Sandipani Trust, CHENNAI V. DIT, CHENNAI

ITA 602/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4964 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-06-2011
• Assessment Year: misc
• Appeal Filed On: 01-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S VENKATRAM
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NOS. 601 & 602/MDS/2011 ASSESSMENT YEARS :-- M/S. SANDIPINI TRUST, 5, MAIN ROAD, DR. SUBBARAYA NAGAR, KODAMBAKKAM, CHENNAI-600 024. V. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), CHENNAI. (PAN:AAKTS2803H) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. VENKATRAM RESPONDENT BY : SHRI SHAJI P. JACOB O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO. 601/MDS/2011 IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE LEARNED DIT (EXEMPTIONS), CHENNAI IN DIT(E) NO. 2 (257)/10-11 DATED 28-12- 2010 REJECTING THE APPLICATION FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. ITA NO. 602/MDS/2011 IS AN APPEAL FILED BY T HE ASSESSEE AGAINST THE ORDER OF THE LEARNED DIT (EXEMPTIONS), CHENNAI IN DIT(E) NO . 2(257)/10-11 DATED 28- 12-2010 REFUSING TO GRANT APPROVAL U/S 80G OF THE A CT. AS BOTH THE APPEALS ARE INTER-CONNECTED, THE SAME ARE BEING DISPOSED OF BY THIS COMMON ORDER. I.T.A. NOS. 601 & 602/MDS/2011 2 2. SHRI S. VENKATRAM, CA REPRESENTED ON BEHALF OF T HE ASSESSEE AND SHRI SHAJI P. JACOB, LEARNED SR. DR REPRESENTED ON BEHALF OF T HE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSE SSEE HAD FILED APPLICATIONS FOR REGISTRATION U/S. 12AA AND FOR APPROVAL U/S 80G OF THE ACT ON 23-06-2010 . IT WAS THE SUBMISSION THAT THE ASSESSEE TRUST WAS CONS TITUTED BY A TRUST DEED DATED 05-03-2010. IT WAS THE SUBMISSION THAT THE LEARNED DIT HAD VERIFIED THE DOCUMENTS PRODUCED. HOWEVER, ON THE GROUND THAT TH E ACTIVITIES OF THE TRUST ARE YET TO COMMENCE AND CONSEQUENTLY THE GENUINENESS OF THE ASSESSEE TRUST COULD NOT BE VERIFIED, THE LEARNED DIT REJECTED THE APPLI CATION FOR REGISTRATION U/S 12AA AS ALSO THE APPROVAL U/S 80G OF THE ACT. IT WAS TH E SUBMISSION THAT WHEN THE ASSESSEE WAS BEFORE THE LEARNED DIT, AS IT WAS REQU IRED UNDER SECTION 12AA THAT THE APPLICATION FOR REGISTRATION MUST BE MADE WITHI N ONE YEAR FROM THE CREATION OF THE TRUST, THE ASSESSEE COULD NOT SPECIFICALLY SHOW ANY ACTIVITIES. IT WAS THE SUBMISSION THAT NOW THE ASSESSEE HAS STARTED ITS AC TIVITIES AND IT WOULD BE ABLE TO SHOW ITS ACTIVITIES TO PROVE THE GENUINENESS OF THE TRUST. IT WAS THE SUBMISSION THAT THE ISSUES OF REGISTRATION UNDER SECTION 12AA AND THE APPROVAL U/S 80G MAY BE SENT BACK TO THE DIT (EXEMPTIONS) FOR VERIFICATIO N IN REGARD TO THE GEUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST. 4. IN REPLY, THE LEARNED DR SUBMITTED THAT HE HAD N O OBJECTION IF THE MATTER IS SENT BACK FOR VERIFYING THE GEUINENESS OF THE ACTIV ITIES OF THE TRUST. I.T.A. NOS. 601 & 602/MDS/2011 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSEE HAS MADE ITS APPLICATION WITHIN THE TIME PROVIDED U NDER THE ACT, AND AS IT IS NOTICED THAT THE ASSESSEE DID NOT HAVE ADEQUATE TIM E TO START ITS ACTIVITIES AND THE NON-COMMENCEMENT OF THE ACTIVITIES HAVE BEEN HELD B Y THE LEARNED DIT FOR REFUSAL TO GRANT REGISTRATION UNDER SEC. 12AA AND A LSO THE APPROVAL U/S 80G, WE ARE OF THE VIEW THAT THE ISSUE SHOULD BE RESTORED T O THE FILE OF THE LEARNED DIT ESPECIALLY IN VIEW OF THE FACT THAT THE ASSESSEE HA S GIVEN A CATEGORICAL UNDERTAKING THAT IT WOULD BE IN A POSITION TO PROV E ITS ACTIVITIES AND THE GENUINENESS. IN THE CIRCUMSTANCES, THE ISSUES IN B OTH THE APPEALS ARE RESTORED TO THE FILE OF THE LEARNED DIT FOR RE-ADJUDICATION IN ACCORDANCE WITH LAW. IN THE CIRCUMSTANCES, THE APPEALS OF THE ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 09-06-2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 09 TH JUNE, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE