Income Tax Appellate Tribunal - Indore
Kund Kund Pravachan Prasaran Sansthan, ... vs Assessee on 17 October, 2011
IN THE INCOME TAX APPELLATE TRIBUNAL,
INDORE BENCH, INDORE
BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M.
PAN NO. : AAATK6588R
I.T.A.No. 611/Ind/2010
Kund Kund Pravachan Commissioner of Income-
Prasaran Sansthan, tax,
Ujjain vs Bhopal.
Appellant Respondent
Appellant by : Shri Prakash Jain, C. A.
Respondent by : Shri Arun Dewan, Sr. DR
Date of Hearing : 17.10.2011
Date of : 20.10.2011
pronouncement
ORDER
PER R. C. SHARMA, A.M.
This is an appeal filed by the assessee against the order of CIT, Ujjain, dated 05.10.2010 u/s 12A/12AA of the Income- tax Act, 1961.
2. Following grounds of appeal have been taken by the assessee :-
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1. That impugned order passed by the ld. CIT (Adm) is bad in law as well as on the facts. It is based on incorrect interpretation of law and the facts have also been incorrectly construed.
2. That on the facts and in the circumstances of the case , the ld. CIT (Adm) erred in refusing registration u/s 12AA of the Income-tax Act w.e.f. 1.4.2000 without following direction of Hon'ble High Court by assigning the reason that application dated 23.3.2001 was not directly filed before the CIT(Adm), Bhopal, and thus no such application was pending before the competent authority inspite of the fact that the application dated 23.3.2001 was duly filed through Jt. CIT, Ujjain, as per the prevalent practice at that time.
3. That on the facts and in the circumstances of the case , the ld. CIT (Adm) erred in not making any comment that where the application for grant of registration u/s 12AA filed on 23.3.2001 duly 2
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acknowledged by the Department have
gone/misplaced.
3. Rival contentions have been heard and records perused. Brief facts are that the assessee which is a religious Trust had made an application for registration u/s 12A of the Income-tax Act, on 23.3.2001 to the CIT, M.P., Bhopal. The Trust is located at Ujjain but during the relevant time the office of CIT was not at Ujjain and it was under the jurisdiction of CIT, Bhopal, therefore, the application was made to CIT, Bhopal. Subsequently the office of CIT, Ujjain came into existence on 01.06.2001. The provision of the Act requires the authority to pass an order accepting or refusing registration within six months, but no decision on the assessee's application for registration was taken and the assessee proceeded on the basis that the registration was granted to it. The assessee submitted application on 30.4.03 to the CIT, Ujjain making a request to allot the registration number and issue registration certificate. The CIT, Ujjain vide communication dated 10.6.03 closed the application and informed that the application dated 23.3.01 should have been 3
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submitted to CIT, Ujjain and the CIT, Bhopal, had no jurisdiction. The assessee by way of abundant caution filed another application on 19.8.08 before the CIT, Ujjain, making a request for registering the Trust u/s 12 A of the Act. The CIT, Ujjain, by order dated 19.2.09 rejected assessee's application dated 19.8.08 holding that assessee trust is a religious and charitable trust and its object are for the benefit of particular community and the provisions of Section 13(1)(b) are applicable. Assessee preferred appeal before the Appellate Tribunal against the order of CIT(Appeals). The Tribunal vide order dated 10.8.09 held that assessee is a public religious trust and the action of CIT in refusing to grant registration to the assessee trust on the ground of violation of the provisions of Section 13(1)(b) of the Act is not justified. The effect of the order of the Tribunal is that assessee become entitled for registration on the basis of the application submitted on 19.8.08, but, assessee's claim for registration on the basis of application dated 23.3.01 was rejected by referring to communication dated 10.6.03.
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4. Against this order of the Tribunal dated 10.8.2009, for not allowing the registration to assessee trust w.e.f. 1.4.2001 with respect to its application dated 23.3.2001, the assessee approached to the Hon'ble High Court, wherein High Court observed as under vide order dated 28.2.2010 :-
"8. A perusal of the record indicates that the department has not disputed the fact of submission of application for registration dated 23.3.01. It is also not disputed that when the application was submitted at that time, CIT, Bhopal, had jurisdiction over Ujjain. Therefore, either CIT Bhopal should have decided the appellants application dated 23.3.01 or it should have transferred the same on coming into existence of CIT, Ujjain but nothing was done. The appellant cannot be made to suffer due to inaction on the part of the department. The Commissioner was required to dispose off the application dated 23.3.01 by following the procedure prescribed u/s 12AA of the Act. 5
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9. The plea raised by the appellant that its application dated 23.3.01 has not been decided is not considered by the Tribunal properly. The Tribunal rejected this plea merely by referring the communication dated 10.6.2003. By the communication dated 10.6.03, the application dated 30.4.03 was closed but by this communication earlier application dated 23.3.01 was not rejected.
While issuing the communication dated 10.6.03, the Commissioner did not consider the fact that on the date of making of the application dated 23.3.01, CIT, Bhopal had the jurisdiction and that the application dated 23.3.01 was never rejected by the CIT, Bhopal, on the ground of jurisdiction or on any other ground.
