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Income Tax Appellate Tribunal, DELHI BENCH “H” NEW DELHI
Before: SHRI S.V. MEHROTRA : & SMT. BEENA A. PILLAI:
This is assessee’s appeal against the order dated 22.11.2013 passed by the Director of Income-tax (Exemptions), New Delhi u/s 12AA(1)(b) r.w.s.
12A of the Income-tax Act, 1961, rejecting assessee’s application for grant of registration u/s 12A of the Act.
Brief facts of the case are that assessee trust is a society registered under the Societies Registration Act, 1860. As per registration certificate dated 12.6.2002, the assessee had filed an application on 3.5.2013 in form no. 10A, seeking registration u/s 12A before the Director of Income-tax (Exemptions), New Delhi. Ld. DIT(Exemption) has denied the registration, granting liberty to assessee to move a fresh application for registration u/s 12A, primarily for the following reasons: (a) The assessee had not furnished the required details as mentioned in her order. (b) As per Rule 17A of the Income-tax Rules, the assessee was required
to produce the original memorandum of association and registration certificate.
Ld. counsel for the assessee vehemently rebutted the observations made in DIT(Exemptions)’s order and pointed out that assessee had filed entire details which are contained in the paper book filed before us. He pointed out that assessee is presently claiming exemption u/s 10(23C)(iiiae) of the Income-tax Act and, accordingly, filing return of income at nil. He filed before us a copy of the assessment order for AY 1990-91 in assessee’s own case, wherein, after detailed discussion, the assessee was given exemption u/s 11 vide order dated 18.3.2002. Ld. counsel further referred to pages 130 and 131 of the PB, wherein the assessment order dated 15.1.2016 for AY 2013-14 is contained, in which assessee’s claim u/s 10(23C)(iiiae) has been accepted. Ld. counsel further referred to Rule 17A of the Income- tax Rules and point4ed out that as per proviso to clause (a), certified copy of the memorandum of association could be furnished by assessee in lieu of the original.
Ld. CIT(DR) submitted that the matter may be restored back to the file of ld. CIT as assessee has not made compliance.
In the rejoinder ld. counsel submitted that matter need not be restored back because the assessee had made complete compliance and the objects of assessee are charitable in nature and, therefore, registration should be granted.
We have considered rival submissions of the parties and perused the record of the case. Admittedly the assessee’s income is exempt u/s 10(23C)(iiiae), as is evident from the assessment order for AY 2013-14.
Further, assessee has been allowed exemption u/s 11 in assessment year 1990-91 also, as noted earlier. From these facts it is evident that there is no quarrel as regards charitable activities being carried on by assessee. Ld. Commissioner’s observation that assessee has not complied with the information sought for is not correct, more particularly because assessee has filed all the informations before the ITO, Head Quarters (Exemptions), which are contained in the paper book filed by assessee.
Ld. counsel referred to page 95 onwards, wherein the confirmations from doctors are contained, which was one of the informations sought for by ld. Commissioner. In the paper book the assessee has filed its financial statement for the year ending March 2010 to March 2012. Further, copies of income-tax returns are also enclosed in the PB.
Rule 17A of the Income-tax Rules is as under: “Application for registration of charitable or religious trusts, etc. 17A. An application under 99[clause (aa) of sub-section (1)] of section 12A for registration of a charitable or religious trust or institution shall be made in duplicate in Form No.1 OA and shall be accompanied by the following documents, namely:- (a) where the trust is created, or the institution is established, under an instrument, the instrument in original, together with one copy thereof; and where the trust is created, or the institution is established, otherwise than under an instrument, the document evidencing the creation of the trust or the establishment of the institution, together with one copy thereof: Provided that if the instrument or document in original cannot conveniently be produced, it shall be open to the Commissioner to accept a certified copy in lieu of the original; b) where the trust or institution has been in existence during any year or years, prior to the financial year in which the application for registration is made, two copies of the accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up.]”
Ld. Commissioner referring to Rule 17A concluded that assessee had not furnished original MOA, which requirement can be dispensed with after assessee has filed certified copies of original MOA and registration certificate. Ld. Commissioner has not at all referred to the certified documents furnished by assessee. Under such circumstances, we are of the considered opinion that the registration was wrongly denied to assessee and, therefore, we direct for grant of registration u/s 12A to the assessee.
In the result, assessee’s appeal is allowed.
Order pronounced in open court on 21-04-2016.