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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
आदेश / O R D E R
PER WASEEM AHMED, ACCOUNTANT MEMBER:
The captioned appeals have been filed at the instance of the different assessee against the separate orders of the Director of Income Tax (Exemptions)- Ahmedabad [DIT(E) in short] dated 16.09.2013.
First we take up the appeal of the assessee in ITA No. 2594/Ahd/2013:
The grounds of appeal raised by the assessee in both the appeal are identical. The grounds raised in ITA No. 2594/Ahd/2013 reads as under:-
“(1) The learned DI (EX) has erred in not granting the registration u/s. 12AA of the income Tax Act, 1961 and failed to appreciate the reply submitted by the appellant. (2) The learned DI (EX) erred in rejecting the registration on the basis of absence of trust deed & failed to appreciate the provisions of the BPT Act as well as judgment of hon'ble ITAT - B, Bench Ahmadabad given in case of CIT v. Gujarat Chief minister's relief fund. (3) The learned DI (EX) failed to appreciate the reply of the appellant dated 29/08/2013 wherein activities of the trust is clearly mentioned. (4) That in view of the above facts and in the circumstances of the case the order passed under section 12AA rejecting registration u/s. 12AA of the I.T. Act, 1961 needs to be quashed and order granting registration u/s. 12AA of the I. T. Act, 1961 may please be passed. (5) The appellant crave leave to add, amend, alter, vary or withdraw any or all the grounds of appeal before or at the time of hearing of appeal.”
ITA Nos.2592 & 2594/Ahd/2013 Shri Timbachudi Swetamber Murti Pujak Jain Mahajan Derasar Upashray Trust & Jain Swetamber Murtipujak Derasar Upashray Trust vs DIT(E) - 3 -
The solitary issue raised by the assessee is that Ld. DIT(E) erred in rejecting the application filed for registration u/s 12AA of the Act.
Briefly stated facts are that the assessee in the present case is a trust and came into existence on 17.12.1982. The assessee made an application to Ld. DIT(E) for registration u/s 12AA of the Act vide application dated 31.03.2013. The assessee in the registration proceedings filed all the necessary documents except the trust deed.
3.1 On question by the Ld. DIT(E) the assessee submitted that it was registered with the Charity Commissioner long back and at that relevant time there was no need to register the trust deed. As such, the office of the Charity Commissioner used to maintain PTR register & copy of which was used for the purpose of opening the bank account, PAN No etc. Therefore, the assessee justified the non availability of trust deed.
However, the Ld. DIT(E) during the registration proceedings observed certain facts as detailed under: i. The assessee has not filed activity report. ii. The assessee has mostly claimed administrative expenses in its income and expenditure account. iii. The activities carried out by the assessee since inception was not verifiable. Therefore the genuineness of the activities of the trust was not established. 3.2 In the absence of trust deed it was not possible to ascertain the purpose for which the trust was originally established. Similarly, any
ITA Nos.2592 & 2594/Ahd/2013 Shri Timbachudi Swetamber Murti Pujak Jain Mahajan Derasar Upashray Trust & Jain Swetamber Murtipujak Derasar Upashray Trust vs DIT(E) - 4 -
change in the objects can also not be ascertained as well as any change in future will also not be verifiable. It is not clear whether society belongs to any caste, creed etc.
In view of above, the Ld. DIT(E) rejected the registration application filed by the assessee vide order dated 16.09.2013.
Being aggrieved by the order of Ld. DIT(E) the assessee is in appeal before us.
The Ld. AR for the assessee before us has filed a paper book running from pages 1-33. The Ld. Counsel for the assessee has also filed the Trust Deed and the order of Charity Commissioner, Gujarat state Ahmedabad registering the trust. Accordingly, the Ld. AR prayed for the grant of registration u/s 12AA of the Act.
On the other hand, the Ld DR submitted that registration u/s 12AA of the Act cannot be granted without verifying the activities of the trust satisfactorily. The Ld. DR vehemently supported the order of Ld. DIT(E).
We have heard the rival contentions and perused the materials available on record. In the instant case, there is no doubt that the assessee has not furnished trust deed during the registration proceedings. Therefore the activities of the trust were not verifiable at that relevant
ITA Nos.2592 & 2594/Ahd/2013 Shri Timbachudi Swetamber Murti Pujak Jain Mahajan Derasar Upashray Trust & Jain Swetamber Murtipujak Derasar Upashray Trust vs DIT(E) - 5 -
time. However, the assessee subsequently got the trust registered and accordingly filed a copy of trust deed which is placed on record.
6.1 There is no doubt that the Ld. DIT(E) rejected the registration application mainly on the ground of non availability of trust deed. However, the trust deed is now available on record. Therefore in the interest of justice and fair play, we are inclined to remit the matter back to the file to Ld. DIT(E) to record the satisfaction as required u/s 12AA of the Act for granting the registration. It is needless to mention that the assessee shall file the annual report justifying the activities carried out in the last three years. The assessee shall cooperate during the registration proceedings before the Ld. DIT(E). Hence, the ground of appeal of the assessee is allowed for statistical purposes.
Now we take up appeal of the assessee in ITA No.2592/Ahd/2013:
At the outset, we note that the issues raised by the assessee in ITA No. 2592/Ahd/2013 are exactly identical to the issues raised in ITA No. 2594/Ahd/2013 which have already decided in the aforesaid Paragraphs. Both the Ld. DR & AR agreed before us that whatever will be taken in ITA 2594/Ahd/2013 will be applied for the appeal on hand. Accordingly, we allow the appeal of the assessee for statistical purposes in terms of above.
ITA Nos.2592 & 2594/Ahd/2013 Shri Timbachudi Swetamber Murti Pujak Jain Mahajan Derasar Upashray Trust & Jain Swetamber Murtipujak Derasar Upashray Trust vs DIT(E)
In the result, both the appeals filed by the different assessee are allowed for statistical purposes. This Order pronounced in Open Court on 23/10/2018
Sd/- Sd/- (RAJPAL YADAV) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 23/10/2018 Priti Yadav, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The DIT(A)- Ahmedabad. 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण / DR, ITAT, 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 04/10/2018 (PAGE-3) 2. Date on which the typed draft is placed before the Dictating Member : .. 17/10/2018 3. Other Member……….. 4. Date on which the approved draft comes to the Sr.P.S./P.S…25/10/2018 5. Date on which the fair order is placed before the Dictating Member for pronouncement………….. 6. Date on which the fair order comes back to the Sr.P.S./P.S…… Date on which the file goes to the Bench Clerk……… 7. 8. Date on which the file goes to the Head Clerk… 9. The date on which the file goes to the Assistant Registrar for signature on the order………… 10. Date of Despatch of the Order………………