SANSKARDHAM KELVANI MANDAL, MUMBAI V. DDIT (E), MUMBAI

ITA 9142/MUM/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4295 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 27-04-2015
• Assessment Year: misc
• Appeal Filed On: 29-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJUNATHA R SWAMY
• Assessee Lawyers: RAJESH DALALAR
• Keywords: Charitable institution
• Section: 80G

Judgement Text

, INCOME TAX APPELLATE TRIBUNAL,MUMBAI- E,BENCH , , BEFORE S/SH. RAJENDRA,ACCOUNTANT MEMBER & SANDEEP GOSAIN,JUDICIAL MEMBER /.ITA NO.9142 /MUM/ 2010 , /ASSESSMENT YEAR-NOT APPLICABLE SANSKARDHAM KELVANI MANDAL C/O., SANSKARDHAM VIDYALAYA UNNAT NAGAR, MG ROAD OPP. GANAPATI STORES, GOREGAON (W)MUMBAI. PAN NO.AAATS 2646 G VS. DY. DIRECTOR OF INCOME TAX (EXEMPTION) CENTRAL CIRCLE-39 MUMBAI. ( / ASSESSEE ) ( / RESPONDENT) /ASSESSEE BY :SH. RAJESH DALAL-AR / REVENUE BY :SH. MANJUNATHA R. SWAMY-CIT-DR / DATE OF HEARING :19 - 11 -2015 / DATE OF PRONOUNCEMENT :01.01.2016 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DATED 25.10.2010 OF DIRECTOR OF INCOME TAX(EXEMTION),MUMBAI (DIT- E),THE ASSESSEE -TRUST HAS FILED THE PRESENT APPEAL . BRIEF FACTS: 2. THE ASSESSEE HAD FILED AN APPLICATION FOR GRANT OF CERTIFICATE U/S.80G OF THE ACT ON 21.4. 2009, IT WAS ACCOMPANIED WITH VARIOUS DETAILS AND W AS FILED IN PRESCRIBED FORM -10G.VIDE HIS LETTER,DT.22.9.10,THE DIT-E DIRECTED THE ASSESS EE TO FURNISH BREAK-UP OF DONATION AND OTHER INCOME FOR VERIFICATION PURPOSE.AS PER THE DIT(E) T HE ASSESSEE DID NOT COMPLY WITH THE DIRECTIONS.HE ISSUED A REMINDER ON 22.12.2009.THE A SSESSEE FILED DETAILS VIDE ITS LETTER DATED 11.8.2010 , 23.8.2010 21.9.2010.ON 11.10.2010 THE D IT-E ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE AND VIDE HIS ORDER,DT. 25.10.2010,HE HELD THAT THE ASSESSEE HAD FAILED TO FULFILL THE MANDATORY PROVISIONS AND HAD CONTRAVENED THE PROVIS IONS AS LAID DOWN UNDER EXPLANATION TO SECTION 80G(5).FINALLY,HE REJECTED THE APPLICATION FILED BY THE ASSESSEE. 3. BEFORE US, THE AUTHORISED REPRESENTATIVE (AR)STATE D THAT DIT-E WAS DUTY BOUND TO REJECT OR ACCEPT THE APPLICATION WITHIN A PERIOD OF SIX MO NTHS OF FILING OF APPLICATION, THAT HE HAD PASSED THE ORDER IN OCT.2010 WHEREAS THE APPLICATIO N WAS FILED IN APRIL 2009, THAT THE ORDER WAS INVALID.HE REFERRED TO THE JUDGMENTS OF MAHESHW ARI FOUNDATION (56 TAXMANN .COM 393), PUJYASHRI JALARAM BAPA MATOSHRI VIRBAINA CHARITABLE TRUST(55TAXMANN52).DEPARTMENTAL REPERSENTATIVE (DR) SUPPORTED THE ORDER OF THE DIT( E). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL BEFORE US.WE FIND THAT THE ASSESSEE HAD FILED THE APPLICATION FOR GRANT OF CE RTIFICATE U/S. 80G OF THE ACT ON 21.04.2009, THE DIT-E HAD PASSED THE ORDER ON 25.10.2010.THE RU LE-11AA OF THE INCOME TAX RULES, 1962, (RULES) MANDATES THAT THE ORDER FOR REJECTING OR GRANTING THE CERTIFICATE HAS TO BE PASSED WITHIN SIX MONTHS OF FILING OF THE APPLICATION.IN T HIS CASE THE LETTER WAS ISSUED ON 22.10.2009 TO THE ASSESSEE TRUST AND IT WAS DIRECTED TO FURNIS H CERTAIN DETAILS.IN OUR OPINION,HE SHOULD HAVE PASSED THE ORDER BY THAT TIME. INSTEAD OF PASS ING AN ORDER THE DIT-E STARTED MAKING QUERIES AFTER A LAPSE OF PERIOD OF SIX MONTHS.THERE FORE, WE ARE OF THE OPINION THAT HIS ORDER WAS NOT VALID.IN THE CASE OF MAHESHWARI FOUNDATION (SUPRA), THE HONBLE KARNATAKA HIGH 9142M/10-SANSKARDHAM 2 COURT HAS HELD THAT IT IS MANDATORY FOR THE DIT-E T O DISPOSE THE APPLICATION WITHIN A PERIOD OF SIX MONTHS.CONSIDERING THE ABOVE,WE ARE OF THE OPIN ION THAT THE DIT-E WAS NOT JUSTIFIED IN REJECTING THE APPLICATION FILED BY THE ASSESSEE.WE LIKE TO MENTION THAT THE ASSESSEE IS AT LIBERTY TO FILE A FRESH APPLICATION FOR GETTING BENEFIT OF SECTION 80G OF THE ACT AND DIT-E WOULD DECIDE THE APPLICATION ON MERITS AND IN ACCORDANCE WITH LAW. EFFECTIVE GROUND OF APPEAL FILED BY THE ASSESSEE IS ALLOWED. AS A RESULT,APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. . ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JANUARY, 2016. 01 , 2016 SD/- SD/- ( /SANDEEP GOSAIN ) ( / RAJENDRA ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER MUMBAI, DATE: 01.01.2016 . . . JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR E BENCH, ITAT, MUMBAI / , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.