Income Tax Appellate Tribunal - Raipur
D.M.Charitable Trust, Janjgir-Champa ... vs C.I.T.(Exemption), on 19 February, 2016
आयकर अपील य अ धकरण, RAIPUR
IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR
BEFORE S/SHRI MUKUL SHRAWAT (JM) SHAMIM YAHYA (AM)
सव ी मुकुल ावत, या यक सद य एवं शमीम याहया, लेखा सद य के सम ।
आयकर अपील सं./I.T.A. No.72/Bil/2015
D.M.Charitable Trust, बनाम/ CIT (Exemption),
Hatri Chowk, Sakti, Hoshangabad Road,
Vs.
Janjgir-Champa, C.G. Bhopal
थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AACTD 0724 C
(अपीलाथ /Appellant) .. ( यथ / Respondent)
अपीलाथ ओर से / Appellant by : Shri R.B.Doshi
यथ क ओर से/Respondent by : Shri Yacub Topp
सुनवाई क तार ख / Date of Hearing : 17-02-2016
घोषणा क तार ख /Date of Pronouncement : 19 -02-2016
आदे श / O R D E R
Per Mukul Shrawat, JM
This is an appeal filed by the appellant-trust arising out of order of the ld CIT(Exemption), Bhopal passed under section 12A(1)( b)( ii) of the Income tax Act, 1961 dated 27.3.2015. The ground raised by the appellant-trust is reproduced below:
"In the facts and circumstances of the case and in law, the ld CIT(A) erred in refusing registration u/s.12AA to the trust observing that the appellant trust has not fulfilled the conditions for registration. The order of rejection passed by the CIT is illegal, not in accordance with law."2
I.T.A. No.72/Bil/2015 D.M.Charitable Trust
2. At the outset, we have been informed that proper opportunity of hearing was not granted by the ld CIT(Exemption), Bhopal.
3. From the side of the appellant-trust, Shri R.B.Doshi, ld A.R. has tried to demonstrate that alongwith application filed under section 12AA of the Act, the assessee had enclosed Form -10A, certified copy of the trust deed and list of office bearers. He has further informed that certain enquires were made by the ITO(Exemption), Bilaspur. Simultaneously, there were enquiries from CIT (Exemption), Bhopal. The assessee was under impression that once the requisite informations have been given to the Revenue Officer at Bilaspur, then the proper compliance was made. However, ld CIT (Exemption), Bhopal has treated the assessee in default and rejected the application in the following manner:
"I have gone through the record and also considered the reports furnished by the Inspector, Assessing Officer and the Jt CIT(Exemption), Raipur, placed on record carefully and after considering the reports and taking into consideration the facts that no books of account have been produced for examination, no supporting documents evidencing for the creation of the trust and the charitable activities carried on by the said trust are on record and also considering the fact that there is nothing on record in the form of documentary evidences which satisfies the undersigned that the charitable activities are being carried on by the said trust and they are genuine. I am of the considered opinion that the said trust is not fulfilling the conditions laid down u/s.12AA of the Income tax Act and, accordingly, not entitled for registration u/s.12AA of the I.T.Act at this stage. Consequently, the application filed under section 12A of the Act is hereby rejected and registration sought by the applicant under section 12AA of the Act is refused."3
I.T.A. No.72/Bil/2015 D.M.Charitable Trust
4. After hearing the submissions of both the sides, we are of the considered opinion that the natural justice demands to grant a reasonable opportunity of hearing to a litigant before rejecting his claim. It appears that the facts as narrated by ld AR.. could be correct because in the impugned order passed under section 12AA, the Commissioner (Exemption) has mentioned that the registration application u/s.12A was received in the office of the Commissioner, Bilaspur on 1.9.2014. However, as a result of restructuring, the application of the appellant-trust was transferred by ld CIT, Bilaspur to the jurisdiction of CIT (Exemption), Bhopal. As far as the provisions of section 12A are concerned, it is prescribed that the Commissioner is required to examine the objects of the trust as well as the genuineness of the activities of the trust. The Commissioner is required to record his satisfaction in respect of objects as well as activities of the trust. This can only be ascertained after examining the accounts alongwith activities carried on by the trust. Since in this case, the Commissioner has not examined these two aspects, therefore, we are of the considered view that in the light of the decisions in the case of CIT vs. Vijay Vargiya Vani Charitable Trust(2014) 369 ITR 360 (Raj); Fifth Generation Education Society vs CIT ,(1990) 185 ITR 634 (All) & CIT vs. Agricultural Produce and Market Committee(2007) 291 ITR 4129(Bom), the application was wrongly rejected that too in a summary manner. Hence, the natural justice demands to refer this issue back to the stage of ld CIT(Exemption) to be decided denovo. Needless to say the appellant-trust shall be granted adequate opportunity of being heard. Side by 4 I.T.A. No.72/Bil/2015 D.M.Charitable Trust side, we hereby direct the appellant to be present before the ld CIT(Exemption) either itself or through representative within 30 days on receipt of the order of the Tribunal without waiting for any formal notice of hearing with all necessary documents/evidences so that the issue of registration of trust can be decided at an early date.
5. In the result, appeal filed by the appellant trust is allowed for statistical purposes.
Order pronounced in the open court on 19 /02/2016 .
आदे श क घोषणा खुले यायालय म दनांकः को क गई ।
Sd/- sd/-
(शमीम याहया,लेखासद य) (मुकुल ावत, या यक सद य)
SHAMIM YAHYA, ACCOUNTANT MEMBER MUKUL SHRAWAT,JUDICIAL MEMBER
Raipur, दनांक Dated 19 / 02/2016
व. न.स./ Parida , Sr. PS
आदे श क त ल प अ े षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant : D.M.Charitable Trust, Hatri Chowk, Sakti, Janjgir-Champa, C.G.
2. यथ / The Respondent: CIT (Exemption), Hoshangabad
3. आयकर आयु त(अपील) / The CIT(A)- Bilaspur
4. आयकर आयु त / CIT
5. वभागीय त न ध, आयकर अपील य अ धकरण, / DR, ITAT, Raipur
6. गाड फाईल / Guard file.
आदे शानुसार/ BY ORDER, स या पत त //True Copy// SR. PS, ITAT, CAMP: RAIPUR