SHRI. BHOIWADA (PAREL) JAIN SANGH, MUMBAI V. CIT (EXEMPTIONS), MUMBAI

ITA 8067/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4646 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 31-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: THARIAN OOMMEN
• Keywords: Charitable institution; Opportunity of being heard; Corroborative evidences; Set aside
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , B BENCH MUMBAI BEFORE : SHRI C.N. PRASAD, JUDICIAL MEMBER & SHRI M.BALAGANESH, A CCOUNTANT M EMBER ITA NO. 8067 /MUM/ 20 19 ( ASSESSMENT YEAR : 2020 - 21 ) SHRI BHOIWADA (PAREL) JAIN SANGH GROUND FLOOR, 601, PANWALA CHAWL, G.D. AMBEDKAR MARG PAREL, BHOUWADA MUMBAI 400 012 VS. CIT (EXEMPTIONS), MUMBAI ROOM NO.617, PRIMAL CHAMBERS, LALBAUG, PAREL MUMBAI 400 012 PAN/GIR NO. AAQTS6507E (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI PRAKASH JHUNJHUNWAL A REVENUE BY SHRI THARIAN OOMMEN DATE OF HEARING 20 / 05 /202 1 DATE OF PRONOUNCEMENT 20 / 05 /202 1 / O R D E R PER M. BALAGANESH (A.M) : 1. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE REJECTION ORDER PASSED BY THE LD. COMMIS SIONER OF INCOME TAX (EXEMPTIONS), MUMBAI (HEREINAFTER REFERRED TO AS LD. CIT(E)) REJECTING THE REGISTRATION U/S.12AA OF THE ACT VIDE ORDER DATED 25/11/2019. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS BEFORE US. 1.0. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT (EXEMPTION) ERRED IN REJECTING THE REGISTRATION U/S.12A MAINLY DUE TO NON - COMPLIANCE BY THE APPELLANT TRUST; ITA NO . 8067/MUM/2019 SHRI BHOIWADA (PAREL) JAIN SANGH 2 2.0. THE LD. CIT(EXEM) ERRED IN REJECTING THE APPELLANTS APPLICATION U/S.12A (FORM - 10A) WITHOUT CONSIDERING THE DOCUMENTARY EVIDENCES FILED ON RECORD AND ON IGNORING THE FACT THAT THE OBJECTS OF APPELLANT TRUST ARE FOR CHARITABLE PURPOSE; 3.0. A HUMBLE PRAYER IS MADE TO DIRECT LD. CIT(EXEMPTION) TO GRANT THE REGISTRATION U/S.12A OF THE ACT. THE APPELLANT CRAVES LEAVE TO ADD, AMEN, ALTER AND / OR WITHDRAW ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT ASSESSEE TRUST HAD PREFERRED AN APPLICATION IN THE PRESCRIBED FORMAT SEEKING REGISTRATION OF CHARITABLE TRUST U/S.12A OF THE INCOME TAX ACT 1961 ON 10/06/2019. WE FIND THAT THE LD. CIT(EXEMPTION) HAD CALLED FOR CERTAIN DETAILS SUCH AS PAN CARD OF THE TRUST, PAN CARD OF TRUSTEES AND SETTLOR, COPY OF BANK ACCOUNTS OF THE TRUST, NOC IN RESPECT OF OFFICE PREMISES, CERTIFICATE OF REGISTRATION OF TRUST ISSUED BY THE CHARITY COMMISSIONER, COPIES OF AUDIT ED ACCOUNTS OF THE TRUST AND NOTE ON ACTIVITIES UNDERTAKEN BY THE TRUST TOGETHER WITH DOCUMENTARY EVIDENCES. THE LD. CIT(E XEMPTION) OBSERVED THAT THE AFORESAID DETAILS WERE CALLED FOR TO DERIVE SATISFACTION TOWARDS GENUINENESS OF THE ACTIVITIES OF THE TRUST AND ITS OBJECTS THEREON. THE LD.CIT(EXEMPTION) ALSO SOUGHT FOR PERSONAL ATTENDANCE OF THE MANAG ING TRUSTEE OF THE ASSESS EE TRUST FOR THE PURPOSE OF PRODUCTION AND VERIFICATION O F ORIGINAL DOCUMENTS. THE LD.CIT(EXEMPTION) OBSERVED THAT THE QUESTIONNAIRE SEEKING FOR AFORESAID DOCUMENTS WERE DULY SERVED BY SPEED POST ON THE ASSESSEE . SINCE THERE WAS NO COMPLIANCE FROM THE SI DE OF THE ASSESSEE TRUST, THE CIT(EXEMPTION) PLEADED THAT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST COULD NOT BE VERIFIED FOR WANT OF AFORESAID DOCUMENTS AND ACCORDINGLY, PROCEEDED TO REJECT THE REGISTRATION U/S.12A OF THE ACT. ITA NO . 8067/MUM/2019 SHRI BHOIWADA (PAREL) JAIN SANGH 3 4. AGGRIEVED, THE ASSE SSEE IS IN APPEAL BEFORE US. 5. BEFORE US, THE LD. AR FILED PAPER BOOK CONTAINING 24 PAGES CONTAINING THE FOLLOWING: - S.NO. PARTICULARS PAGE 1. AFFIDAVIT OF APPELLANTS TRUSTEE 1 - 2 2. DEATH CERTIFICATE OF TRUSTEE ON 10/03/2020 3 - 4 3. CERTIFICATE ISSUED BY CHARITY COMMISSIONER 5 4. OBJECTS OF THE TRUST 6 - 7 5. TRUST DEED 7 - 20 6. AUDITED BALANCE SHEET AS ON 31/03/2019 AND 31/03/2020 21 - 24 5.1. THE LD. AR ALSO PLACED ON RECORD AN AFFIDAVIT FROM ONE OF THE TRUSTEES OF THE ASSESSEE TRUST STATING THAT ACCOUNTS AND TAX RELATED MATTERS WERE EARLIER HANDLED BY ONE OF THE TRUSTEES SMT. PANIBAI H JAIN ALIAS BAFNA WHO WAS SERIOUSLY ILL AND THEREAFTER DIED ON 10/03/2020. THE LD. AR ALSO PLACED ON RECORD THE COPY OF THE DEATH CERTIFICATE OF THAT EARLIER TRUSTE E. THE SAID AFFIDAVIT ALSO CONTAINED THE AFFIRMATION THAT THE PERSON, WHO IS AFFIRMING THE AFFIDAVIT, IS A SENIOR CITIZEN , AGED ABOUT 78 YEARS , AND NOT MAINTAINING GOOD HEALTH WHICH HAD EVENTUALLY RESULTED IN NON - COMPLIANCE BEFORE THE LD CIT(EXEMPTION) . B OTH THESE FACTORS COLLECTIVELY CONTRIBUTED FOR NO N - SUBMISSION OF DOCUMENTS BEFORE THE LD. CIT(EXEMPTION) WITHIN THE PRESCRIBED TIME. ACCORDINGLY, THE LD AR PRAYED THAT ASSESSEE TRUST BE GIVEN ONE MORE OPPORTUNITY TO PRODUCE THE RELEVANT DOCUMENTS BEFORE T HE LD CIT(EXEMPTION) TO DECIDE THE APPLICATION SEEKING REGISTRATION U/S 12A OF THE ACT IN ACCORDANCE WITH LAW. PER CONTRA, THE LD. DR ALSO FAIRLY AGREED FOR REMANDING THIS APPEAL FOR DENOVO ADJUDICATION TO THE FILE OF THE CIT(EXEMPTION). ITA NO . 8067/MUM/2019 SHRI BHOIWADA (PAREL) JAIN SANGH 4 5. 2 . IN VIEW OF THE ABOVE, WE DEEM IT FIT AND APPROPRIATE, IN THE INTEREST OF JUSTICE AND FAIRPLAY, THAT THE ASSESSEE SHOULD BE AFFORDED ONE MORE OPPORTUNITY FOR SUBMISSION OF REQUISITE DOCUMENTS CALLED FOR BY THE LD.CIT(EXEMPTION). ACCORDINGLY, WE SET ASIDE THIS APPEAL T O THE FILE OF THE LD.CIT(EXEMPTION) FOR DENOVO ADJUDICATION IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT ASSESSEE BE GIVEN SUFFICIENT OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS DIRECT ED TO SUBMIT ALL THE REQUISITE DETAILS THAT WERE CALLED FOR BY THE LD. CIT(EXEMPTION) ON EARLIER OCCASIONS ON THE FIRST SCHEDULED DATE OF HEARING AND THEREAFTER CO - OPERATE IN EXPEDITIOUS DISPOSAL OF THIS APPLICATION SEEKING FOR REGISTRATION U/S.12AA OF THE ACT BY THE LD.CIT(EXEMPTION). THE ASSESSEE IS ALSO GIVEN LIBERTY TO FRUNSIH FRESH DOCUMENTS WITH SUPPORTING EVIDENCES, IF ANY, IN SUPPORT OF ITS CONTENTIONS. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURP OSES. ORDER PRONOUNCED IN OPEN COURT ON 20 / 05 /202 1 . SD / - ( C.N. PRASAD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 20 / 05 / 2021 KARUNA , SR.PS ITA NO . 8067/MUM/2019 SHRI BHOIWADA (PAREL) JAIN SANGH 5 COPY OF THE ORD ER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//