J. D. Memorial Welfare Society, JODHPUR V. CIT-2, JODHPUR

ITA 561/JODH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99630 (ITAT-JODHPUR)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 19-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENA
• Assessee Lawyers: RAJENDRA JAIN
• Keywords: Charitable institution; Condonation of delay
• Section: 12; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.C. GUPTA G.C. GUPTA G.C. GUPTA G.C. GUPTA, , , , HONBLE HONBLE HONBLE HONBLE VICE VICE VICE VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA, , , , HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 5 55 5 61 6161 61 /JODH/2014 /JODH/2014 /JODH/2014 /JODH/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : N.A. N.A. N.A. N.A. J.D. MEMORIAL WELFARE J.D. MEMORIAL WELFARE J.D. MEMORIAL WELFARE J.D. MEMORIAL WELFARE SOCIETY, SOCIETY, SOCIETY, SOCIETY, POKRAN, POKRAN, POKRAN, POKRAN, DISTRICT JA DISTRICT JA DISTRICT JA DISTRICT JAISALMER. ISALMER. ISALMER. ISALMER. PAN : PAN : PAN : PAN : AAATJ7444H. AAATJ7444H. AAATJ7444H. AAATJ7444H. VS. VS. VS. VS. COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX - -- - II IIII II , ,, , JODHPUR. JODHPUR. JODHPUR. JODHPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDRA JAIN, ADVOCATE. RESPONDENT BY : SHRI M.S. MEENA, D.R. DATE OF HEARING : 01.09.2015 01.09.2015 01.09.2015 01.09.2015 DATE OF PRONOUNCEMENT: 04.09.2015 04.09.2015 04.09.2015 04.09.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT : :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED COMMISSIONER OF INCOME TAX-II, JODHPUR DATE D 28 TH AUGUST, 2014 REJECTING THE CLAIM OF THE ASSESSEE FOR REGIST RATION U/S 12A OF THE INCOME-TAX ACT, 1961. 2. THE GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UND ER:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE THE ORDER PASSED BY LD. CIT-1, JODHPUR U/S 12A OF I.T. ACT 1961 IS BAD IN LAW, BAD IN FACTS & PERVERS E. ITA-561/JODH/2014 2 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE ASSESSEE SOCIETY SATISFY ALL THE CONDITION S LAID DOWN FOR GRANT OF REGISTRATION U/S 12A AND AS SUCH THE LD. CIT-1, JODHPUR ERRED IN REJECTING THE CLAIM OF REGISTRATION. 3. THERE IS A DELAY OF 23 DAYS IN FILING THE PRESEN T APPEAL BY THE ASSESSEE BEFORE THE TRIBUNAL. THE ASSESSEE HAS FIL ED THE APPLICATION FOR CONDONATION OF DELAY ALONG WITH SUPPORTING AFFI DAVIT OF THE ASSESSEE EXPLAINING THE REASONS FOR THE DELAY. LEARNED DR HA S OPPOSED THE CONDONATION OF DELAY AND HAS SUBMITTED THAT NO SPEC IFIC REASON FOR CONDONATION HAS BEEN GIVEN BY THE ASSESSEE. WE HAV E CONSIDERED THE RIVAL SUBMISSIONS REGARDING THE CONDONATION OF DELA Y. WE FIND THAT THE ASSESSEE HAS EXPLAINED THAT THE ORDER SENT BY THE C IT WAS RECEIVED BY AN EMPLOYEE OF THE ASSESSEE TRUST BY POST AT POKARA N AND HAS NOT BROUGHT TO THE NOTICE OF ANY RESPONSIBLE OFFICIAL O F THE TRUST. IT WAS ONLY ON 07.11.2014 THAT A MEMBER OF THE ASSESSEE SOCIETY APPEARED BEFORE THE ASSESSING OFFICER IN RESPECT OF HEARING OF A CA SE OF THE SOCIETY FIXED BY THE ITO, JAISALMER AT JAISALMER AND IT WAS INFOR MED BY THE ASSESSING OFFICER THAT THE CIT-II, JODHPUR HAS REJECTED THE A PPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12A OF THE A CT. IN THESE FACTS OF THE CASE, WE ARE OF THE VIEW THAT THE DELAY IN FILI NG THE PRESENT APPEAL BEFORE THE TRIBUNAL SHOULD BE CONDONED AND WE DIREC T ACCORDINGLY. 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE STATUTORY CONDITIONS FOR GRANT OF REGISTRATION U/S 12A OF THE ACT ARE SATISFIED IN THIS CASE AND THE OBJECTS OF THE ASSESSEE WERE CHAR ITABLE IN NATURE. HE REFERRED TO THE OBJECTS OF THE ASSESSEE TRUST FILED IN THE COMPILATION AND SUBMITTED THAT THE ASSESSEE IS REGISTERED WITH THE REGISTRAR AS PER RAJASTHAN INSTITUTIONS REGISTRATION ACT, 1958. ITA-561/JODH/2014 3 5. LEARNED DR SUBMITTED THAT THE ASSESSEE COULD NOT ESTABLISH THE CHARITABLE PURPOSE OF THE TRUST AND, THEREFORE, THE REGISTRATION U/S 12A OF THE ACT WAS RIGHTLY REFUSED BY THE CIT-II. HE R EFERRED TO THE RELEVANT PORTION OF THE ORDER U/S 12A OF THE ACT PASSED BY L EARNED CIT-II. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE LEARNED CIT-II REFUSING THE REGISTRATI ON U/S 12A OF THE ACT AND ALSO VARIOUS DOCUMENTS IN THE COMPILATION FILED BEFORE THE TRIBUNAL. WE FIND THAT THE LEARNED CIT HAS RECORDE D IN HIS IMPUGNED ORDER THREE REASONS FOR REFUSING THE REGISTRATION U /S 12A, VIZ., THAT THE ASSESSEE COULD NOT FILE NOTES ON CHARITABLE ACTIVIT IES CARRIED OUT SINCE INCEPTION OF THE TRUST, SECONDLY, NOT PRODUCED THE BOOKS OF ACCOUNT MAINTAINED BY THE TRUST AND THIRDLY, COMPLETE DETAI LS OF DONATIONS RECEIVED BY THE TRUST DURING THE LAST THREE YEARS W ERE NOT FILED. WE FIND THAT THESE QUERIES BY THE LEARNED CIT RELATE T O THE ASSESSMENT OF THE ASSESSEE UNDER THE PROVISIONS OF THE INCOME-TAX ACT. WHILE MAKING ENQUIRY DURING THE COURSE OF PROCEEDINGS FOR DISPOSAL OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12 A OF THE ACT, THE CIT SHOULD HAVE GONE INTO THE OBJECTS OF THE ASSESSEE A S PROVIDED IN ARTICLES OF ASSOCIATION AND SHOULD HAVE RECORDED A FINDING THAT WHETHER THEY WERE CHARITABLE IN NATURE. WE HAVE GONE THROU GH THE OBJECTS CLAUSE OF THE ASSESSEE IN THE ARTICLES OF ASSOCIATI ON AS FILED BY THE ASSESSEE IN THE COMPILATION BEFORE THE TRIBUNAL AND FIND THAT THEY WERE CHARITABLE IN NATURE. WE FIND THAT THE OTHER REQUI REMENTS OF LAW FOR GRANT OF REGISTRATION U/S 12A HAVE BEEN COMPLIED WI TH BY THE ASSESSEE. IN THIS VIEW OF THE MATTER, WE HOLD THAT THE ASSESS EE WAS ENTITLED TO REGISTRATION U/S 12A OF THE ACT AND, ACCORDINGLY, L EARNED CIT-II IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE U/S 12A OF THE ACT WITHIN A PERIOD OF FIFTEEN DAYS FROM RECEIPT OF THIS ORDER . WE MAKE IT CLEAR THAT THE DEPARTMENT SHALL BE FREE TO TAKE ANY ACTIO N BY MAKING ITA-561/JODH/2014 4 ADDITION/DISALLOWANCE AS PER LAW AFTER GOING THROUG H THE ACCOUNT BOOKS OF THE ASSESSEE WHILE FRAMING THE ASSESSMENT IN THE CASE OF THE ASSESSEE. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 04.09.2015 . SD/- SD/- ( (( ( R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : J.D. MEMORIAL WELFARE SOCIETY, J.D. MEMORIAL WELFARE SOCIETY, J.D. MEMORIAL WELFARE SOCIETY, J.D. MEMORIAL WELFARE SOCIETY, POKRAN, DISTRICT POKRAN, DISTRICT POKRAN, DISTRICT POKRAN, DISTRICT JAISALMER. JAISALMER. JAISALMER. JAISALMER. 2. RESPONDENT : COMMISSIONER O COMMISSIONER O COMMISSIONER O COMMISSIONER OF INCOME TAX F INCOME TAX F INCOME TAX F INCOME TAX- -- -2, JODHPUR. 2, JODHPUR. 2, JODHPUR. 2, JODHPUR. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR