HARI OM CHARITABLE TRUST, NAVI MUMBAI V. ITO (E) (HQ) (TECH), MUMBAI

ITA 5382/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6055 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2018-2019
• Appeal Filed On: 18-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T KPGEN
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H , MUMBAI BEFORE S HRI G. MANJUNATHA (AM ) AND SHRI RAM LAL NEGI (JM) ITA NO. 5382/MUM/2018 ASSESSMENT Y EAR: 2018 - 19 M/S HARI OM CHARITABLE TRUST, C - 48, VASHI PLAZA, PLOT 80 81, SECTOR 17, VASHI, NAV I MUMBAI - 400703 PAN: AABTH5992D VS. THE INCOME TAX OFFICER, (EXEMPTIONS) (HQ) (TECH), MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PIYUSH CHHAJED ( A R ) REVENUE BY : SHRI T. KPGEN ( CIT D R ) DATE OF HEARING: 06/01/2020 DATE OF PRONOUNCEMENT: 06 / 01/2020 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 23.05.2018 PASSED U/S 12AA(1)(B)(II) READ WITH SECTION 12A OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) BY THE COMMISSIONER OF INCOME TAX ( EXEMPTIONS ) [ FOR SHORT THE CIT(E) ] , MUMBAI , WHEREBY THE LD. CIT(A) HAS REJECTED T HE APPLICATION DATED 08.12.2017 FILED BY THE ASSESSEE FOR GRANT OF REGISTRATION UNDER CLAUSE (AA) OF SU B SECTION (1) OF SECTION 12A OF THE ACT, ON THE GROUND THAT THE ASSESSEE HAS FAILED TO COMPLY WITH THE DIRECTIONS ISSUED TO THE ASSESSEE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST FILED AN APPLICATION FOR GRANT OF REGISTRATION IN THE PRESCRIBE D FORM NO. 10A ON 08.12.2017. THE LD. CIT (E) ISSUED NOTICE AND ASKED THE APPLICANT TO FURNISH DETAILS LIKE PAN CARDS OF TRUSTEES AND S ETTLER, COPY OF BANK ACCOUNTS, NOC IN RESPECT OF ITS OFFICE PREMISES, CERTIFICATE OF REGISTRATION ISSUED BY THE CHARITY C OMMISSIONER, COPIES OF AUDITED ACCOUNTS, NOTE ON ACTIVITIES UNDERTAKEN AND TO SUBSTANTIATE ITS 2 ITA NO. 5382 / MUM/2018 ASSESSMENT YEAR: 2018 - 1 9 CLAIM. IN RESPONSE THEREOF, THE TRUSTEES APPEARED BEFORE THE LD. CIT (E) AND FILED SOME OF THE DOCUMENTS. THE LD. CIT(E) POSTED THE CASE FOR SUBMITTING THE REMAI NING DETAILS. HOWEVER, THE APPLICANT DID NOT FILE THE DETAILS ON THE SAID DATE. THE LD.CIT (E) ISSUED LETTER DIRECTING THE APPLICANT TO FURNISH THE COMPLETE DETAILS. AGAIN, ON THE SAID DATE, NONE APPEARED ON BEHALF OF THE ASSESSEE. ACCORDINGLY, THE LD. CIT (E) PASSED THE IMPUGNED ORDER HOLDING THAT IN VIEW OF THE NON - COMPLIANCE ON THE PART OF THE APPLICANT TRUST AND IN THE ABSENCE OF REQUISITE DETAILS/DOCUMENTS/EXPLANATION , IT IS NOT POSSIBLE TO DECIDE THE APPLICATION ON MERITS. THE ASSESSEE IS IN APPEAL AG AINST THE SAID FINDINGS OF THE LD. CIT (E) 3 . THE ASSESSEE HAS CHALLENGED THE IMPUGNE D ORDER PASSED BY THE LD. CIT (E ) ON THE FOLLOWING EFFECTIVE GROUND S : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIO NER OF INCOME TAX (EXEMPTIONS), PAREL, MUMBAI ERRED IN REJECTING THE APPLICATION FOR REGISTRATION U/S 12AA WITHOUT ESTABLISHING THAT THE ACTIVITIES OF THE TRUST AS WELL AS THE OBJECTS OF THE TRUST WERE INGENUINE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), ERRED IN REGISTERING THE APPLICATION OF REGISTRATION U/S 12AA WITHOUT APPRECIATING THAT COMPLETE RECORD AS REQUIRED WERE MADE AVAILABLE AND THE OBJECTS OF THE TRUST ARE IN ACCORDA NCE WITH THE REQUIREMENTS OF THE PROVISIONS OF THE ACT. 4. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT (E) HAS PASSED THE IMPUGNED ORDER WITHOUT GRANTING SUFFICIENT OPPORTUNITY TO SUBMIT THE DOCUMENTS/DETAILS/EXPLANATIONS TO SUBSTANTIATE THE CLAIM OF THE ASSESSEE . NON - APPEARANCE OF THE APPLICANT TRUST BEFORE THE LD. CIT (E) WAS NEITHER NEGLIGENT ACT NOR INACTION ON THE PART OF THE ASSESSEE AS IT HAPPENED DUE TO COMMUNICATION GAP BETWEEN THE CONCERNED AUTHORITY AND THE APPL ICANT TRUST, AS THE ASSESSEE DID NOT RECEIVE THE NOTICES ISSUED BY THE LD. CIT(E) . THE LD. COUNSEL ACCORDINGLY SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO THE T RUST TO SUBSTANTIATE ITS CLAIM IN THE INTEREST OF JUSTICE. 3 ITA NO. 5382 / MUM/2018 ASSESSMENT YEAR: 2018 - 1 9 5. ON THE OTHER HAND, THE LD. DEPA RTMENTAL REPRESENTATIVE (DR) RELYING ON THE ORDER PASSED BY THE LD. CIT (E) SUBMITTED THAT SINCE THE ASSESSEE HAS FAILED TO FURNISH THE DETAILS CALLED FOR BY THE LD. CIT (E), THE LD. CIT (E) HAS RIGHTLY REJECTED THE APPLICATION. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE LD. CIT (E) HAS RIGHTLY POINTED OUT THAT AS PER THE PROVISIONS OF SECTION 12AA(1)(B) , REGISTRATION IS GRANTED IF THE COMMISSIONER IS SATISFIED ABOUT THE OBJECTS OF THE TRUST AND GENUINENES S OF ITS ACTIVITIES . FURTHER THE ONUS IS ON THE APPLICANT TO PRODUCE ALL RELEVANT DOCUMENTS BEFORE THE COMMISSIONER FOR DECIDING THE APPLICATION IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. ADMITTEDLY, IN THE PRESENT CASE, SINCE THE ASSESSEE DID NOT PRODU CE THE COMPLETE RECORD THE LD. COMMISSIONER REJECTED THE APPLICATION. AS SUBMITTED BY THE LD. COUNSEL, THE ASSESSEE COULD NOT FURNISH THE COMPLETE DOCUMENTS/EVIDENCE AS THE ASSESSEE DID NOT RECEIVE THE NOTICES . IN THE LIGHT OF THE AFORESAID FACTS, WE ARE O F THE CONSIDERED VIEW THAT THE ASSESSEE SHOULD GET ONE MORE OPPORTUNITY TO FURNISH THE REQUISITE DETAILS AND DOCUMENTS AND PRESENT ITS CLAIM BEFORE THE LD. CIT (E) IN THE INTEREST OF JUSTICE. 7. WE ACCORDINGLY ALLOW THE REQUEST OF THE ASSESSEE AND SET ASI DE THE ISSUE TO THE FILE OF LD. CIT (E) FOR DECIDING THE ISSUE AFRESH ON MERITS AFTER AFFORDING AN O PPORTUNITY TO THE ASSESSEE TO FURNISH THE COMPLETE DETAILS/DOCUMENTS/EXPLANATIONS AND TO SUBSTANTIATE ITS CLAIM. IN THE RESULT, APPEAL FILED BY THE ASSESSE E FOR ASSESSMENT YEAR 2018 - 2019 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JANUARY , 2020 . SD/ - SD/ - ( G. MANJUNATHA ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 06 / 01/2020 ALINDRA, PS 4 ITA NO. 5382 / MUM/2018 ASSESSMENT YEAR: 2018 - 1 9 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI