Shri Dhandha Foundation, RAJKOT-GUJARAT V. The Commr. of Income Tax-III, Rajkot, RAJKOT-GUJARAT

ITA 671/RJT/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94036 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-05-2015
• Assessment Year: misc
• Appeal Filed On: 26-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: NITIN KAMDAR
• Keywords: Charitable institution; Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE SHRI SHAILEND RA K UMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI , ACCOUNTANT MEMBER . ITA. NO. 67 1 / RJT /20 14 (ASSESSMENT YEAR: N.A. ) SHRI DHANDHA FOUNDATION TRUST, C/O SHR I RAJENDRABHAI R. DHANDHA, MAMTA PRINT, SANT KABIR ROAD, 3, RANCHHODNAGAR, RAJKOT APPELLANT VS. CIT(A) - III , RAJKOT RESPONDENT PAN: AANTS1336A / BY APPELLANT : SHRI NITIN KAMDAR, C.A. / BY RESPONDENT : SHRI M. L. MEENA, D.R. / DATE OF HEARING : 1 8 . 0 5 .2015 / DATE OF PRONOUNCEMENT : 20 . 0 5 .201 5 ORDER PER SHAILENDRA KUMAR YADAV, J.M: TH I S APPEAL HAS BEEN FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX - II , RAJKOT , DATED 10 . 0 2 . 20 1 4 ON I T A NO. 67 1 / RJT / 1 4 A.Y. N.A. [ SHRI DHANDHA FOUNDATION TRUST . CIT - III ] PAGE 2 THE FOLLOWING DESCRIPTIVE GROUND S ALONG WITH PRAYER THEREON AS UNDER : - THE TRUST FRAMED TRUST DEED ON 08.01.2013 - APP LIED FOR RETISTRATION WITH CHARITY COMMISSIONER OFFICE RAJKOT ON 20/05/2013. - THE CHARITY COMMISSIONER RAJKOT ISSUED TRUST REGISTRATION CERTIFICATE ON 15.07.2013 VIDE REGI. NO. E - 9626 - APPLIED FOR REGI. U/S.12A(A) ON 23/08/2013 WITH INCOME TAX DEPARTMENT RAJKOT WITH COMPLETE SET OF ALL DOCUMENTS TO CIT OFFICE, JCIT AND ITO RAJKOT. - THE TRUST IS A RELIGIOUS TRUST WITH PUBLIC CHARITABLE WORK. THE TRUST DO NOT WANT CERTIFICATE U/S.80G(5). - AS PER LETTER OF HON. CIT - II TO ATTEND FOR SOME EXPLANATION BEFO RE HIM. THE CHAIRMAN (TRUSTEE) MR. RAJENDRA DHANDHA ALONG WITH CA NITIN KAMDAR ATTENDED FOR HEARING ON 30.01.2014. - THE HON. CIT - II WAS EXPLAINED ALL RELIGIOUS, CHARITABLE AND SOCIAL RELIEF ACTIVITIES. HE WAS ALSO EXPLAINED THAT ALL DONORS, PROMOTERS A ND FOUNDERS OF TRUST ARE AT DHANDHA FAMILY - BUT OBJECTS OF TRUST ARE GENERAL WITHOUT ANY CAST AND CREED. - THEY WANT TO RECONSTRUCTION OF TEMPLE OF MATAJI WHICH IS OPENED FOR ALL COMMUNITIES WITHOUT AT ANY CAST OR CREED IN TRUST DEED. - THE HON. CIT - II A SKED FOR ENGLISH COPY OF TRUST DEED FOR WHICH TRUSTEE DEMANDED 15 TO 20 DAYS TO FIND OUT ENGLISH CONVERSION EXPERT AND TO TYPE THEM - BUT HE FIXED UP TIME ON 06/02/2014 I.E. JUST 6 DAYS WAS GIVEN. - SINCE IT WAS MARRIAGE SEASON AND MOST OF TRUSTEE WERE OUT O F STATION AND ENGLISH COPY OF DEED WAS NOT RECEIVED HENCE COULD NOT ATTEND ON 06/02/2014 BEFORE CIT - II. - HOWEVER CA MR. NITIN KAMDAR HAD MET ITO (TECH), CIT - 1 AND INFORMED THIS POSITION ON 05/02/2014. - ON ARRIVAL OF CHAIRMAN OF TRUST, PREPARED AFFIDAVIT ON I T A NO. 67 1 / RJT / 1 4 A.Y. N.A. [ SHRI DHANDHA FOUNDATION TRUST . CIT - III ] PAGE 3 10/02/2014 FOR OBJECTS, ACTIVITIES AND CONDITIONS FOR CLOSER OF TRUST. (TO DONATE ALL ASSETS TO OTHER PUBLIC CHARITABLE TRUST HAVING SIMILAR OBJECTS DULY REGISTERED U/S.12A(A), 80G(5) OF IT ACT 1961 AND FILLING REGULAR RETURN WITH IT DEPARTMENT IF SITU ATION ARISE TO CLOSE THE TRUST) - THE DATE FIXED BY HON. CIT - 1 ON 06/02/2014 TO PRODUCE COULD NOT BE ATTENDED DUE TO ABOVE SITUATION. HENCE, TRUST APPLICATION U/S.12AA IS REJECTED AS PER HIS ORDER ENCLOSED. - THE TRUST FILED ENGLISH COPY OF TRUST DEED W ITH AFFIDAVIT FOR OBJECTS AND TO CONDONE FOR THE DELAY - REQUESTING CIT - II TO RE - ORDER FOR REGISTRATION BUT NO - REPLY RECEIVED HENCE THIS APPEAL IS FILED. PRAY TO HON. TRIBUNAL APPELLATE - KINDLY ORDER TO GET REGISTRATION U/S.12A(A) OF IT ACT. - KINDLY REMAND THE MATTER TO HAVE RE - PROCEDURE FOR THE REGISTRATION U/S.12A(A) OF THE IT ACT 1961. - WITHOUT REGISTRATION U/S.12A(A) THE TRUST HAS STOPPED TO COLLECT DONATIONS AND TO START ANY ACTIVITIES. 