M/s. Tamil Thai Charitable Trust, CHENNAI v. DIT, CHENNAI

ITA 2043/CHNY/2010 | misc
Pronouncement Date: 31-01-2011 | Result: Allowed

Appeal Details

RSA Number 204321714 RSA 2010
Assessee PAN AAATT7651A
Bench Chennai
Appeal Number ITA 2043/CHNY/2010
Duration Of Justice 1 month(s) 28 day(s)
Appellant M/s. Tamil Thai Charitable Trust, CHENNAI
Respondent DIT, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 31-01-2011
Date Of Final Hearing 27-01-2011
Next Hearing Date 27-01-2011
Assessment Year misc
Appeal Filed On 03-12-2010
Judgment Text
IN THE INCOMETAX APPELLATE TRIBUNAL: B- BENCH:CHENN AI (BEFORE SHRI ABRAHAM P. GEORGE. ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEM BER) ITA NO. 2043 / MDS/10 M/S. TAMIL THAI CHARITABLE TRUST PLOT NO.57 DOOR NO.3 FOURTH ST BALAJINAGAR ALWARTHIRUNAGAR CHENNAI-600087 PAN AAATT7651A VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) CHENNAI (APPELLANT) (RESPONDENT) APPELLANT BY : RESPONDENT BY: DR.ANITA SUMANTH SHRI P.B.SEKARAN CIT(DR) ORDER PER SHRI ABRAHAM P.GEORGE A.M: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST AN ORDER DATED 29- 09-2010 OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) CHENNAI [DIT(E)] FOR SHORT] REJECTING ITS APPLICATION FOR REGISTRATION U NDER SEC. 12AA OF THE INCOME-TAX ACT 1961 (THE ACT FOR SHORT). 2. ASSESSEE TRUST CONSTITUTED THROUGH A DEED DATED 29-02-1984 HAD FILED AN APPLICATION IN FORM NO.10A BEFORE DIT(E) F OR REGISTRATION UNDER SEC.12AA OF THE ACT. ASSESSEE WAS REQUIRED TO GIVE CLARIFICATION AND EXPLANATIONS FOR WHICH ASSESSEE FILED A REPLY ALSO. COPIES OF INCOME-TAX ITA NO. 2043/MDS /10 2 RETURNS WERE ALSO FILED. LD. DIT(E) REQUIRED THE AS SESSEE TO EXPLAIN HOW HE WAS HAVING JURISDICTION TO CONSIDER THE APPLICATION OF THE ASSESSEE SINCE ACCORDING TO HIM THE REGISTERED OFFICE OF THE TRUS T WAS IN SIVAGIRI TALUK AND THIS DID NOT FALL WITHIN HIS JURISDICTION. REPL Y OF THE ASSESSEE WAS THAT ITS ADMINISTRATIVE OFFICE WAS AT CHENNAI AND SINCE EIGHT YEARS IT WAS FILING RETURNS OF INCOME AT CHENNAI. LD. DIT(E) NOTED THAT RETURNS FOR ASST YEARS 2007-08 TO 2009-10 SHOWED THAT THESE WERE FILED AT BUSINESS WARD-V CHENNAI AND NOT IN THE OFFICE OF DIT(E) CHENNAI. A S PER THE DIT(E) EVEN THOUGH THE TRUST COULD HAVE ADMINISTRATIVE OFFICE A T DIFFERENT PLACES FOR GRANTING REGISTRATION JURISDICTION WAS DEPENDENT O N THE REGISTERED OFFICE/HEAD OFFICE OF THE TRUST. HE WAS OF THE OPIN ION THAT THE REGISTERED OFFICE OF THE TRUST DID NOT FALL WITHIN HIS JURISDI CTION AND HENCE HE REFUSED TO GRANT REGISTRATION TO THE TRUST UNDER SEC. 12AA OF THE ACT. 3. NOW BEFORE US LD. AR SUBMITTED THAT IN THE FIRS T PLACE THERE WAS CONCEPT OF A REGISTERED OFFICE FOR A TRUST. ACCORDI NG TO HER IT WAS CLEARLY MENTIONED IN CLAUSE 3 OF THE TRUST DEED THAT ITS O FFICE COULD BE MOVED FROM TIME TO TIME TO SUCH PLACES AS THE TRUSTEES MI GHT DEEM FIT AND PROPER FOR THE EFFICIENT CONDUCT OF THE TRUST. ACCORDING T O HER MENTIONING OF THE OFFICE OF THE TRUST AT NO.10 RAMU THEVAR STREET VA SUDEVANALLUR SIVAGIRI TALUK DID NOT DISABLE THE TRUST FROM HAVING AN ADMI NISTRATIVE OFFICE AT CHENNAI. ACCORDING TO HER RETURNS WERE FILED FOR V ERY MANY YEARS BY THE ASSESSEE TRUST AT CHENNAI AND THE ADDRESS MENTIONED IN SUCH RETURNS WAS ITA NO. 2043/MDS /10 3 THE ADDRESS OF ITS ADMINISTRATIVE OFFICE AT CHENNAI . AS PER THE LD.AR ASSESSEE HAD NEVER CLAIMED ITS REGISTERED OFFICE TO BE IN SIVAGIRI TALUK AND THE DIT(E) REJECTED THE APPLICATION FOR GRANTING RE GISTRATION EVEN WITHOUT GIVING THE ASSESSEE AN OPPORTUNITY FOR JUSTIFYING I TS CASE. 4. PER CONTRA LD. DR SUBMITTED THAT AN ASSESSEE JUST BECAUSE IT WAS A TRUST COULD NOT BE GIVEN FREEDOM TO SHIFT ITS OF FICE TO ANY PLACE IT LIKED AND CLAIM JURISDICTION FOR REGISTRATION BASED ON S UCH PLACE. ACCORDING TO HIM IF SO ALLOWED THEN IT WOULD BE EQUIVALENT TO GIVING IT A FREEHAND FOR DECIDING THE JURISDICTION. ACCORDING TO HIM ASSESSE E HAVING MENTIONED ITS OFFICE AS SITUATED IN SIVAGIRI TALUK IN THE TRUST D EED ITSELF DIT(E) WAS WELL JUSTIFIED IN REJECTING THE APPLICATION SINCE HE WAS NOT HAVING JURISDICTION OF SIVAGIRI TALUK. 5. WE HAVE PERUSED THE ORDERS AND CONSIDERED THE RI VAL SUBMISSIONS. ONE OF THE GROUNDS TAKEN BY THE ASSESSEE IS THAT TH E APPLICATION WAS REJECTED WITHOUT GIVING A SPECIFIC OPPORTUNITY OR A SHOW CAUSE NOTICE. AS PER ASSESSEE THERE IS NO CONCEPT OF REGISTERED OFF ICE FOR A TRUST LIKE THAT OF A LIMITED COMPANY AND THE TRUST COULD HAVE ANY N UMBER OF OFFICES. WE FIND FROM THE ORDER OF THE DIT(E) THAT HE HAD NEVER GRANTED THE ASSESSEE AN OPPORTUNITY FOR EXPLAINING WHY IT COULD MAKE AN APPLICATION BEFORE HIM BASED ON THE LOCATION OF ITS ADMINISTRATIVE OFFICE AND WHY THE LOCATION OF AN ADMINISTRATIVE OFFICE SHOULD NOT BE CONSIDERED AS T HE OFFICE WHICH DETERMINED THE JURISDICTION. LD. DIT(E) REJECTED TH E APPLICATION IN OUR ITA NO. 2043/MDS /10 4 OPINION WITHOUT GIVING A PROPER OPPORTUNITY TO THE ASSESSEE FOR EXPLAINING ITS CASE. LD. DIT(E) DID NOT ALSO EXPLAIN WHETHER T HE TAX RETURNS OF THE EARLIER YEARS WHICH HAD GIVEN ITS OFFICE ADDRESS AS THAT OF ITS ADMINISTRATIVE OFFICE IN CHENNAI COULD BE IGNORED FOR THE PURPOSE OF DETERMINING HIS JURISDICTION FOR CONSIDERING THE APPLICATION FILED BY THE ASSESSEE UNDER SEC. 12AA OF THE ACT. WE ARE THEREFORE OF THE OPINION THAT THE MATTER NEEDS TO BE REVISITED BY THE LD. DIT(E). WE THEREFORE SET ASIDE HIS ORDER DATED 29- 09-2010 AND REMIT THE ISSUE OF REGISTRATION BACK TO HIS FILE FOR CONSIDERATION DENOVO . ASSESSEE HAS TO BE GIVEN AN OPPORTUNITY FOR EXPL AINING ITS CASE. LD. DIT(E) HAS TO GIVE A REASONED ORDER WHY THE ADM INISTRATIVE OFFICE OF THE ASSESSEE-TRUST CAN OR CANNOT BE CONSIDERED FOR DETERMINING THE JURISDICTION AND WHY ASSESSEE CAN OR CANNOT BE GRA NTED A REGISTRATION UNDER SECTION 12AA OF THE ACT. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 31 -01-2011. SD/- SD/- (GEORGE MATHAN) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI: 31ST JANUARY 2011. NBR CC: ASSESSEE/ ASSESSING OFFICER/ CIT(A)/ CIT/ D .R/ GUARD FILE. ITA NO. 2043/MDS /10 5