M/s Pragathi Social Welfare Trust, Mangalore V. CIT, Mangalore

ITA 818/BANG/2014

• Counselvise Citation: 81821114 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-08-2015
• Assessment Year: misc
• Appeal Filed On: 19-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GURUNATHAN

Judgement Text

ITA.818/BANG/2014 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A NO.818/BANG/2014 (ASSESSMENT YEAR : NA) M/S. PRAGATHI SOCIAL WELFARE TRUST, HOLY ANGELS CONVENT, BELVEDERE, ANGELORE CHURCH ROAD, NAGORI, MANGALORE .. APP ELLANT PAN : AACTP4151F V. COMMISSIONER OF INCOME-TAX, MANGALORE .. RESPONDENT ASSESSEE BY : SHRI. GURUNATHAN, ADVOCATE REVENUE BY : SHRI. G. R. REDDY, CIT, DR-1 HEARD ON : 27.08.2015 PRONOUNCED ON : 04.09.2015 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY ASSESSEE, GRIEVANCE OF THE ASSESSEE IS THAT CIT, MANGALORE, DENIED THE REGISTRATION SOUGHT U/S.12AA OF THE INCOME-TAX ACT, 1961 (THE ACT IN SHORT). 02. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT CIT HAD REFUSED TO FOLLOW THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF DIT (E) V. MEENAKSHI AMMA ENDOWMENT TRUST [(2011) 50 DTR 243]. AS PER THE LD. AR, CLAUSES MENTIONED BY THE CIT AS NOT CHARITABLE WERE IN FACT FUNCTIONAL POWERS ITA.818/BANG/2014 PAGE - 2 GIVEN TO THE TRUSTEES FOR PURSUING ITS MAIN OBJECTS . CIT HAD MISUNDERSTOOD IT. FURTHER AS PER THE LD. AR, FINDING OF THE CIT THAT ASSESSEE HAD NOT COMMENCED ITS ACTIVITIES WAS BY ITSELF INCORRECT. PLACING BE FORE US A COPY OF THE AUDIT REPORT IN FORM NO.10B FOR THE YEAR ENDING 31.03.2014, LD. AR SUBMITTED THAT IT HAD CONTRIBUTIONS OF RS.5,000/- AND SOME EXPENDITURE WA S INDEED INCURRED FOR THE OBJECTS OF THE TRUST. ACCORDING TO HIM, FOR THE YE AR ENDING 31.03.2015 ALSO ASSESSEE WAS HAVING RECEIPTS AND PAYMENTS WHICH CLE ARLY PROVED THAT IT HAD STARTED ITS ACTIVITIES. 03. PER CONTRA, LD. DR SUBMITTED THAT CIT WAS OBLIG ED TO VERIFY THE GENUINENESS OF THE TRUST BEFORE GRANTING REGISTRATI ON U/S.12AA OF THE ACT. ACCORDING TO HIM ASSESSEE HAD NEVER BROUGHT BEFORE THE CIT THAT IT HAD STARTED ITS ACTIVITIES IN THE RIGHT EARNEST. 04. WE HAVE PERUSED THE ORDERS AND CONSIDERED THE R IVAL CONTENTIONS. CONTENTION OF THE ASSESSEE IS THAT THE CLAUSES OF T HE TRUST DEED REFERRED BY THE CIT IN HIS ORDER WERE ONLY TO AID AND HELP ACHIEVE THE CHARITABLE OBJECTS MENTIONED IN THE TRUST DEED. THIS ARGUMENT APPEAR S TO HAVE NOT BEEN CONSIDERED BY THE CIT. FURTHER ASSESSEE HAS ALSO P RODUCED THE RECEIPTS AND PAYMENTS FOR THE YEAR ENDING 31.03.2014 AND 2015 WH ICH COULD INDICATE THAT IT HAD STARTED ITS ACTIVITIES. THUS IN OUR OPINION, T HE DEFECTS POINTED OUT BY THE CIT APPEAR TO HAVE BEENADDRESSED BY THE ASSESSEE. WE A RE THEREFORE OF THE OPINION THAT THE ISSUE REQUIRES A FRESH LOOK BY THE CIT. W E SET ASIDE THE ORDER AND REMIT THE QUESTION BACK TO THE CIT FOR CONSIDERATION IN A CCORDANCE WITH LAW. WE MAY ITA.818/BANG/2014 PAGE - 3 HASTEN TO ADD THAT THE CIT IS OBLIGED TO FOLLOW THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF MEENAKSHI AMMA ENDOWMENT TRUST (SUPRA) AND CANNOT TAKE A GROUND THAT SLP HAS BEEN FILED BY THE DEPARTMENT AGAINST THE SAID JUDGMENT BEFORE THE HONBLE APEX C OURT. 05. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 4TH DAY OF SE PTEMBER, 2015. SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTA NT MEMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR