M/s.Global Social Scietific Research Centre, Pathanamthitta V. The CIT, Kottayam

ITA 98/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90772 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 05-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M ANIL KUMAR
• Assessee Lawyers: R KRISHNA IYER
• Keywords: Reasonable cause; Condonation of delay
• Section: 12A; 12AA; 12; 2

Judgement Text

1 ITA NO 98/COCH/2015 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI V DURGA RAO, JM AND SHRI B.R. BASKARAN, AM I.T.A. NO. 98/COCH/2015 M/S GLOBAL SOCIAL SCIENTIFIC RESEARCH VS THE CIT, KOTTAYAM CENTRE, MYLAPRA TOWN PATHANAMTHITTA PAN : AAAAG9230D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R KRISHNA IYER RESPONDENT BY : SHRI M ANIL KUMAR, CIT DATE OF HEARING : 05-05-2015 DATE OF PRONOUNCEMENT : -05-2015 O R D E R PER SHRI V DURGA RAO, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX, KOTTAYAM REJECTING THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT. 2. THERE IS A DELAY IN FILING THE APPEAL BY 456 DAY S. THE ASSESSEE EXPLAINS THE REASONS FOR DELAY IN FILING THE APPEAL IN THE A FFIDAVIT FILED BY IT WHICH IS EXTRACTED BELOW: IT IS SUBMITTED THAT THE OFFICE BEARERS / MANAGEME NT ARE ELECTED FROM TIME TO TIME FROM VARIOUS WALKS OF LIFE AND TH E ADMINISTRATION OF THE SOCIETY IS NOT A FULL TIME JOB OCCUPATION. THE OFFICE BEARERS ARE USUALLY HAVING OTHER SOCIAL OR PERSONAL ACTIVITIES AND THEY MEET FOR TAKING IMPORTANT DECISIONS AT DULY CONVENED MEETING S. THE OFFICE 2 ITA NO 98/COCH/2015 CLERK WHO COLLECTED THE ORDER MISPLACED THE ORDER T HROUGH OVERSIGHT AND FAILED TO COMMUNICATE THE SAME TO THE SECRETARY IMMEDIATELY WHEN HE HAD RESUMED DUTIES. IMMEDIATELY AFTER THE ORDER CAME TO THE KNOWLEDGE OF THE SECRETARY INFORMAL DISCUSSIONS WERE MADE WITH THE CHAIRMAN AND OTHER AVAILABLE OFFICE BEARER S. THE OFFICE BEARERS WERE NOT ABLE TO FIND AS REASONABLE SOLUTIO N TO THE PROBLEM AND HENCE THE MATTER WAS DISCUSSED WITH THE CHARTER ED ACCOUNTANT WHO REFERRED THE MATTER TO ANOTHER CONSULTANT WHO I S STATIONED AT ERNAKULAM. THE INITIAL DELAY ON ACCOUNT OF OVERSIG HT OF THE CLERK AND THESE DISCUSSION MEETINGS HAS TAKEN SOME TIME A ND HAS RESULTED IN A DELAY OF 456 DAYS IN FILING OF THE AP PEAL. THE ASSESSEE PRAYS THAT IN VIEW OF THE GENUINE REAS ONS AS EXPLAINED ABOVE, THE DELAY MAY BE CONDONED. ON THE OTHER HAND, THE LD.D R STRONGLY OBJECTED TO CONDONATION OF DELAY IN FILING THE APPEAL. 3. UPON HEARING THE PARTIES AND ON PERUSAL OF THE M ATERIALS AVAILABLE ON RECORDS, WE FIND THAT THE REASONS EXPLAINED FOR DEL AY IN FILING THE APPEAL ARE CONVINCING. THEREFORE, WE HOLD THAT THE ASSESSEE W AS PREVENTED BY SUFFICIENT CAUSE IN FILING THE APPEAL IN TIME. THE OFFICE BEA RERS OF THE ASSESSEE WERE NOT THE FULL TIME OFFICE BEARERS. THEY WERE ATTENDING ADMINISTRATION OF THE TRUST AT THEIR FREE WILL. THEN, THE OFFICE CLERK, WHO RECEI VED THE ORDER OF THE COMMISSIONER OF INCOME-TAX MISPLACED THE ORDER AND EVENTUALLY MI SPLACED THE SAME. THESE REASONS CONTRIBUTE A REASONABLE CAUSE. IN THE CIRC UMSTANCES, WE CONDONE THE DELAY OF 456 DAYS IN FILING THE APPEAL. 4. ON MERITS, THE LD.REPRESENTATIVE FOR THE ASSESSE E SUBMITTED THAT THE APPLICATION FILED BY THE ASSESSEE FOR REGISTRATION U/S 12A WAS REJECTED BY THE CIT 3 ITA NO 98/COCH/2015 VIDE ORDER U/S 12AA DATED 03-09-2013 ON THE SOLE RE ASON THAT PERUSAL OF THE STATEMENTS INDICATED TO HIM THAT THE ACTIVITIES OF THE ASSESSEE TRUST WERE NOT UPTO SATISFACTORY LEVEL. WE UPHOLD THE CONTENTION OF TH E LD.REPRESENTATIVE BECAUSE ON PERUSAL OF THE ORDER OF THE CIT WE FIND THAT THE OR DER OF THE CIT IS NOT A SPEAKING ORDER INASMUCH AS WE NOTICE THAT FOR THE SAKE OF DI SPOSING OF THE APPLICATION HE HAS SIMPLY DISPOSED OF THE APPLICATION IN A CRYPTIC MANNER. HE HAS NOT NARRATED UNDER WHAT CIRCUMSTANCES THE ACTIVITIES OF THE ASSE SSEE WERE NOT FOUND SATISFACTORY; WHAT WERE THE SHORTCOMINGS IN THE ACT IVITIES OF THE ASSESSEE, ETC. FROM THE OBJECTS OF THE TRUST FILED BY THE ASSESSEE , WE NOTICE THAT THE SOCIETY IS A CHARITABLE ORGANIZATION CREATED TO EXTEND FINANCE, SUPPORT AND AID IN SETTING UP OR RUNNING OF SCHOOLS, COLLEGES, LECTURE HALLS AND TO ENCOURAGE AND ASSIST STUDENTS, TO GRANT SCHOLARSHIPS, GIVING STIPENDS AND OTHER FI NANCIAL ASSISTANCE FOR UPLIFTMENT OF THE EDUCATIONALLY AND SOCIALLY BACKWARD PEOPLE. THUS, PRIMA FACIE, IT APPEARS TO US THAT THE OBJECT OF THE TRUST IS OF CHARITABLE NATURE. THE INCOME-TAX ACT DOES NOT PROVIDE FOR ANY DISCRETION TO THE CIT, IT SEEMS , THAT HE CAN REJECT THE APPLICATION FOR REGISTRATION U/S 12A IN A SELECTIVE AND SUBJECTIVE MANNER. THE CIT IS EMPOWERED TO REJECT OR GRANT REGISTRATION U/S 12 A OF THE ACT BUT ONLY WITH SUFFICIENT REASONS. IN THE CASE BEFORE US, THE CIT SIMPLY REJECTED THE APPLICATION IN A SINGLE SENTENCE BY STATING THAT A PERUSAL OF THE STATEMENTS INDICATES THAT THE ACTIVITIES ARE NOT UP TO THE SATISFACTORY LEVEL. THEREFORE, WE HAVE NO HESITATION IN SETTING ASIDE THE ORDER OF THE CIT REJECTING THE AP PLICATION FOR REGISTRATION U/S 12A OF THE ACT. ACCORDINGLY, THE MATTER IS REMITTED BA CK TO THE FILE OF THE CIT. THE LD.REPRESENTATIVE FOR THE ASSESSEE HAS RELIED ON TH E FOLLOWING JUDGMENTS: 4 ITA NO 98/COCH/2015 1. NEW LIFE IN CHRIST EVENGELISTIC ASSOCIATION VS CIT 246 ITR 532 (MAD) 2. FIFTH GENERATION EDUCATION SOCIETY VS CIT 185 I TR 634 (ALL) 3. RUSI JEHANGIR JEEJEEBHOY & ANR VS O.D. MOHINDRA & ORS 185 ITR 636 (BOM) THE COMMISSIONER OF INCOME-TAX IS DIRECTED TO RECON SIDER THE ISSUE OF GRANT OF REGISTRATION AFRESH IN THE LIGHT OF THE ABOVE JUDIC IAL PRECEDENTS AND DECIDE THE ISSUE OF GRANT OF REGISTRATION U/S 12A OF THE ACT I N ACCORDANCE WITH LAW AFTER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON FRIDAY, 8 TH DAY OF MAY, 2015. SD/- SD/- ( B.R. BASKARAN) ( V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 08 TH MAY, 2015 PKJ/- COPY TO: 1. M/S GLOBAL SOCIAL SCIENTIFIC RESEARCH CENTRE, MY LAPRA TOWN, PATHANAMTHITTA 2. THE CIT, KOTTAYAM 3. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, COCHIN BENCH