Income Tax Appellate Tribunal - Chandigarh
Allengers Care Foundation, Chandigarh vs Assessee on 22 April, 2014
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES 'B' CHANDIGARH
BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND
SHRI SANJAY GARG, JUDICIAL MEMBER
ITA No. 997/Chd/2013
U/s 80 G(5)(vi)
M/s Allengers Care Foundation Vs. The CIT-II
Chandigarh Chandigarh
PAN No. AADTA8698R
&
ITA No.1040/Chd/2013
U/s 12 AA
M/s Allengers Care Foundation Vs. The CIT-II
Chandigarh Chandigarh
PAN No. AADTA8698R
(Appellant) (Respondent)
Appellant By : Shri. Prikshit Aggarwal
Respondent By : Shri. Amarveer Singh
Date of hearing : 22/04/2014
Date of Pronouncement : 28/04/2014
ORDER
Per Sanjay Garg, Judicial Member
Both the above noted appeals are directed against the separate orders of Commissioner of Income Tax-II, Chandigarh.
2. Since both the appeals pertain to the same assessee and as well the issues involved therein are identical in nature, hence, these are taken together and are being disposed off by this common order. ITA No. 1040/Chd/2013
3. The present appeal has been preferred by the assessee against the order of Commissioner of Income Tax-II dated 13.09.3013 refusing the grant of registration u/s 12AA of the Income Tax Act. The assessee had applied for registration being a Charitable Trust. However, the Commissioner refused to grant of registration on the ground that assessee 2 Trust had not started its activities as on the date of application and as such it was not possible to verify the genuineness of the activities of the assessee's Trust. He also noticed that even the assessee trust had not furnished any documentary evidence to prove the genuineness of the activities undertaken by the assessee Trust for the period from 1.4.2013 to 30.09.2013. He, therefore, rejected the application of the assessee Trust.
4. Being aggrieved with the order of the Commissioner, the assessee has come up in appeal before us.
5. The Ld. AR of the assessee while rel ying upon the decision of Hon'ble jurisdictional High Court of Punjab & Haryana in the case of CIT Vs. Surya Educational & Charitable Trust 355 ITR 280 (P&H) has contended that for the grant of registration of the Trust in a case where the assessee Trust has not started its activities, the registration cannot be refused. In that event the C IT has to examine the genuineness of the objects of the Trust. The activities of the trust can be examined after filing of the return and if the same are not found genuine, the Commissioner can cancel the registration of the trust.
6. On the other hand, the Ld. DR while inviting our attention to Page 31 of the paper book has vehementl y contended that assessee trust had carried out its activities for the period from 1.4.13 to 30.9.2013, the details of which has been mentioned at the above said page No.31 of the paper book. He has further contended that now the financial year is over and the activities of the trust can be examined by the Ld. CIT up to 31st March 2013.
7. We have considered the rival submissions of the Ld. Representatives of the parties. From the perusal of the record it is revealed that it is not a case where the assessee trust has not commenced its activities. At the time of impugned order, it has been specificall y 3 mentioned by the Ld. CIT that the assessee trust did not furnish any proof of its activities carried up to the period of 30.9.2013 whereas, the paper book document i.e page No. 31 reveals that the assessee trust had carried out certain activities up to 30.9.2013. Under such circumstances, it would be proper to remand the matter back to the file of C IT for a fresh decision in the matter with a direction to the assessee trust to furnish the necessar y documents /evidence of its activities carried out till 31.3.2013. The ld. Commissioner after examination of the activities of the assessee trust will decide the application of the asset trust a fresh within 90 days of the receipt of copy of this order.
Needless to say that the assessee trust will promptl y submit the necessary evidences and the Commissioner will also grant proper opportunit y to the assessee trust to present its case.
8. In the result, the appeal of the assessee trust is allowed for statistical purposes.
ITA No. 997/Chd/2013
9. The assessee has preferred the present appeal against the rejection of his application for grant of approval u/s 80G(5)(vi) of the Income Tax Act.
10. The Commissioner vide impugned order dated 13.9.2013 has rejected the application of the assessee trust in-limine finding that the application was not supported by 'certificate of registration' u/s 12A of the Act.
11. The Ld. AR, before us, has submitted that the application for grant of Registration u/s 12A was moved along with the present application and both the applications were pending before the Ld. Commissioner. However, the Ld. Commissioner before deciding the application moved 4 u/s 12A rejected the present application moved u/s 80G of the Act. His contention has been that Ld. Commissioner ought to have either decide the application u/s 12A first or both the applications together.
12. On the other hand, the Ld. DR has relied on the decision of the lower authorities.
13. We have considered the respective submissions of Ld. Representatives of both the parties. As per our observation made above while deciding ITA No. 1040/Chd/2013, we have remitted the case back to the file of CIT for fresh decision. Since the grant of approval u/s 80G of the Act is dependent upon the grant of registration u/s 12A of the Act, hence, keeping in view the over all facts and circumstances of the case, the impugned order is hereby set aside and the matter is remanded back to the C IT for decision a fresh, with a direction that the Ld. C IT firstl y will decide the application moved by the assessee for registration u/s12A of the Act as per our directions given above while deciding the appeal in ITA No. 1040/Chd/2013. Thereafter, the Ld. Commissioner will decide the application of the assessee trust moved u/s 80G with 10 days after his decision on the application moved u/s 12A by the assessee..
14. In the result, both the appeals of the assessee are allowed for statistical purposes.
Order Pronounced in the Open Court on 28/04/2014 Sd/- sd/-
(T.R. SOOD) (SANJAY GARG)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 28 t h April, 2014
Rkk
Copy to:
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR
5
By Order
Assistant Registrar
ITAT, Chandigarh