Appeal details
Counselvise Citation
[2016] 131 COUNSELVISE.COM (IT) 4338 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
9 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
19-10-2016
Appeal Filed By
Assessee
Bench Allotted
C
Assessment Year
misc
Appeal Filed On
14-01-2016
Judgement Text
ITA NOS.64&65/KOL/2016-ABACUS ACADEMIA 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C, KOLKATA (BEFORE SHRI N. V. VASUDEVAN,J.M. & SHRI M. BALAGAN ESH, A.M.) ITA NOS. 64 & 65/KOL/2016 : ASST T. YEAR : ABACUS ACADEMIA, 7, SARAT BOSE ROAD, PS BHOWANIPUR, KOLKATA-700020. PAN: AAETAS5684Q VS CIT (EXEMPTION), KOLKATA. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS.KOMAL AGARWAL,ADVOCATE. REVENUE BY : SHRI G. MALLIKARJUNA, CIT,DR DATE OF HEARING : 21.09.2016 DATE OF PRONOUNCEMENT : 19 -10-2016 ORDER PER SHRI N. V. VASUDEVAN, J.M . ITA NO.64/KOL/2016: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER DATED 28/10/2015 PASSED BY THE CIT (EXEMPTION),KOLKATA PA SSED U/S.12AA OF THE INCOME-TAX ACT 1961(ACT). ITA NO.65/KOL/2016: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER DATED 28/10/2015 PASSED BY THE CIT (EXEMPTION), KOLKATA P ASSED U/S.80G (5) (VI) OF THE INCOME-TAX ACT 1961(ACT). 2. THE ASSESSEE IS TRUST WHICH CAME INTO EXISTENCE BY A DEED OF TRUST DATED 22.12.2014. IT MADE AN APPLICATION FOR REGISTRATIO N U/S12AA OF THE INCOME TAX ACT, 1961 (ACT) BEFORE THE LD. COMMISSIONER OF INCO ME TAX (EXEMPTIONS), KOLKATA (CIT(E) FOR SHORT) ON 07.04.2014. THE SOCIE TY APPEARED BEFORE THE CIT(E) AND MADE SUBMISSION AND ALSO SUBMITTED ALL DOCUMENT S TO SUPPORT ITS APPLICATION. ITA NOS.64&65/KOL/2016-ABACUS ACADEMIA 2 THE CIT(E) HOWEVER REJECTED THE APPLICATION VIDE HI S ORDER DATED 28.10.2015 FOR THE REASON THAT THE ACTIVITIES OF THE TRUST WERE FO UND TO BE BARE MINIMUM TO JUSTIFY THE CLAIM OF REGISTRATION. THE ASSESSEE BEING AGGR IEVED BY THE REJECTION OF THE REGISTRATION U/S.12AA OF THE ACT HAS PREFERRED THIS APPEAL. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE IMPUG NED ORDER IS A NON SPEAKING ORDER AND DOES NOT SPELL OUT THE REASON AS TO WHY T HE REGISTRATION IS BEING DENIED TO THE ASSESSEE U/S.12AA OF THE ACT. THE REASON AS WE CAN GATHER FROM THE IMPUGNED ORDER IS THAT THE CIT(E) EXPECTS THAT THE TRUST SHO ULD HAVE CARRIED OUT SUFFICIENT ACTIVITIES AND SINCE THE ACTIVITIES WERE NOT LARGE IN NUMBER, THE REGISTRATION IS BEING DENIED. THE PROVISIONS OF SEC.12AA OF THE ACT READS THUS: 12AA. (1) THE PRINCIPAL COMMISSIONER OR COMMISSIONER, ON RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUTION MADE UND ER CLAUSE ( A ) OR CLAUSE ( AA ) OF SUB-SECTION (1) OF SECTION 12A , SHALL (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRU ST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THIS BEHALF; AND ( B ) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE ( I ) SHALL PASS AN ORDER IN WRITING REGISTERING THE TR UST OR INSTITUTION; ( II ) SHALL, IF HE IS NOT SO SATISFIED, PASS AN ORDER I N WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION, AND A COPY OF SUCH ORDER SHALL BE SENT TO THE APPLI CANT :.. 4. AS CAN BE SEEN FROM THE AFORESAID PROVISIONS, T HE QUESTION WHETHER ACTIVITIES OF THE TRUST ARE MINIMUM OR NOT IS NOT A RELEVANT CRIT ERIA FOR GRANT OF REGISTRATION. SINCE, NO OTHER REASONS HAVE BEEN GIVEN FOR NOT GRA NTING REGISTRATION TO THE ASSESSEE, WE ARE OF THE VIEW THAT THE ASSESSEE IS E NTITLED TO GRANT OF REGISTRATION. IF THE OBJECTS OF THE TRUST HAVE OBJECTS WHICH ARE CHA RITABLE IN NATURE AND IF THERE IS NO ITA NOS.64&65/KOL/2016-ABACUS ACADEMIA 3 MATERIAL TO SUGGEST THAT THE ACTIVITIES OF THE TRUS T ARE NOT GENUINE, THEN THAT WOULD BE SUFFICIENT TO ALLOW REGISTRATION SUBJECT TO FULF ILLMENT OF OTHER CONDITIONS FOR GRANT OF REGISTRATION. WE ARE THEREFORE OF THE VIE W THAT THE ASSESSEE IS ENTITLED TO GRANT OF REGISTRATION U/S.12AA OF THE ACT. WE HOLD AND DIRECT ACCORDINGLY. 5. AS FAR AS ITA NO.65/KOL/2015 IS CONCERNED THE G RANT OF RECOGNITION U/S.80G (5) WAS DENIED BECAUSE OF ABSENCE OF REGISTRATION U /S12AA OF THE ACT. SINCE REGISTRATION U/S12AA OF THE ACT IS BEING ALLOWED, W E ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GRANTED APPROVAL U/S.80G (5) OF THE ACT ALSO. WE HOLD AND DIRECT ACCORDINGLY. 6. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 .10.2016 SD/- SD/- (M. BALAGANESH) (N. V. VASUDEVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19/10/2016 S. SINHA(PS) COPY OF THE ORDER FORWARDED TO: 1. ABACUS ACADEMIA, KOLKATA 700 020 2 C.I.T.(EXEMPTION), KOLKATA 3. THE CIT-I, 4. THE CIT(A)-I, 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASST. REGISTRAR , ITAT, KOLKATA BENCHES ITA NOS.64&65/KOL/2016-ABACUS ACADEMIA 4
