Ita v. Dir 439 (Bombay);? (2012) 75 Dir 402 (Kerala

ITA No. 103 of 2014 =|. IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 103 of 2014 (O&M) Date of Decision: 28./.2014 | Baba Kartar Singh Dukki Education Trust Latala, Ludhiana ...Appellant. 6!+$/$ Commissioner of Income lax, Ludhiana (Punjab) ... Respondent CORAM:-HON BLE MR. JUSTICE AJAY KUMAR MITTAL.HON BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Pankaj Jain, Senior Advocate withMr. Divya Suri, Advocate and|Mr. Divya Suri, Advocate and| Mr. Sachin Bhardwaj, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1.Delay of 8 days’ in refiling the appeal is condoned. 2This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short “the Act’) against the orderdated 6.3.2013 (Annexure A-9) passed by the Income Tax AppellateTribunal, Chandigarh Bench “A’, Chandigarh (hereinafter referred to as‘the Tribunal’) in ITA No. 1360/CHD/2012, for the assessment year2001-02, claiming the following substantial questions of law:- Whether under the facts and circumstances ofthe case, in accordance with the provisions ofsection 12AA(2) r.w. 119(2)(b), the action forthe case, in accordance with the provisions ofsection 12AA(2) r.w. 119(2)(b), the action for not exercise of inherent jurisdiction § for ITA No. 103 of 2014 =2= condoning delay (partially) is unreasonable andnot in accordance with law? VVnetner under the facts and circumstnaces othe case the Tribunal was justified in law in notallowing registration u/s. 12AA(2) with effectfrom Assessment Year 2001-02 after havingallowed registration the same?the case the Tribunal was justified in law in notallowing registration u/s. 12AA(2) with effectfrom Assessment Year 2001-02 after havingallowed registration the same? VVnetner under the facts and circumstances othe case the I[ribunal was justified In sustaininthe order of CIT in declining to allow registrationU/s. 12AA(2) with effect from Assessment Year2001-20027the case the I[ribunal was justified In sustaininthe order of CIT in declining to allow registrationU/s. 12AA(2) with effect from Assessment Year2001-20027 3)The facts necessary for adjudication of the present appealas narrated therein may be noticed. Ihe appellant-trust was working Inaccordance with the trust deed dated 4.2.2000. It got registered underthe Societies Registration Act, 1860 vide Registration No. 429 dated16.1.2004. On 31.5.2007, an application was made for grant ofregistration under Section 12AA of the Act in Form 10A. Along with theapplication, the aims and objects of the trust were also attached. TheCommissioner of Income Tax (CIT) vide order dated 30.11.2007(Annexure A-1) rejected the said application on two grounds, firstly notcondoning the delay and secondly on the basis of the report of theAssessing Officer that the trust was not being financed by theGovernment. The assessee challenged the said order before theTribunal who vide order dated 20.09.2011 (Annexure A-2) set aside theorder dated 30.11.2007 (Annexure A-1) and directed the CIT to decidethe matter afresh in accordance with law after affording due and ITA No. 103 of 2014a reasonable opportunity of nearing to the assessee. In pursuance thereot,the Cll after affording an opportunity of hearing to the assessee rejectedthe application vide order dated 27.12.2011 (Annexure A-4). Against theorder dated 27.12.2011, the assessee filed an appeal before theTribunal. The Tribunal vide order dated 27.6.2012 (Annexure A-5)Tollowing the judgment of this Court InCommissioner of Income Tax v. ITA No. 103 of 2014a reasonable opportunity of nearing to the assessee. In pursuance thereot,the Cll after affording an opportunity of hearing to the assessee rejectedthe application vide order dated 27.12.2011 (Annexure A-4). Against theorder dated 27.12.2011, the assessee filed an appeal before theTribunal. The Tribunal vide order dated 27.6.2012 (Annexure A-5)Tollowing the judgment of this Court InCommissioner of Income Tax v. surya Educational and Charitable Trust, ITA Nos. 701 of 2010 and189 of 2011 |decided on 95.10.2011 (Annexure A-6) allowed theapplication and directed the CIT to grant registration. The CIT vide orderdated 26.10.2012 (Annexure A-7) allowed registration under Section 12Aof the Act w.e.f. assessment year 2004-05 onwards. Against the orderdated 26.10.2012 (Annexure A-/), the assessee filed an appeal(Annexure A-3) before the I[ridbunal for granting exemption from theassessment year 2001-02 onwards instead of assessment year 2004-05onwards. The Tribunal vide order dated 6.3.2013 (Annexure A-9)dismissed the said appeal. Thereafter, an application under Section 254(2) of the Act was filed for recalling of the order but the same has notbeen decided. Hence, the present appeal. 4 Learned counsel for the appellant submitted that theassessee was entitled to registration under Section 12AA of the Acteffective from assessment year 2001-02 instead of 2004-05 as held bythe CIT and the Tribunal. It was urged that the authorities below haderred in not condoning the delay in terms of provisions of Section 12AA(2) read with Section 119(2)(b) of the Act. Reliance was placed upon thefollowing judgments:- 1.(2012) 76 DIR 439 (Bombay);? (2012) 75 DIR 402 (Kerala); ITA No. 103 of 2014 5 After hearing learned counsel for the appellant, we do notfind any merit in the appeal. | 6.Tne Tridounal wnile dismissing the appeal of the assessenada recorded that the assessee was registered vide certificate ofregistration datea 29.1.2004 Issued by the Registrar of Firms andsocieties (Punjab), Chandigarh. The assessee had not given anyjustified cause for not applying for registration before 31.5.200/7 whereathe trust was constituted vide deed dated 4.2.2000. Thus, no ground forcondonation of delay was made out. [he Iribunal nad observed as/%1!+&B Ve nave nearda the rival contentions andperused the record. Ihe assessee trust came intoexistence vide Trust Deed dated 04.02.2000. Thetrust had registered itself with the Addl. Registrar ofFirms and Societies (Punjab), Ludhiana’ videcertificate of registration dated 16.01.2004. Theassessee had furnished Form No. 10A for registrationof the trust under Section 12A of the Act In theprescribed manner on 31.05.2007. The Tribunal(Supra) vide order dated 27.06.2012 had noted thefact vide para 13 of the order that the Commissionerof Income Tax had condoned the delay in filing theapplication for registration and the registration was to ITA No. 103 of 2014 =5- be allowed prospectively from assessment year 201 213. However, the same was rejected by theCommissioner of Income fax on the tnvocation ofsection 13(1) & (2) of the Act and other aspects. TheTribunal (Supra) however, allowed registration to thetrust. The Commissioner of Income Tax giving effectto tne order of the Iribunal vide order dated26.10.2012 had condoned the delay in filing theapplication for registration under section 12A of theAct on 31.05.2007 by the assessee and nad allowedthe registration under Section 12A of the Act from theassessment year 2004-05 in line with certificate ofregistration dated 29.01.2004 issued by the Registrarof Firms and societies (Punjab), Chandigarn. In thetotality of the above said facts and circumstances ofthe case, we find no merit in the plea of the assesseeas the assessee has failed to justify the delay in Tilingthe application under Section 12A of the Act belatedon 31.05.2007 as against the constitution of the trustvide deed dated 04.02.2000. The grounds of appealraised by the assessee are thus dismissed. [.In view of the aforesaid finding recorded by the Tribunal,wnich nas not been demonstrated to be erroneous or perverse In anymanner, we do not find any substance in the appeal warrantinginterference with the order dated 6.3.2013 (Annexure A-9). Thejudgments relied upon by the learned counsel for the appellant beingbased upon individual fact situation involved therein does not advance ITA No. 103 of 2014 -6- the case oT the assessee. 8.Accordingly, no substantial question of law arises in thisappeal. Finding no merit in this appeal, the same Is hereby dismissed. (AJAY KUMAR MITTAL) JUDGE July 28, 2014-)$ (JASPAL SINGH) JUDGE