Bai Manekb Ai Bhagwandas Shivji Charty ... vs Assessee
- CitationITA No.5041/M/2011
Ratio decidendi
The rule this decision rests on
The Tribunal, having noted that the Director's rejection of a section 12A registration application did not consider the assessee's contentions that the letting out of trust property was for charitable purposes rather than commercial ones and that the resulting income was applied to the trust's objects, held that an authority deciding such an application must examine and rule on the contentions actually raised by the assessee, and that where it has failed to do so the matter is to be remitted to it for fresh adjudication in accordance with law.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
M/s. Bai Manekbai Director of Income-tax Bhagwandas Shivji Charity (Exemption), Trust, 6th Floor, Piramal Chambers, Vs. M.B.S. Sanatorium Building, Parel, 59, Walkeshwar Road, Mumbai - 400 012 Mumbai - 400 012 PAN: AAATB 1747K (Appellant) (Respondent)
Assessee by : Shri Nitesh Joshi, A.R./Shri Vipul K. Mody, A.R. Revenue by : Shri S.J. Singh, D.R.
Date of Hearing : 15.01.2015 Date of Pronouncement : 18.03.2015
ORDER
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the appellant trust against the order dated 29.04.2011 of the Director of Income Tax (Exemptions) [(hereinafter referred to as DIT(E)] vide which he has rejected the application of the appellant trust for registration under section 12A of the Income Tax Act.
2. At the outset, the Ld. A.R. of the assessee has stated that the application of the appellant trust has been rejected by the Ld. DIT(E) on the ground that the appellant trust has given a part of its premises to Maharshi Vidya Mandir on leave and license basis to enable them to carry out the activity of imparting primary education to needy children. He has further stated that the income derived from the said leave and license fees is utilized by the trust to achieve ITA No.5041/M/2011 2 M/s. Bai Manekbai Bhagwandas Shivji Charity Trust
its objects. He has further stated that the activities carried out by the appellant trust were genuine as per objects laid out in the trust deed. He has further stated that one of the objects of the trust is to impart education to the needy children.
On the other hand, the Ld. D.R. has relied upon the findings of the Ld. DIT(E).
3. We have considered the rival contentions of both the parties. We find that the contention of the Ld. A.R. has been that the property held under the trust has been used for charitable purposes and that the letting out of the property is not for any commercial purposes but to an institution for carrying out the activity of imparting primary education to needy children. Further, that the income earned from such letting out of property has been utilized by the trust for the objects of the trust. These contentions have not been looked into by the Ld. DIT(E) while passing the impugned order. We therefore restore the matter back to the file of the Ld. DIT(E) to look into the contentions raised by the assessee and decide the matter afresh in accordance with law.
4. In the result, the appeal of the appellant trust is allowed for statistical purposes.
Order pronounced in the open court on 18.03.2015.
Sd/- Sd/- (B.R. Baskaran) (Sanjay Garg) ACCOUNTANT MEMBER JUDICIAL MEMBER
Mumbai, Dated: 18.03.2015. * Kishore, Sr. P.S. ITA No.5041/M/2011 3 M/s. Bai Manekbai Bhagwandas Shivji Charity Trust
Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The CIT (A) Concerned, Mumbai The DR Concerned Bench //True Copy// [
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.
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