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4. The brief facts of the case are that the assessee is a Trust and is registered under the Non-Trading Companies Act, Rajasthan vide Reg. Certificate No. 215/1976 dated 09.03.1976 and the Trust having main objects to develop the cloth business in Kota for the benefit of the general public or businessmen under the name of Wholesale Cloth Merchant Association, Kota. The Trust is also registered u/s 12A of the Income Tax Act, 1961 (in short, the Act) vide registration certificate No. 8/93-94/2609 dated 10.08.1994. The ld. Pr. CIT in its order dated 22/03/2019 noted that the registration was granted so as to enable the assessee to fulfil all the objectives enumerated in the deed/ Memorandum of Association. However, it was observed by the ld. Pr. CIT that the assessee is not working as per the objective of the Trust and case falls u/s 12AA(3) & 12AA(4) of the Act on the reason that a 4 ITA 688/JP/2019_ M/s Wholesale Cloth Merchant Association Vs Pr.CIT search and seizure action was conducted in the case of "Bajaj Group", Kota on 30.06.2016 and consequent survey u/s 133A of the Act was also conducted at the assessee on 19.07.2016. During the course of survey statement of Sh. Giriraj Nayati, President of the assessee Trust was recorded on oath, who admitted that the assessee had filled the return of the income only up to A.Y. 2013-14 and had not filed the ITR for A.Y. 2014-15 to 2016-17 and also not filed the Tax Audit Report and assessee has continuously been claiming exemption u/s 11 and 12 of the Act. In view of the above, the ld. Pr. CIT(Central) has held that the activities of the assessee association are not 'genuine' and are not being carried out in accordance with the stated objects of the assessee. Therefore, the Registration of the assessee u/s 12A was cancelled by invoking the provisions of Sec. 12AA(3) and 12AA(4) w.e.f. 01.04.2013 i.e. from the financial year in which the irregularities came to notice.

1.6 Thereafter the ld. DCIT(CC) Kota, has sent a proposal to the Pr. CIT(C), Jaipur to cancel the 12A registration of the assessee vide letter dt. 31.12.2018 has been received in the office of Pr. CIT(C) on dt. 23.01.2019 vide order sheet (PB300). On the basis of proposal form DCIT(CC) Kota, the ld. Pr. CIT has issued the show cause notice to the assessee u/s 12AA(3)/(4) on dt. 22.02.2019. Thereafter the assessee has appeared and filed the details and submissions before the Pr. CIT(Jaipur) on dt. 18.03.2019 and the ld. Pr. CIT(C) has passed the impugned order on dt.22.03.2019 u/s 12AA(3) and 12AA(4).

3.2 However it is also settled legal position of law that if an assessee has not filed his ROI and filed ROI and not shown any claim or deduction in the ROI filed and claim the same during the course of assessment proceedings even although during the course of appellate proceedings.

The Honble courts has allowed the same by stating that if the assessee is entitled for any claim as per law cannot be denied for the reason that he has not claimed in the ROI. In this regard, he has relied upon the decision in the case of Amina Ismil Rangari vs. ITO (2017) 51 CCH 0595 Mum Trib 3.3 However the assessee had file the ROI and Audit report in response to the notice u/s 148. And also much prior to issuance of show cause notice for cancellation. And at the time of issuance of Show cause notice u/s 12AA(3)/12AA(4)no return or Audit report were pending. As per the section 147 and section 148 of the Income Tax Act 1961 itself provide the opportunity to assessee for filing the return of income, hence we could not say that the Income Tax Return was late filed. And the Return filed u/s 148 is treated as filed u/s 139 and all the provision are applicable for the same. If there was any default why the show cause notice has been given when the default had come to the notice of the Revenue in July 2016 and the notice has been issued 31 Months i.e. Feb. 2019. And even in last three years i.e. form F.Y. 2016-17 to 2018-19 no defaults have been found.

13. We also observe that, thereafter the ld. DCIT(CC) Kota, has sent a proposal to the Pr. CIT(C), Jaipur to cancel the 12A registration of the assessee vide letter dated 31.12.2018. On the basis of proposal from DCIT(CC) Kota, the ld. Pr. CIT has issued the show cause notice to the assessee u/s 12AA(3)/(4) dated 22.02.2019. In response, the assessee appeared and filed details and submissions before the Pr. CIT(Jaipur) on 18.03.2019 and the ld. Pr. CIT(C) has passed the impugned order on 22.03.2019 u/s 12AA(3) and 12AA(4) of the Act.