Ahmedabad Sthanik Trivedi Mevada Brahman Gnati Trust,, Ahmedabad v. A.O. Ward-3(3)(2), Ahmedabad

ITA 1612/AHD/2018 | 2014-2015
Pronouncement Date: 13-05-2021 | Result: Allowed

Appeal Details

RSA Number 161220514 RSA 2018
Assessee PAN AACTA8387N
Bench Ahmedabad
Appeal Number ITA 1612/AHD/2018
Duration Of Justice 2 year(s) 10 month(s) 11 day(s)
Appellant Ahmedabad Sthanik Trivedi Mevada Brahman Gnati Trust,, Ahmedabad
Respondent A.O. Ward-3(3)(2), Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 13-05-2021
Date Of Final Hearing 31-03-2020
Next Hearing Date 31-03-2020
Last Hearing Date 26-02-2020
First Hearing Date 26-02-2020
Assessment Year 2014-2015
Appeal Filed On 02-07-2018
Judgment Text
SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI PRADIP KUMAR KEDIA ACCOUNTANT MEMBER & SMT. MADHUMITA ROY JUDICIAL MEMBER ./ I.T.A. NOS. 1612 & 1613/AHD/2018 ( ASSESSMENT YEARS : 2014-15 & 2015-16) AHMEDABAD STHANIK TRIVEDI MEVADA BRAHMAN GNATI TRUST NANAVATY & ASSOCIATES A/18 3 RD FLOOR NARAYAN CHAMBERS ASHRAM ROAD AHMEDABAD - 380009 / VS. THE INCOME TAX OFFICER WARD -3(3)(2) B WING 5 TH FLOOR PRATYAKSHAKAR BHAVAN BEHIND PANJARA POLE AMBAWADI AHMEDABAD - 380015 ./ ./ PAN/GIR NO. : AACTA8387N ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI A. P. NANAVATY A.R. / RESPONDENT BY : SHRI S. S. SHUKLA SR.D.R. DATE OF HEARING 19/04/2021 !'# / DATE OF PRONOUNCEMENT 13/05/2021 / O R D E R PER PRADIP KUMAR KEDIA - AM: BOTH CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX (APPEALS)-9 AHMEDABAD (CIT(A) IN SHORT) BOTH DA TED 08.05.2018 ARISING IN THE INTIMATION DATED 16.03.2016 & 27.03. 2017; ITA NO. 1612 & 1613/AHD/18 (AHMEDABAD STHANIK TRIVEDI MEVADA BRAHMAN GNATI TRUST) - 2 - RESPECTIVELY PROCESSED BY THE CENTRALIZED PROCESSIN G CENTER (CPC) UNDER S. 143(1) OF THE INCOME TAX ACT 1961 (THE AC T) CONCERNING AYS. 2014-15 & 2015-16. 2. BOTH THE CAPTIONED APPEALS HINGES AROUND A COMMO N GRIEVANCES THAT THE TAX LIABILITY HAS BEEN RAISED O N THE ASSESSEE TRUST ON THE PREMISE OF NON-AVAILABILITY OF REGISTRATION UNDER S.12A OF THE ACT. SINCE THE ISSUE INVOLVED IN BOTH THE APPEALS CONCERNING AY 2014-15 AND AY 2015-16 RESPECTIVELY ARE COMMON BOT H THE APPEALS HAVE BEEN DISPOSED OF BY THIS COMMON ORDER. 3. WHEN THE MATTER WAS CALLED FOR HEARING THE LE ARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A S OCIETY REGISTERED UNDER SOCIETIES REGISTRATION ACT 1960. IT WAS CONS TITUTED AS A SOCIETY IN THE NATURE OF PUBLIC TRUST AND REGISTERE D UNDER BOMBAY CHARITABLE TRUST ACT 1950. THE SAID SOCIETY IS CR EATED WITH OBJECT AND PURPOSE OF AMELIORATING TRIVEDI MEVADA BRAHMIN RESIDING IN THE CITY OF AHMEDABAD IN AREA OF EDUCATION AND CULTURE WHICH IS DEFINED EXHAUSTIVELY IN THE TRUST DEED. 3.1 IT WAS POINTED OUT THAT THE RETURN WAS FILED BY THE TRUST CLAIMING EXEMPTION UNDER S.11/12 OF THE ACT WHICH W AS DENIED IN THE INTIMATION PROCESSED UNDER S.143(1) OF THE ACT IN THE ABSENCE OF REGISTRATION OBTAINED UNDER S.12A OF THE ACT. THE CIT(A) HAS ALSO CONFIRMED THE ACTION TAKEN UNDER S.143(1) OF THE AC T FOR WANT OF REGISTRATION UNDER S.12A OF THE ACT. IT WAS THUS H ELD BY THE REVENUE THAT INCOME OF THE UNREGISTERED TRUST IS SU SCEPTIBLE TO BE TAXED AT MAXIMUM MARGINABLE RATE UNDER S.267B OF TH E ACT AS APPLICABLE TO ASSOCIATION OF PERSON (AOP). THE STA TUS OF THE ASSESSEE WAS THUS RECKONED AS AOP FOR THE PURPOSES OF DETERMINATION OF TAX LIABILITY. ITA NO. 1612 & 1613/AHD/18 (AHMEDABAD STHANIK TRIVEDI MEVADA BRAHMAN GNATI TRUST) - 3 - 3.2 IN THIS BACKDROP THE LEARNED COUNSEL FOR THE A SSESSEE ADVERTED OUR ATTENTION TO A PETITION BEFORE THE TRIBUNAL FOR ADMISSION OF ADDITIONAL EVIDENCE IN THE FORM OF 12AA OF THE ACT BEING REGISTRATION DATED 31.10.2017 GRANTED TO THE ASSESS EE TOGETHER WITH AN AFFIDAVIT DATED 07.09.2020 NARRATING THE CIRCUMS TANCES FOR NON- PRODUCTION OF THE AFORESAID EVIDENCE BEFORE THE APP ELLATE AUTHORITY. IT WAS THUS PLEADED THAT ADDITIONAL EVIDENCE IN THE FORM OF REGISTRATION UNDER S.12AA OF THE ACT BE ADMITTED BY THE TRIBUNAL IN TERMS OF RULE 29 OF THE ITAT RULES 1963. IT WAS C ONTENDED THAT THE ADDITIONAL EVIDENCE GOES TO THE ROOT OF THE CON TROVERSY AND CLINCHES THE CLAIM OF BENEFIT AVAILABLE UNDER S.11/ S.12 OF THE ACT. IT WAS SUBMITTED THAT SUBSTANTIAL CAUSE OF THE ASSESSE E WOULD BE DEFEATED IN THE ABSENCE OF ADMISSION OF THE EVIDENC E AND FOR WEIGHING THE ISSUE IN CONTROVERSY. IT WAS POINTED OUT THAT THE CERTIFICATE ISSUED UNDER S.12AA OF THE ACT TESTIFIE S THE FACT OF REGISTRATION UNDER S.12AA OF THE ACT AND THUS THE E NTITLEMENT AVAILABLE TO THE REGISTERED TRUST UNDER THE ACT SHO ULD NOT BE TAKEN AWAY BY THE REVENUE AUTHORITIES FROM THE ASSESSEE E NGAGED IN CHARITABLE OBJECTS IN THE LARGER PUBLIC INTEREST. 4. WE FIND MERIT IN THE PLEA OF THE ASSESSEE FOR AD MISSION OF ADDITIONAL EVIDENCE IN THE CIRCUMSTANCES NARRATED A BOVE. IT IS A MATTER OF FACT THAT THE INCOME TAX DEPARTMENT ITSEL F HAS ISSUED CERTIFICATE UNDER S.12AA OF THE ACT REGISTERING THE ASSESSEE FOR THE PURPOSES OF SECTION 11/12 OF THE ACT. THE DELINQUE NCY IN NON- PRODUCTION OF REGISTRATION BEFORE CIT(A) IS THEREFO RE VIEWED BENIGNLY. THE ADDITIONAL EVIDENCE IN THE FORM OF OR DER UNDER S.12AA OF THE ACT DATED 31.10.2017 IS THEREFORE ADM ITTED BY THE TRIBUNAL FOR ADJUDICATION OF DISPUTE. ITA NO. 1612 & 1613/AHD/18 (AHMEDABAD STHANIK TRIVEDI MEVADA BRAHMAN GNATI TRUST) - 4 - 5. HAVING REGARD TO THE FACT THAT THE ORDER UNDER S .12AA OF THE ACT WAS NOT PRESENTED BEFORE THE FIRST APPELLATE AU THORITY FOR ITS CONSIDERATION WE REFRAIN OURSELVES FROM EXPRESSING OUR VIEW ON MERITS OF THE ELIGIBILITY OF DEDUCTION UNDER S.11/1 2 OF THE ACT. THE IMPUGNED ORDERS OF THE CIT(A) BOTH DATED 08.05.2018 FOR AYS. 2014-15 & 2015-16 ARE THUS SET ASIDE AND THE ISSUE IS RESTORED BACK TO THE FILE OF THE CIT(A) FOR DE NOVO ADJUDICATION IN ACCORDANCE WITH LAW AFTER TAKING INTO ACCOUNT THE ORDER PASSED GRANTING REGISTRATION UNDER S.12AA OF THE ACT. IT SHALL BE OPEN TO THE ASSESSEE TO FURNISH SUCH EVIDENCES AND EXPLANATIONS AS MADE DEEMED NECESSARY TOWARDS JUSTIFICATION OF CLAIM OF BENEFIT BEFORE THE FIRST APPELLATE AUTHORITY AND FOR THE PURPOSE OF DETERMIN ATION OF ISSUE. 6. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 13/05/2021 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ / CONCERNED CIT 4. - / CIT (A) /. 012 33*+4 *+#4 56) / DR ITAT AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 13/05/ 2021