Baba Gopal Dass Sahib (Talib) Trust, Delhi V. CIT (Exemptions), Delhi

ITA 806/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3290 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 13-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Assessee Lawyers: K R MANJANI
• Keywords: Non compliance
• Section: 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, A: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI G.S. PANNU, HONBLE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.806/DEL/2017 [ASSESSMENT YEAR: 2016-17] BABA GOPAL DASS SAHIB (TALIB) TRUST, C/O- SHRI R.K. MANJANI, ADVOCATE, LAJPAT NAGAR-II, NEW DELHI-110024 VS. CIT(EXEMPTION), 26 TH FLOOR, TOWER-E2, PRATYAKSHA KAR BHAWAN, CIVIC CENTRE, DELHI PAN-AACTB3199F ASSESSEE REVENUE ASSESSEE BY SH. K. R. MANJANI, ADV. REVENUE BY SH. SATPAL GULATI, CIT - DR DATE OF HEARING 11.10.2021 DATE OF PRONOUNCEMENT 21.10.2021 ORDER PER KUL BHARAT, JM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED CIT(EXEMPTION), NEW DELHI, DAT ED 30.01.2017 AGAINST THE GRANTING REGISTRATION U/S 12 AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO THE ACT) RELATING TO ASSESSMENT YEAR 2016-17. 2. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE ASSESSEE TRUST HAD FILED TWO APPLICATIONS ON 20.11. 2015 IN ITA NO.-806/DEL/2017 2 FORM NO.10A SEEKING REGISTRATION U/S 12AA OF THE AC T. THE APPLICATION SO FILED WAS REJECTED VIDE ORDER DATED 20.05.2016 ON THE GROUND THAT THE DETAILS FURNISHED ALONG WITH APPLICATION AND ON 09.03.2016 WERE NOT SUFFICIENT FOR GRANTING REGISTRATION U/S 12AA OF THE ACT. IT WAS OBSERVED THAT THE APPLI CANT FAILED TO FURNISHED THE REQUISITE DETAILS, AS PER LD. CIT( EXEMPTION), THE APPLICANT FAILED TO PRODUCE THE ORIGINAL CERTIF ICATE OF REGISTRATION/MOA/RULES & REGULATIONS/TRUST DEED. HOWEVER, THE LD. CIT(EXEMPTION) GAVE LIBERTY TO APP LY AFRESH AFTER COMPLYING WITH AND COMPLETING THE REQUISITE D ETAILS. SUBSEQUENTLY, THE APPLICANT TRUST, YET AGAIN MADE A PPLICATION DATED 21.07.2016 IN PRESCRIBED FORMAT SEEKING REGIS TRATION U/S 12AA OF THE ACT. THE APPLICATION WAS ALLOWED AN D THE ASSESSEE TRUST WAS GRANTED REGISTRATION NO.DEL-BR25 843- 30012017 DATED 30.01.2017 WITH EFFECT FROM ASSESSME NT YEAR 2017-18. THEREAFTER, THE ASSESSEE MADE APPLICATION WHICH WAS RECEIVED IN THE OFFICE OF THE LD. CIT(EXEMPTION) ON 03.02.2017 CLAIMED THEREIN THAT THE REGISTRATION ORDER MAY BE MADE EFFECTIVE FROM ASSESSMENT YEAR 2016-17, HOWEVER, T HIS APPLICATION WAS NOT DISPOSED. AGGRIEVED AGAINST NO T GRANTING ITA NO.-806/DEL/2017 3 REGISTRATION W.E.F. ASSESSMENT YEAR 2016-17, THE AS SESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 3. THE DISPUTE IN NARROW COMPASS IS WHETHER THE ASSESSEE IS ENTITLED FOR REGISTRATION WITH EFFECT F ROM ASSESSMENT YEAR 2016-17 UNDER THE FACTS AND CIRCUMS TANCES OF THE PRESENT CASE. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(EXEMPTION) ERRED IN NOT GRANTING THE REGIST RATION WITH EFFECT FROM ASSESSMENT YEAR 2016-17. HE CONTENDED T HAT THE ACTION IS CONTRARY TO THE SETTLED POSITION OF LAW. HE ARGUED THAT THE LD. CIT(EXEMPTION) PASSED AN EX-PARTE ORDE R REJECTING THE APPLICATION DATED 20.11.2015 ON THE GROUND THAT REQUISITE DETAILS WERE NOT FURNISHED. HE CONTENDED THAT THE L D. CIT(EXEMPTION) FAILED TO APPRECIATE THE FACT THAT L ETTER DATED 06.05.2016 SEEKING CERTAIN INFORMATION WAS RECEIVED MUCH LATER. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED U NDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(EX EMPTION) OUGHT TO HAVE GRANTED REGISTRATION W.E.F. ASSESSMEN T YEAR 2016-17. THE LD. COUNSEL FOR THE ASSESSEE HAS PLAC ED RELIANCE ON THE DECISION OF THE HONBLE RAJASTHAN HIGH COURT IN THE ITA NO.-806/DEL/2017 4 CASE OF CIT VS GARMENT EXPORTERS ASSOCIATION OF RAJ ASTHAN (2016) 386 ITR 20 (RAJ.). 5. ON THE CONTRARY, THE LD. CIT-DR OPPOSED THE SUBMISSION AND SUBMITTED THAT IT WAS INCUMBENT UPON THE ASSESSEE TO FILE THE REQUISITE DETAILS AS SOUGHT BY THE LD. CIT(EXEMPTION) FOR HIS SATISFACTION AS PER THE PROV ISIONS OF LAW. THE LD. CIT(EXEMPTION) WAS JUSTIFIED IN REJEC TING THE APPLICATION. HE FURTHER CONTENDED THAT THE LD. CIT (EXEMPTION) HAS RIGHTLY GRANTED EXEMPTION W.E.F ASSESSMENT YEAR 2017-18 AS THE ASSESSEE HAS FURNISHED DETAILS ALONG WITH FR ESH APPLICATION. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE WITH REG ARD TO THE FACT THAT ORIGINALLY THE ASSESSEE HAD MADE APPLICAT ION SEEKING REGISTRATION U/S 12AA OF THE ACT ON 20.11.2015. THE SAID APPLICATION WAS REJECTED BY THE LD. CIT(EXEMPTION) ON THE GROUND THAT THE ASSESSEE FAILED TO PRODUCE THE REQU ISITE DETAILS, HOWEVER, THE LD. CIT(EXEMPTION) HAD GIVEN LIBERTY TO APPLY AFRESH. FOR THE SAKE OF CLARITY, THE RELEVAN T CONTENTS OF ITA NO.-806/DEL/2017 5 THE DECISION OF THE LD. CIT(EXEMPTION) DATED 20.11. 2015 ARE REPRODUCED AS UNDER:- 2. ON 21/12/2015, APPLICANT HAS FAILED TO FILE ANY DETAILS/DOCUMENTS. HOWEVER, ON 09/03/2016, IT HAS FILED PART DETAILS AND FAILED TO PRODUCE ORIGINAL T RUST DEED FOR VERIFICATION. THEREFORE, IT WAS ASKED (VID E THIS OFFICE LETTER NO.CIT(E)/12AA/2016-17224 DATED 06/05/2016) TO FURNISH FOLLOWING DETAILS/DOCUMENTS FURTHER:- I. BANK STATEMENT OF THE TRUST SINCE INCEPTION. II. A COPY OF BALANCE SHEET, INCOME & EXPENDITURE A/C AND RECEIPTS & PAYMENTS A/C FOR THE F.Y. 2015-16 III. PROFILE OF THE TRUSTEES IN THE ENCLOSED PRO FORMA. IV. DETAILS OF DONATIONS OF RS.89,91,310/- RECEIVED DURING THE F.Y. 2015-16 GIVING NAME, ADDRESS, PAN OF DONORS INCLUDING MODES OF RECEIPT. V. BILLS/DOCUMENTARY EVIDENCE IN SUPPORT OF EXPENDITURE MADE ON FOOD EXPENSE OF RS.1,8,23,194/- (F.Y. 2014-15) VI. PRODUCE ORIGINAL TRUST DEED FOR VERIFICATION. VII. SUPPORTING DOCUMENTARY EVIDENCE IN SUPPORT OF CHARITABLE ACTIVITIES CARRIED OUT AS PER ACTIVITY NOTE FILED. VIII. A COPY OF ITA FILED FOR THE A.Y. 2015-16. 2.1. THE APPLICANT WAS ASKED TO FILE THE ABOVE DETAILS/DOCUMENTS IN THIS OFFICE BY 12.05.2016 CLEA RLY STATING THAT IN CASE OF NON COMPLIANCE, IT WILL BE PRESUMED THAT IT HAS NOTHING TO STATE IN ITS FAVOUR AND MATT ER WILL BE DECIDED ON THE BASIS OF DETAILS AVAILABLE ON RECORD . ON THE STIPULATED DATE, NOBODY APPEARED AND THE REQUISITE COMPLETE DETAILS HAVE NOT BEEN FILED BY THE APPLICA NT TILL DATE. THE DETAILS FURNISHED BY THE APPLICANT ALONG WITH ITA NO.-806/DEL/2017 6 APPLICATION AND ON 09/.03/2016 ARE NOT SUFFICIENT F OR GRANTING REGISTRATION U/S 12AA OF THE ACT. HAVE NOT BEEN FILED BY THE 3. FURTHER, THE APPLICANT HAS FAILED TO PRODUCE ORI GINAL CERTIFICATE OF REGISTRATION/MOA/RULES & REGULATIONS OF THE SOCIETY FOR VERIFICATION. AS PER RULE 17 A OF THE I .T. RULES, 1962, THE APPLICANT IS REQUIRED TO PRODUCE THE ORIG INAL CERTIFICATE OF REGISTRATION/MOA/RULES & REGULATIONS /TRUST DEED. IN THE ABSENCE OF THE ORIGINAL CERTIFICATE OF REGISTRATION/ OA/RULES & REGULATIONS/TRUST DEED OF THE APPLICANT, THE APPLICATION SEEKING REGISTRATION U/S 12AA CANNOT BE ENTERTAINED IN VIEW OF THE CLEAR PROVISI ONS OF RULE 17A. 4. THE PROVISIONS OF SECTION 12AA STIPULATE THE FO LLOWING CONDITIONS FOR REGISTRATION U/S 12AA OF THE I.T. AC T, 1961:- (I) THE OBJECTS OF THE SOCIETY/TRUST SHOULD BE OF C HARITABLE IN NATURE; (II) THE ACTIVITIES OF THE SOCIETY /TRUST SHOULD BE GENUINE. 5. HENCE, IN THE ABSENCE OF REQUISITE DETAILS SATIS FACTION W.R.T. GENUINENESS OF THE ACTIVITIES CANNOT BE REAC HED. ACCORDINGLY, THE APPLICATION FILED BY THE APPLICANT FOR GRANT OF REGISTRATION U/S 12AA IS HEREBY REJECTED. 6. THE APPLICANT IS, HOWEVER, AT LIBERTY TO APPLY A FRESH AFTER COMPLYING WITH AND COMPLETING THE REQUISITE DETAIL S. 7. FROM THE ORDER OF THE LD. CIT(EXEMPTION), IT IS EVIDENT THAT THE LIBERTY WAS GIVEN TO THE ASSESSEE TO COMPLY WITH AND FURNISHING THE REQUISITE DETAILS. THEREFOR E, IN OUR CONSIDERED VIEW, UNDER THE PECULIARITY OF FACTS NAR RATED HEREINABOVE, THE LD. CIT(EXEMPTION) SHOULD HAVE GRA NTED REGISTRATION W.E.F. ASSESSMENT YEAR 2016-17 AS REQU ESTED BY ITA NO.-806/DEL/2017 7 THE ASSESSEE. WE ORDER ACCORDINGLY. THE APPEAL OF T HE ASSESSEE IS DISPOSED OF IN TERMS INDICATED HEREINABOVE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21 ST OCTOBER. 2021. SD/- SD/- /- SD/- [G.S. PANNU] [KUL BHARAT] PRESIDENT JUDICIA L MEMBER DELHI; DATED: 21/10/2021. F{X~{T F{X~{T F{X~{T F{X~{T COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI