Income Tax Appellate Tribunal - Mumbai
Maxtalent Sports & Education Institute ... vs Dit (E), Mumbai on 13 September, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL "E", BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN, JM ITA No.2112/Mum/2013 (Assessment Year :2013-14) M/s. Maxtalent Sports & Vs. DIT (E) Education Institute Trust, 6 t h Floor, 303, Susenha, Piramal Chambers, Popco Society Fisheries, Parel, University Road, Versova, Mumbai - 400 012 Andheri (W), Mumbai - 400 061 PAN/GIR No. AADTM0134G Appellant) .. Respondent) Assessee by None Revenue by Shri V. Justin Date of Hearing 06/09/2017 Date of Pronouncement 13/09/2017 आदे श / O R D E R PER R.C.SHARMA (A.M):
This is an appeal filed by the assessee against the order of DIT(Exemption)- Mumbai dated 23/08/2012 for the A.Y.2013-14 in the matter of order passed u/s.12AA(1)(b)(ii) of the IT Act.
2. Nobody appeared on behalf of the assessee inspite of issue of notice by RPAD. Even on earlier occasions appeal was fixed on 30/06/2016, 13/02/2017 and 05/07/2017, nobody appeared on behalf of the assessee. Under these facts and circumstances, the Bench decided to hear the learned DR and dispose of the appeal after considering the material placed on record.
2ITA No.2112/Mum/2013
M/s. Maxtalent Sports & Education Institute Trust
3. We have gone through the orders of the authorities below and found that the assessee trust has filed an application in Form No. 10A on 21.02.2012 for registration U/s.12A of the I.T. Act, 1961. The trust has been constituted on 16.05.2011 by the Trust Deed. On verification of the details filed it is seen that the trust has not carried out any charitable activities till date. Hence vide order sheet noting dated 13.08.2012 the assessee trust was asked to explain about the details of activities carried out by the trust with proof of expenses incurred towards objects. The date of hearing was fixed on 23.08.2012. The trustee Shri Rajeev B. Bhattacharya attended and submitted letter dated 22.08.2012 and stated that the trust is currently on the lookout for a suitable ground to start coaching activity and the activity has not yet started.
4. In view of the above, the DIT (Exemption) concluded that the assessee trust has not carried out any activities till date. The provisions to section 12AA of the I.T. Act deals with the procedure for grant of registration to the trust. The aforesaid provisions requires satisfaction of the Competent Authority before grant of registration as to whether the activities of the trust or institution has been carried out genuinely and in accordance with the object of the trust as per the Trust Deed.
5. By observing as under, DIT (Exemption) declined assessee's claim of registration u/s.12AA.
"As per provisions of section 12AA mainly two conditions are required to be satisfied before grant of registration by the CIT/DIT 3 ITA No.2112/Mum/2013 M/s. Maxtalent Sports & Education Institute Trust
(i) The objects of the trust or institution are charitable in nature (ii) Genuineness of the activities as carried on by the trust or institution in pursuance of its objects.
In the instant case the applicant has not yet started any activity in pursuance of his objects as laid down in the Trust Deed and as such there is no material before me for which the undersigned could come to the conclusion about the genuineness of the activities as carried on by the trust in pursuance of achievement of its objects. Decisions of various High Courts supports the above view. The reliance is placed on the following case laws:-
(i) CIT vs. Agriculture Produce and Market Committee, 291 ITR 419 (Bom)
(ii) S.H. Gowda Charitable Trust vs. DIT(EJ( Ward-2, 285 ITR 327 (Kar)
(iii) CIT vs. Red Rose School, 212 CTR 394 (All) In all the above decisions the Hon'ble High Courts though allowed the registration to the trust as the trusts/institutions had carried out activities which were pursuance of the objects but nevertheless laid stress that the granting authority i.e. CIT/DIT is required to be satisfied by the assessee trust about charitable objects of the trust and genuineness of its activities.
7. As regards the point that whether this issue can be taken up at the stage of registration proceedings it is pointed out that with the introduction of section 12AA w.e.f. 01.04.1997 the requirements for registration have changed. Section 12AA(l)(a) provides that the Commissioner after satisfying himself about the object of the trust or institution and the genuineness of its activities, shall pass order for registration. It clearly shows that the Commissioner should examine the object of the trust. What is to be examined has not been mentioned. Further, Section 12A has the caption "condition for application of Sec.11 and 12". The caption has also been inserted by the Finance Act, 2007, w.e.f. 01.06.2007. Section 12A provides that the provisions of Sec.11 and Sec.12 shall not apply in relation to the income of any trust or institution unless the condition of registration is fulfilled.
8. The applicant has not complied properly with the requirements necessary for registration U/S.12A of the Act. There is, thus, no material before me to satisfy myself about the genuineness of its activities, the condition precedent to grant registration in this case is not satisfied. In view of the above, registration cannot be granted to the applicant trust.
4ITA No.2112/Mum/2013
M/s. Maxtalent Sports & Education Institute Trust
6. We have carefully gone through the order of the DIT (Exemption) u/s.12AA(1)(b)(ii) and do not find any infirmity in his order for decline of Registration u/s.12AA.
7. In the result, appeal of the assessee is dismissed.
Order pronounced in the open court on this 13/09/2017
Sd/- Sd/-
(SANDEEP GOSAIN) (R.C.SHARMA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Mumbai; Dated 13/09/2017
Karuna Sr.PS
Copy of the Order forwarded to :
1. The Appellant
2. The Respondent.
3. The CIT(A), Mumbai.
4. CIT
DR, ITAT, Mumbai
5. BY ORDER,
6. Guard file.
सत्यापित प्रतत //True Copy//
(Asstt. Registrar)
ITAT, Mumbai