Amrut Antimdham Charitable Trust, Mehsana V. The Commissioner of Income Tax (Exemption), Ahmedabad

ITA 545/AHD/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9525 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-12-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 03-07-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution; Principle of natural justice; Tangible material
• Section: 12A; 12AA; 10(23C)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Amrut Antimdham Charitable Trust, 2, Bombay Society At PO Vijapur Dist: Mehsana-382870, Gujarat, India PAN: AAGTA9349E (Appellant) Vs The Commissioner of Income Tax (Exemption), Ahmedabad (Respondent) Assessee Represented: None Revenue Represented: Shri Akhilendra Pratap Yadaw, CIT-DR Date of hearing : 12-12-2023 Date of pronouncement : 15-12-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against order dated 21.05.2023 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA No. 545/Ahd/2023 I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 2 2. The brief facts of the case is that the assessee is a Trust. Date of registration and objects of the Trust are not known since no documents are available before us. The assessee filed its application for registration u/s. 12AB of the Act on 18.11.2022 in Form 10AB under Rule 17A of the I.T. Rules. 3. The Ld. CIT(E) issued notice dated 17.02.2023 through ITBA portal asking the assessee Trust to furnish detailed note on the activities actually carried out by the assessee as well as details and documents as prescribed under Rule 17A(2) of the I.T. Rules. 4. In response, the assessee has not furnished any details or documents. Therefore following Principle of Natural Justice, final opportunity was given to the assessee by issuing notices on 25.03.2023 and 03.05.2023, again calling for the details from the assessee. However the assessee not furnished any details or documents as called for. Therefore with the materials available on record rejected the application for registration u/s. 12AB of the Act as follows: “.....6. I am therefore, constrained to dispose off the present application for registration u/s. 12AB of the I.T. Act, 1961 on the basis of material available on records. As discussed above, the Rule 17A of Income Tax Rules specifies the documents to be accompanied with the Form 10AB. The applicant has attached/uploaded Institution deed/Instrument of creation along with details of registration with charity commissioner and accounts for F.Y. 2021-22 etc. 7. The details filed by the applicant are peripheral and the response is cryptic in nature. As discussed above, the applicant/assessee has not submitted Notes on activities conducted since inception, copy of bank statement, identity proofs of main/managing trustees, undertaking u/s. 11(4) or 11(4A), 13(1)(c) & 13(3), 2(15). 12AB(4) of the Act and undertakings regarding adherence towards all the requirements of law as are material for the purpose of its objects as enumerated in the trust deed, I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 3 details regarding donation received & paid, if any. The assessee/applicant has not submitted its annual accounts for F.Ys. 2019-20 & 2020- 21. 8. In spite of specific requisitions, the applicant/assessee has not submitted the requisite details. Therefore, no verification of the objects as per the constitution/deed with the activities could be carried out. Thus, the genuineness of the activities does not get established, due to non compliance by the applicant/assessee. Section 12AB makes, it very clear that before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the objects of the trust or institution. Further, he has to ensure that other laws material for the purpose of achieving objects are complied with. Reliance in this regard is also placed on the judgment delivered by the Hon'ble Supreme Court in the case of Commissioner of Income-tax, Ujjain Vs Dawoodi Bohara Jamat Civil Appeal No. 2492 of 2014, wherein the Hon'ble Apex Court while adjudicating similar provisions u/s. 12AA of the Act has held as under: "Section 12AA lays down the procedure to be followed by the Commissioner for grant or refusal of application for registration made under Section 12A. According to procedure so laid down, the Commissioner shall call for documents and information and conduct an enquiry to satisfy himself of the genuineness of the institution and upon reaching satisfaction of the charitable or religious nature of the objects and the authenticity of the activities of the institution, he would grant the registration. If he is not satisfied of the aforesaid, the request made in the application may be declined." 9. Further, while adjudicating similar provisions u/s 10(23C) of the Act, the Hon'ble Supreme Court in the case of M/s New Noble Educational Society in Civil Appeal No. 3795 of 2014 has held as under. "While considering applications for approval under Section 10(23C), the Commissioner or the concerned authority as the case may be under the second proviso is not bound to examine only the objects of the institution. To ascertain the genuineness of the institution and the manner of its functioning, the Commissioner or other authority is free to call for the audited accounts or other such documents for recording satisfaction where the society, institution or institution genuinely seeks to achieve the objects which it professes. The observations made in American Hotel (supra) suggest that the Commissioner could not call for the records and that the examination of such accounts would be at the stage of assessment. Whilst that reasoning undoubtedly applies to newly set up charities, institutions etc. the proviso under Section 10(23C) is not confined to newly set up institutions - it also applies to existing ones. The Commissioner or other authority is not in any manner constrained I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 4 from examining accounts and other related documents to see the pattern of income and expenditure." 