Sudarsan Charitable Trust, Vapi v. The CIT,, Valsad

ITA 1922/AHD/2009 | 2009-2010
Pronouncement Date: 22-07-2011 | Result: Allowed

Appeal Details

RSA Number 192220514 RSA 2009
Bench Ahmedabad
Appeal Number ITA 1922/AHD/2009
Duration Of Justice 2 year(s) 1 month(s) 11 day(s)
Appellant Sudarsan Charitable Trust, Vapi
Respondent The CIT,, Valsad
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 22-07-2011
Date Of Final Hearing 12-07-2011
Next Hearing Date 12-07-2011
Assessment Year 2009-2010
Appeal Filed On 11-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE SHRI D.K.TYAGI HONBLE JUDICIAL MEMBER AND SHRI A. MOHAN. ALANKAMONY HONBLE ACCOUNTANT MEMBE R ITA NO.1922/AHD/2009 ASSESSMENT YEAR:2009-10 DATE OF HEARING:0.12.711 DRAFTED:15.7.11 SUDARSAN CHARITABLE TRUST C/O. PRASHANTBHAI N SHAH 305-A WING MAHALAXMI APPT. MAHALAXMI SOCIETY CHALA VAPI 396 191 PAN NO.AAITS2036C V/S . COMMISSIONER OF INCOME-TAX SURYAPRAKASH CHEMBER DHARAMPUR ROAD VALSAD -396 191 (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI TUSHAR P HEMANI AR RESPONDENT BY:- SHRI JASBIR S CHOUHAN SR-DR O R D E R PER D.K.TYAGI JUDICIAL MEMBER:- THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF COM MISSIONER OF INCOME-TAX VALSAD DATED 06-05-2009 FOR THE ASSESSM ENT ORDER 2009-10 REJECTING THE APPLICATION FOR CERTIFICATE U/S.80G O F THE INCOME-TAX ACT 196. 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INC OME TAX VALSAD HAS ERRED IN REJECTING THE APPLICATION OF TH E APPELLANT TRUST ITA NO.1922/AHD/2009 A.Y 2009-10 SUDARSAN CHARITABLE TRUST V. CIT VALSAD PAGE 2 FOR APPROVAL UNDER CLAUSE (VI) OF SUB SECTION (55) OF SECTION 80G OF THE INCOME TAX ACT 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INCOME TAX VALSAD HAS ERRED IN OBSERVING THAT THE APPELLANT BEING A T RUST HAS NOT CARRIED OUT ANY MAJOR ACTIVITIES AND THE RETURN FOR A.Y. 2008-09 HAS NOT BEEN FILED AS THE INCOME OF THE TRUST IS BELOW THE TAXABLE LIMIT. THE ASSESSEE HAS NOT FILED A SINGLE RETURN. FURTHER THE TRUST HAS NOT DONE ANY MAJOR ACTIVITIES THEREFORE THE APPLIC ATION FOR CERTIFICATE UNDER 80G IS PRE-MATURE AND HEREBY REJE CTED. 3. THE LEARNED COMMISSIONER OF INCOME TAX VALSAD H AS ERRED IN REJECTING THE APPLICATIONS FOR APPROVAL OF THE APPE LLANT TRUST U/S.80G(5)(VI) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE TRUST HAD FULFILLED ALL THE CONDITIONS AND REQUIREMENTS A S PER SECTION 80G(5) AS WELL AS RULE 11AA OF THE I.T. RULES AND T HEREFORE THE TRUST WAS ELIGIBLE FOR GRANTING APPROVAL. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT LD. CIT HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S.80 G OF THE ACT ON THE GROUND THAT ASSESSEE-TRUST HAS NOT DONE ANY MAJOR A CTIVITIES AND HAS NOT FILED ANY SINGLE RETURN. THE ASSESSEES GRIEVANCE B EFORE US WAS THAT LD. CIT HAS REJECTED THE APPLICATION OF THE ASSESSEE WI THOUT TAKING INTO CONSIDERATION THE SUBMISSION OF THE ASSESSEE BEFORE HIM AS ASSESSEE HAS FULFILLED ALL THE CONDITIONS REQUIRED TO BE FUL FILLED AS PER THE PROVISIONS OF SECTION 80G(5) OF THE ACT. WE FURTHER FIND THAT ASSESSEE-TRUST HAS FILED FOLLOWING WRITTEN SUBMISSIONS BEFORE THE LD. CIT:- TO DATE:17/04/2009 THE COMMISSIONER OF INCOME-TAX VALSAD. SUB.: REP LY OF 8OG (5) APPLICATION HONORABLE SIR WE HAVE RECEIVED YOUR LETTER-DATED 27/03/2009 ON 30/03/2009 REGARDING SUBMISSION FOR OUR 80G(5) APPLICATION AS PER YOUR LETTER WE ARE SUBMITTING F OLLOWING DETAILS : 1. DETAILS OF ACTIVITY : OUR TRUST IS CREATED ON 30/04/2007 AND GOT 12A(A) R EGISTRATION ON 27/10/2008 SO DURING THIS SHORT PERIOD OF TIME TRUST HAS NOT CARRIED OU T ANY MAJOR ACTIVITIES. BUT IN FUTURE TRUSTEES OF TRUST HAS DECIDED TO WORK IN THE FIELD OF EDUCATION AND MEDICAL. TO FULFILL THE ITA NO.1922/AHD/2009 A.Y 2009-10 SUDARSAN CHARITABLE TRUST V. CIT VALSAD PAGE 3 OBJECTS TRUSTEES OF THE TRUST DECIDED TO BUILD SCHO OL HOSTEL COLLEGES FREE EDUCATIONAL ACTIVITIES OLD PEOPLE EDUCATION ACTIVITIES ETC. 2. WE ARE HEREWITH ENCLOSING AUDITED ACCOUNT FOR T HE F.Y. 2007-08. 3. OUR TRUST IS REGISTERED WITH THE CHARITY COMMI SSIONER VALSAD. XEROX COPY OF THE REGISTRATION CERTIFICATE AND TRUST DEED ARE ENCLOSE D HEREWITH. OUR TRUST IS ALSO REGISTERED U/'S. 12A(A) OF THE I.T.ACT 1961. XERO X COPY OF REGISTRATION CERTIFICATE ENCLOSED. 4. INCOME OF THE TRUST FOR THE A.Y.2008-09 IS BELO W TAXABLE SO WE HAD NOT FILED ANY I.T. RETURN. REPLY OF SHOW CAUSE FOR REJECTING 80G(5) APPLICATIO N : IN REGARD TO YOUR PROPOSAL TO REJECT THE APPLICATIO N FOR RECOGNITION OF OUR TRUST U/S. 80G(5) WE HAVE TO SUBMIT AS UNDER: IN THIS REGARD YOUR KIND ATTENTION IS DRAWN TO THE RELEVANT EXPLANATION TO SECTION 80G(5) OF THE ACT WHICH IS REPRODUCED HERE UNDER FOR YOUR CON VENIENT REFERENCE (I) SECTION 80G APPLIES TO DONATIONS TO ANY INSTITU TION OR FUND ONLY IF IT IS ESTABLISHED IN INDIA FOR A CHARITABLE PURPOSE AND IF IT FULFILS TH E STIPULATED CONDITIONS. (II) FOLLOWING CONDITIONS ARE REQUIRED TO BE FULFILLED U /S.80G(5): (A) THE INSTRUMENT UNDER WHICH THE INSTITUTE OR FOUND I S CONSTITUTED DOES NOT OR THE RULES GOVERNING THE INSTITUTION OR FUND DO NOT CONTAIN AN Y PROVISION FOR THE TRANSFER FOR APPLICATION AT ANY TIME OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS OF THE INSTITUTION OR FUND FOR ANY PURPOSES OTHER THAN CHARITABLE PURPOSES ; (F) THE INSTITUTION OR FUND IN NOT EXPRESSED TO BE FOR THE BENEFITS OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE ; (G) THE INSTITUTION OR FUND MAINTAINS REGULAR ACCOU NTS OF ITS RECEIPTS AND EXPENDITURE ; (H) THE INSTITUTION OR FUND IS EITHER CONSTITUTED A S A PUBLIC CHARITABLE TRUST OR IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT 1860 OR UNDER ANY LAW CORRESPONDING TO THE ACT IN FORCE IN ANY PART OF INDIA OR U/S. 25 OF COMPANIES ACT 1956 OR IS A UNIVERSITY ESTABLISHED BY LAW OR IS ANY OTHER EDUCATIONAL INSTITUTION RECOGN IZED BY THE GOVERNMENT OR BY A UNIVERSITY ESTABLISHED BY LAW OR AFFILIATED TO ANY UNIVERSITY ESTABLISHED BY LAW OR IT IS AN INSTITUTION FINANCED WHOLLY OR PART BY GOVERNMENT O LOCAL AUTHO RITY AND (I) IN RELATION TO DONATIONS MADE AFTER THE 31 ST MARCH 1992 THE INSTITUTION OR FUND IS FOR THE TIME BEING APPROVED BY THE COMMISSIONER IN ACCORDAN CE WITH RULE 11AA. (III) THE APPLICATION SHOULD BE MADE BE IN FORM NO. LOG PRESCRIBED UNDER RULE 11 AA AND IT IS REQUIRED TO BE SUBMITTED TO THE JURISDICTIONAL COMM ISSIONER OF INCOME-TAX. (IV) THE TRUST IS NECESSARILY REQUIRED TO BE REGIST ERED WITH TO BE REGISTERED WITH THE COMMISSIONER U/S. 12A. A TRUST CAN APPLY FOR REGIST RATION U/S. 12A AND SIMULTANEOUSLY SEEK APPROVAL U/S. 80G(5). WE HAD FULFILLED ALL THE ABOVE FOUR CONDITIONS WHIC H ARE REQUIRED FOR GETTING RECOGNIZATION UNDER U/S. 80G(5). IN VIEW OF SUCH CIRCUMSTANCES IT IS REQUESTED THAT THE APPLICATION FOR RECOGANIZATION U/S. 80G(5) SHOULD NOT BE REJECTED. ITA NO.1922/AHD/2009 A.Y 2009-10 SUDARSAN CHARITABLE TRUST V. CIT VALSAD PAGE 4 THANKING YOU YOURS TRULY SD/- ILLIGIBLE MANAGING TRUSTEE SUDARSHAN CHERITABLE TRUST VAPI THE LD. CIT HAS NOT CONSIDERED THE ABOVE SUBMISSION S OF THE ASSESSEE/TRUST PROPERLY AND HAS REJECTED THE APPLIC ATION OF THE ASSESSEE/TRUST WITHOUT PASSING A SPEAKING ORDER. TH EREFORE IN THE INTEREST OF NATURAL JUSTICE AND FAIR PLAY THE MATTE R IS RESTORED BACK TO HIS FILE FOR FRESH ADJUDICATION IN THE LIGHT OF SUBMISS IONS MADE AND/OR TO BE MADE BEFORE HIM BY THE ASSESSEE. WE HOLD ACCORDINGL Y. 4 IN THE RESULT ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 22/07/2011 SD/- SD/- (A.MOHAN.ALANKAMONY) (D.K. TYAGI) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD DATED : 22/07/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT VALSAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD