Income Tax Appellate Tribunal - Pune
Mahesh Pragati Trust,, Nashik vs Assessee on 2 January, 2014
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "B", PUNE
BEFORE SHRI SHAILENDRA KUMAR YADAV,
JUDICIAL MEMBER, AND
SHRI R.K. PANDA, ACCOUNTANT MEMBER
ITA No.2420/PN/2012
Mahesh Pragati Trust
C/o Kela House,
Panchawati,
Nashik - 422003
PAN: AATTM4349N Appellant
Vs.
CIT-I, Nashik Respondent
Appellant by : Shri Pramod Shingte
Respondent by : Shri S.P. Walimbe
Date of Hearing: 02.01.2014
Date of order : 09.01.2014
ORDER
PER SHAILENDRA KUMAR YADAV, J.M:
This appeal has been filed by the assessee against the order of Commissioner of Income Tax-I, [short CIT-I] Nashik, dated 30.10.2012 on the following grounds.
1. On the facts and in the circumstances of the case and in law the Learned Commissioner of Income Tax; Nashik is not justified in rejecting the renewal of 80G application without considering the reasonable cause for meager activities of the Trust because of certain Legal intricacies and technical problems for getting executed the conveyance deed This is against the principles of natural justice. The order may please be cancelled and the CIT may be directed to grant renewal for 80G certificate.
2. On the facts and in the circumstances of the case and in law the Learned CIT did not verified that trust has incurred expenditure on object of the Trust of about Rs 38,80,000/- in earlier period considering the nature of expenses it is capitalized. Therefore the sole reason given 2 that the activities of the trust has not been carried out in last three years this cannot be sole criteria for refusal or not recommendation for the renewal under section 80 G is against the natural justice. The order may please be cancelled and the CIT may be directed to grant renewal for 80G certificate that appreciate the full compliance as required for renewal
3. On the facts and in the circumstances of the case and in law the Learned CIT is not justified in rejecting the application when the Trust fulfils the conditions laid down for qualifying for deduction under section 80G. The CIT may be directed to grant renewal.
4. The appellant craves leave to add, alter, amend or withdraw any of the ground of appeal
2. The concerned CIT found that trust has not carried out the charitable activity as per objects laid down in trust deed during the relevant period. Therefore, the application u/s. 80G of I.T. Act was not considered for exemption. Before us it was submitted that the assessee is a charitable and religious trust duly registered under BPT Act, vide registered No.E 628 u/s.12AA of I.T. Act, dated 12.04.1994. In pursuance to that, the assessee trust has also been granted certificate u/s.80G from time to time. The last certificate u/s.80G in 1994 and thereafter renewed from time to time in 1995, 1998, 2001 three times applicable up to 31.03.2004. According to assessee, there is no change in the facts and circumstances from the earlier years when the approval and recognition u/s.80G was granted and certificate has been issued. The assessee has filed an application for renewal of 80G certificate by its application dated 09.04.2012 along with all necessary information. According to CIT, there is no activity of trust during the last three years. According to learned Authorized Representative, the claim of assessee has been rejected without verifying the fact in this regard. Moreover, the reasonable cause for meager expenses on activities by the assessee trust has not been duly appreciated by revenue 3 authorities. The stand of the assessee has been that the trust has carried out its activities. The assessee has entered into an agreement to purchase certain property to carry out activity as per object of trust deed but said property is exposed to certain legal intricacies and technical problems. So, sale deed of same could not be executed. The same was a reason for meager activities and meager expenses thereon at the relevant point of time. As stated above, the assessee has entered into an agreement of sale for acquisition of plot. The trust has incurred the expenditure for acquisition of plot / land for carrying on activities as per object of trust and such expenses considering the nature have been capitalized as under:
In 1999-2000 Rs.23,00,000/-
In 2000-2001 Rs.13,75,000/-
In 2001-2002 Rs. 1,90,000/-
As stated above, the said property was exposed to certain legal complications and technical problems for getting executed the conveyance deed. Subsequently, problem was solved and assessee has continued the activities. It is not the case that the assessee has claimed to have charitable activity as per object of trust deed. The lesser activities at the relevant point of time could not be sole and valid ground for rejection of exemption u/s.80G. In view of above the decision of CIT needs to be relooked in its facts and circumstances. So, in the interest of justice, we set aside the matter to the CIT with a direction to decide the same as per fact and law after providing due opportunity of hearing to the assessee.
3. In the result, appeal filed by assessee is allowed for statistical purposes as indicated above.
4Pronounced in the open Court on this the day 9th of January, 2014.
Sd/- Sd/-
(R.K. PANDA) (SHAILENDRA KUMAR YADAV)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Pune, Dated: 9th January 2014
GCVSR
Copy to:-
1) Assessee
2) Department
3) The CIT-I, Nashik
4) The DR, "B" Bench, I.T.A.T., Pune.
5) Guard File
By Order
//True Copy//
Senior Private Secretary,
I.T.A.T., Pune