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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SMT. ASHA VIJAYARAGHAVAN & SHRI INTURI RAMA RAO
O R D E R Per Asha Vijayaraghavan, Judicial Member
This appeal is by the assessee trust against the order of the Commissioner of Income Tax (Exemptions), Bangalore [hereinafter referred to as “the CIT”] denying the assessee registration u/s. 12A of the Act.
The assessee trust filed application for registration u/s 12A of the Act on 25-05-2015. As there were some discrepancies, a letter dated 16.11.2015 was issued, by the CIT calling for certain details/clarifications such as:- 1. List of trustees/governing body members with a) Name; b) Address; c) Phone No.; d) Educational Qualification; e) Details of occupation/employment during the last two years from date of application; f) Details of any other Trust/Society associated with as Trustee/Managing Committee Member.
2. Whether the object and activities of the trust/Institution is charitable/religious/others. If charitable please explain how the objects and activities of the Trust are covered within the meaning of section 2(15)/proviso to section 2(15) of the Income-tax Act 1961.
3. Detailed note on activities of the trust/institution since inception or for the latest three years along with third party evidence in the form of brochures, Photos etc.
4. Provisional account of Receipt & Payment a/c, Income & expenditure a/c, Balance sheet from 1/4/2015 to till date and financial statement for the A.Y. 2014-15.
Details of occupation of the trust/society premises (Rental/Lease agreement) 6. Details of bank accounts operated by the trust (bank branch and alc no.) and copy of the bank extract for two financial years.
The assessee trust was requested to comply by 20/11/2015, but there has been no compliance from the assessee.
At the stage of registration u/s. 12AA, the Commissioner on receipt of an application for registration of a trust or institution has to satisfy himself about the objects of the trust or institution and the genuineness of its activities. The CIT noted that in the absence of details/documents sought, it was not possible to ascertain the genuineness of the objects and the activities of the trust. The CIT concluded that the applicant is not interested in prosecution of the application for registration u/s. 12A and therefore deserves to be dismissed on this account. He observed that the law assists those who are vigilant and not those who sleep over their rights. This principle is embedded in the well-known dictum Vigilantus non dormantibusjura-subveniunt” According to the CIT, Courts in several cases have upheld this dictum. Lack of diligence and follow up on the part of the assessee has been frowned upon by various courts in the decisions as under:-
i) 106 ITR 653 (SC), ii) 118 ITR 161 (SC) iii) 286 ITR 688 (MP) (iv) 257 ITR 301 (Delhi) & (v) 130 Taxman 61 (Mad) 5. Considering the facts and circumstances of the case as detailed above, the application for registration u/s 12A was rejected by the CIT.
Aggrieved, the assessee-trust is in appeal before us. The ld. counsel for the assessee produced before us the following documents:-
(a) Letter dated 27.08.2015 regarding furnishing of particulars as required by ITO(Exemptions). (b) Letter dated 15.10.2015 in reply to letter from ITO (Exemptions) dated 01.10.2015. (c) Letter dated 21.11.2015 furnishing details sought for by the ITO vide letter dated 16.11.2015.
The ld. counsel for the assessee submitted that the assessee had been responding to the letters issued by the department and has furnished all the details. He also stated that the assessee had complied with filing of all the forms as per statutory requirement and pleaded for one more opportunity to appear before the CIT(Exemptions) in order to furnish all the requirements to the satisfaction of the CIT(E).
We have heard both the parties and perused the material on record. In the facts and circumstances of the case, we deem it fit to restore the matter back to the CIT(E) for fresh adjudication. The assessee trust shall produce all the relevant details before the CIT(E) to decide the issue with respect to grant of registration of the trust u/s. 12AA of the Act. Accordingly, the issue is restored back to the file of CIT(E), who shall decide the issue afresh after affording opportunity of being heard to the assessee.
In the result, the appeal by the assessee is allowed for statistical purposes.
Pronounced in the open court on this 24th day of June, 2016.