Rander Jain ladva Shrimali Panchayat, Surat v. The CIT-I, Surat

IN THE INOME TAX APPELLATE TRIBUNAL : D BENCH : A HMEDABAD CAMP AT SURAT (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBLE SH RI D.C. AGRAWAL A.M.) I.T.A. NO. 320/AHD./2008 SHRI MAHALAXMI MATANU MANDIR SURAT -VS.- COMMIS SIONER OF INCOME TAX-I SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 321/AHD./2008 SHRI RANDER JAIN LADVA SHRIMALI SURAT -VS.- COM MISSIONER OF INCOME TAX-I SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 322/AHD./2008 SHRI SARVODAYA SHIKSHAN MANDAL SURAT -VS.- COMM ISSIONER OF INCOME TAX-I SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 323/AHD./2008 BILLIMORA PARSI ZOROASTRIAN ANJUMAN -VS.- COMMI SSIONER OF INCOME TAX-I SURAT TRUST FUND SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 325/AHD./2008 SHRI RANDER JAIN JIVDAYA FUND SURAT -VS.- COMMI SSIONER OF INCOME TAX-I SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 326/AHD./2008 SHETH FULCHAND KALYANCHAND ATHWALINES SURAT -VS.- COMMISSIONER OF INCOME TAX-I SURAT SHRI ADISHWAR BHAGWAN JAIN DAHERASAR (APPELLANT) (RESPONDENT) & I.T.A. NO. 327/AHD./2008 SHRI SURAT KSHATRIYA SAMAJ TRUST SURAT -VS.- CO MMISSIONER OF INCOME TAX-I SURAT (APPELLANT) (RESPONDENT) & I.T.A. NO. 400/AHD./2008 SHRI SURT JILLA VISHA PORWAD RUWAI GNYATI TRUST -VS .- COMMISSIONER OF INCOME TAX-I SURAT SURAT (APPELLANT) (RESPONDENT) ASSESSEES BY : SHRI R.N. VEPARI DEPARTMENT BY : SHRI H.P. MEENA SR. D.R. 2 ITA NOS. 320-32 3 325-327 & 400-AHD-2008/AHD/2008 O R D E R PER SHRI D.C. AGRAWAL ACCOUNTANT MEMBER : THESE APPEALS FILED BY THE ASSESSEE-TRUSTS ARE AGA INST THE ORDERS ALL DATED 28.11.2007 OF LEARNED COMMISSIONER OF INCOME TAX-I SURAT REFUSIN G TO CONDONE THE DELAY IN GRANT OF REGISTRATION. THE TRUST HAD CLAIMED REGISTRATION UN DER SECTION 12AA WITH EFFECT FROM THE DATE OF INCEPTION BUT THE LD. CIT GRANTED THE REGISTRATION WITH EFFECT FROM 31.03.2008 BEING THE DATE WHEN THE FRESH APPLICATION WAS FILED. THE LD. CIT R EJECTED THE APPLICATION FOR CONDONATION WITHOUT MENTIONING ANY SPECIFIC REASON. 2. BEFORE US THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSES SUBMITTED AS FOLLOWS :- (1) TRUST IS VERY OLD. (2) IT HAS BEEN REGULARLY FILING ITS RETURNS OF INC OME CLAIMING EXEMPTION U/S. 11 OF THE ACT. (3) TRUSTEES ARE OF THE FIRM VIEW THAT APPLICATION U/S. 12A(A) WAS MADE IN TIME BUT THE TRUSTEES MANAGING TRUSTS AT THAT TIME NO MORE S URVIVE AND NEW TRUSTEES HAVE NOT BEEN ABLE TO LOCATE EVIDENCE THEREOF AS ALL TRU STS ARE SMALL TRUSTS AND HAVE HARDLY ANY ADMINISTRATIVE SET UP. BUT IN FACT RETUR NS HAVE BEEN FURNISHED SINCE YEARS CLAIMING EXEMPTION U/S. 11 OF THE ACT ARE IND ICATIVE OF COMPLIANCE U/S. 12A(A) OF THE ACT. (4) FRESH APPLICATION HAS BEEN MADE IN VIEW OF AMEN DMENT DEBARRING COMMISSIONER OF INCOME TAX FROM CONDONING DELAY AND TO REGULARIZE FACT OF REGISTRATION. (5) WHATEVER PARTICULARS OF RETURNS FILED AND ORDER S MADE AS AVAILABLE HAVE BEEN FURNISHED. 2.1. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSE SSEES FURTHER SUBMITTED THAT THE ORDER PASSED BY THE LD. CIT IS NON-SPEAKING ORDER AND DOE S NOT DEAL WITH THE ISSUE RAISED BY THE ASSESSEES THAT IT IS VERY OLD TRUST AND HAS BEEN EN GAGED IN THE CHARITABLE ACTIVITIES. 