HAJIAMIN GADAWALA FOUNDATIION TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 797/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0579 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 27-04-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 30-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISAN VYAS
• Assessee Lawyers: DIVYA JOKHAKAR
• Section: 12A

Judgement Text

H IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ./ I.T.A. NO. 797 /MUM/2013 ( / ASSESSMENT YEAR 2011-12 HAJIAMIN GADAWALA FOUNDATION TRUST, 501/502, A WING, LEO APARTMENT, PLOT NO. 479, 24 TH ROAD, KHAR (W), MUMBAI 400 052. / VS. DIRECTOR OF INCOME TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI 400012. . / PAN : AAATH8983K ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY MS. DIVYA JOKHAKAR R E SPONDENT BY : SHRI KISAN VYAS / DATE OF HEARING : 08-01-2015 / DATE OF PRONOUNCEMENT : 22 - 04-2015 -04-2015[ !' / O R D E R PER R.C. SHARMA, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE DIRECTOR OF INCOME TAX (EXEMPTION), M UMBAI DATED 29-11-2012 FOR THE A.Y. 2011-12 IN THE MATTER OF ORDER PASSED U/S 12AA(1)(B)(II) R.W.S. 12A OF THE INCOME TAX ACT, 1961. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE TRUST HAS FILED AN APPLICATION FOR REGISTRATION U/S 12A OF THE I.T. ACT, 1961 IN THE P RESCRIBED FORM NO. 10A ON 7-5-2012. THE TRUST HAS BEEN CONSTITUTED BY A DEED OF TRUST DATED 4-8-2010. IT HAS BEEN REGISTERED WITH THE CHARITY COMMISSIONE R, MUMBAI ON 28-11- ITA 794/M/13 2 2011. BY THE IMPUGNED ORDER, THE LD. DIT (EXEMPTION ) DECLINED THE REGISTRATION BY OBSERVING THAT IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT NO CHARITABLE ACTIVITIES COULD BE UNDERTAKEN BY THE ASSESSEE TRUST TILL 31-03- 2012. IT WAS OBSERVED FROM PERUSAL OF THE PROVISIO NAL AUDITED ACCOUNTS AS ON 5-11-2012 THAT THE ASSESSEE HAD RECEIVED DONATIONS AMOUNTING TO RS. 20,64,000/- INCLUDING CORPUS DONATIONS OF RS. 3,50, 000/-. HOWEVER, THE ASSESSEE HAS FAILED TO FURNISH CONFIRMATIONS INDICA TING PAN AND ASSESSMENT PARTICULARS OF MAJOR DONORS. FURTHER THE ASSESSEE I S SEEN TO HAVE SPENT A SUM OF RS. 14,37,260/- TOWARDS ATTAINMENT OF ITS OBJECT S DURING THE CURRENT FINANCIAL YEAR. HOWEVER, IT IS OBSERVED FROM THE R ECORD THAT THE ASSESSEE HAS FAILED TO FURNISH SUPPORTING DOCUMENTARY EVIDENCE I N REGARD TO EXPENSES OF RS, 2,50,000/- TOWARDS EDUCATIONAL HELP, ANOTHER RS . 2,50,000/- TOWARDS HOUSE HELP, RS. 1,15,000/- TOWARDS MEDICAL HELP AND RS. 3,78,970/- TOWARDS HELP OF THE POOR. MERELY FURNISHING COPIES OF RECE IPTS IN THIS RESPECT WILL NOT DISCHARGE THE ASSESSEE OF THE ONUS TO ESTABLISH GEN UINENESS OF ACTIVITIES UNDERTAKEN BY IT. 3. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOU ND FROM RECORD THAT THE ASSESSEES CLAIM FOR REGISTRATION HAS BEEN DECL INED ON THE PLEA THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE GENUINENESS OF THE DONATIONS RECEIVED FROM THE DATE OF ITS CREATION TILL 5-11-2012. IT AP PEARS FROM THE RECORD THAT THE DIT (EXEMPTION) PASSED THE ORDER ON 29-11-2012, HO WEVER, VIDE LETTER DATED 31-12-2012 THE ASSESSEE FURNISHED ALL THE INFORMATI ON REQUIRED BY THE DIT(E). AS PER OUR CONSIDERED OPINION, AT THE TIME OF GRANT ING REGISTRATION THE DIT(E) HAS ONLY LOOKED INTO THE OBJECT OF THE TRUST AND GE NUINENESS OF THE ACTIVITIES. HOWEVER, RECEIPT OF DONATIONS FOR THE PURPOSE OF AS SESSEES OBJECT AND ITS UTILIZATION IS TO BE SEEN AT THE TIME OF ASSESSMENT BY CONCERNED A.O. IT IS NOT IN DISPUTE THAT ASSESSEE TRUST WAS FORMED FOR CHARI TABLE PURPOSE, HOWEVER, THE INFORMATION REQUIRED BY THE DIT (E) FOR HIS SAT ISFACTION WHILE GRANTING THE REGISTRATION WAS NOT CONFRONTED BY THE ASSESSEE. I N THE INTEREST OF JUSTICE AND ITA 794/M/13 3 FAIR PLAY, WE RESTORE THE ISSUE BACK TO THE FILE OF DIT(E) WITH A DIRECTION TO VERIFY THE DOCUMENTS FILED BY THE ASSESSEE VIDE ITS LETTER DATED 31-12-2012 AND TO ISSUE THE CERTIFICATE OF REGISTRATION IF HE FOUND THAT THE OBJECT OF THE TRUST AND GENUINENESS OF ITS ACTIVITIES IS FULFILLE D. WE DIRECT ACCORDINGLY. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2015. !' # $% &! ' 22-04-2015 ( ) SD/- SD/- (VIVEK VARMA) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER $ 5 MUMBAI ; &! DATED 22-04-2015 [ .6../ RK , SR. PS ! '#$% &%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 7 () / THE CIT(A) CONCERNED,, MUMBAI 4. 7 / CIT -CONCERNED, MUMBAI 5. :;( 66<= , <= , $ 5 / DR, ITAT, MUMBAI E BENCH 6. (?@ A / GUARD FILE. ' / BY ORDER, : 6 //TRUE COPY// (/') * ( DY./ASSTT. REGISTRAR) , $ 5 / ITAT, MUMBAI