PAROPKAR JEEV DAYA AND OTHER CHARITIES TRUST,MUMBAI vs. DIT (E), MUMBAI

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ITA 4937/MUM/2014Status: DisposedITAT Mumbai24 February 20163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the sole reason for rejection was the non-submission of the duly stamped and sealed trust deed. Since the assessee now possesses the correct document, the matter was sent back to the DIT for fresh consideration.

What were the facts?

The assessee's application for registration under Section 12AA of the Income Tax Act was rejected by the DIT because the trust deed submitted was not duly sealed and stamped by the Charity Commissioner. The assessee later obtained the properly authenticated trust deed.

What were the issues?

Whether the rejection of registration under Section 12AA was justified solely on the basis of a non-stamped trust deed, and if the assessee should be given another opportunity to submit the correctly authenticated document.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI ASHWANI TANEJA

For Appellant: Shri Rashmikant D. Kundalia
For Respondent: Shri S.R. Kirtney
Hearing: 10/02/2016Pronounced: 24/02/2016

This appeal has been filed by the assessee against the order passed by the Director of Income Tax (Exemption), Mumbai (in short referred to as „DIT‟) against the order passed u/s. 12AA(1)(b)(ii) r.w.s. 12A of the Income Tax Act, 1961 (in short referred to as „the Act‟) dt. 30.5.2014 on the following grounds:

“1. Under the facts and circumstances of the case and in law, the learned Director of Income Tax Exemption has erred in rejecting the application of Trust for registration u/s 12AA of Income Tax Act, 1961 on the following grounds:

2 Paropkar Jeev Daya And Other Charities Trust ITA No. 4937/Mum/2014 a. The learned DIT-Exemption erred in holding that the amendments or corrections carried out in Trust Deed have not been authenticated by the Charity Commissioner. b. The learned DIT-Exemption erred in not properly appreciating the requirements of Section 12AA of the Income Tax Act, 1961 as a whole. c. The learned DIT-Exemption erred in concluding that the Trust has not fulfilled procedural requirements prescribed u/s 12AA read with Rule 17A of Income Tax Act, 1961.”

2.

During the course of hearing arguments were made by Shri Rashmikant D. Kundalia, learned counsel on behalf of the assessee (in short referred to as „ld. Counsel‟) and Shri S.R. Kirtney, learned departmental representative (in short referred to as „DR‟).

3.

During the course of hearing, at the outset, it was submitted by the ld. Counsel that the application for registration u/s. 12A was rejected solely on the ground that copy of trust deed submitted by the assessee was not duly sealed and stamped by the Charity Commissioner. It was further submitted that the same is available and can be very well submitted, and a copy of it has been enclosed in the Paper Book for the perusal of the Bench, and therefore, in these circumstances, this matter may kindly be sent back to be re-examined by the ld. DIT.

4.

On the other hand, the ld. DR was fair enough to state that since properly sealed and stamped trust deed is available, therefore, this matter can be sent back to the file of the ld. DIT.

5.

We have gone through the submissions of both the sides as well as the order of the ld. DIT. It is noted that the sole reason given by the ld.

3 Paropkar Jeev Daya And Other Charities Trust ITA No. 4937/Mum/2014 DIT is non-submission of duly stamped and sealed trust deed. It is further noted by us that now the assessee is in possession of trust deed which is duly stamped and sealed by the Charity Commissioner. Therefore, in view of this fact, we find it appropriate to send this matter back to the file of the ld. DIT to give another opportunity to the assessee. The ld. DIT shall look into the matter afresh and after considering all the facts and circumstances of the case, he shall pass an order u/s. 12AA r.w.s. 12A, as per law. Needless to say, opportunity of hearing shall be granted to the assessee before passing the fresh order. Thus, the appeal of the assessee is treated as allowed for statistical purposes.

6.

In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on 24th February, 2016.

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