M/s Allengers Care Foundation, Chandigarh v. CIT-II, Chandigarh

ITA 1040/CHANDI/2013 | 2013-2014
Pronouncement Date: 28-04-2014 | Result: Allowed

Appeal Details

RSA Number 104021514 RSA 2013
Assessee PAN AADTA8698R
Bench Chandigarh
Appeal Number ITA 1040/CHANDI/2013
Duration Of Justice 5 month(s) 15 day(s)
Appellant M/s Allengers Care Foundation, Chandigarh
Respondent CIT-II, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 28-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 28-04-2014
Date Of Final Hearing 16-12-2015
Next Hearing Date 16-12-2015
Assessment Year 2013-2014
Appeal Filed On 12-11-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD ACCOUNTANT MEMBER AND SHRI SANJAY GARG JUDICIAL MEMBER ITA NO. 997/CHD/2013 U/S 80 G(5)(VI) M/S ALLENGERS CARE FOUNDATION VS. THE CIT-I I CHANDIGARH CHANDIGARH PAN NO. AADTA8698R & ITA NO.1040/CHD/2013 U/S 12 AA M/S ALLENGERS CARE FOUNDATION VS. THE CIT-I I CHANDIGARH CHANDIGARH PAN NO. AADTA8698R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. PRIKSHIT AGGARWAL RESPONDENT BY : SHRI. AMARVEER SINGH DATE OF HEARING : 22/04/2014 DATE OF PRONOUNCEMENT : 28/04/2014 ORDER PER SANJAY GARG JUDICIAL MEMBER BOTH THE ABOVE NOTED APPEALS ARE DIRECTED AGAINST T HE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX-II CHANDIGAR H. 2. SINCE BOTH THE APPEALS PERTAIN TO THE SAME ASSES SEE AND AS WELL THE ISSUES INVOLVED THEREIN ARE IDENTICAL IN NATURE HE NCE THESE ARE TAKEN TOGETHER AND ARE BEING DISPOSED OFF BY THIS COMMON ORDER. ITA NO. 1040/CHD/2013 3. THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASS ESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX-II DATED 13.09. 3013 REFUSING THE GRANT OF REGISTRATION U/S 12AA OF THE INCOME TAX AC T. THE ASSESSEE HAD APPLIED FOR REGISTRATION BEING A CHARITABLE TRUST. HOWEVER THE COMMISSIONER REFUSED TO GRANT OF REGISTRATION ON TH E GROUND THAT ASSESSEE 2 TRUST HAD NOT STARTED ITS ACTIVITIES AS ON THE DATE OF APPLICATION AND AS SUCH IT WAS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEES TRUST. HE ALSO NOTICED THAT EVEN THE AS SESSEE TRUST HAD NOT FURNISHED ANY DOCUMENTARY EVIDENCE TO PROVE THE GEN UINENESS OF THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE TRUST FOR THE PERIOD FROM 1.4.2013 TO 30.09.2013. HE THEREFORE REJECTED THE APPLICATIO N OF THE ASSESSEE TRUST. 4. BEING AGGRIEVED WITH THE ORDER OF THE COMMISSION ER THE ASSESSEE HAS COME UP IN APPEAL BEFORE US. 5. THE LD. AR OF THE ASSESSEE WHILE RELYING UPON TH E DECISION OF HON'BLE JURISDICTIONAL HIGH COURT OF PUNJAB & HARYA NA IN THE CASE OF CIT VS. SURYA EDUCATIONAL & CHARITABLE TRUST 355 ITR 28 0 (P&H) HAS CONTENDED THAT FOR THE GRANT OF REGISTRATION OF TH E TRUST IN A CASE WHERE THE ASSESSEE TRUST HAS NOT STARTED ITS ACTIVITIES THE REGISTRATION CANNOT BE REFUSED. IN THAT EVENT THE CIT HAS TO EXAMINE THE GENUINENESS OF THE OBJECTS OF THE TRUST. THE ACTIVITIES OF THE TRUST CAN BE EXAMINED AFTER FILING OF THE RETURN AND IF THE SAME ARE NOT FOUND GENUINE THE COMMISSIONER CAN CANCEL THE REGISTRATION OF THE TRU ST. 6. ON THE OTHER HAND THE LD. DR WHILE INVITING OUR ATTENTION TO PAGE 31 OF THE PAPER BOOK HAS VEHEMENTLY CONTENDED THAT ASSESSEE TRUST HAD CARRIED OUT ITS ACTIVITIES FOR THE PERIOD FROM 1.4. 13 TO 30.9.2013 THE DETAILS OF WHICH HAS BEEN MENTIONED AT THE ABOVE SA ID PAGE NO.31 OF THE PAPER BOOK. HE HAS FURTHER CONTENDED THAT NOW THE F INANCIAL YEAR IS OVER AND THE ACTIVITIES OF THE TRUST CAN BE EXAMINED BY THE LD. CIT UP TO 31ST MARCH 2013. 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE LD. REPRESENTATIVES OF THE PARTIES. FROM THE PERUSAL OF THE RECORD IT IS REVEALED THAT IT IS NOT A CASE WHERE THE ASSESSEE T RUST HAS NOT COMMENCED ITS ACTIVITIES. AT THE TIME OF IMPUGNED ORDER IT H AS BEEN SPECIFICALLY 3 MENTIONED BY THE LD. CIT THAT THE ASSESSEE TRUST DI D NOT FURNISH ANY PROOF OF ITS ACTIVITIES CARRIED UP TO THE PERIOD OF 30.9. 2013 WHEREAS THE PAPER BOOK DOCUMENT I.E PAGE NO. 31 REVEALS THAT THE ASSE SSEE TRUST HAD CARRIED OUT CERTAIN ACTIVITIES UP TO 30.9.2013. UNDER SUCH CIRCUMSTANCES IT WOULD BE PROPER TO REMAND THE MATTER BACK TO THE FILE OF CIT FOR A FRESH DECISION IN THE MATTER WITH A DIRECTION TO THE ASSESSEE TRUS T TO FURNISH THE NECESSARY DOCUMENTS /EVIDENCE OF ITS ACTIVITIES CARRIED OUT T ILL 31.3.2013. THE LD. COMMISSIONER AFTER EXAMINATION OF THE ACTIVITIES OF THE ASSESSEE TRUST WILL DECIDE THE APPLICATION OF THE ASSET TRUST A FRESH WITHIN 90 DAYS OF THE RECEIPT OF COPY OF THIS ORDER. NEEDLESS TO SAY THAT THE ASSESSEE TRUST WILL PROMPT LY SUBMIT THE NECESSARY EVIDENCES AND THE COMMISSIONER WILL ALSO GRANT PROPER OPPORTUNITY TO THE ASSESSEE TRUST TO PRESENT ITS CA SE. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE TRUST IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 997/CHD/2013 9. THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL AG AINST THE REJECTION OF HIS APPLICATION FOR GRANT OF APPROVAL U/S 80G(5) (VI) OF THE INCOME TAX ACT. 10. THE COMMISSIONER VIDE IMPUGNED ORDER DATED 13.9 .2013 HAS REJECTED THE APPLICATION OF THE ASSESSEE TRUST IN-L IMINE FINDING THAT THE APPLICATION WAS NOT SUPPORTED BY CERTIFICATE OF RE GISTRATION U/S 12A OF THE ACT. 11. THE LD. AR BEFORE US HAS SUBMITTED THAT THE A PPLICATION FOR GRANT OF REGISTRATION U/S 12A WAS MOVED ALONG WITH THE PR ESENT APPLICATION AND BOTH THE APPLICATIONS WERE PENDING BEFORE THE LD. C OMMISSIONER. HOWEVER THE LD. COMMISSIONER BEFORE DECIDING THE A PPLICATION MOVED 4 U/S 12A REJECTED THE PRESENT APPLICATION MOVED U/S 80G OF THE ACT. HIS CONTENTION HAS BEEN THAT LD. COMMISSIONER OUGHT TO HAVE EITHER DECIDE THE APPLICATION U/S 12A FIRST OR BOTH THE APPLICATI ONS TOGETHER. 12. ON THE OTHER HAND THE LD. DR HAS RELIED ON THE DECISION OF THE LOWER AUTHORITIES. 13. WE HAVE CONSIDERED THE RESPECTIVE SUBMISSIONS O F LD. REPRESENTATIVES OF BOTH THE PARTIES. AS PER OUR OB SERVATION MADE ABOVE WHILE DECIDING ITA NO. 1040/CHD/2013 WE HAVE REMIT TED THE CASE BACK TO THE FILE OF CIT FOR FRESH DECISION. SINCE THE GRAN T OF APPROVAL U/S 80G OF THE ACT IS DEPENDENT UPON THE GRANT OF REGISTRATION U/S 12A OF THE ACT HENCE KEEPING IN VIEW THE OVER ALL FACTS AND CIRCU MSTANCES OF THE CASE THE IMPUGNED ORDER IS HEREBY SET ASIDE AND THE MATT ER IS REMANDED BACK TO THE CIT FOR DECISION A FRESH WITH A DIRECTION TH AT THE LD. CIT FIRSTLY WILL DECIDE THE APPLICATION MOVED BY THE ASSESSEE FOR RE GISTRATION U/S12A OF THE ACT AS PER OUR DIRECTIONS GIVEN ABOVE WHILE DEC IDING THE APPEAL IN ITA NO. 1040/CHD/2013. THEREAFTER THE LD. COMMISS IONER WILL DECIDE THE APPLICATION OF THE ASSESSEE TRUST MOVED U/S 80G WITH 10 DAYS AFTER HIS DECISION ON THE APPLICATION MOVED U/S 12A BY THE AS SESSEE.. 14. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28/04/2014 SD/- SD/- (T.R. SOOD) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 TH APRIL 2014 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR 5 BY ORDER ASSISTANT REGISTRAR ITAT CHANDIGARH