ANAND CHARITABEL TRUST,THANE vs. DIT (E) (CIT-II), THANE

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ITA 3470/MUM/2012Status: DisposedITAT Mumbai12 April 2017AY 2012-134 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT's decision to deny registration, finding that the trust's activities did not align with its stated charitable objects. The assessee's failure to appear or present any arguments further supported this conclusion.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The trust's stated objects were educational and charitable, but its expenditure was primarily on celebrating festivals like Dahi Handi and Navratri.

What were the issues?

Whether the activities of the trust were genuine and in line with its stated charitable objects for the purpose of granting registration under Section 12AA.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI

Before: Shri Joginder Singh & Shri Rajendra

For Appellant: Shri R.P.Meena-DR
Hearing: 12/04/2017

आदेश / O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 07/03/2012 of the Ld. Commissioner of Income Tax, Thane, denying registration u/s 12AA of the Income Tax Act, 1961 (hereinafter the Act) to the assessee trust.

2.

During hearing, nobody was present for the assessee. It is seen that this appeal was filed by the assessee on 16/05/2012. Registered notices of hearing were sent to the assessee. On 19/03/2015, the appeal was adjourned at the request of the assessee, likewise, on 22/11/2016 also, at the request for the assessee, the appeal was adjourned for today i.e. 12/04/2017. The assessee neither appeared nor moved application for adjournment. It seems that the assessee is not interest to pursue its appeal, in such a situation, it cannot be kept pending indefinitely, therefore, we have no option but to proceed on the basis of material available on record. The ld. CIT-DR, Shri R.P. Meena, defended the impugned order by contending that the assessee was found engaged in religious activities, which is not the objects of the assessee and out of the total receipt of Rs.21,63,500/-, the assessee spend Rs.18,97,160/- on celebrating festivals like Dahi Handi and Navratri. Therefore, the trust is not doing the activities, for which it was created i.e. educational activities.

1.

2.1. We have considered the submissions of Ld. CIT- DR and perused the material available on record. The facts, in brief, are that the assessee trust, was created on 16/07/2010, registered under Bombay Public Trust Act, 1950, applied for registration u/s 12A of the Act on Form No.10A on 30/08/2011. This is the first year of operation of the assessee trust. On going through the income and expenditure account, it was found that the assessee received donation to the tune of Rs.21,63,500/- out of which, the assessee expended Rs.8,86,260/- towards Dahi Handi Celebration, Rs.10,10,900/- on Navratri Expenses and Rs.13,036/- on miscellaneous expenses. However, the objects of the trust for which it was established seems to be to open, run, establish monetary assistance to University, School, Colleges, Polytechnic Institution, etc for imparting education and training to students. We have perused the objects of the assessee trust, which has been enumerated on page-1 onwards of the impugned order. The main object of the trust was to promote/provide education in various fields along with medical care and activities of social and charitable purposes. There is a finding in the impugned order that the trust deed does not mention of religious activities. In view of this factual matrix, the office of the Ld. CIT issued show-cause notice to the assessee trust on 27/02/2012 for personal hearing and also to explain as to why the application filed for registration u/s 12A of the Act may not be rejected. Considering the objects/activity of the assessee trust, the Ld. CIT was not satisfied with the genuineness of the activity of the trust, therefore, the registration u/s 12A/12AA of the Act was denied. During hearing, before this Tribunal, the assessee neither represented itself nor moved any adjournment petition. It seems that the assessee has nothing to say. Considering the totality of facts, available on record, we find no infirmity in the conclusion and the finding drawn in the impugned order. We affirm the same.

Finally, the appeal of the assessee is dismissed.

This order was pronounced in the open in the presence of ld. CIT-DR at the conclusion of the hearing on 12/04/2017.

Sd/- Sd/- (Rajendra) (Joginder Singh) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER मुंबई Mumbai; �दनांक Dated : 12/04/2017 f{x~{tÜ? P.S/.�न.स. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant (Respective assessee) 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai, 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//

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