Suraksha Charitable Trust, Jamshepur V. CIT, Jamshepur

ITA 125/RAN/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9553 (ITAT-RANCHI)
• Duration Of Justice: 6 year(s) 3 month(s) 30 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 06-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SUTARIYA CITA JSR
• Assessee Lawyers: NEHA JHUNJHUNWALA
• Keywords: Charitable institution

Judgement Text

1 ITA NO. 125 /RAN/ 201 2 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 1 25 /RAN/201 2 A .Y. : SURAKSHA CHARITABLE TRUST, TATA STEEL RURAL DEVELOPMENT SOCIETY, 3, E - ROAD, NORT HERN TOWN, BISTUPUR, JAMSHEDPUR - 831001 V S CIT, 47, CH AREA, JAMSHEDPUR P AN NO. : A ALTS 7795 M (APPELLANT ) . RESPONDENT ASSESSEE BY : NEHA JHUNJHUNWALA, AR REVENUE BY :SHRI D.K.SUTARIYA, CIT(A), JSR DATE OF HEARING : 2 5 . 05 .201 8 DATE OF PRONOUNCEMENT : 28.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT, JAMSHEDPUR , DATED 26.09.2012. 2. THIS APPEAL WAS DISPOSED OFF BY THE TRIBUNAL EX - PARTE VIDE ORDER DATED 29.02.2016 FOR NON - APPEARANCE . THEREAFTER ON MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE, THE ORDER DATED 29.02.2016 WAS RECALLED VIDE ORDER PASSED IN MISCELLANEOUS APPLICATION DATED 23.03.2018 AND THE APPEAL WAS DIRECTED TO BE L ISTED RE - HEARING . NOW, THE APPEAL HAS BEEN LISTED BEFORE US. 2 ITA NO. 125 /RAN/ 201 2 3 . THE SOLE ISSUE INVOLVED IN THE PRESENT APPEAL OF THE ASSESSEE IS WITH RESPECT TO REJECTION OF APPLICATION FOR GRANT OF REGISTRATION U/S.12A OF THE ACT. 4. BRI EF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SOCIETY AND FILED AN APPLICATION DATED 06.0302012 IN THE PRESCRIBED FORM NO.10A SEEKING REGISTRATION U/S.12A OF THE ACT, HOWEVER, THE CIT REJECTED THE APPLICATION FOR GRANT OF REGISTRATION ON THE GROUND THAT THE OBJECT OF THE ASSESSEE TRUST IS NOT FOR THE GENERAL PUBLIC AT LARGE . 5. AGGRIEVED BY THE ORDER OF CIT, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD.AR SUBMITTED THAT THE CIT HAS ERRED IN NOT GRANTING REGISTRATION U/S.12AA OF THE ACT AND THE CIT FAILED TO APPRECIATE TH AT ON DISSOLUTION THE LEFT OVER FUNDS ARE TO BE HANDED OVER TO OTHER TRUST OF SIMILAR NATURE WHICH SATISFIES THE REQUIREMENTS OF THE INCOME TAX ACT AS MAY BE APPROVED BY THE CIT AND NOT AS DECIDED BY THE SETTLER, THEREFORE, LD. AR PRAYED FOR ALLOWING THE A PPEAL. TO SUPPORT HER CONTENTIONS, LD. AR RELIED ON THE FOLLOWING JUDICIAL DECISIONS : - I) SREE ANJANEYA MEDICAL TRUST, 382 ITR 399 (KERAL HC); II) MAJUMDAR ART FOUNDATION, ITA NO.1688&1689/KOL/2017; III) MEHAGRAM SREE SREE RAMKRISHNA SATYANANDA SEVASHRAM, ITA NOS.1924/KOL/2017; IV) M/S S.R.K.R.E.C. ALUMNI ASSOCIATION, ITA NO.533&534/VZ/2017 ; V) ST. XAVIERS COLLEGIATE SCHOOL, ITA NO.2248/KOL/2017; AND VI) HIRALAL BHAGWATI, 246 ITR 188 (GUJARAT HIGH COURT) 7. ON THE OTHER HAND, LD.DR RELIED ON THE ORDERS OF LOWER AUTHORITIES. 3 ITA NO. 125 /RAN/ 201 2 8 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTE IS WITH RESPECT TO REJECTION OF REGISTRATION U/S.12A OF THE ACT. THE CONTENTION OF LD. AR BEFORE US IS THAT ON DISSOLUTION THE LEFT OVER FUNDS A RE TO BE HANDED OVER TO OTHER TRUST OF SIMILAR NATURE WHICH SATISFIES THE REQUIREMENTS OF THE INCOME TAX ACT AS MAY BE APPROVED BY THE CIT AND NOT AS DECIDED BY THE SETTLER AND THE CIT FOUND THAT THE PAYMENTS MADE TO CONTRACTUAL LABOURERS WHO MEET WITH AN ACCIDENT WHILE WORKING FOR TATA STEEL LIMITED (THE SETTLER) IS FOR THE BENEFIT OF SETTLER BEING FINANCIAL OBLIGATION AND LIABILITY OF THE SETTLER AND NOT FOR THE BENEFIT OF GENERAL PUBLIC AT LARGE. IN OUR OPINION THE CIT AT THE TIME OF REGISTRATION HAS TO VERIFY WHETHER THE OBJECTS AND THE ACTIVITIES OF THE ASSESSEE TRUST ARE GENUINE. CONSIDERING ALL THESE FACTS, WE ARE OF THE OPINION THAT THE ASSESSEE SHALL BE ENTITLED FOR REGISTRATION. ACCORDINGLY WE ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT THE CIT TO GRANT REGISTRATION TO THE ASSESSEE TRUST. THUS, THE GROUND OF APPEAL OF ASSESSEE IS ALLOWED. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 28 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS 4 ITA NO. 125 /RAN/ 201 2 COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT SURAKSHA CHARITABLE TRUST, TATA STEEL RURAL DEVELOPMENT SOCIETY, 3, E - ROAD, NORTHERN TOWN, BISTUPUR, JAMSHEDPUR - 831001 2. THE RESPON DENT CIT, 47, CH AREA, JAMSHEDPUR 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.