2.2. IN CASE OF ITA NO. 322/AHD/2008 THE LD. A.R. SUBMITTED THAT EXEMPTION UNDER SECTION 80G(5) HAD BEEN GRANTED TO THE ASSESSEE ON 18.12.19 79 WHICH MEANS THAT ASSESSEE-TRUST WAS ALREADY ALLOWED REGISTRATION UNDER SECTION 12A EARL IER. 3 ITA NOS. 320-32 3 325-327 & 400-AHD-2008/AHD/2008 2.3. IN CASE OF ITA NO. 321/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT THE ASSESSMENT UNDER SECTION 143(3) WAS PASSED FOR ASSESSMENT YEAR 1982-83 AND INTIMATION UNDER SECTION 143(1) WAS PASSED FOR ASSESSMENT YEARS 1985-86 TO 1 987-88 WHEREIN EXEMPTION UNDER SECTION 11 WAS ALLOWED. 2.4. IN CASE OF ITA NO. 323/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT THE ORDER UNDER SECTION 143(3) WAS PASSED FOR ASSESSMENT YEAR 1996- 97 AND INTIMATION UNDER SECTION 143(1) WAS PASSED FOR ASSESSMENT YEARS 1994-95 2003-04 AND 20 04-05 WHEREIN EXEMPTION UNDER SECTION 11 WAS ALLOWED. 2.5. IN CASE OF ITA NO. 325/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT ORDER UNDER SECTION 143(1) WAS PASSED FOR ASSESSMENT YEAR 1995- 96 WHEREIN EXEMPTION UNDER SECTION 11 WAS ALLOWED. 2.6. IN CASE OF ITA NO. 326/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT INTIMATION UNDER SECTION 143(1) WAS PASSED FOR ASSESSMENT YEAR 1999- 2000. 2.7. IN CASE OF ITA NO. 327/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT ORDERS UNDER SECTION 143(3) WERE PASSED FOR ASSESSMENT YEARS 198 3-84 AND 1986-87 WHEREIN EXEMPTION UNDER SECTION 11 WAS ALLOWED. 2.8. IN CASE OF ITA NO. 400/AHD/2008 THE LD. A.R. FURTHER SUBMITTED THAT INTIMATION UNDER SECTION 143(1) WAS PASSED FOR ASSESSMENT YEARS 1991 -92 & 2006-07 WHEREIN EXEMPTION UNDER SECTION 11 WAS ALLOWED. 3. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHE R HAND SUPPORTED THE ORDER OF LD. CIT. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE ARE OF THE CONSIDERED VIEW THAT THE LD. CIT SHOULD HAVE PASSED A SPEAKING ORDER AND EXAMINED WH ETHER THE ASSESSEE-TRUST WAS ACTUALLY EXISTING AND WAS CARRYING ON CHARITABLE ACTIVITIES. IN CASE ITS INCOME WAS ALREADY ACCEPTED UNDER SECTION 11 BY GRANTING EXEMPTION TO THE EXTENT INCO ME WAS APPLIED FOR CHARITABLE PURPOSE THEN IT 4 ITA NOS. 320-32 3 325-327 & 400-AHD-2008/AHD/2008 SHOULD HAVE BEEN INFERRED THAT THE ASSESSEE-TRUST W AS ALREADY WORKING UNDER REGISTRATION. WE AGREE WITH THE VIEW OF LD. AUTHORIZED REPRESENTATIV E FOR THE ASSESSEES THAT FRESH APPLICATION ALONGWITH APPLICATION FOR CONDONATION OF DELAY HAS BEEN FILED AS AN ABANDANT CAUTION AS THE OLD CERTIFICATES WERE NOT AVAILABLE/ TRACEABLE. WE THE REFORE DIRECT THE LD. CIT TO CONSIDER THE APPLICATION FOR CONDONATION OF DELAY AND IN CASE CI RCUMSTANTIAL EVIDENCE IS FOUND THAT ASSESSEE- TRUST WAS ALREADY WORKING UNDER REGISTRATION OR ITS INCOME WAS TREATED/ ACCEPTED AS EXEMPT THEN ALLEGED DELAY SHOULD BE CONDONED TO THE EXTENT OF A TLEAST WHERE TAXABILITY OF INCOME OF THE ASSESSES MATTERS. 5. AS A RESULT ALL THE APPEALS FILED BY THE ASSESS ES ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER WAS PRONOUNCED IN THE COURT ON 28.05.2010 . SD/- SD/- (T.K. SHARMA) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28 / 05 /2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEES (2) THE DEPARTMENT. 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AHMEDABAD LAHA/SR.P.S.