONED ORDER. HENCE, IN THE INTEREST OF JUSTICE, WE RESTORE THE MATTER BACK TO HIS FILE FOR FRESH DECISION WITH THE DIRECTION THAT HE SHOULD PASS A SPEAKING AND WELL REASONED ORDER. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PUR POSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 /09/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR