Income Tax Appellate Tribunal - Chennai
Vazhigal Aayiram Public Charitable ... vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
' B' Bench Chennai
BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT
AND
SHRI VIKAS AWASTHY, JUDICIAL MEMBER
.....
ITA No.1405/Mds./2012
M/s.Vazhigal Aayiram TheCommissioner of
Public Charitable Trust, Income Tax-I,
189,F, N S R Road, Coimbtore-18
Saibaba Colony, Vs.
Coimbatore.
PAN AABTV 5421 D
(Appellant) (Respondent)
Appellant by : None
Respondent by : Dr.S.Moharana,
CIT D.R.
Date of Hearing : 20.05.13
Date of Pronouncement : 20.05.13
ORDER
PER VIKAS AWASTHY JUDICIAL MEMBER:
This appeal has been filed by the assessee impugning the order of CIT-I Coimbatore dated 31.05.2012 whereby an application of the assessee seeking registration under section
2 ITA.1405 /Mds/12 12A of the Income Tax Act, 1961 (in short 'the Act') has been rejected.
2. The assessee is a trust, formed on 31.03.2011. Shortly thereafter on 08.11.2011, the assessee made an application before the CIT seeking registration under section 12A of the Act. The CIT rejected the application on the ground that the assessee has not been able to prove the genuineness of the activities being carried out by the trust. The CIT observed that the trust has not specified any charitable activity. Xerox copies of financial assistances furnished before the CIT is an attempt to impress upon the trust a façade of public charity with sole intention to get registration under section 12A of the Act.
3. None has been appeared on behalf of the assessee. A perusal of the concise grounds of appeal before us show that one of the grounds, assailing the impugned order is that the CIT has not given opportunity of hearing to the assessee/appellant before passing of the impugned order rejecting application of the assessee for registration.
3 ITA.1405 /Mds/12
4. A perusal of impugned order shows that there are eight trustees in the trust. Two of them are MBA students, four are employees of private software concerns, one is a professor of private college and another is professor of Bharathiar University. The ld. CIT(A) has not given finding of fact that the trustees are closely related. Thus, the observation of the CIT that the trust has been formed to function as a private beneficial trust seems to be unfounded. Since the copy of trust deed is not placed before us, we are unable to comment upon the objects of the trust. In the statement of facts, the assessee has alleged that following documents were placed before the CIT.
i) Trust Deed in Original.
ii) Income and Expenditure Statement and Balance Sheet.
iii) Details of bank account.
iv) Details of activities being carried out by the Trust
v) Details of donations received.
vi) Evidence showing the amount spent towards the object of the Trust.
In the interest of justice and equity, we deem it appropriate to remit the issue back to the CIT to decide the matter afresh after affording opportunity of hearing to the assessee. The CIT is 4 ITA.1405 /Mds/12 directed to take into consideration the documents submitted by the assessee before passing the order in accordance with law.
5. Accordingly, the appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court after conclusion of hearing on 20th May, 2013.
Sd/- Sd/-
(DR.O.K.NARAYANAN) (VIKAS AWASTHY)
VICE PRESIDENT JUDICIAL MEMBER
Chennai,
Dated the 20th May, 2013.
K S Sundaram
Copy to: Assessee/AO/CIT (A)/CIT/D.R./Guard file
5 ITA.1405 /Mds/12