2. SHRI DHANDHA FOUNDATION TRUST (HEREINAFTER CALLED T RUST ) CAME INTO EXISTENCE ON 08.01.2013 BY EXECUTING TRUST DEED. TRUST WAS SUBSEQUENTLY REGISTERED WITH THE CHARITY COMMISSIONER ON 15.07.2013. TRUST FILED AN APPLICATION IN FORM NO.10A FOR SEEKING REGISTRATION U/S.12A(AA) OF THE ACT ON 23.08.2013. REP ORT ON GENUINENESS OF ACTIVITY OF TRUST WAS CALLED FOR FROM ASSESSING OFFICER. SUBSEQUENTLY, TRUST WAS ASKED FOR FILE TRANSLATED COPY OF TRUST DEED; HOWEVER, ACCORDING TO ASSESSEE, TRUST COULD NOT FILE THE SAME IN TIME . CIT ON PERUSAL OF REPORT RECEIVED FROM RANGE HEAD AND APPLICATION I T A NO. 67 1 / RJT / 1 4 A.Y. N.A. [ SHRI DHANDHA FOUNDATION TRUST . CIT - III ] PAGE 4 FILED BY TRUST OBSERVED THAT ASSESSEE HAS SHOWN VARIOUS OBJECTS. CIT FOUND THAT TRUST IS BEING FOUNDED BY DHANDHA COMMUNITY. THEY ALSO RUN A TEMPLE WHICH WAS NOT MENTIONED IN TRUST DEED. IN SPITE OF MENTIONING ALMOST EVER Y ACT OF CHARITY AS ITS OBJECTS, ASSESSEE WAS ASKED CERTAIN OTHER DETAILS INCLUDING TRANSLATED COPY OF TRUST DEED . ACCORDING TO CIT, ASSESSEE FAILED TO GIVE THE SAME. SO, CIT CONCLUDED NEGATIVE WITH REGARD TO GENUINENESS OF MOTIVES OR ACTIVITIES OF TRUST. ACCORDINGLY, APPLICATION TO GRANT REGISTRATION U/S.12A(A) OF THE IT ACT FILED BY TRUST WAS REJECTED. 2 . 1 BEFORE US, ASSESSEE HAS FILED APPLICATION FOR CONDONATION OF DELAY IN FILING APPEAL . ACCORDING TO TRUST, THEY WERE BUSY IN FILING ENGLISH COPY OF T RUST DEED. HOWEVER THEY COULD NOT FILE THE APPEAL IN TIME BECAUSE OF COMMUNICATION GAP AMONG THE MSELVES. TAKING ALL FACTS AND CIRCUMSTANCES INTO CONSIDERATION, WE CONDONE THE MINOR DELAY IN QUESTION AS CLAIMED BY ASSESSEE . HAVING DONE SO, C OMING ON MERIT , AS STATED ABOVE, ASSESSEE WAS ASKED TO FILE ENGLISH TRANSLATION OF TRUST DEED WHICH THEY COULD NOT FILE IN TIME GIVEN BY CI T(A). THOUGH ASSESSEE HAD SPECIFICALLY REQUESTED 10 TO 15 DAYS TO PREPARE ENGLISH TRANSLATION OF TRUST DEED AND NOT FILING OF TRAN SLATION COPY IS ONE OF THE MAIN REASON FOR REJECTION OF REGISTRATION AS ASKED FOR ALONG WITH OTHER REASONS. ACCORDING TO US, ASSESSEE WAS AGAIN PREVENTED BY REASONABLE CAUSE IN NOT FILING ENGLISH TRANSLATED COPY OF TRUST DEED AS ASKED FOR BECAUSE OF NON A VAILABILITY OF COMPETENT AND FAST TRANSLATOR IN I T A NO. 67 1 / RJT / 1 4 A.Y. N.A. [ SHRI DHANDHA FOUNDATION TRUST . CIT - III ] PAGE 5 AREA. ASSESSEE SHOULD NOT SUFFER IN INDIA DUE TO LACK OF ENGLISH KNOWLEDGE WHILE EDUCATION IS NOT COMPULSORY IN INDIA . SO, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIM WITH DIRECTION TO DECIDE THE SAME AS PER FACT AND LAW AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO ASSESSEE AND ASSESSEE IS ALSO DIRECTED TO COOPERATE IN PROCEEDING. IT IS PERTINENT TO MENTION HERE THAT S INCE WE ARE RESTORING THE APPEAL ON LIMITED PO INTS AS DISCUSSED ABOVE, SO WE ARE REFRAINING TO COMMENT ON MERIT OF ISSUE AT HAND. 3 . IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF MA Y , 201 5 . SD/ - SD/ - (N. S. SAINI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT : DATED 20 / 0 5 /2015 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CON CERNED. 5. THE DR., ITAT, RAJKOT . 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKOT