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Income Tax Appellate Tribunal, ‘’C’ ’BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
आयकर अपील�य अ�धकरण, अहमदाबाद �यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’C’ ’BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1723/AHD/2017 �नधा�रण वष�/Asstt. Year: 2017-2018 Siddhi Vinayak Charitable Trust, CIT(exemptions), Ahmedabad. 220/2639, Pratiksha Apartment, Vs. Soal Road, Naranpura, Ahmedabad-380063.
PAN: AAPTS4282H
(Applicant) (Respondent) : Assessee by Shri Chirag R. Shah, A.R Revenue by : Shri Lalit P. Jain, Sr.DR सुनवाई क� तार�ख/Date of Hearing : 22/03/2019 घोषणा क� तार�ख /Date of Pronouncement: 13/05/2019 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Exemptions), Ahmedabad [Ld.CIT(Exemption) in short] dated 25/05/2017 arising in the matter of assessment order passed under s.12AA of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year (AY) 2017-2018.
The assessee has raised following grounds of appeal:
The order passed u/s.12AA of I.T. Act, 1961 by the commissioner of Income- tax(exemptions) is bad in law and deserves to be deleted.
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The commissioner of Income-tax (exemptions) has erred in law and on facts in making the rejection of the application filed in form no.10A for the approval u/s.12AA. The same deserves to be deleted. 3. The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing.
The issue raised by the assessee is that the Ld. CIT (Exemption) erred in rejecting the application filed for approval u/s 12AA of the Act.
The facts of the case are that the assessee is a charitable trust namely “SIDDHI VINAYAK CHARITABLE TRUST.” It had filed an application in Form No. 10 before the Ld. CIT (Exemption) for approval of registration under section 12AA of the Act dated 16-11-2016.
2.1 However, Ld. CIT (Exemption) during the registration proceedings for the approval under section 12AA of the Act required the assessee to furnish certain details as under:
Please specify the clause in Trust deed regarding revocability or irrevocability. 2. Please state whether deed contains utilization clause? (Specifying that the profits are to be used only for the objects of the trust.) 3. Please state any part of trust property or income is used or applied or ensures directly or indirectly for the benefit of any person specified u/s.!3(3) of the IT. Act? 4. Details of donations received or paid and confirmation/PAN of the donors. 5. Details of movable & immovable assets held as on date. 6. Whether NOC from the premises owner is obtained or rental agreement is enclosed. 7. Please submit documentary evidences of actual charitable activities carried out by the Trust from the date of inception of Trust till date. 8. Please submit Copy of Audited Accounts like copy of receipt and payment A/c, Income & Expenditure A/c, Balance Sheet, for three years or from the date of creation till date, whichever is less. Page 2 of 4
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Please give details as to how the Trust generates funds for achieving the object of Trust. 10. Please submit evidences that the corpus amount has been transferred to the Trust/Institution. 11. Please specify that the Trust is in receipt of amounts mentioned in first proviso to section 2(15) of the I.T.Act. 12. Copy of Certificate of Undertaking? 13. Copy of Certificate u/s. 13(1) (c) of the I.T.Act? 14. Further, it is seen that as per trust deed the dissolution clause is not proper.
2.2 However, the assessee neither attended nor submitted the requisite details despite various opportunities provided by the ld. CIT (Exemption). Therefore the ld. CIT (Exemption) in the absence of sufficient information was not satisfied with the genuineness of the activities of the trust. Accordingly, the CIT (Exemption) rejected the application filed by the assessee for approval of registration as a trust under section 12AA of the Act.
Being aggrieved by the order of the ld. CIT (Exemption), the assessee is in appeal before us.
The Ld. AR before us filed a paper book running from pages 1 to 43 and submitted that the assessee is a charitable trust registered on 21-05-2015. The ld. AR further submitted that the assessee furnished the details on 2nd June 2017, but its application was rejected vide order dated 25-5-2017. Thus the necessary details furnished by it were not considered by the ld. CIT (Exemption). Accordingly the ld. AR requested to restore the matter to the ld. CIT (Exemption) for fresh adjudication as per the provisions of law.
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On the contrary the Ld. DR did not object if the matter is restored to the file of the ld. CIT (Exemption).
We have heard the rival contentions of both the parties and perused the materials on record. The issue in the instant case is that the CIT (Exemption) in the absence of sufficient information rejected the registration application filed by the assessee under section 12AA of the Act.
5.1 From the preceding discussion we note that the CIT (Exemption) has passed the order vide dated 25-05-2017, whereas the assessee filed the details as required by him to verify the genuineness of the activities dated 02-06- 2017. Thus there was the delay of a few days by the assessee in compliance with the final direction issued by the ld. CIT (Exemption). Considering the length of the delay in filing the necessary papers as discussed above, we restore the matter to the ld. CIT (Exemption) for fresh adjudication after carrying out the necessary verification of the genuineness of the activities of the trust as per the provision of law. It is needless to mention that the assessee shall co-operate in the proceedings before the ld. CIT (Exemption). Hence the ground of appeal of the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the Court on 13/05/2019 at Ahmedabad. -Sd- -Sd- (RAJPAL YADAV) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 13/05/2019 manish Page 4 of 4