GETTWELL HEALTH & EDUCATION SAMITI, BHARATPUR v. CIT-III, Jaipur

ITA 1022/JPR/2010 | misc
Pronouncement Date: 22-07-2011 | Result: Allowed

Appeal Details

RSA Number 102223114 RSA 2010
Assessee PAN CEACT2007T
Bench Jaipur
Appeal Number ITA 1022/JPR/2010
Duration Of Justice 11 month(s) 9 day(s)
Appellant GETTWELL HEALTH & EDUCATION SAMITI, BHARATPUR
Respondent CIT-III, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 22-07-2011
Assessment Year misc
Appeal Filed On 13-08-2010
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.1022/ JP/2010 UNDER SECTION 12AA OF I.T. ACT M/S. GETTWELL HEALTH & EDUCATION SAMITI VS. THE CI T-III OPP. S.K. SCHOOL SIKAR JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI J.N. GOYAL AND SHRI RAJEEV G OYAL DEPARTMENT BY : SHRI SUNIL MATHUR ORDER PER N.L. KALRA AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORD ER OF THE LD. CIT-III JAIPUR DATED 23-07-2010 PASSED U/S 12AA OF THE AC T. 2.1 THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE A RE AS UNDER:- 1. THE LD. CIT HAS FAILED TO TAKE COGNIZANCE OF T HE AMENDMENT MADE BY FINANCE ACT 2007 TO SECTION 12A O F THE INCOME TAX ACT 1961 2. THE LD. CIT HAS ERRED IN NOT APPRECIATING THAT T HERE IS NO VIOLATION OF THE PROVISIONS OF SECTION 2(15) 11 1 2 OR 13 BY THE TRUST. 3. THE LD. CIT HAS ERRED IN NOT COMMUNICATING THE LD AOS REPORT TO THE APPELLANT. 4. THE LD. CIT HAS ERRED IN NOT FOLLOWING THE RULIN GS GIVEN BY THE SUPERIOR COURTS. 2 2.2 THE ASSESSEE FILED THE APPLICATION IN FORM NO. 10A ON 19-01-2010 FOR REGISTRATION U/S 12A OF THE ACT. THE TRUST WAS CREATED ON 03-01-2008. THE LD. CIT REQUIRED THE AO TO SUBMIT HIS REPORT IN RE SPECT OF GRANTING OF THE REGISTRATION AND THE AO AFTER CONSIDERING THE FACTS OF THE CASE DID NOT RECOMMEND THE CASE OF THE TRUST FOR REGISTRATION U/ S 12A OF THE ACT. THE LD. CIT HAS NOTICED THAT THE ASSESSEE HAS NOT FILED THE AUDIT REPORT OF THE IMMEDIATELY PRECEDING YEAR I.E. YEAR ENDING 31-03-2 009. A LETTER OF THE LD. AR DATED 23-07-2010 WAS RECEIVED THROUGH FAX WITHOU T ENCLOSURE ANY AUDIT REPORT. ACCORDING TO THE LD. CIT THE REGISTRATION U/S 12A IS NOT FULFILLED. THE LD. CIT FURTHER NOTICED THAT (1) RENT OF HOSPITAL BUILDING IS PAID TO KARTA OF HUF. DR B.L. RANWA. DR B.L. RANWA IS HUSBAND OF SMT . KAMLA RANWA SECRETARY OF THE TRUST (2) LOCAL ENQUIRY REVEALED T HAT THE HOSPITAL IS PRACTICALLY BEING RUN BY DR B.L. RANWA WHO IS WORKI NG AS A PHYSICIAN IN GOVT. HOSPITAL (3) SMT. KAMLA RANWA SECRETARY OF T HE TRUST IS RUNNING A GATEWELL MEDICAL AGENCY FOR SELLING MEDICINES IN TH E SAME PREMISES IN WHICH THE HOSPITAL IS BEING RUN. (4) THE HOSPITAL I S BEING RUN BY DR B.L. RANWA FOR HIS PERSONAL BENEFITS AND THE HOSPITAL IS NOT BEING FOR CHARITABLE PURPOSES. 2.3 THE LD. CIT(A) DID NOT ALLOW REGISTRATION U/S 1 2AA OF THE ACT. 3 2.4 WE HAVE HEARD BOTH THE PARTIES. BEFORE US THE LD. AR HAS FILED THE WRITTEN SUBMISSION CONTAINING 06 PAGES AND IT ALSO CONTAINS THE PAPER BOOK HAVING 08 PAGES . THE PAPER BOOK DOES NOT CONTAIN T HE COPY OF THE TRUST DEED SO AS TO ENABLE US TO ASCERTAIN THE OBJECTS OF THE TRUST. THE BALANCE SHEET AS ON 31-03-2008 SHOWS THAT THE ASSESSEE IS HAVING ASS ETS LIKE AIR-CONDITIONERS COMPUTERS FURNITURE AND FIXTURES AND TELEVISIONS. THERE IS NO REFERENCE FOR ANY ASSETS WHICH ARE NOTED FOR HOSPITAL. WE ARE ALS O NOT AWARE TO THE INVESTMENTS MADE IN THE BUILDING IN WHICH THE HOSPI TAL IS BEING RUN. THE BUILDING IS BEING OWNED BY HUF DR B.L. RANWA. IN T HE ABSENCE OF ANY DETAILS OF QUANTUM OF INVESTMENT ONE CANNOT ASCERT AIN AS TO WHETHER THE RENT BEING FOR THE HOSPITAL IS REASONABLE OR EXCESSIVE. IN CASE THE RENT IS EXCESSIVE THEN THE TRUST IS PROVIDING BENEFIT TO A PERSON COV ERED U/S 13 OF THE ACT. THE LD CIT HAS ALSO MENTIONED THAT NECESSARY DETAILS HA VE NOT BEEN FILED. THE ASSESSEE IN ITS GROUND OF APPEAL HAS SUBMITTED THAT THE LD CIT HAS NOT COMMUNICATED THE AOS REPORT. HENCE WITHOUT GOING INTO THE DETAILED SUBMISSIONS FILED BY THE LD. AR WE FEEL THAT THE I SSUE OF REGISTRATION IS TO BE RESTORED BACK ON THE FILE OF THE LD. CIT. THE ASSES SEE SHOULD BE GIVEN AN OPPORTUNITY BY THE LD. CIT BEFORE DECIDING THE ISS UE OF REGISTRATION AND ALL THE MATERIALS WHICH ARE CONSIDERED AS ADVERSE TO TH E ASSESSEE MUST BE CONFRONTED TO THE ASSESSEE. 4 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22-07 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 22 /07/2011 *MISHRA COPY FORWARDED TO :- 1. M/S. GETWELL HEALTH & EDUCATION SAMITI SIKAR 2. THE LD. CIT III JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD.DR 5. THE GUARD FILE (ITA NO. 1022/JP /10) A.R ITAT JAIPUR 5 6