10. As discussed above, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about the genuineness of its activities and to verify these activities are in consonance with its objects.” ..................... 15. Vide notice/letter dated 17/02/2023, the applicant/assessee was specifically requested to submit as "State the date of commencement of activities (refer sub clause (ii) of clause (ac) of sub-section (1) of section 12A) and attach relevant documents in support." However, the applicant/assessee has not submitted any response, thereto. Thereafter, in order to ascertain as to present Form No. 10AB has been filed within the due date as prescribed u/s 12A of the Act, vide letter/notice dated 03/05/2023, the attention of the applicant/assessee was drawn to the provisions of sec 12A(1)(ac) (iii) of the Act which stipulates that "Where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of the period of the provisional registration or within six months of commencements of its activities, whichever is earlier." Further, in view of the same, the applicant/assessee was once again requested to state date of commencement of activities alongwith corroborative evidence and in absence of same, the applicant/assessee was requested to explain as to why the date of Incorporation/Creation/Registration should not be treated as the date of commencement of activities for the purposes of determining 'due date' prescribed u/s 12A(1)(ac)(iii) of the Act. However, the applicant/assessee has not made any submissions in response to the same applicant/assessee has no and therefore, apparently the objections in treating the date Incorporation/Creation/Registration as the date of commencement of activities for the of purposes of determining 'due date' prescribed u/s 12A(1)(ac) (iii) of the Act and as per Para/Row 4b of present Form No. 10AB filed, the applicant/assessee has mentioned the date of Incorporation/Creation/Registration as 24/07/1997. Therefore, apparently the applicant/assessee has not filed the present application in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act, within the due date prescribed therein and therefore the same is liable to be rejected as such as non maintainable, without going into the merits.” 5. Thus Ld. CIT(E) held that he is unable to arrive about the genuineness of the activities carried out by the assessee and thereby rejected the application for registration u/s. 12AB of the Act as not maintainable in law. I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 5 6. Aggrieved against the appellate order, the Assessee is in appeal before us raising the following Grounds of Appeal: 1 The Commissioner of Income Tax (Exemption) Ahmedabad has eared in Law and on facts, in rejecting the application in form 10AB U/S 12AB of the Income Tax Act, 1961, on non-satisfaction of genuineness of the activities of the trust. 2 The CIT(Exemption) has eared in law, in overlooking and in summarily rejecting and not considered, the tangible material submitted during the proceeding u/s 12AB of Income Tax Act, 1961. 3 Your appellant crave, leave to add, alter, & or to emend modify substitute all or any ground of appeal before final hearing if necessity so arise. 7. None appeared on behalf of the assessee. The case was listed for hearing for the first time on 06.11.2023. Ld. A.R. Shri Biren Shah sought for an adjournment on the ground that the Paper Book is under compilation and requested for an adjournment vide its letter dated 07.08.2023. Thus the case was adjourned to 12.12.2023. There is a letter from the assessee dated 09.11.2023 giving authorization in favour of Shri Biren Shah to represent the above case, however he neither appeared before us nor filed Paper Book on behalf of the assessee. Today at the time of hearing, a copy of the Co-ordinate Bench decision dated 27.09.2023 of this Tribunal in ITA No. 459/Ahd/2022 & Others was filed before the Registry and the same is placed before us. 8. We have given our thoughtful consideration and perused the materials available on record. The decision of the Co-ordinate Bench in ITA No. 459/Ahd/2022 is clearly distinguishable with the facts of the present case. In that case, the assessee replied to the notices issued by Ld. CIT(E) and also produced copies of the Paper Book before us. It is for this reason, the Co-ordinate Bench of this I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 6 Tribunal, the very same Members of the Bench, set aside the matter back to the file of the Ld. CIT(E) and to examine the documents afresh in accordance with the provisions of law after affording reasonable opportunity of hearing to the assessee. But in the present case, the Ld. CIT(E) clearly recorded the assessee failed to furnish any detail pursuant to the notices dated 17.02.2023, 25.03.2023 and 03.05.2023. In the absence of any details, the Ld. CIT(E) unable to satisfy himself about the genuineness of the activities carried out by the assessee and also rejected that the Applications in Form 10AB filed beyond the due date prescribed under the Act. We do not find any infirmity in the order passed by the Ld. CIT(E). In the absence of any details before any of the Authorities, the grounds raised by the assessee are found to be devoid of merits and the case law relied by the assessee is not applicable in the facts of the present case and thereby the appeal filed by the assessee is hereby dismissed. 9. In the result, the appeal filed by the Assessee is dismissed. Order pronounced in the open court on 15-12-2023 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 15/12/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad I.T.A No. 545/Ahd/2023 Page No Amrut Antimdham Charitable Trust vs. CIT(E) 7 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद