RP Sanjiv Goenka Group CSR Trust, Kolkata V. CIT, (Exemptions), Kolkata, Kolkata

ITA 1456/KOL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4994 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 09-12-2015
• Court: TRIBUNAL
• Assessee Lawyers: D S DAMLE
• Keywords: Charitable institution
• Section: 12A; 12AA; 12; 11

Judgement Text

I.T.A. NOS. 1456 & 1457/KOL./2015 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NOS. 1456 & 1457/KOL/ 2015 RP-SANJIV GOENKA GROUP CSR TRUST,.................. .............................APPELLANT CESC HOUSE, CHOWRINGHEE SQUARE, KOLKATA-700 001 [PAN: AACTR 5263 J] -VS.- COMMISSIONER OF INCOME TAX (EXEMPTIONS),KOLKATA,... .................RESPONDENT 10B, MIDDLETON ROW, KOLKATA-700 071 APPEARANCES BY: SHRI D.S. DAMLE, FCA, FOR THE ASSESSEE SHRI RAJAT SUBHRA BISWAS, CIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : FEBRUARY 22, 2016 DATE OF PRONOUNCING THE ORDER : MARCH 04, 2016 O R D E R PER SHRI P.M. JAGTAP :- THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAI NST TWO SEPARATE ORDERS PASSED BY THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS), KOLKATA BOTH DATED 30.09.2015, WHEREB Y HE REJECTED THE APPLICATION FILED BY THE ASSESSEE FOR GRANT OF REGI STRATION UNDER SECTION 12AA AND CONSEQUENTLY REJECTED THE APPLICATION OF T HE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G(5)(VI). 2. THE ASSESSEE IN THE PRESENT CASE IS A PUBLIC CHA RITABLE TRUST, WHICH HAS BEEN DULY CONSTITUTED UNDER THE DEED OF TRUST D ATED 07.02.2015. IT FILED AN APPLICATION WITH THE COMMISSIONER OF INCOM E TAX (EXEMPTIONS) FOR REGISTRATION UNDER SECTION 12A IN THE PRESCRIBE D FORM NO. 10A ON 23.03.2015. THE SAID APPLICATION WAS, HOWEVER, REJE CTED BY THE LD. I.T.A. NOS. 1456 & 1457/KOL./2015 PAGE 2 OF 4 CIT(EXEMPTIONS) FOR THE FOLLOWING REASONS GIVEN IN HIS IMPUGNED ORDER PASSED UNDER SECTION 12AA OF THE ACT:- ON GOING THROUGH THE TRUST DEED SUBMITTED BY THE APPLICANT TRUST, DISSOLUTION CLAUSE WAS FOUND TO BE AS FOLLOWS:- IN CASE OF DISSOLUTION OF TRUST, THE REMAINING ASSETS OF THE TRUST, AFTER MEETING ALL THE DEBTS AND LIABILITIES, WILL BE DISTRIBUTED AND/OR DONATED TO SUCH ORGANISATION(S), WHICH ARE REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. THIS CLAUSE DOES NOT MENTION ABOUT THE MAJORITY WHO WILL DECIDE THE DISSOLUTION OF TRUST. HENCE THE DEE D OF THE TRUST IS FOUND TO BE DEFECTIVE. HENCE, I AM NOT SATISFIED WITH THE APPLICANT TRUST AS GENUINE. 3. CONSEQUENTLY THE LD. CIT(EXEMPTIONS) ALSO REJECT ED THE APPLICATION FILED BY THE ASSESESE FOR GRANT OF APPROVAL UNDER S ECTION 80G(5)(VI) OF THE ACT VIDE A SEPARATE ORDER PASSED SIMULTANEOUSLY. AG GRIEVED BY THE ORDERS OF THE LD. CIT(EXEMPTIONS), THE ASSESSEE HAS PREFER RED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS AGREED BY THE LD. REPRESENTATIVES OF BOTH THE SIDES, THE ISSUE INVOLV ED IN THE APPEAL OF THE ASSESSEE RELATING TO THE GRANT OF REGISTRATION UNDE R SECTION 12AA IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF MUMBAI BENCH OF THIS TRIBUNAL IN THE CASE OF TARA EDUCATIO NAL AND CHARITABLE TRUST VS.- DIRECTOR OF INCOME TAX (EXEMPTIONS) REN DERED VIDE ITS ORDER DATED 18.07.2014 IN ITA NO. 1247/MUM./2013, WHEREIN THE ORDER OF THE LD. DIT(EXEMPTIONS) REJECTING THE APPLICATION OF TH E ASSESSEE FOR REGISTRATION UNDER SECTION 12A FOR THE SIMILAR REAS ONS AS GIVEN IN THE PRESENT CASE WAS SET ASIDE BY THE TRIBUNAL WITH A D IRECTION TO GRANT REGISTRATION TO THE ASSESSEE UNDER SECTION 12A FOR THE FOLLOWING REASONS GIVEN IN PARAGRAPH NO. 4 OF THE ORDER:- I.T.A. NOS. 1456 & 1457/KOL./2015 PAGE 3 OF 4 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON REC ORD. IT IS OBSERVED THAT THE APPLICATION FILED BY THE ASSESSEE U/S 12A OF THE ACT HAS BEEN REJECTED BY THE ID. DIT (EXEMPT IONS) MAINLY ON THE GROUND THAT THE RELEVANT TRUST DEED D OES NOT CONTAIN THE SO-CALLED 'DISSOLUTION CLAUSE'. AS PER THE PROVISIONS OF SECTION 11 & 12 OF THE ACT, INCOME DE RIVED FROM PROPERTY HELD FOR CHARITABLE OR RELIGIOUS PURP OSES AND INCOME OF TRUSTS OR INSTITUTIONS FROM CONTRIBUTIONS ARE EXEMPT FROM TAX PROVIDED SUCH TRUSTS OR INSTITUTION S ARE REGISTERED U/S 12A OF THE ACT. THE PROCEDURE FOR REGISTRATION U/S 12A IS PRESCRIBED IN SECTION 12AA OF THE ACT WHICH PROVIDES THAT THE COMMISSIONER, ON THE RE CEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTI TUTION MADE U/S 12A, SHALL CALL FOR SUCH INFORMATION FROM THE TRUST/INSTITUTION AS HE THINKS NECESSARY IN ORDER T O SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST/INSTITUTION AND MAY ALSO MAKE SUCH INQUIRIES AS DEEMED NECESSARY ON THIS BEHALF. IT FURTHER PROVIDE S THAT AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST/INSTITUTION AND THE GENUINENESS OF ITS ACTIVI TIES, THE COMMISSIONER SHALL PASS AN ORDER IN WRITING REGISTE RING THE TRUST/INSTITUTION U/S 12A AND IF HE IS NOT SO SATIS FIED, HE SHALL PASS AN ORDER IN WRITING REFUSING TO REGISTER THE TRUST/INSTITUTION. THE SCOPE OF ENQUIRY CONTEMPLATE D U/S 12AA OF THE ACT THUS IS LIMITED TO THE EXTENT OF COMMISSIONER GETTING HIMSELF SATISFIED ABOUT OBJECT OF THE TRUST AND THE GENUINENESS OF ITS ACTIVITIES SO AS T O GRANT OR REFUSE THE REGISTRATION U] S 12A OF THE ACT. A PERU SAL OF THE IMPUGNED ORDER OF THE ID. DIT (EXEMPTIONS), HOWEVER , SHOWS THAT HE HAS NOT RECORDED ANY ADVERSE COMMENT OR DIS-SATISFACTION ABOUT THE OBJECT OF THE TRUST OR GENUINENESS OF THE TRUST ACTIVITIES. HE HAS REFUSED TO GRANT THE REGISTRATION U/S 12A OF THE ACT ON THE GROUND T HAT ITS TRUST DEED DOES NOT CONTAIN 'DISSOLUTION CLAUSE'. I N OUR OPINION, THE ID. DIT (EXEMPTIONS) THUS HAS CLEARLY GONE BEYOND THE SCOPE OF ENQUIRY CONTEMPLATED U/S 12A OF THE ACT AND HAS REFUSED TO GRANT THE REGISTRATION U/S 1 2A OF THE ACT TO THE ASSESSEE TRUST ON A TOTALLY IRRELEVANT G ROUND WITHOUT POINTING OUT AS TO HOW HE WAS NOT SATISFIED EITHER ABOUT THE OBJECT OF THE TRUST OR THE GENUINENESS OF ITS ACTIVITIES. WE THEREFORE SET ASIDE THE IMPUGNED ORD ER OF THE ID. DIT (EXEMPTIONS) AND DIRECT THAT THE REGISTRATI ON U/S 12A OF THE ACT AS APPLIED BY THE ASSESSEE TRUST BE GRANTED . AS THE ISSUE INVOLVED IN THE PRESENT CASE AS WELL A S THE MATERIAL FACTS RELEVANT THEREIN ARE SIMILAR, RESPECTFULLY FOLLOWIN G THE ORDER OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF TA RA EDUCATIONAL AND CHARITABLE TRUST (SUPRA), WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(EXEMPTIONS) WITH A DIRECTION TO GRANT REGISTRAT ION TO THE ASSESSEE I.T.A. NOS. 1456 & 1457/KOL./2015 PAGE 4 OF 4 UNDER SECTION 12A. THE LD. CIT(EXEMPTIONS) IS ALSO DIRECTED TO GRANT APPROVAL TO THE ASSESSEE UNDER SECTION 80G(5)(VI) A S A NECESSARY COROLLARY. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON MARCH 04, 201 6. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 4 TH DAY OF MARCH, 2016 COPIES TO : (1) RP-SANJIV GOENKA GROUP CSR TRUST, CESC HOUSE, CHOWRINGHEE SQUARE, KOLKATA-700 001 (2) COMMISSIONER OF INCOME TAX (EXEMPTION), KOLKATA , 10B, MIDDLETON ROW, KOLKATA-700 071 (3) COMMISSIONER OF INCOME-TAX (EXEMPTIONS), KOLKA TA (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.