BILIMORA DHIVAR PYNCH SAMST,BILIMORA vs. CIT(EXEMOP.), AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No.387/SRT/2017 A.Y:- N.A. (Hearing in Virtual Court) Bilimora Dhivar Pynch Samst, The Commissioner of Income Badal Falia, Bilimora. Tax(Exemption), Ahmedabad. Vs PAN: AABTB 6190 M Appellant/ Revenue Respondent/ Assessee

Assessee by Shri Esmayeel Saherwala – CA Revenue by Shri H.P.Meena – CIT(DR) 16/11/2021 Date of hearing 10/02/2022 Date of pronouncement Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the Assessee is directed against order of ld.Commissioner of Income Tax(Exemption)-Ahmedabad dated 27.11.2017 passed under section 12AA of the Act. The Assessee raised following grounds of appeal: “(1) Ln. CIT-(E) has erred on facts in rejecting the application for registration U/s.12AA of the Act on the grounds of partly submissions as well as no genuine charitable activities carried out by the Trust. (2) Ln. CIT-(E) has erred on facts in not considering/overlooking detailed submissions vide speed post letter received by the department on 09/08/2017 and also gain vide the Speed Post AD/Email letter dated 27/10/2017 duly acknowledged by the I.T. office. (3) The appellant prays to quash the rejection of application made by the ln.CIT(E) and allow the registration 12AA of the Act. 2. Brief facts of the case are that the assessee filed an application for registration under section 12AA as per under Rule 11AA in Form-10A on 08.05.2017. The ld.CIT(E) vide its notice dated 23.02.2017 asked the assessee to furnish

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst certain details as mentioned in the said notice. The ld.CIT(E) while issuing notice recorded that all the information/documents are mandatory for procedure for registration under section 12AA of the Act. The ld.CIT(E) noted that the assessee neither attended his office nor filed required details, and part compliance was made, which were placed on record on record. The ld.CIT(E) keeping in view the principal of natural justice fixed the date of hearing on 30.10.2017 by issuing notice dated 16.1.2017 and mentioned that in non-compliance application is liable to be rejected for the want of details. The ld.CIT(E) further recorded that the assessee again made part compliance of notice dated 16.10.2017. The ld.CIT(E) on the basis of reply of assessee dated 11.08.2017, copy of which was available on record noted that assessee expressed his inability to furnish the Trust Deed and submitted only that trust was formed in 1952. Only copy of certificate of Assistant Charity Commissioner-Valsad dated 11.10.2000 was furnished. The ld.CIT(E) in absence of supporting evidence of Trust Deed held that in absence of such document, the object of the trust could not be verified and unable to arrive to satisfy the genuineness of activities. Aggrieved by the order of ld.CIT(E), the assessee filed present appeal before this Tribunal. 3. We have heard the submission of ld.Authorised Representative(ld.AR) of the assessee and ld.CIT(DR) for the Revenue and perused the orders of Lower

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst Authorities. The ld.AR of the assessee submits that while filing application, the assessee furnished all the document as required under Rule 11AA of the Act and for compliance of Form-10A. The assessee received a detailed questionnaire dated 23.06.2017. In response to said notice, the assesse furnished reply dated 11.08.2017 covering all applicable points with its Annexures, copy of which are placed on record. Thereafter, the ld.CIT(E) issued another similar notice dated 16.10.2017 mentioning that point no. 14, 17, 18 & 25 are pending. The assessee filed its reply dated 27.10.2017, thus, the assessee completed all the requirements as per notices issued by ld.CIT(E). The ld.CIT(E) rejected the application by taking view that in absence of Trust Deed, the object and activities could not be verified. 4. The ld.AR for the assessee submits that Trust is in existence since 1952 and its document was executed in front of First Class Resident Magistrate, Bulsar (Valsad) on payment of Stamp Duty and attested by Assistant Charity Commissioner (Vadodara). The object of Trust is mentioned at point no.3 of document dated 10.09.1952. The English Gist of object was furnished to the ld.CIT(E) with reply dated 11.08.2017. 5. The ld.AR further explained that Para No.1 of his reply dated 11.08.2017 is misinterpreted by the ld.CIT(E). The assessee did not mean to say that there is no document evidencing the creation of Trust. The ld.AR submits that he

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst has filed the copy of Trust Deed document dated 10.09.1952 containing the list of trustees, methodology of appointment of trustees and object of trust, properties of trust, source of income of trustee and required clauses of association and provision of the Trust, thus, the assessee complied with all documents and information required to prove the object of trust and genuineness of activities and that there is no violation of decision of Hon’ble Supreme Court cited by ld.CIT(E) in his order in case of CIT vs. Dawoodi Bohara Jamat in Civil Appeal No.2492 of 2014. The ld.AR prayed that since the assessee fulfilled both the twin conditions as prescribed under section 12AA of the Act and is eligible for registration thereof. 6. On the other hand, the ld.CIT(DR) for the Revenue that in Para 1 of reply of assessee dated 11.08.2017, copy of which placed at page 16 of paper book, clearly disclosed that there is no document of Trust. Despite giving opportunity by ld.CIT(E), the assessee failed to furnish the copy of Trust Deed which is primarily required to examine the object of the Trust and genuineness of activities. In absence of primary document, the application filed by the assessee is liable to be rejected the same was rightly rejected by the ld.CIT(E). The ld CIT-DR prayed for dismissal of appeal. 7. We have considered the submission of both the parties, we find that on filing application under Form-10A for registration under section 12AA of the Act,

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst the ld.CIT(E) required the assessee to file copy of Trust Deed/Memorandum of Registration, if it is not in English then certified english translation. In response to said questionnaire, the assessee sent it is reply vide reply dated 11.08.2017 as under: “1.Trust is established in the year 1952 by way of cultural tradition and rules and regulation of the local Dhivar samaj and has sole purpose to use the receipt collected from the residing persons of the Gam for the welfare of the Samaj only. There are no written documents of the trust deed but it is register under the B’bay public Trust Act 1950 and worked in accordance with the provisions of the Act regarding irrevocability, dissolution, amendment change of Trustees, power of trustees etc.,” 8. We find that the ld.CIT(E) again vide final show cause notice issued on 16.10.2017 fixing hearing on 13.10.2017 and asked the assessee to furnish the required the details. The ld.CIT(E) recorded that the assessee made part compliance of 30.10.2017 and that the assessee has expressed his inability to file copy of Trust Deed, therefore, in absence of copy of Trust Deed, object of assessee and the activities carried out by them were not verified, accordingly, the application was rejected. 9. Before us, the ld.AR of the assessee vehemently submitted that he has filed copy of Trust Deed / document dated 17.07.1952, copy of which was placed before us. Om filing such document, which is in Gujarati language, we asked the assessee to file its translated. The ld.AR of the assessee furnished the translated copy of the said document. On perusal, we find that it is in fact 5

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst copy of application filed for registration of Public Charitable Trust with the authority concerned. Neither the coy of registration certificate, nor its Memorandum of Association or Rule regulation of said trust is filed. The ld.AR of the assessee during the submission insisted that all object of trust is mentioned in para 3 of said document and insisted that this is the deed of trust created in 1952 . In our considered view, the submission of assessee is misplaced. In fact this is merely an application for registration and not registered Trust Deed. We find that it is neither a certificate of registration granted by Competent Authority, nor a Constitution/by laws of Memorandum of the assessee trust. In absence of structure Trust Deed, the activities if any are carried out in accordance with object cannot be verified, therefore, we do not find any merit in the grounds of appeal raised by the assessee, in the result, appeal of the assessee is dismissed. 10. In the result, appeal of the Assessee is dismissed. Order announced on 10 February, 2022 by placing the result on the notice board. Sd/- Sd/- (Dr ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 10/02/2022 /SGR*

ITA No.387/SRT/2017 Bilimora Dhivar Pynch Samst Copy to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR 6. Guard File By order / / TRUE COPY / / Sr.Pvt. Secretary, ITAT, Surat