Loading judgment…
No AI summary yet for this case.
Assessee by Shri Darshit J Naik, CA Department by Shri Ashok B. Koli (CIT-DR) Date of Institution of Appeal 19/05/2023 Date of hearing 10/08/2023 Date of pronouncement 10/08/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee-trust is directed against the order of learned Commissioner of Income Tax, (Exemption), Ahmedabad [in short the ld. CIT(E)] dated 30/03/2023 in rejecting the application of assessee-trust for registration under Section 12AB of the Income Tax Act, 1961 (in short, the Act). The assessee has raised following grounds of appeal: “(1) The learned Commissioner of Income Tax erred in rejecting the application for registration under Section 12AA made by the Appellant.
Navsari Mehta Family Zampa Maholla Gahambhar & Jashan Fund Vs CIT(E) (2) The learned Commissioner of Income Tax erred in not granting adequate opportunity to the appellant to meet his case. (3) The learned Commissioner of Income Tax erred in rejecting the Appellant trust’s application primarily on the ground that the name of the trust as per the PAN database and that as per the Charity Commissioner’s certificate are different. (4) The learned Commissioner of Income Tax erred in ignoring the submissions made by the Appellant in response to the notices issued and the details furnished by the Appellant in its application for registration. (5) Having regard to the facts and circumstances of the case and the provisions of law, the appellant submits that Commissioner of Income Tax be directed to grant registration to the appellant u/s 12AB. The appellant craves leave to add, alter or amend, the above grounds of appeal as and when advised.”
2. Brief facts of the case are that the assessee is filed an application for registration under Section 12AB of the Act in Form 10AB in accordance with Rule 17A of the Income Tax Rules, 1962, (in short, the Rules) on 28/09/2022 . The assessee furnished necessary details at the time of filing application electronically/online including copy of original registration alongwith memorandum of association/constitution deed/trust deed of assessee. The assessee also furnished copy of certificate of registration and PAN. On perusal of details of assessee in different documents, the ld CIT(E) found that as per PAN/ Form-10AB the name of assessee “NAV ZAPAMOHLA G AND JASHAN FUND FUND NAVSARI”. In PTR (Public Trust Register) the name of assessee is “NAVSARI ZAPA MOHALLA GHANBAR AND JASAN FUND”. However, in the certificate of registration the name of the Trust is appearing as “NAVSARI ZAPA BAZAR MOHALAA GHANBAR ANNE JASHAN FUND Navsari Mehta Family Zampa Maholla Gahambhar & Jashan Fund Vs CIT(E) NAVSARI”. Thus, there is a mismatch in the name of PAN database vis- à-vis certificate of registration. The ld. CIT(E) was of the view that the assessee has not furnished required details. In absence of requisite details, the verification of object of trust could not be verified. The ld. CIT(A) rejected the application of assessee for want of compliance by holding that Section 12AB of the Act makes it clear that before granting registration, he has to satisfy himself about genuineness of the activities of the trust and to verify that activities are in consonance with object of the trust or institution. Aggrieved by the order of ld. CIT(E), the assessee has filed present appeal before this Tribunal.
We have heard the submissions of learned Authorised Representative (ld. AR) of the assessee and the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue. The ld. AR of the assessee submits that the assessee furnished complete details while filing/uploading required details at the time of filing of application. The ld. AR of the assessee submits that they have furnished copy of trust deed, registration of trust deed with Charity Commissioner, Surat bearing registration No. C-70 Navsari. Same registration number is mentioned in all evidences of assessee trust about its activities. The ld. AR of the assessee submits that the assessee is a charitable and religious trust. The trust is in existence from 1953. There is no change Navsari Mehta Family Zampa Maholla Gahambhar & Jashan Fund Vs CIT(E) in the object and activities of the assessee-trust. The assessee was granted provisional registration certificate under section 21A(1)(ac)(iii) on 04/04/2022. The name of trust on PAN is mentioned in short form. The assessee has already filed an application for correction in data base of PAN, vide application dated 7th August 2023, copy of acknowledgement is filed on record at page No. 63 of paper book. The name was wrongly mentioned due to inadvertence and due to different nomenclature due to inadvertence mistake. The correct name of assessee may be read as “NAVSARI ZAPA MOHOLLA GHAMBAR AND JASHAN FUND”. There is no change in the name of assessee trust rather due to mismatch of name due to inadvertence, the ld. CIT(E) rejected the application. The ld. AR of the assessee submits that he has filed copy of PAN card of assessee, registration certificate with Assistant Charity Commissioner, Surat having registration No. C/70/Navsari. The assessee is filing its return of income by with PAN AAA TN 9882 D. The audited financial statement also mentioned the registration number and the name of assessee trust and PAN. The trust deed also clearly mentioned the name of assessee trust. The ld. AR of the assessee submits that the application of assessee was rejected in a mechanical way without seeking any clarification for explanation from Navsari Mehta Family Zampa Maholla Gahambhar & Jashan Fund Vs CIT(E) the assessee. The ld. AR of the assessee submits that the assessee has fulfilled all the conditions and appeal of assessee may be allowed.
In alternative submission, the ld. AR of the assessee submits that the matter may be restored back to the file of ld. CIT(E) with direction to consider the application of assessee afresh and to pass he order in accordance with law. The ld AR for assessee submits that he is ready to make correction in the Form-10AB or at other places to the satisfaction of ld CIT(E) and has already filed application for correction in PAN. The name of assessee is correctly mention in PTR 5. On the other hand, the ld. CIT-DR for the revenue submits that there was a mismatch in various documents. The assessee has given different name in Form-10AB, which is not matching with the name mentioned in various documents furnished by the assessee. The ls CIT(A) while rejecting application due to mismatch of name in different evidences. The object and activities of the assessee was not verified by the ld. CIT(E). The ld. CIT-DR submits that in case, if the Bench of view that the assessee deserve any relief, the matter may be restored back to the file of ld. CIT(E) to examine the object of assessee and genuinenity of the activities undertaken by the assessee trust and to examine any other requirement, if the assessee fulfills such condition.