SHRI SAIBABA PARIVAR TRUST,NA vs. ARIVS.INCOME TAX OFFICER, (EXEMPTION WARD), SURAT

Assessee by ShriAkshay Modi, C.A. Revenue by Shri Ritesh Mishra, CIT-DR Date of hearing 09.07.2021 Date of pronouncement 26.07.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of ld. Commissioner of Income tax (Appeals)-3, Surat dated 13.09.2017for assessment year (AY) 2013-14. The assessee has raised the following grounds of appeal:- (1) On the facts and in the circumstances of the case and in law, the learned CIT(Appeals), Surat erred in confirming the order of the ITO, Exemption Ward, Surat denying the claim of expenses incurred for Rs.3,40,873/- in fulfilment of the objects of the AOP (trust) and hence, liable to be struck down. (2) On the facts and in the circumstances of the case and in law, both the lower authorities have grievously failed to appreciate the fact of incurrence of expenses towards the Shri Saibaba Parivar Trust objects of the appellant AOP (trust), merely on the ground of rejection of application for registration u/s 12A of the Act and hence, not justified.”

2. Brief fact of the case are that assessee is a Public Charitable trust, set up for charitable objects. The assessee is registered under provision of Bombay Public Trust Act, vide registration dated 24.08.2007. The assessee filed his return of income for assessment year (AY) 2013-14 declaring total of Rs.1,36,994/-. The case was selected for scrutiny and assessment completed under section 143(3) on 04.03.2014. The Assessing Officer while passing the assessment order disallowed the expenses of Rs.3,40,873/-for the want of registration under section 12AA of the Act. On appeal before the Ld. Commissioner (Appeals) (CIT(A), the action of Assessing Officer was upheld. Further aggrieved, the assessee has field present appeal before this Tribunal.

3. We have heard the submission of Ld. Authorized Representative (AR) of the assessee and Ld. Departmental Representative (DR) for Revenue and perused the material on record. The Ld. AR of the assessee submits that assessee is a public charitable trust. The assessee applied for registration 2