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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Ms. Annapurna Gupta & Shri TR Senthil Kumar
Appellant by : Shri Shri Rajesh Shah, A.R. Respondent by : Shri Mudit Nagpal, CIT/DR Date of hearing : 11-02-2022 Date of pronouncement : 15-02-2022 आदेश/ORDER PER : ANNAPURNA GUPTA, ACCOUNTANT MEMBER:-
The present appeal has been filed by the Assessee against the order passed by the Commissioner of Income Tax (Exemption), Ahmedabad, (in short referred to as CIT(E)), dated 24-09-2019, u/s. 12AA (1)(b)(ii) of the Income Tax Act, 1961(hereinafter referred to as the “Act”) rejecting the assesee’s application for grant of registration as a charitable trust u/s 12A of the Act.
As transpires from the order of the Ld. CIT(E), the registration was denied for the reason that the name mentioned in Form No. 10A filed by the Assessee, for the purposes of seeking registration u/s 12A of the Act, did not match with that A.Y. N.A. Page No 2 Swaminarayan Turukul Sarv Jiv Hitavah trust vs. CIT(E) mentioned in the documents realting to the assessee filed during the course of proceedings before the Ld. CIT(E). The relevant findings of the Ld. CIT(E) in this regard are as under: 6. In response thereto, the applicant, vide submission made on line on 12.09.2019 and subsequent submission, filed details/documents. 1. Further, on verification of details/documents submitted by the applicant, it is found that the applicant has made application in Form No. 10A in the name of Swaminarayan Guurkul Sarv Jiv Hitavah Trust. It haS also furnished audited accounts for the last three years i.e. 2015-16 16-17 and 17-18 in the same name i.e. A.N.B. Sadguru Purani Swami Shri Gopinathdasji Smarak Shri Swaminarayan Gurukul Sarv Jiv Hitavah Trust Rajkot. Pan is also allotted in the name of Swaminarayan Guurkul Sarv Jiv Hitavah Trust . However perusal of copy of registration certificate issued by Charity Commissioner and copy of Trust deed revealed that the same are registered in the name of A.N.B. Sadguru Purani Swami Shri Gopinathdasji Smarak Shri Swaminarayan Gurukul Sarv Jiv Hitavah Trust Rajkot. Moreover, the applicant failed to submit any documentary evidence which could establish that both the trusts i.e. Swaminarayan Guurkul Sarv Jiv Hitavah Trust and A.N.B. Sadguru Purani Swami Shri Gopinathdasji Smarak Shri Swaminarayan Gurukul Sarv Jiv Hitavah Trust Rajkot are the same. The applicant has also failed to submit approval from the charity commissioner for the change in name of the trust as above. Under the context, it is concluded that Swaminarayan Gurukul sarv jiv Hitavah Trust is a different entity for which the applicant failed to submit Certified copy of Certificate of Registration of Trust and of Trust deed / M.O.A. duly verified / certified. Therefore, in the absence of complete details/documents as mentioned above, it is not possible to verify the genuineness of the activities of the above trust or the same being carried out in accordance with the objects of the trust. Thus, the genuineness of the activities does not get established. 1. This clearly indicates that the applicant does not have intention even to start charitable/religious activities. Section 12AA makes it very clear that before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the objects of the trust or institution. Reliance in this regard is placed on judgment delivered by the Hon. A.Y. N.A. Page No 3 Swaminarayan Turukul Sarv Jiv Hitavah trust vs. CIT(E) Supreme Court in the case of Commissioner of Income-tax , Ujjain Vs Dawoodi Bohara Jamat Civil Appeal No. 2492 of 2014. The facts considered in para 14 of the judgement by the Hon'ble Apex Court are reproduced for sake of convenience: " Section 12AA lays down the procedure to be followed by the Commissioner for grant or refusal of application for registration made under Section 12A. According to procedure so laid down, the Commissioner shall call for documents and information and conduct an enquiry to satisfy himself of the genuineness of the trust and upon reaching satisfaction of the charitable or religious nature of the objects and the authenticity of the activities of the trust, he would grant registration. If he is not satisfied of the aforesaid, the request made in the application may be declined."
As discussed above, the applicant has failed to file documentary evidences to enable me to satisfy about the genuineness of its activities and to verify these activities are in consonance with its objects.
Ld. Counsel for the assessee argued that his application had been rejected without even confronting the anamoly noted by the Ld.CIT(E) . He further contended that there was actually no mismatch as noted by the Ld. CIT(E), that the details furnished during proceedings before the Ld. CIT(E) related to the assessee only and the mismatch in the name in the PAN and the financial statements and Trust deed was for the reason that since its name was very long i.e A.N.B. Sadguru Purani Swami Shri Gopinathdasji Smarak Shri Swaminarayan Gurukul Sarv Jiv Hitavah Trust , therefore while filing its application for seeking PAN No. due to shortage of space, it had restricted its name to a shorter one as noted by the Ld. CIT(E). Copy of the application form seeking PAN No. was filed before us at P.B 32-35 to demonstrate this fact. It was contended that all other details mentioned in the form pertained to the assessee which could be verified also. It was pointed that it was all along being assessed in the shorter name. And as evidence, assessment orders for A.Y 2014-15, 2015-16 & 2018- 19 were filed before us at P.B 36-43.Ld.Counsel for the assessee also contended that A.Y. N.A. Page No 4 Swaminarayan Turukul Sarv Jiv Hitavah trust vs. CIT(E) on account of this rejection by the Ld. CIT(E), it had filed to the Charity Commissioner for changing in its name to a shorter one which stood approved also .Copy of the same was filed at P.B 75-85. Ld. Counsel for the assessee filed several other documents before us in support of his contention as under: Documents to show that the names of A.N.B. SADGURU PURANI SWAMI SHRI GOPINATHDASJI SMARAK SHRI SWAMINARAYAN GURUKUL SARV JIV HITAVAH TRUST' and SWAMINARAYAN GURUKUL SARV JIV HITAVAH TRUST' are the names of the same Trust 1. A Copy of Trust Deed in Gujarati along with a translation thereof in English 2. A Copy of Certificate of Registration with Charity Commissioner issued in the Full Name i.e. A.N.B. SADGURU PURANI SWAMI SHRI GOPINATHDASJI SMARAK SHRI SWAMINARAYAN GURUKUL SARVJIV HITAVAH TRUST showing the Regn. No. E-355 (Raj kot) 3. A Copy of Certificate of Registration u/s 12A issued in the Full Name i.e. A.N.B. SADGURU PURANI SWAMI SHRI GOPINATHDASJI SMARAK SHRI SWAMINARAYAN GURUKUL SARVJIV HITAVAH TRUST bearing Regn. No. 65/A-52/74-75/CIT.V.
A copy of Notice/letter dt. 05/08/2019 & 31/08/2019 from the office of the CIT(Exemption), Ahmedabad 5. Copies of forwarding Letter and acknowledgements of Submission made before CIT(Exemption), Ahmedabad on 11/09/2019 & 12/09/2019 6. A Copy of Order Dt. 24-9-2019 passed u/s 12AA(l)(b)(ii) of 1 T Act, 1961 by the CIT (Exemption) 7. A Copy of l.T. Assessment Order for A.Y. 2004-05 dt. 27/10/2006 showing (a) the assessment made under PAN AAATS8922M with shortened name, (b) in para 2 of the A.O., Registration number u/s 12A/12AA as well as Registration number of the Office of the Charity Commissioner which showed full name of the Trust which are the same as mentioned in Copies of respective certificates submitted vide Sr. No. 3 & 2. 8. A Copy of TAN Allotment letter issued under full Name i.e. A.-N.B. SADGURU PURANI SWAMI SHRI GOPINATHDASJI SMARAK SHRI SWAMINARAYAN GURUKUL SARV JIV HITAVAH TRUST showing TAN 'RKTA00640D' along with a copy of Screenshot from the web site of 'Incometaxindiaefiling.gov.in' showing PAN AAATS8922M (PAN issued under new Abbreviated name SWAMINARAYAN GURUKUL SARVJIV HITAVAH TRUST) linked to the x TAN RKTA00640D' allotted with Full name. 9. A Copy each of Certificate of Approval u/s 80G of the I. T. Act dt. 29.04.1999 issued to the assessee trust with the full name and Dt. 2-8-2007 issued with the shortened name. 10. A Copy of Form No. 49A filed on 13.04.1998 bearing Shortened name of A.Y. N.A. Page No 5 Swaminarayan Turukul Sarv Jiv Hitavah trust vs. CIT(E) SWAMINARAYAN GURUKUL SARVJIV HITAVAH TRUST' instead of full name which contained additional 47 characters (+7 for leaving space between two words) as against the further available space for 31 characters only. Further, page 2 of Form No. 49A, shows Registration number of Charity Commissioner's office i.e. E-355/Rajkot which is the same as mentioned above in serial no. 2 above which shows the full name of the Trust. 11. Copies of Assessment Orders u/s 143(3) for AY 2014-15, AY 2015-16 & 2018-19 12. Copies of audited Balance Sheet & Income & Expenditure Accounts containing full name of the Trust for the F.Y. 2015-16, 2016-2017 and 2017-18 (filed before the A.O.) duly accepted while making the assessment in the abbreviated name of the Trust. 13. A copy of Assessment order of for AY 1982-83 14. A Copy of letter dt. 24/10/1997 addressed to ITO, Ward 2(2), Rajkot on the letter head of the Trust 15. A Copy of Rectification Application dt. 22.11.2019, filed with the CIT(Exemption), Ahmedabad on 26.11.2019 16. A Copy of our letter dt. 24.12.2019 filed with CIT(Exemption), Ahmedabad on 26.12.2019 along with the relevant evidences in support of our Rectification Application dt. 22.11.2019 as desired by the CIT(Exemption) during the hearing on 10-12-2019. 17. A Copy of Change Report with regard to the shortening of Name of The Trust filed with the Charity Commissioner on 21-6-2021 due to Unnecessary issue created by the CIT(Exemption ), Ahmedabad along with a copy of the Order thereon of the Deputy Charity Commissioner Dt. 26-8-2021 approving the shortened name. 18. A Copy of PTR ( Public Trust Register) from the office of the Charity Commissioner showing Entry of the Change Report No. 304/21 dated 26/08/2021 and approving the shortened name of the Trust.
4. Ld. D.R. fairly agreed that the Ld. CIT(E) passed the order without even confronting the assessee with the anomaly noted and pleaded that the matter be restored back to the Ld. CIT(E).
Ld. Counsel for the Assessee agreed to the same.
In view of the above, since the findings of the ld. CIT(E) to the effect that the application for grant of registration u/s 12A of the Act needs to be rejected since the genuineness of activities of the assessee could not be verified on account of the assessee having furnished documents not relating to it admittedly have been arrived at A.Y. N.A. Page No 6 Swaminarayan Turukul Sarv Jiv Hitavah trust vs. CIT(E) without giving due opportunity of hearing to the asessee, And the assessee has reasonably demonstrated before us that it has evidences to prove otherwise, We consider it fit to restore the issue back to the Ld. CIT(E). The Ld.CIT(E) is directed to consider the explanation furnished by the assessee regarding the difference in names in the documents relating to it and the application for registration filed and on being convinced thereafter to proceed and adjudicate the issue relating to grant of registration in accordance with law.