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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: SHRI PRADIP KUMAR KEDIA
सुनवाई क� तार�ख / Date of 19/04/2021 Hearing घोषणा क� तार�ख /Date of 13/05/2021 Pronouncement आदेश/O R D E R PER PRADIP KUMAR KEDIA - AM:
Both captioned appeals have been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-9, Ahmedabad (‘CIT(A)’ in short), both dated 08.05.2018 arising in the intimation dated 16.03.2016 & 27.03.2017; & 1613/Ahd/18 (Ahmedabad Sthanik Trivedi Mevada Brahman Gnati Trust) - 2 - respectively processed by the Centralized Processing Center (CPC) under s. 143(1) of the Income Tax Act, 1961 (the Act) concerning AYs. 2014-15 & 2015-16.
Both the captioned appeals hinges around a common grievances that the tax liability has been raised on the assessee trust on the premise of non-availability of registration under s.12A of the Act. Since the issue involved in both the appeals concerning AY 2014-15 and AY 2015-16 respectively are common, both the appeals have been disposed of by this common order.
When the matter was called for hearing, the learned counsel for the assessee submitted that the assessee is a society registered under Societies Registration Act, 1960. It was constituted as a society in the nature of public trust and registered under Bombay Charitable Trust Act, 1950. The said society is created with object and purpose of ameliorating Trivedi Mevada Brahmin residing in the city of Ahmedabad in area of education and culture which is defined exhaustively in the trust deed.
3.1 It was pointed out that the return was filed by the trust claiming exemption under s.11/12 of the Act which was denied in the intimation processed under s.143(1) of the Act in the absence of registration obtained under s.12A of the Act. The CIT(A) has also confirmed the action taken under s.143(1) of the Act for want of registration under s.12A of the Act. It was thus held by the Revenue that income of the unregistered trust is susceptible to be taxed at maximum marginable rate under s.267B of the Act as applicable to Association of Person (AOP). The status of the assessee was thus reckoned as AOP for the purposes of determination of tax liability. & 1613/Ahd/18 (Ahmedabad Sthanik Trivedi Mevada Brahman Gnati Trust) - 3 - 3.2 In this backdrop, the learned counsel for the assessee adverted our attention to a petition before the Tribunal for admission of additional evidence in the form of 12AA of the Act being registration dated 31.10.2017 granted to the assessee together with an affidavit dated 07.09.2020 narrating the circumstances for non- production of the aforesaid evidence before the appellate authority. It was thus pleaded that additional evidence in the form of registration under s.12AA of the Act be admitted by the Tribunal in terms of Rule 29 of the ITAT Rules, 1963. It was contended that the additional evidence goes to the root of the controversy and clinches the claim of benefit available under s.11/s.12 of the Act. It was submitted that substantial cause of the assessee would be defeated in the absence of admission of the evidence and for weighing the issue in controversy. It was pointed out that the certificate issued under s.12AA of the Act testifies the fact of registration under s.12AA of the Act and thus the entitlement available to the registered trust under the Act should not be taken away by the revenue authorities from the assessee engaged in charitable objects in the larger public interest.
We find merit in the plea of the assessee for admission of additional evidence in the circumstances narrated above. It is a matter of fact that the Income Tax Department itself has issued certificate under s.12AA of the Act registering the assessee for the purposes of Section 11/12 of the Act. The delinquency in non- production of registration before CIT(A) is therefore viewed benignly. The additional evidence in the form of order under s.12AA of the Act dated 31.10.2017 is therefore admitted by the Tribunal for adjudication of dispute. & 1613/Ahd/18 (Ahmedabad Sthanik Trivedi Mevada Brahman Gnati Trust) - 4 -
Having regard to the fact that the order under s.12AA of the Act was not presented before the first appellate authority for its consideration, we refrain ourselves from expressing our view on merits of the eligibility of deduction under s.11/12 of the Act. The impugned orders of the CIT(A) both dated 08.05.2018 for AYs. 2014-15 & 2015-16 are thus set aside and the issue is restored back to the file of the CIT(A) for de novo adjudication in accordance with law after taking into account the order passed granting registration under s.12AA of the Act. It shall be open to the assessee to furnish such evidences and explanations as made deemed necessary towards justification of claim of benefit before the first appellate authority and for the purpose of determination of issue.
In the result, both the appeals of the assessee are allowed for statistical purposes.
This Order pronounced in Open Court on 13/05/2021
Sd/- Sd/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 13/05/2021 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।