PARK SITE SARVAJANIK GANESHOWAV MANDAL, MUMBAI V. ITO (HQ) (E), MUMBAI

ITA 7030/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83683 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 23-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI JH FOT; IKY JKO U;KF;D LNL; JH FOT; IKY JKO U;KF;D LNL; JH FOT; IKY JKO U;KF;D LNL; JH FOT; IKY JKO U;KF;D LNL; ,OA ,OA ,OA ,OA JH JH JH JH UJSUNZ DQEKJ FCYYS;K UJSUNZ DQEKJ FCYYS;K UJSUNZ DQEKJ FCYYS;K UJSUNZ DQEKJ FCYYS;K] YS[KK LNL; DS LE{K ] YS[KK LNL; DS LE{K ] YS[KK LNL; DS LE{K ] YS[KK LNL; DS LE{K BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER VK;DJ VIHY LA[;K / ITA NO.7030/MUM/2012 FU/KKZJ.K O'KZ @ ASSESSMENT YEAR: - 2012-13 PARK SITE SARVAJANIK GANESHOTSAV MANDAL C-15/7, MUNICIPAL COLONY, PARK SITE VIKHROLI MUMBAI -400 079. VS.` INCOME-TAX OFFICER (HQ.) (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI 400 012. PAN:- AABTP3865B APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 28.09.2012 OF DIRECTOR OF INCOME TAX (EXEMPTION) PASSED U/S 12A A R.W.S 12A OF INCOME TAX ACT, WHEREBY THE APPLICATION FOR REGISTRATION U/S 1 2AA HAS BEEN REJECTED. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS IN THIS APPEAL :- 1 . THE LD. DIRECTOR OF INCOME-TAX (EXEMPTION) , MUMBAI ERRED IN REJECTING THE APPLICATION DATED 26/03/2012 FOR REGISTRATION UNDER SECTION 12A OF THE ACT , WITHOUT APPRECIATING THE FACTS AND SUBMISSIONS MADE BY THE APPELLANT. 2. THE LD. DIRECTOR OF INCOME-TAX (EXEMPTION) , MUMBAI FAILED TO APPRECIATE THAT THE APPELLANT SATISFIES ALL THE CONDITIONS ENUMERAT ED UNDER THE PROVISIONS OF SECTION 12A OF THE ACT. HENCE, DENIAL OF REGISTRATI ON UNDER SECTION 12A OF THE ACT IS NOT AT ALL JUSTIFIED. THE APPELLANT, THEREFORE , PRAYS THAT THE ORDER DATED 26/03/2012 PASSED BY THE DIRECTOR OF INCOME - TAX (EXEMPTION) , MUMBAI IS WITHOUT AN Y BASIS AND HENCE THE SAME M AY B E QUASHED. ASSESSEE BY / FU/KKZFJRH DH VKSJ LS FU/KKZFJRH DH VKSJ LS FU/KKZFJRH DH VKSJ LS FU/KKZFJRH DH VKSJ LS SHRI K. GOPAL REVENUE BY/ JKTLO DH VKSJ LS JKTLO DH VKSJ LS JKTLO DH VKSJ LS JKTLO DH VKSJ LS SHRI A.C. TEJPAL DATE OF HEARING 01.09.2014 DATE OF PRONOUNCEMENT 05.09.2014 PARK SITE SARVAJANIK GANESHOTSAV MANDAL 2 | P A G E 2. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND CONSI DERED THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE IS A SOCIETY CONSTI TUTED BY A MEMORANDUM OF ASSOCIATION DATED 16.09.1980. THE SOCIETY WAS REGIST ERED UNDER THE SOCIETIES REGISTRATION ACT, ON 8.12.1980 AND WITH THE CHARITY COMMISSIONER, MUMBAI ON 28.04.1981. THE ASSESSEE FILED AN APPLICATION FOR RE GISTRATION U/S 12A OF THE INCOME TAX ACT IN THE PRESCRIBED FROM NO. 10A ON 26 .03.2012. THE ASSESSEE STATED THAT ITS MAIN ACTIVITY IS ORGANIZATION OF GAN ESH UTSAVA EVERY YEAR. THE DIT (EXEM.) HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA MAINLY ON TWO REASONS VIZ (I) THE COPY OF MEMORANDU M OF ASSOCIATION /RULES & REGULATIONS FIRNISHED BY THE ASSESSEE IS IN MARATHI AND ENGLISH TRANSLATION THEREOF, HAS NOT BEEN PALCED ON RECORD. THE DIT HAS O BSERVED THAT UNDER THESE CIRCUMSTANCES IT IS NOT POSSIBLE TO ASCERTAIN CHARI TABLE NATURE OF OBJECTS OF THE TRUST. (II) SECONDLY, THE DIT (EXEM) HAS ASSIGNED TH E REASON THAT THE ASSESSEE HAS SHOWN HUGE RECEIPT OF VOLUNTARY DONATION INCLUDING C ORPUS FUND FOR THE YEAR ENDED 31 ST MARCH 2012 IN COMPARISON TO THE FINANCIAL YEAR 201 0-11 AND HAS NOT FURNISHED ANY DOCUMENTARY EVIDENCE AS TO HOW THESE DON ATIONS WERE UTILIZED ON ATTAINMENT OF THE OBJECTS OF THE ASSESSEES TRUST. 3. TO MEET OUT THE FIRST OBJECTION OF THE DIT, THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS FILED BEFORE US THE ENGLISH TRANSLATED COPY OF MEMORANDUM OF ASSOCIATION OF THE ASSESSEES TRUST AN D SUBMITTED THAT THE DIT (EXEM.) MAY BE DIRECTED TO CONSIDER THE TRANSLATED CO PY FOR ASCERTAINING THE CHARITABLE NATURE OF OBJECTS OF THE TRUST. AS REGA RDS THE UTILIZATION OF DONATION RECEIVED BY THE ASSESSEE, THE LD. AUTHORIZED REPRESEN TATIVE HAS SUBMITTED THAT THIS IS A SUBJECT MATTER OF ASSESSMENT AND AT THE ST AGE OF GRANTING REGISTRATION TTHIS IS NOT RELEVANT AS THE ASSESSEE IS MAINTAININ G ALL BOOKS OF ACCOUNTS. PARK SITE SARVAJANIK GANESHOTSAV MANDAL 3 | P A G E 4. HAVING CONSIDERED THE FACTS AND CIRCUMSTANCES OF TH E CASE AND SUBMISSIONS OF THE PARTIES, WE NOTE THAT THE MATTER REQUIRES A FRESH CONSIDERATION IN VIEW OF THE TRANSLATED COPY OF THE MEMORANDUM OF ASSOCIATION FILED BY THE ASSESSEE BEFORE US. FURTHER THE ISSUE OF UTILIZATION OF DONAT ION, THOUGH IS NOT A RELEVANT FACT FOR GRANTING THE REGISTRATION, HOWEVER, THE SAME CA N BE TAKEN INTO ACCOUNT ONLY TO ASCERTAIN THE FACT WHETHER THE ASSESSEE HAS USED ITS FUND OTHER THAN THE OBJECTS OF THE ASSESSEES TRUST. ACCORDINGLY IN THE FACTS AND CI RCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE SET ASIDE THE IMPUGNED OR DER AND REMIT THE MATTER TO THE RECORD OF THE DIT TO RECONSIDER AND DECIDE THE SAM E AFRESH AFTER CONSIDERING THE TRANSLATED COPY OF MEMORANDUM OF ASSOCIATION AS WELL AS THE CONTENTION OF THE ASSESSEE REGARDING UTILIZATION OF THE DONATION R ECEIVED. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT TODAY I.E 5-9-2 014 SD/- SD/- (N.K. BILLAIYA) (VIJAY PAL RAO) (ACCOUNTANT MEMBER/ YS[KK LNL; YS[KK LNL; YS[KK LNL; YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; ) MUMBAI DATED 5-9 -2014 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, I BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI