The DCIT (Exemptions), Circle-2, Ahmedabad V. Lions Club of Silvassa Charitable Trust, U T OF D & NH

ITA 735/AHD/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 2299 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 24-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B P K
• Keywords: Charitable institution; Benefit of exemption; Cancellation of registration
• Section: 12; 11; 12A; 12AA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT , , BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . / ITA NOS.734 & 735/AHD/2017/SRT / ASSESSMENT YEARS: 2007-08 & 2012-13 DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE-2, AHMEDABAD. VS. LIONS CLUB OF SILVASSA CHARITABLE TRUST, SANJIBHAI DELKAR MARG, SILVASSA, UT OF DNH - 396 230. [PAN: AAATL 3437C] ( / APPELLANT) ( !' /RESPONDENT) / ASSESSEE BY : SHRI HARDIK VORA, ADVOCATE /REVENUE BY : SHRI B.P.K. PANDA, SR. D.R /DATE OF HEARING : 10-04-2018 /DATE OF PRONOUNCEMENT : 13-04-2018 / ORDER PER C.M.GARG, JUDICIAL MEMBER: THESE TWO APPEALS HAVE BEEN FILED BY THE REVENUE CH ALLENGING THE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS)-9, A HMEDABAD (CIT(A) FOR SHORT) DATED 06.01.2017 & 05.01.2017 FOR THE ASSESS MENT YEARS (AYS) 2007- 08 & 2012-13. 2. THE SOLE GROUND RAISED BY THE REVENUE IN ITA NO. 734/AHD/2017/SRT READS AS FOLLOWS: WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE IS THE LD. CIT (A) JUSTIFIED IN ALLOWING BENEFIT OF EXEMPTIONS U/S.11 OF THE ACT ON THE BASIS OF 80G(5) CERTIFICATE PRODUCED BY THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE SAID CERTIFICATE U/S.80G(5) HAD BECOME IN VALID W.E.F. 01/04/1989.' 2 ITA NOS.734 & 735/AHD/2017/SRT (A.YS: 2007-08 & 201 2-13) LIONS CLUB OF SILVASSA CHARITABLE TRUST 3. THE SOLE GROUND RAISED BY THE REVENUE IN ITA NO. 735/AHD/2017/SRT READS AS FOLLOWS: WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE IS THE LD. CIT (A) JUSTIFIED IN ALLOWING BENEFIT OF EXEMPTIONS U/S.11 OF THE ACT ON THE BASIS OF 80G(5) CERTIFICATE PRODUCED BY THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE SAID CERTIFICATE U/S.80G(5) HAD BECOME IN VALID I.E. 01/04/1989.' 4. WE HAVE HEARD THE ARGUMENTS OF BOTH SIDES AND CA REFULLY PERUSED THE RELEVANT MATERIAL PLACED ON THE RECORD OF THE TRIBU NAL. FROM RELEVANT PART OF THE FIRST APPELLATE ORDER, WE OBSERVE THAT THE LD. CIT(A) HAS GRANTED RELIEF TO THE ASSESSEE WITH FOLLOWING OBSERVATIONS AND CONCLU SIONS: 4.2 I HAVE CAREFULLY CONSIDERED STATEMENT OF FACTS SUBMITTED BY THE APPELLANT AS WELL AS OBSERVATIONS MADE BY THE A.O. IN THE ASS ESSMENT ORDER. AS PER DETAILS AVAILABLE ON RECORD, APPELLANT HAD FILED RE TURN OF INCOME ON 25/03/2013 DECLARING NIL TAXABLE INCOME AFTER CLAIM ING EXEMPTION U/S.11(1)(A) OF THE ACT. APPELLANT HAS SUBMITTED THAT IT IS REGI STERED U/S.12A OF THE ACT WITH COMMISSIONER OF INCOME-TAX, SURAT AND BASED ON SUCH REGISTRATION U/S.12A OF THE ACT THE APPELLANT WAS ALSO GRANTED REQUISITE AP PROVAL U/S.80G(5) OF THE ACT VIDE LETTER NO.SRT/CIT/SIB/104- 1126-L/88 DATED 21/ 06/1988 ISSUED BY COMMISSIONER OF INCOME-TAX, SURAT. APPELLANT SUBMIT TED THAT THE SAID CERTIFICATE GRANTED TO IT EVIDENCING REGISTRATION U /S.12A OF THE ACT WITH CIT, SURAT WAS NOT TRACEABLE. FURTHER, IT MADE AN APPLIC ATION U/S.12AA OF THE ACT ON 26/02/2013 WITH JURISDICTIONAL CIT, VALSAD AND A PPELLANT HAS ALSO SUBMITTED ALL THE DETAILS CALLED FOR VIDE LETTER DT D.23/08/2013. APPELLANT HAS FURTHER SUBMITTED THAT CIT, VALSAD HAS NEITHER PASS ED ANY ORDER REFUSING THE CERTIFICATE OF REGISTRATION NOR PASSED ANY ORDER GR ANTING CERTIFICATE OF REGISTRATION U/S.12AA OF THE ACT. THEREAFTER, NO CO MMUNICATION WAS RECEIVED FROM THE DEPARTMENT. IT IS A MATTER OF FACT THAT A. O. IN THE ORDER OF ASSESSMENT HAS NOT QUESTIONED THE GENUINENESS OF THE ACTIVITIE S OF THE APPELLANT. THERE IS NO DISCUSSION TO THIS EFFECT IN THE ORDER OF ASSESS MENT. THE ONLY REASON WHY THE A.O. HAS DENIED BENEFIT OF SECTION 11 & 12 OF T HE ACT IS THE INABILITY OF THE A.O. TO CHECK GENUINENESS OF THE CLAIM OF THE APPEL LANT THAT IT WAS REGISTERED U/S.12A OF THE ACT. IT IS ALSO A MATTER OF FACT TH AT APPELLANT WAS GRANTED APPROVAL U/S. 80G(5) OF THE ACT IN 1988. APPELLANT HAD TAKEN STEPS THROUGH WRITING LETTERS TO THE DEPARTMENT REQUESTING DEPART MENT TO RE-ISSUE THE SAID CERTIFICATE U/S.12A. THE ESSENTIAL CONDITION FOR GR ANTING OF CERTIFICATE U/S.80G(5) IS THE EXISTENCE OF REGISTRATION/ CERTIFICATE U/S.1 2A OF THE ACT. THE FACT THAT APPELLANT IS IN POSSESSION OF CERTIFICATE U/S.80G(5 ) REFLECTS THAT IT HAD FULFILLED THE SAID ESSENTIAL CONDITION. THE A.O. HAD NOWHERE IN THE ORDER OF ASSESSMENT HAS BROUGHT OUT ANY CONTRARY FINDING THA T THERE HAS BEEN CANCELLATION OF REGISTRATION OF THE APPELLANT U/S.1 2AA OF THE ACT. APPELLANT DURING THE ASSESSMENT AS WELL AS APPELLATE PROCEEDI NGS HAS RELIED UPON THE JUDGMENT OF HON'BLE ITAT, AHMEDABAD IN THE CASE OF SARDAR BHAVAN TRUST WHEREIN IT WAS HELD THAT ON FAILURE OF THE DEPARTME NT TO PROVE ON RECORD THAT THE ASSESSEE WAS NOT GRANTED REGISTRATION U/S.12AA OF THE ACT THAT ASSESSEE SHOULD BE CONSIDERED TO BE HAVING REGISTRATION U/S. 12AA. APPELLANT HAS ALSO 3 ITA NOS.734 & 735/AHD/2017/SRT (A.YS: 2007-08 & 201 2-13) LIONS CLUB OF SILVASSA CHARITABLE TRUST FURTHER RELIED ON THE CASE OF KOTA LIONS CHARITABLE SOCIETY V/S. CIT, ITAJSIO.93/JP/2012 (ITAT JAIPUR). THE APPELLANT WAS HAVING REGISTRATION U/S. 12AA OF THE ACT ISSUED BY CIT, SURAT WHICH IS UNTRA CEABLE. IT IS HAVING CERTIFICATE U/S.80G(5) OF THE ACT. A.O. HAS NOT BRO UGHT ANYTHING ON RECORD THAT THE REGISTRATION OF THE APPELLANT WAS CANCELLED. RE LYING ON THE FACTS OF THE CASE AS WELL AS JUDGMENT MENTIONED ABOVE, I AM OF T HE CONSIDERED OPINION THAT A.O. WAS NOT JUSTIFIED IN DENYING BENEFIT OF S ECTION 11 & 12 OF THE ACT TO THE APPELLANT. THE A.O. IS DIRECTED TO CONSIDER THE APPELLANT AS REGISTERED ENTITY U/S.12A OF THE ACT. THIS GROUND OF APPEAL IS HEREBY ALLOWED. 5. ON CAREFUL CONSIDERATION OF ABOVE CONCLUSION, IN THE LIGHT OF RIVAL CONTENTIONS AND FACTS AND CIRCUMSTANCES OF THE PRES ENT CASE WE NOTE THAT THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. SOCIETY FOR PROMM. OF EDN., ALLAHABAD REPORTED IN [2016] TAXMANN.COM 264 (SC) HAS HELD THAT WHERE ASSESSEE-SOCIETY FILED AN APPLICATION UNDER S ECTION 12A FOR GRANT OF REGISTRATION AND SAME WAS NOT RESPONDED TO WITHIN S TIPULATED PERIOD OF SIX MONTHS, APPLICATION FOR REGISTRATION WAS TO BE DEEM ED TO HAVE BEEN ALLOWED. IN THE PRESENT CASE, IT IS A MATTER OF FACT ON RECO RD THAT THE APPELLANT WAS GRANTED APPROVAL U/S. 80G(5) OF THE ACT IN THE YEAR 1988 AND THE ESSENTIAL CONDITION FOR GRANTING SAID APPROVAL IS THE EXISTEN CE OF REGISTRATION/CERTIFICATE U/S. 12A OF THE ACT. THE LD. CIT(A) NOTED THAT THE ASSESSING OFFICER (AO) HAS NOT BROUGHT OUT ANY CONTRARY FINDING THAT THERE HAS BEEN CANCELLATION OF REGISTRATION U/S. 12A OF THE ACT. IN THIS SITUATIO N, THE LD. FIRST APPELLATE AUTHORITY WAS RIGHT IN HOLDING THAT THE AO WAS NOT JUSTIFIED IN DENYING BENEFIT OF S. 11 & 12 OF THE INCOME TAX ACT TO THE APPELLAN T. CONCLUSION DRAWN BY HIM IS QUITE CORRECT AND JUSTIFIED. THUS, WE ARE UN ABLE TO SEE ANY VALID REASON TO INTERFERE WITH THE SAME AND HENCE, WE UPH OLD THE SAME. 4 ITA NOS.734 & 735/AHD/2017/SRT (A.YS: 2007-08 & 201 2-13) LIONS CLUB OF SILVASSA CHARITABLE TRUST ACCORDINGLY, THE SOLE GROUND OF THE REVENUE BEING D EVOID OF MERITS IS DISMISSED. 6. SINCE, THE FACTS AND CIRCUMSTANCES OF BOTH THE CASES ARE SIMILAR AND IDENTICAL THEREFORE, OUR CONCLUSION DRAWN IN ITA NO .734/AHD/2017/SRT WOULD APPLY MUTATIS MUTANDIS TO ANOTHER APPEAL I.E., ITA NO.735/AHD/2017/SRT FO R A.Y 2012-13 AND THUS, THE SOLE GROUND OF REVENUE IN THIS APPEAL ALSO STANDS DISMISSED. 7. IN THE RESULT, BOTH THE APPEALS OF REVENUE ARE D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 3 TH APRIL, 2018. / SURAT ; DATED : 13 TH APRIL, 2018 EDN ! $ / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. # ( ) / THE CIT (A) - 9, AHMEDABAD; 4. PRL. CIT; 5. , , / DR, ITAT, SURAT; 6. / GUARD FILE. / BY ORDER, // TRUE COPY // ) / ASSISTANT REGISTRAR , / ITAT, SURAT SD/ - SD/ - ( ) ( O.P.MEENA ) / ACCOUNTANT MEMBER ( ) (C.M.GARG) /JUDICIAL MEMBER