Sh. Mahesh Anand Soham Dharmarth Ashram, Vrindavan V. C.I.T.-1, Agra

ITA 109/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0716 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 1 month(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-07-2013
• Assessment Year: misc
• Appeal Filed On: 15-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MAURYA
• Assessee Lawyers: S K MONGA
• Keywords: Set aside
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.109/AGRA/2013 SHRI MAHESHANAND SOHAM DHARMARTH VS. COMMISSIONER OF INCOME TAX-1, ASHRAM, AGRA. PARIKARMA MARG, VRINDAVAN. (PAN: AADTS 2071 A). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.K. MONGA, ADVOCATE RESPONDENT BY : SHRI S.L. MAURYA, SR. D.R. DATE OF HEARING : 10.07.2013 DATE OF PRONOUNCEMENT : 12.07.2013 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 15.03.2013 PASSED BY THE LD. CIT-I, AGRA. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE TRU ST PERTAIN TO REJECTION OF ASSESSEES APPLICATION FOR APPROVAL UNDER SECTION 8 0G OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED APPLICATION IN FORM NO.10G FOR RENEWAL OF APPROVAL UNDER SECTION 80G OF THE ACT. EARLIER THE ASSESSEE ITA NO.109/AGRA/2013 2 WAS GRANTED EXEMPTION UNDER SECTION 80G FOR A PERIO D FROM 01.04.2001 TO 31.03.005. THE CIT REJECTED THE ASSESSEE TRUSTS A PPLICATION ON THE GROUND THAT THE TRUST HAS INCURRED EXPENSES WHICH ARE RELIGIOUS IN NATURE AND THESE ARE ABOVE THE PERMISSIBLE LIMIT OF 5% AS PROVIDED UNDER SECTION 8 0G(5B) OF THE ACT. 4. LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE CIT HAS REJECTED THE ASSESSEE TRUSTS APPLICATION FOR APPROVAL OF EXEMPT ION UNDER SECTION 80G OF THE ACT WITHOUT PROVIDING REASONABLE OPPORTUNITY OF HEARING . LD. AUTHORISED REPRESENTATIVE FILED COPY OF ORDER SHEET. ON PERUS AL OF ORDER SHEET, WE NOTICE THAT THE CIT HAS PASSED THE ORDER ON 15.03.2013 AND BEFO RE PASSING THE ORDER THE CIT HAS GIVEN OPPORTUNITY OF HEARING TO THE ASSESSEE ON 13.03.2013. AS PER THE ORDER SHEET, SHRI S.K. MONGA, ADVOCATE PRODUCED BOOKS OF ACCOUNT AND VOUCHERS WHICH WERE TEST CHECKED. IN THE LIGHT OF THE ABOVE FACTS , THE CONTENTION OF THE LD. AUTHORISED REPRESENTATIVE IS REJECTED AS THE CIT HA S PROVIDED OPPORTUNITY OF HEARING BEFORE REJECTING THE APPLICATION FOR RENEWA L UNDER SECTION 80G OF THE ACT. ANOTHER CONTENTION OF THE LD. AUTHORISED REPRESENTA TIVE THAT THE CIT DID NOT PASS THE ORDER AS THE DEPARTMENTAL ORDER PRODUCED BEFORE HIM HAS BEEN APPROVED AS IT IS EVIDENT FROM THE ORDER SHEET DATED 14.03.2013. OTHER CONTENTION OF THE LD. AUTHORISED REPRESENTATIVES THAT THE EXPENSES ON REL IGIOUS PURPOSE ARE LESS THAN 5%. THE ASSESSEE HAS DEMONSTRATED THIS FACT BY REF ERRING INCOME AND EXPENDITURE ACCOUNT OF WHICH COPY IS PLACED AT PAGE NO.3 OF ASS ESSEES PAPER BOOK. ITA NO.109/AGRA/2013 3 5. LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HA ND, RELIED UPON THE ORDER OF CIT. 6 WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PART IES AND RECORDS PERUSED. THE LD. AUTHORISED REPRESENTATIVES HAS DEMONSTRATED BY REFERRING INCOME AND EXPENDITURE ACCOUNT. THE ASSESSEE HAS INCURRED REL IGIOUS EXPENSES LESS THAN 5% AS THE EXPENDITURE ON MANDIR POOJAN WAS ONLY RS.18,880 /- OUT OF TOTAL EXPENSES OF RS.53,41,990/-. IT IS ALSO FACT THAT THE CIT HAS A PPROVED THE DRAFT ORDER AS EVIDENT FROM THE ORDER SHEET DATED 14.03.2013. IN THIS REG ARD, I.T.A.T., AGRA BENCH IN THE CASE OF SMT. BIMLA DEVI GOPAL PRASAD PRESS WALE CHA RITABLE TRUST IN ITA NOS.288 & 289/AGRA/2012 VIDE ORDER DATED 23.11.2012 HAS TAKEN A VIEW THAT IN SUCH A SITUATION, ORDER OF CIT IN REJECTING RENEWAL APPLICATION OR APPROVAL UNDER SECTION 80G IS NOT SUSTAINABLE IN LAW AS THE REJECT ION ORDER OF THE CIT IS NOT IN ACCORDANCE WITH LAW. APART FROM THE ABOVE FACTS, W E NOTICE THAT THE RENEWAL OF APPROVAL OF EXEMPTION UNDER SECTION 80G IS A PERPET UAL AND IS REQUIRED TO BE RENEWED UNLESS SOME CONTRARY MATERIAL FOUND FOR WIT HDRAWAL. IN THE CASE UNDER CONSIDERATION THERE IS NO SUCH MATERIAL ON RECORD. THIS VIEW IS SUPPORTED BY THE JUDGEMENT OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. SHRI VISHAV NAMDHARI SANGAT, 354 ITR 33 (P&H). THE HEAD NOTE IS REPRODUCED AS BELOW:- ITA NO.109/AGRA/2013 4 THE PROVISIONS OF SECTION 80G OF THE INCOME-TAX AC T, 1961, WERE AMENDED SO AS TO DISPENSE WITH THE PERIODIC RE NEWAL OF THE EXEMPTIONS. SUCH STATUTORY PROVISIONS WERE CLARIFI ED BY CIRCULAR NO.5 OF 2010 [324 ITR (ST.) 293] AND CIRCULAR NO.7 OF 2010 [328 ITR (ST.) 43] ISSUED BY THE CENTRAL BOARD OF DIRECT TAX ES. ONCE THE STATUTE HAS GIVEN PERPETUITY TO THE EXEMPTIONS GRAN TED UNDER SECTION 80G(5) OF THE ACT, THE APPROVAL CANNOT BE WITHDRAWN WITHOUT ISSUING SHOW-CAUSE NOTICE IN TERMS OF THE STATUTORY PROVISI ONS IN THE MANNER PRESCRIBED BY LAW. 7. IN THE LIGHT OF ABOVE DISCUSSION, WE SET ASIDE T HE ORDER OF CIT AND DIRECT HIM TO RENEW THE APPROVAL UNDER SECTION 80G OF THE ACT W.E.F. 01.04.2012. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT M EMBER PBN/* COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY