M/s. Sri Lakshmi Ammal Trust, CHENNAI V. ITO, Coimbatore

ITA 60/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90638 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 16-07-2015
• Assessment Year: misc
• Appeal Filed On: 08-01-2014
• Court: TRIBUNAL
• Department Lawyers: MRSANKARALINGAMCIT
• Assessee Lawyers: S SRIDHAR
• Section: 12A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , ! ! . ' #$ ! , % & BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NO.60 /MDS./2014 M/S.SRI LAKSHMI AMMAL TRUST , NO.5/548,GOVANUR ROAD, NAICKENPALAYAM, COIMBATORE 641 020. VS. THE INCOME TAX OFFICER, COMPANY WARD-II, COIMBAORE. PAN AAJTS 6489 A ( '( / APPELLANT ) ( )*'( / RESPONDENT ) / APPELLANT BY : MR.S.SRIDHAR,ADVOCATE / RESPONDENT BY : MR,SANKARALINGAM,CIT, D.R / DATE OF HEARING : 16.07.2015 /DATE OF PRONOUNCEMENT : 22 ND .07.2015 + / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: ITA NO.60/MDS/2014 2 THIS APPEAL IS FILED BY THE ASSESSEE, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-1, COIMBATORE DATED 30.0 9.2013 IN C.NO.127(395)/12A/CIT-1:CBE/2013-14 WHEREIN THE LD. CIT-I REJECTED THE APPLICATION FILED BY THE ASSESSEE TRUST SEEKING REGISTRATION UNDER SECTION 12A OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE AGGRIEVED BY THE ORDER OF THE CIT- 1 HAS RAISED TEN ELABORATE GROUNDS BEFORE US; HOWEVER, THE CRUX OF THE ISSUE IS THAT THE ASSESSEE TRUST IS AGGRIEVED BY THE ORDER O F THE LD. CIT WHO HAD REFUSED TO GRANT REGISTRATION UNDER SECTION 12A OF THE ACT. 3. ON PERUSING THE APPEAL, WE FIND THAT THE ASSES SEE HAD FILED THE APPEAL WITH DELAY OF 40 DAYS. THE LEARNED COUNSEL F OR THE ASSESSEE HAS SUBMITTED A PETITION SEEKING CONDONATION OF DEL AY FOR THE REASON THAT THE CHARTERED ACCOUNTANT OF THE ASSESSEE WAS U NWELL DURING THE PERIOD. SINCE THE REASON CITED BY THE LD. A.R. APPE ARS TO BE GENUINE, WE HEREBY CONDONE THE DELAY OF 40 DAYS IN FILING TH E APPEAL. ITA NO.60/MDS/2014 3 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A TRUST, CONSTITUTED BY A TRUST DEED DATED 23.08.2008 WHICH WAS SUBSEQUENTLY AMENDED ON 07.08.2010, FILED ITS APPLICATION ON 03. 01.2013 SEEKING REGISTRATION U/S. 12A OF THE ACT. AFTER ANALYZING T HE RELEVANT DOCUMENTS FURNISHED BY ASSESSEE-TRUST, THE LD. CIT DENIED REGISTRATION TO THE ASSESSEE TRUST U/S.12A OF THE A CT BECAUSE OF THE ASSESSEE TRUST HAD FILED THE APPLICATION SEEKING RE GISTRATION U/S.12A OF THE ACT AFTER 52 MONTHS FROM THE DATE OF ITS CON STITUTION. FURTHER THE LD. CIT OBSERVED THAT THE ASSESSEE HAD NOT EXPLAINE D AS TO HOW IT WOULD COMPLY WITH THE OBJECTS OF THE TRUST. THE LD. A.R. MADE THE FOLLOWING SUBMISSIONS BEFORE THE LD. CIT COIMBATORE . A. THERE WERE CERTAIN DEFICIENCIES IN THE TRUST DEE D WHICH HAD TO BE CURED BY AMENDING THE TRUST DEED. B. THE TRUSTEES WERE ENGAGED IN THEIR BUSINESS ACTI VITIES DUE TO WHICH THEY WERE NOT ABLE TO PURSUE THE OBJECTS OF T HE TRUST DURING THAT PERIOD. C. THE ASSESSEE TRUST HAD FORMED SELF-HELP GROUPS T O CARRY OUT THE OBJECTS OF THE TRUST. ITA NO.60/MDS/2014 4 5. HOWEVER, THE LD. CIT WAS NOT CONVINCED WITH THE SUBMISSION OF THE ASSESSEE AND THEREFORE REFUSED TO GRANT REGISTR ATION U/S.12A OF THE ACT. 6. AT THE OUTSET, WE FIND NO JUSTIFICATION IN THE ACTION OF THE LD. CIT FOR REFUSING THE REGISTRATION U/S.12A OF THE ACT. T HE ASSESSEE TRUST IS IN THE INCUBATION STAGE, AND HAS NOT CARRIED OUT IT S OBJECTS AT THE TIME OF APPLICATION SEEKING REGISTRATION U/S.12A OF THE ACT. ON PERUSING THE OBJECTS OF THE TRUST, WHICH ARE MAINLY IN THE N ATURE OF MEDIAL RELIEF, ADVANCEMENT OF GENERAL PUBLIC UTILITY AND RELIEF TO THE POOR, WE ARE OF THE CONSIDERED VIEW THAT THE TRUST DESERVES TO BE G RANTED REGISTRATION U/S.12A OF THE ACT. UNLESS THE REGISTRATION IS GRA NTED TO THE ASSESSEE TRUST, IT WOULD BE DIFFICULT FOR THE ASSESSEE TRUST TO PURSUE ITS OBJECTS. THEREFORE, IT IS THE PRIMARY DUTY OF THE LD. CIT TO GRANTS REGISTRATION U/S.12A OF THE ACT AFTER EXAMINING THE OBJECTS AND GENUINENESS OF THE TRUST. CONSIDERING THE FACTS AND CIRCUMSTANCE O F THE CASE, WE ARE OF THE CONSIDERED VIEW THAT THE LD. CIT OUGHT TO HA VE GRANTED REGISTRATION AT THIS STAGE WHEN THE ASSESSEE HAS CA TEGORICALLY EXPLAINED THE CAUSE OF DELAY IN CONDUCTING THE ACTI VITIES OF THE TRUST. ITA NO.60/MDS/2014 5 THEREFORE WE HEREBY DIRECT THE LD.CIT TO GRANT REGI STRATION U/S.12A OF THE ACT. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON 22 ND JULY, 2015 AT CHENNAI. SD/- SD/- ( ! . ' #$ ! ) ( V. DURGA RAO ) ( . ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 22 ND JULY, 2015. K S SUNDARAM. !!'#$!%$ /COPY TO: ! 1. /APPELLANT 2. /RESPONDENT 3. ! &!'( /CIT(A) 4. ! & /CIT 5. $) *!''+, /DR 6. * -.!/ /GF