SHREE BHAGYODAY SWETAMBER MURTIPUJAK JAIN SANGH TRUST (WADA), MUMBAI V. DIT (E), MUMBAI

ITA 6816/MUM/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0702 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 08-05-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA LD
• Assessee Lawyers: GAURANG UNADKAT LD
• Keywords: Charitable institution; Principle of natural justice
• Section: 12A

Judgement Text

ITA NO.6816/MUM/2012 SHREE BHAGYODAY SWETAMBER MURTIPUJAK JAIN SANGH TRU ST(WADA) IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 6816/MUM/2012 SHREE BHAGYODAY SWE TAMBER MURTIPUJAK JAIN SANGH TRUST (WADA) C/O MAYANK J.DASADIA, FLAT NO. 20 OM SHIV KRUPA CHS LTD PLOT NO. 9-12 HAJI BAPU ROAD MALAD EAST MUMBAI 400 097 / VS. DIRECTOR OF INCOME TAX (EXEMPTION) 6 TH FLOOR PIRAMAL CHAMBERS PAREL MUMBAI 400 012 ./ ./PAN/GIR NO. AAKTS-7183-G ( ' /APPELLANT ) : ( #$ ' / RESPONDENT ) ASSESSEE BY : GAURANG UNADKAT, LD. AR REVENUE BY : VIDISHA KALRA, LD. CIT DR / DATE OF HEARING : 08/05/2017 / DATE OF PRONOUNCEMENT : 12/05/2017 ITA NO.6816/MUM/2012 SHREE BHAGYODAY SWETAMBER MURTIPUJAK JAIN SANGH TRU ST(WADA) 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THE CAPTIONED APPEAL, THE ASSESSEE IS AGGRIEV ED BY REJECTION OF APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT FOR APPROVAL OF ASSESSEE TRUST [TRUST] BY DIRECTOR OF INCOME TAX (E XEMPTION) [DIT(E)] ORDER DATED 28/09/2012. 2. BRIEFLY STATED, THE ASSESSEE TRUST, CREATED BY TRUST DEED DATED 11/05/2011, FILED FORM NO. 10A ALONG WITH PRESCRIBE D DOCUMENTS FOR REGISTRATION U/S 12A(A) OF THE INCOME TAX ACT, 1961 ON 21/03/2012. THE TRUST IS REGISTERED WITH ASSISTANT CHARITY COMMISSI ONER, GREATER BOMBAY REGION VIDE REGISTRATION CERTIFICATE NO. E-2 8075 DATED 26/07/2011. THE LD. DIT (E) NOTED THAT THE ASSESSEE CHANGED ITS ADDRESS DURING THE YEAR BUT DID NOT OBTAIN THE APPR OVAL OF THE CHARITY COMMISSIONER FOR CHANGE OF ADDRESS. FURTHER, THE LD . CIT(A), UPON PERUSAL OF TRUST DEED, CAME TO CONCLUSION THAT THE CERTAIN CLAUSES IN THE TRUST DEED WERE NOT IN CONSONANCE WITH THE CHARITAB LE OBJECTS AND CHARACTER OF THE TRUST AND FURTHER THE INVESTMENT C LAUSES WERE MUTUALLY CONTRADICTORY AND DETRACT FROM THE BINDING LEGAL OB LIGATION ON THE TRUSTEES IN REGARD TO UTILIZATION OF TRUST FUND WHI CH WAS AN ESSENTIAL ELEMENT OF A VALID PUBLIC CHARITABLE TRUST. THE SAM E RESULTED INTO REJECTION OF APPLICATION FOR REGISTRATION, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LD. COUNSEL FOR ASSESSEE [AR] DREW OUR ATTEN TION TO THE FACT THAT THE LD. DIT(E) HAD PASSED THE ORDER ON 28/09/2 012 WHEREAS THE ITA NO.6816/MUM/2012 SHREE BHAGYODAY SWETAMBER MURTIPUJAK JAIN SANGH TRU ST(WADA) 3 ASSESSEE MADE CERTAIN SUBMISSIONS AND EVIDENCES IN SUPPORT OF REGISTRATION VIDE HIS LETTER DATED 27/09/2012, A CO PY OF WHICH HAS BEEN PLACED IN THE PAPER BOOK, HOWEVER, THE SAME HAS NOT BEEN CONSIDERED BY THE LD. DIT(E) AND THEREFORE, RESULTED INTO VIOL ATION OF PRINCIPLE OF NATURAL JUSTICE. 4. PER CONTRA , LD. DR, JUSTIFIED THE ACTION OF LD. DIT(E) BY CON TENDING THAT THE APPLICATION HAS RIGHTLY BEEN REJECTED AS T HE OBJECTS OF THE TRUST WERE FOUND TO BE NON-CHARITABLE IN NATURE. 5. AFTER CONSIDERING THE BRIEF CONTENTIONS RAISED B EFORE US, WE SEE NO HARM IN AFFORDING ANOTHER OPPORTUNITY OF BEING HEAR D TO THE ASSESSEE AS PRIMA FACIE, IT APPEARS THAT THE CONTENTIONS RAISED BY THE ASSES SEE IN THE SAID LETTER HAS NOT BEEN CONSIDERED. THEREFORE, WIT HOUT DELVING INTO MERITS, WE RESTORE THE MATTER BACK TO LD. DIT(E) FO R RE-CONSIDERATION OF THE SAME. 6. THE ASSESSEES APPEAL STANDS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH MAY, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 12 .05.2017 SR.PS:- THIRUMALESH ITA NO.6816/MUM/2012 SHREE BHAGYODAY SWETAMBER MURTIPUJAK JAIN SANGH TRU ST(WADA) 4 / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #$ ' / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. #&- , - , / DR, ITAT, MUMBAI 6. . / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI