KALAVISHKAR TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 5708/MUM/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9204 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 13-09-2013
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI SANJAY GARG , J M ./ ITA N O. 5708 / MUM/20 1 2 ( / ASSESSMENT YEAR : 200 9 - 10 ) KALAVISHKAR TRUST, 14, RUBY HOUSE, THIRD FLOOR, 113, LADY JAMSHETJI ROAD, MAHIM, MUMBAI - 400016 VS. DIT(EXEMPTION), MUMBAI - 12 ./ ./ PAN/GIR NO. : A A AT K 9500 D ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : MS. S.PADMAJA / DATE OF HEARING : 22 /0 1 /2015 / DATE OF PRONOUNCEMENT 25 / 03/2015 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF DIT(E) , DATED 22 - 7 - 2013 , FOR THE A.Y.200 9 - 10 IN THE MATTER OF ORDER PASSED U/S. 12AA(1)(B)(II) OF THE I.T.ACT . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. THE ASSESSEE TRUST HAS BEEN CONSTITUTED BY A TRUST DEED DATED 29 - 8 - 2002 TO PROMOTE FINE ARTS I.E. PAINTINGS, SCULPTURE, LITERATURE, MUSIC, DRAMA/THEATRE, ARCHITECTURE AND POETRY ETC. THE TRUST DEED WAS REGISTERED WITH CHARITY COMMISSIONER, MUMBAI. IT WAS FILIN G INCOME TAX RETURN SINCE 2006 - 07. THE APPLICATION FOR REGISTRATION U/S.12A WAS FILED ON 17 - 1 - 2013. THE DIT(E) ASKED THE ASSESSEE TO FURNISH THE DETAILS VIDE NOTICE DATED 14 - 3 - ITA NO. 5708 / 1 3 2 2013. HOWEVER, DUE TO FAILURE ON THE PART OF THE ASSESSEE, THE DIT(E) DECLINED T HE REGISTRATION, AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. IT WAS SUBMITTED BY LD. AR THAT THE IT RETURN FILING WORK WAS ENTRUSTED - TO CHARTERED ACCOUNT WITH DISCUSSION TO FILE IT AS PER CHARITABLE TRUST RULES OF INCOME TAX DEPT. IT RETURNS WERE FILED BY CA FROM 2006 TO THE ASSESSMENT YEAR 2011 - 12 AND EVEN ACCOUNTS ARE SUBMITTED TO CHARITY COMMISSIONER OFFICE. IT WAS TRANSPIRED IN JUNE 2012 (WHILE FILING TAX RETURN FOR ASSESSMENT YEAR 2012 - 13 BY OTHER CA THAT IT RETURNS WERE FILED BY MENTIONI NG CHARITY COMMISSIONER REGISTRATION NUMBER IN THE PLACE OF 12A REGISTRATION NUMBER. THIS LAPSE ON THE PART OF OUR CA FOR SIX YEARS CREATED THIS ENTIRE EPISODE OF APPLYING TOO LATE FOR 12A REGISTRATION AFTER ACTIVITIES ARE STARTED IN 2004. I AGREE, IT WAS OUR MISTAKE AS WELL, AS WE FAILED TO NOTICE THE SAME. THEN WE REQUESTED SAME EARLIER CA TO SETTLE THE MATTER BY APPLYING FOR 12A REGISTRATION IN JULY 2012, AS IT MATTERS ARE NORMALLY HANDLED BY AUTHORIZED CA AND NOT LAYMAN. AFTER REPEATED REMINDERS, OUR C A FI LED 12A APPLICATION IN JAN 2013. AFTER FILING 12A REGISTRATION, WE RECEIVED FIRST LETTER DATED 14.03.2013 FROM YOUR OFFICE ASKING FEW DETAILS WITH FACTS , I PREPARED ALL THE DETAILS WITH FACTS, PROOFS OF CHARITABLE ACTIVITIES, I.E. PROMOTION OF ARTS AN D ALONG WITH AUTHORIZATION LETTER TO REPRESENT US, THE ENTIRE BUNCH OF REQUIRED DOCUMENTS WAS HANDED OVER TO CA ON 03/04/2013, AS HEARING WAS FIXED ON 05/04/2013. I REPEATEDLY A SKED OUR CA IF I SHOULD ACCOMPAN Y HIM/HER AS MENTIONED IN YOUR LETTER, BUT I WA S TOLD NOT TO COME AND JUST WRITE AUTHORIZATION LETTER IN THE NAME OF THE PERSON WHO WILL ATTEND THE HEARING. AFTER GIVING EVERYTHING TO CA, WE. THOUGHT THAT HEARING WAS ATTENDED ON TIME BY OUR CA AND DOCUMENTS WERE SUBMITTED ON TIME TO YOUR OFFICE. HOWEVE R, W HEN WE RECEIVED YOUR SECOND LETTER (DATED 09.07.2013) ON 17.07.2013, WE CAME TO KNOW THAT OUR HEARING WAS NOT ATTENDED BY CA PERSONALLY ON YOUR GIVEN DATE ITA NO. 5708 / 1 3 3 05.04.2013 BUT MERE REPLY WAS SENT BY POST ON 08.04.2013 WHICH AS STATED IN YOUR LETTER WAS RECEI VED ON 10.04.2013 IN YOUR OFFICE. AS MENTIONED IN YOUR SECOND LETTER DATED 09.07.2013, THE HEARING WAS FIXED .ON 15.07.2013 , WHICH WE MISSED, AS WE RECEIVED YOUR LETTER DATED 09.07.2013 TWO DAYS AFTER HEARING DATE I.E. O N 17.07.2013; ELSE AT LEAST I WOULD NOT HAVE MISSED SECOND CHANCE GIVEN BY YOUR ESTEEMED OFFICE AND WOULD HAVE ATTENDED PERSONALLY TO PRESENT OUR 12A REGISTRATION CASE . MEANTIME, KALAVISHKAR'S OFFICE SHIFTED FROM 01 JULY 2013 AT 14, RUBY HOUSE, 3RD FLOOR, 113, L. J. ROAD, MAHIM, MURNBAI~4000 16 FROM KANDIVALI AND THIS MAY ALSO BE ONE MORE REASON F OR DEL AY IN RECEIVING SECOND LETTER. 4. IN VIEW OF THE ABOVE, IT WAS REQUESTED THAT MATTER MAY BE RESTORED TO THE FILE OF DIT(E) FOR DECIDING AFRESH. 5. ON THE OTHER HAND, LD. DR RELIED ON THE ORDER O F DIT(E). 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM THE RECORD THAT DUE TO NON - COOPERATION OF CONCERNED CA OF THE ASSESSEE, THE REQUIRED DETAILS WERE NOT FILED WITH THE DIT(E). HOWEVER, ASSESSEE WAS NOT HAVING ANY KNOWLEDGE OF SUCH FAILURE OF HIS CA. THE DIT(E) FIXED THE CASE FOR HEARING VIDE LETTER DATED 9 - 7 - 2013 ASKING THE ASSESSEE TO FURNISH THE DETAILS ON 15 - 7 - 2013 . HOWEVER, THE ASSESSEE RECEIVED THE NOTICE ON 17 - 7 - 2013, THEREFORE, COULD NOT ATTEND THE OFFICE OF THE AO ON 15 - 7 - 2013. 7. I T IS CLEAR FROM THE ABOVE THAT NON - FILING OF DETAIL BEFORE THE DIT(E) WAS ATTRIBUTABLE TO NON - COOPERATION OF THE CA OF THE ASSESSEE AND IT WAS NOT IN THE KNOWLEDGE OF THE ASSESSEE. THE FINAL NOTICE DATED 9 - 7 - 2013 ASKING THE ASSESSEE TO APPEAR ON 15 - 7 - 2013 WAS SERVED ON THE ASSESSEE ON 17 - 7 - 2013 , THEREFORE, ASSESSEE COULD NOT APPEAR BEFORE DIT(E) ON DATE FIXED FOR HEARING I.E. 15 - 7 - 2013. UNDER THESE CIRCUMSTANCES, W E DEEM IT REASONABLE TO RESTORE THE MATTER BACK TO THE FILE OF THE DIT(E) FOR DECIDING AFRESH AFTER GIVING DUE ITA NO. 5708 / 1 3 4 OPPORTUNITY TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FILE THE NECESSARY DETAILS REQUIRED BY THE DIT(E) ALONG WITH ITS AUDITED BALANCE SHEET FOR THE LAST THREE YEARS. WE DIRECT ACCORDINGLY. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 25 /03/ 201 5 . SD/ - SD/ - ( ) ( SANJAY GARG ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 25/03 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6 . / GUARD FILE. //TRUE COPY//