SHRI JAMNAGAR VISHA SHRIMALI TAPGACHA SWAMI VATSALYA AYMBIL & DHARMIK FUND KHATU,JAMNAGAR vs. THE CIT-(EXEMPTION), AHMEDABAD

This appeal is filed by the assessee against order dated 13.6.2016 passed by the Commissioner of Income-tax (Exemptions), Ahmedabad passed under section 12AA(1) r.w.s. 12A(a) of the Income Tax Act, 1961 (hereinafter called as “the Act”).

Brief facts of the case is that the assessee-trust has made an application under section 12A(a) of the Act on 25.3.2014 in the office of Commissioner of Income Tax, Jamnagar. This application was not found in order and the same was rejected by the ld.CIT vide order dated 7.8.2014. Aggrieved against the same, the assessee filed

The ld.counsel for the assessee submitted that the name of the assessee-trust has been changed to “Jaman Khatu” and without appreciating this fact, the ld.CIT(Exemption) rejected the application of the assessee on the ground of discrepancies in the PAN number. He further submitted that the assessee is ready to produce all 3 relevant material and requested to set aside the matter to the file of the ld.CIT(Exemption) for reconsideration on the issue. He further submitted that the assessee had also submitted that there were seven different sub-trusts subsisting under the main trust, and assessee-trust is one of such sub-trusts, which has been registered under the Bombay Public Trust Act on 30.3.1961. Copy of registration certificate has been filed along with paper book. He further drew our attention to para 8,9,10 and 11 of grounds of appeal wherein it has been pleaded that the application u/s 12AA was made for the assessee i.e. Shri Jamnagar Visha Shrimali Tapgacha Swami Vatsalya Ayambli & Dharmik Fund Khatu which is a sub-trust under the main trust. The learned CIT(Exemptions), Ahmedabad has held that the PAN AAATS 9663 H is in the name of other trust. But the fact is that the assessee’s PAN is registered in its own name and the new name of the Trust is “Jaman Khatu’. It is further pleaded that in respect of all sub-trusts including the assessee, separate accounts are maintained as well, they are audited as per the requirement of the Act. The ITR as well as audit reports are regularly filed, and copies of which are available in the paper book. It is further pleaded that due to typical structure of the formation of trust, lead to some confusion and therefore the documents submitted to the CIT(Exemption) are of the primary trust and not of the assessee-trust, which the CIT(E) construed that the assessee was unable to justify the charitable activities carried out by the assessee-trust.

The ld.DR appearing for the Revenue states that this is the second round of appeal before the Tribunal. As directed by the Tribunal in earlier round, the assessee has not filed required documents in spite of various opportunities. However, looking into the documents now placed before this Tribunal, the ld.DR has no 4 serious objection in remanding the matter back to the file of the ld.CIT (Exemption) for verification and reconsideration on the issue.

We have given our thoughtful consideration to the submissions made by both the sides; we have also gone through the orders of the lower authorities and the copies of documents placed by the assessee in the paper book in support of its case. Weighing the submissions of the ld.counsel for the assessee and copies of documents placed on record, we find force in the submissions of the counsel that issue regarding registration of trust under section 12AA of the Act requires reconsideration. Therefore, in the interest of justice and fair play, we again remand the issue back to the file of the ld.CIT(Exemption) for reconsideration on the basis of submissions of the assessee and the supporting documents. Needless to say, the assessee shall submit all the documents and explanation and shall cooperate with the department in adjudicating the issue in respect of registration under section 12AA of the Act. With this direction, we allow the appeal of the assessee for statistical purpose.

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