10. Though, the Tribunal has recorded a finding that it is a public religious Trust and has set aside the order of CIT refusing to grant of registration, but issue relating to entitlement of the appellant for registration on the basis of application dated 6
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23.3.01 has not been examined in correct perspective either by the Commissioner or by the Tribunal. The effect of the order of Tribunal is that the appellant will be issued the registration certificate u/s 12A/12AA of the Act on the basis of the application dated 19.8.08, but, so far as the appellant's claim in respect of registration on the basis of application dated 23.3.01 is concerned, the same remained undecided.
11. Thus, in the background of the aforesaid facts, the question formulated by this Court above is answered in affirmative by remanding the matter to the CIT, Ujjain, without disturbing the finding of the Tribunal in respect of the religious nature of the assessee trust, but by setting aside that part of the order of the Tribunal by which Tribunal decided ground no. 3 relating to application dated 23.3.01. The CIT, Ujjain, is directed to decide the claim of the assessee on merit for grant of registration under Section 12A/12AA on the basis of its application 7
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dated 23.3.01. If CIT, Ujjain finds that the application dated 23.3.01 was not transferred to it, it will be open to CIT, Ujjain to summon the concerned record from the office of CIT, Bhopal, relating to the application dated 23.3.01. "
5. The CIT, Ujjain, vide order dated 5.10.10, held that there was no application filed by the assessee on 23.3.01 before the competent authority, therefore, the claim for adjudicating the merits of the case as per the direction of the Hon'ble Court does not arise. The ld. Authorized Representative drew our attention to the letter dated 11.7.2011 no.1697 written by the CIT, Ujjain to the assessee which reads as under :-
F.No. CIT/UJN/Tech/UJN/11-12/1697 Date : 11.07.2011 "The Managing Trustee, Kund Kund Pravachan Prasaran Sansthan, Shree Mahaveer Digamber Jain Mandir, 197/198 Chimanganj Mandi, Ujjain (MP) Sir, Sub : Your application dated 5.7.11 requesting copy of application for registration u/s 12A addressed to CIT, Bhopal, 8
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submitted on 23.3.2001- regarding.
Please refer to the above. As requested by you, please find enclosed herewith copy of application for registration u/s 12A of the Act addressed to CIT, Bhopal, alongwith its enclosures submitted on 23.03.2001.
Yours faithfully,
Sd
(Dilip Apte )
Income-tax Officer (Tech.)
Encl:As above. For CIT, Ujjain."
6. Original copy of the above letter was also placed before the Bench. After going through the contents of this letter, it is clear that application for registration u/s 12A was submitted by assessee before competent authority on 23.3.2001. In view of this letter of CIT, Ujjain, the impugned order passed on 5.10.2010 does not appear to be in accordance with the direction of the Hon'ble High Court. Hon'ble High Court in its order had clearly directed the CIT, Ujjain, to decide the claim of the assessee on merit for grant of registration u/s 12A on the basis of assessee's application dated 23.3.2001. In case CIT, Ujjain, does not find this application in his office, the 9
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record was to be called from CIT, Bhopal. However, without making any efforts to find out assessee's application dated 23.3.2001, the CIT, Ujjain, declined to decide the same on merits inspite of clear direction by the Hon'ble High Court. Since the office of the CIT, Ujjain, itself speaks vide letter dated 11.7.2011 that the application of assessee u/s 12A was submitted on 23.3.2001, there is no reason to grant registration with reference to this application. The Tribunal vide its order dated 10.8.2009 have already held that the assessee is a public religious trust and action of the CIT refusing to grant registration to the assessee trust on the ground of violation of provisions on 13(1)(b) of the Act was not justified. Going further by the precise direction of the Hon'ble High Court. Letter dated 11.7.2011 issued by CIT, Ujjain, clear the position that assessee's application dated 23.3.2001 was in its record. In terms of direction of Hon'ble High Court, the grant of registration was to be decided in terms of assessee's application dated 23.3.2001, which the CIT failed and assessee is again before us to decide the issue of grant of 10
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registration u/s 12A with reference to its application dated 23.3.2001.
7. We have considered the rival contentions, carefully gone through the orders of the authorities below, order of the Tribunal dated 10.8.2009 as well as directions issued by the Hon'ble High Court vide its order dated 28.1.2010 and also letter dated 11.7.2011 issued by CIT, Ujjain. It is clear from the order of the Tribunal that the assessee is a Public religious trust entitled for registration u/s 12A/12AA. However, the Tribunal after examining the genuineness of trust and its activities allowed registration on the basis of application dated 19.8.2008 and not on the basis of application dated 23.3.2001 as the same was not traceable. Now when it is clear that the assessee's application dated 23.3.2001 was already with the Department, then assessee's claim for registration is required to be allowed w.e.f. 1.4.2000.
8. After considering the entire material placed on record, we are of the considered view that the assessee should be granted registration w.e.f 1.4.2000 as per application filed on 23.3.2001. We direct accordingly.
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9. In the result, the appeal of the assessee is allowed in terms indicated hereinabove.
This order has been pronounced in the open court on 20th October, 2011.
Sd/- Sd/-
(JOGINDER SINGH) ( R.C.SHARMA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 20th October, 2011.
CPU*
1720
12