The Commissioner Of Income Tax-I, Nagpur v. M/S Nagpur Club, Nagpur

FARAD CONTINUATION SHEET No.IN THE HIGH COURT OF JUDICATURE AT BOMBAYNAGPUR BENCH AT NAGPUR INCOME TAX APPEAL No. 78/2010 (The Commissioner of Income Tax-I, Nagpur VERSUS M/s Nagpur Club, Nagpur) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Office Notes, Office Memoranda of Coram, Court's or Judge's ordersappearances, Court's orders of directionsand Registrar's orders - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Shri Anand Parchure, counsel for the appellant. CORAM: SMT. VASANTI A. NAIKANDPRASANNA B. VARALE,JJ.DATE:JUNE 16, 2011. DATE: Heard. This appeal is preferred against the judgment and order passed by the Income Tax Appellate Tribunal, Nagpur Bench, Nagpur on 30.06.2009 allowing the appeal of the assessee and setting aside the order passed by the Commissioner of Income Tax under Section 12-AA(3) of the Income Tax Act. On hearing the learned counsel for the appellant, it appears that the respondent-assessee had applied for grant of registration under Section 12-AA of the Act by an application dated 30.03.2005. Since this application was not considered within a period of six months from the date of the application, there was a deemed registration in favour of the assessee on 03.01.2006. Later on, the Commissioner, Income Tax cancelled the registration under Section 12-AA(3) of the Act by an order dated 31.03.2009 holding that the assessee was not doing any charitable work. The assessee was aggrieved by the cancellation of the registration and filed an appeal before the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal, rightly, by the order dated 30.06.2009, allowed the appeal of the respondent-assessee by setting aside the order of the Commissioner Income Tax, cancelling the registration under Section 12-AA(3) of the Act. The Tribunal rightly held that the Commissioner, Income Tax was not justified in holding that the assessee had not carried on any activity of charity for a period of more than twenty years since the year 1989. The Commissioner, Income Tax failed to consider the reply submitted by the assessee to the Commissioner stating therein that there was a litigation in the Bombay High Court in respect of some piece of land and the assessee had also got some building plans prepared from the Architect for the construction of the stadium. The Commissioner, Income Tax further failed to consider that the order of deemed registration was passed in favour of the assessee only on 03.01.2006 and the trust should have been allowed some time to operate and carry on the activity of charity. The Tribunal rightly held that the power under Section 12-AA(3) of the Act ought to have been exercised by the Commissioner with abundant care and caution. The Commissioner, Income Tax almost re-decided the issue of registration by considering the objects of the trust though there was a deemed registration in favour of the petitioner. The findings recorded by the Tribunal do not give rise to any substantial question of law. We, therefore, dismiss the appeal. No costs. JUDGE JUDGE