Shri Vallabh Nagar Jain Swetambar Murti Pujak Trust, Indore V. CIT Excemption, Bhopal

ITA 109/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8249 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-01-2020
• Assessment Year: 2017-2018
• Appeal Filed On: 20-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S B PRASAD
• Assessee Lawyers: S N AGRAWAL; PANKAJ MOGRA A RS
• Keywords: Charitable institution; Set aside
• Section: 12AA; 43

Judgement Text

[ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.105/IND/2018 ASSESSMENT YEAR: 2017-18 SHRI SWETAMBER JAIN T APAGACH UPASHRAYA TRUST 4/2, RACE COURSE ROAD INDORE-452 001 M.P. / VS. CIT (EXEMPTION) BHOPAL ( APPELLANT ) ( REVENUE ) P.A. NO. AAOTS8101N ITA NO.109/IND/2018 ASSESSMENT YEAR: 2017-18 SHRI VALLABH NAGAR JAIN SWETAMBAR MURTI PUJAK TRUST 33-34/2, VALLABH NAGAR INDORE, M.P. / VS. CIT (EXEMPTION) BHOPAL (APPELLANT) (REVENUE ) P.A. NO. AAQTS2779G [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 2 ITA NO.110/IND/2018 ASSESSMENT YEAR: 2017-18 SHRI NARIMAN NAVKAR JAIN SWETAMBAR KURTI PUJAK TRUST 11/13, MEERA PATH COLONY DENU MARKET INDORE, M.P. / VS. CIT (EXEMPTION) BHOPAL (APPELLANT) (REVENUE ) P.A. NO. AAPTS0151B APPELLANT BY SHRI S.N. AGRAWAL & SHRI PANKAJ MOGRA, A.RS RESPONDENT BY SHRI S.B. PRASAD, D.R. DATE OF HEARING: 21.01.2020 DATE OF PRONOUNCEMENT: 23.01.2020 / O R D E R PER KUL BHARAT, J.M: THESE 3 APPEALS BY DIFFERENT ASSESSEES ARE DIRECTED AGAINST ORDER OF THE CIT (EXEMPTION), BHOPAL DATED 23.1.2018 FOR THE ASSESSMENT YEAR 2017-18. FIRST WE TAKE UP THE APPEAL IN ITA NO.105/IND/2018. IN THIS APPEAL, THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 3 1. THAT ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(EXEMPTION) ERRED IN REJECTING THE APPLICATION F ILED BY THE ASSESSEE TRUST FOR REGISTRATION U/S 12AA OF THE INC OME TAX ACT WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND SUBMISSIONS MADE BEFORE HIM. 2. THE ASSESSEE RESERVE ITS RIGHT TO ADD, ALTER, MODIF Y OR AMEND THE GROUNDS OF APPEAL AS AND WHEN REQUIRED. 2. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST REJECTION OF APPLICATION FILED BY THE ASSESSEE TRUST F OR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THE BRIEF FACTS ARE THAT THE ASSESSEE TRUST HAD APPLIED FOR REGISTRATION U/S 12AA OF THE ACT IN THE PRESCRIBED FORM NO.10A. THEREAFTER, THE LD. CIT (EXEMPTION) ISSUED A NOTICE TO THE ASSESSEE TRUST FOR HEARING. IN RESPONSE THERETO, NO ONE APPEARED OR FILE D ANY WRITTEN SUBMISSION. HOWEVER, ANOTHER OPPORTUNITY WAS GIVEN. IN RESPONSE THERETO, THE AUTHORISED REPRESEN TATIVE OF THE ASSESSEE TRUST ATTENDED THE PROCEEDINGS AND FILED WRITTEN SUBMISSIONS. HOWEVER, THE WRITTEN SUBMISSI ONS AS FILED BY THE ASSESSEE WERE NOT FOUND ACCEPTABLE BY TH E LD. CIT (EXEMPTION). HE THEREFORE, REJECTED THE APPLICAT ION ON [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 4 THE GROUND THAT TRUST WAS NOT REGISTERED WITH THE REG ISTRAR OF TRUSTS AS PER PUBLIC TRUST ACT OF MADHYA PRADESH. THE TRUST WAS FOUND WITH MAIN OBJECT TO CONSTRUCT UPASHRAY A BUILDING FOR THE BENEFIT OF JAIN SAINT AND OTHER OBJEC TS. CLAUSE 23 OF THE BYE LAWS IS NOT PROPER. AGGRIEVED AGAINST THIS, THE ASSESSEE IS IN PRESENT APPEAL BEFORE THIS TR IBUNAL. 3. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DECISION OF THE LD. CIT (EXEMPTION) IS CONTRARY TO T HE LAW LAID DOWN BY VARIOUS COURTS. HE TOOK US THROUGH THE OBJECTS OF THE ASSESSEE TRUST. FURTHER, HE RELIED U PON THE JUDGEMENT OF HON'BLE PUNJAB & HARYANA HIGH COURT RENDERED IN THE CASE OF CIT (EXEMPTION) VS. SHRI MAHAV IR JAIN SOCIETY, LUDHIANA IN ITA NO.231 OF 2016. THE REL IANCE IS ALSO PLACED ON THE DECISION OF THE COORDINATE BENC H OF THIS TRIBUNAL RENDERED IN THE CASE OF SHRI JAIN SHWETAM BER MURTIPUJAK SANGH VS. CIT-I IN ITA NO.1353/PUNE/2014 DATED 31.3.2015. LD. COUNSEL RELIED ON THE JUDGEMEN T OF [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 5 THE HON'BLE SUPREME COURT RENDERED IN THE CASE OF CI T VS. DAWOODI BOHARA JAMAT (2014) 43 TAXMANN.COM 243. LD. A.R. FURTHER REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SYNOPSIS. 4. PER CONTRA, LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDER OF THE LD. CIT (EXEMPTION). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE LD. CIT (EXEMPTION) HAS REJECTED THE APPLICATION OF THE ASSESS EE BY OBSERVING AS UNDER: [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 6 6. LD. COUNSEL FOR THE ASSESSEE HAS PLACED RELIANCE ON THE JUDGEMENT OF THE HON'BLE PUNJAB & HARYANA HIGH COURT RENDERED IN THE CASE OF CIT (EXEMPTION) VS. SH RI MAHAVIR JAIN SOCIETY (SUPRA). THE HON'BLE COURT AFFIRM ED THE VIEW OF THE TRIBUNAL, WHEREIN IT HAS BEEN HELD TH AT IF THE ASSESSEE IS BOTH RELIGIOUS AND CHARITABLE TRUST, IT WOULD BE ENTITLED FOR REGISTRATION U/S 12AA OF THE ACT. T HEREFORE, CONSIDERING THE TOTALITY OF THE FACTS AND THE CASE LAWS AS CITED BEFORE US, WE ARE OF THE VIEW THAT THE LD. CIT OUGHT TO HAVE CONSIDERED THE SUBMISSIONS MADE BY THE ASSESSEE IN THE LIGHT OF THE BINDING PRECEDENTS. WE THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT AND RESTORE THE ISSUE OF RE GISTRATION TO HIS FILE FOR RECONSIDERATION OF THE SAME AFTER CONS IDERING THE FACTS OF THE CASE LAWS AS RELIED BY THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 8. NOW WE TAKE UP ASSESSEES APPEAL IN ITA NO.109/IND/2018 FOR THE A.Y. 2017-18. 9. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS ALSO AG AINST REJECTION OF APPLICATION FILED BY THE ASSESSEE TRUST F OR [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 7 REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. THE FACTS AND CIRCUMSTANCES IN THIS APPEAL ARE SIMILAR TO THAT OF THE APPEAL FILED BY THE ASSESSEE IN ITA NO.105/IND/ 2018 ABOVE AND SINCE THE SAME HAS BEEN ADJUDICATED IN PARA NOS.5 & 6 ABOVE, SIMILAR VIEW IS TAKEN IN THIS APPEAL ALSO. THEREFORE, THE IMPUGNED ORDER IS SET ASIDE AND APPLIC ATION SEEKING REGISTRATION IS RESTORED TO THE FILE OF THE LD. CIT TO DECIDE AFRESH. 10. NOW WE TAKE UP ASSESSEES APPEAL IN ITA NO.110/IND/2018 FOR THE A.Y. 2017-18. 11. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS ALSO AGAINST REJECTION OF APPLICATION FILED BY THE ASSESSEE TRUST F OR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. THE FACTS AND CIRCUMSTANCES IN THIS APPEAL ARE SIMILAR TO THAT OF THE APPEAL FILED BY THE ASSESSEE IN ITA NO.105/IND/ 2018 ABOVE AND SINCE THE SAME HAS BEEN ADJUDICATED IN PARA NOS.5 & 6 ABOVE, SIMILAR VIEW IS TAKEN IN THIS APPEAL ALSO. [ITA NO.105, 109 & 110/IND/2018] [SHRI SWETAMBER JAIN TAPAGACH UPASHRAYA TRUST, INDO RE] 8 THEREFORE, THE IMPUGNED ORDER IS SET ASIDE AND APPLIC ATION SEEKING REGISTRATION IS RESTORED TO THE FILE OF THE LD. CIT TO DECIDE AFRESH. 12. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESS EES IN ITA NOS.105, 109 & 110/IND/2018 FOR THE A.Y. 2017-1 8 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 23 . 01.2020. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 23/01/2020 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE