M/s. Auro Veda Trust, Bangalore V. Commissioner Of Income Tax (Exemptions), Bangalore

ITA 1522/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3728 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 21-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SANDEEP HUILGAV
• Keywords: Gift; Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI B.R BASKARAN , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1522/BANG/2019 ASSESSMENT YEAR : 2019-20 AURO VEDA TRUST, NO.19, SIDDAPPA LAYOUT, 1 ST CROSS, GUBBALALA, BENGALURU. PAN AAGTA 8843 H VS. THE COMMISSIONER OF INCOME-TAX (EXEMPTION) BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI SANDEEP HUILGAV, ADVOCATE RESPONDENT BY : MS. NEERA MALHOTRA, CIT (DR) DATE OF HEARING : 26.11.2019 DATE OF PRONOUNCEMENT : 27.11.2019 O R D E R PER B.R BASKARAN : THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 24/4/2019 PASSED BY LD CIT(E), BENGALURU GRANTING R EGISTRATION TO THE ASSESSEE U/S 12AA OF THE ACT IN THE CATEGORY OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. 2. THE LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE LD CIT(E) HAS HELD THAT THE OBJECTS OF THE ASSESSEE ARE IN TH E NATURE OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. HE SUBMITTED THAT THE LD CIT(A) HAS NOT GIVEN ANY REAS ONS FOR CATEGORIZING THE OBJECT OF THE ASSESSEE SO. THE LD AR INVITING OUR ITA NO.1522 /BANG/2019 PAGE 2 OF 9 ATTENTION TO THE OBJECTS OF THE TRUST SUBMITTED TH AT THE ASSESSEE IS ENGAGED IN PROVIDING TRAINING IN VARIOUS FIELDS TO VARIOUS PERSONS AND THE OBJECTS ALSO INCLUDES PRESERVATION OF ENVIR ONMENT, YOGA, MEDICAL RELIEF AND RELIEF OF POOR. ACCORDINGLY HE SUBMITTED THAT THE ASSESSEE TRUST SHOULD BE CATEGORIZED AS EDUCATION T RUST OR TRUST ENCOURAGING PRESERVATION OF ENVIRONMENT, YOGA, ME DIAL RELIEF, RELIEF OF POOR. 3. ON THE CONTRARY, THE LD DR SUBMITTED THAT THE O BJECT CLAUSE OF THE ASSESSEE IS VERY WIDE COVERING VARIOUS ACTIV ITIES AND HENCE LD CIT(E) WAS CONSTRAINED TO CATEGORIZE THE ASSESSEE A S A CHARITABLE TRUST EXISTING FOR ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. 4. WE HEARD RIVAL CONTENTIONS AND PERUSED THE RECOR D. WE HAVE ALSO GONE THOUGH THE DEED OF TRUST FURNISHED BY THE ASSESSEE. FOR THE SAKE OF CONVINCE WE EXTRACT BELOW THE OBJECTS O F THE TRUST AS ENUMERATED IN THE TRUST DEED. 1) TO STUDY AND UNDERSTAND THE MAGNIFICENT HARMONY THAT EXISTS AMONG ALL ASPECTS INCLUDING THE TINY BA CTERIA, TO THE GIGANTIC TREES AND ALSO THE NON-LIVING THING S LIKE SAND, SOIL AND ROCKS ETC., AND TO UNDERSTAND HOW TH E HUMAN LIFE DEPENDS ON THE TINY BACTERIA. 2) TO EDUCATE THE CHILDREN AND THE YOUNGER GENERATI ON TO APPRECIATE THE BEAUTY AND BENEFITS OF NATURE, TO BE COME AWARE OF THE LARGE VARIETIES OF FOOD FROM FRUIT TRE ES, GRAINS AND VEGETABLES, APPRECIATE THE ROLE OF FLOWERS, COW S, DOGS ITA NO.1522 /BANG/2019 PAGE 3 OF 9 AND OTHER ANIMALS AND THE NEED FOR THE TYPES OF FOO D NEEDED BY COWS, BIRDS ETC. 3) TO FOCUS ON RESPECTING ONE ANOTHER AND LEARNING FROM ALL PERSONS EVEN THOUGH WE MAY DIFFER IN AGE, LEARN ING TO CONVEY KNOWLEDGE IN A HAPPY WAY VIA STORIES, VARIOU S SCENES OF NATURE AROUND US. 4) TO STUDY THE HARMONIOUS LIFE IN THE NATURE. TO P ROTECT AND GROW RARE HERBS WHICH ARE AT THE VERGE OF EXIT. TO MAKE YOUNG PERSONS, ESPECIALLY THE STUDENTS IN THE SCHOOL BECOME AWARE OF THE IMPORTANCE OF TREES AND ENVIRONMENT. 5) TO STUDY AND PROMOTE SUBTLE ASPECTS OF ORGANIC FARMING AND EXPERIMENTING RAIN WATER HARVESTING AND OTHER METHODS OF WATER STORAGE. 6) TO EDUCATE CHILDREN AND YOUNGER GENERATION ABOUT THE IMPORTANCE OF GROWING ALL TYPES OF FOOD SUCH AS PLA NTS AND TREES WITH FRUITS AND FLOWERS, THE GRAINS, VEGE TABLES, GRASSES FOR ANIMALS. BREEDING NATIVE COWS. 7) TO CREATE AWARENESS ABOUT RURAL DEVELOPMENT THRO UGH PUBLICATIONS & AUDIO-VIDEO PRESENTATIONS. 8) TO PROVIDE FACILITIES FOR CHILDREN IN NEARBY VIL LAGES TO PLAY AND LEARN. TO MAKE EFFORTS FOR THE EDUCATION, WELFARE AND DEVELOPMENT OF WOMEN, CHILDREN AND MEMBERS OF BACKWARD COMMUNITY IN BOTH URBAN AND RURAL AREAS. 9) TO ORGANIZE CAMPS, SEMINARS TO EDUCATE AND PROMO TE TRADITIONAL AGRICULTURE, RURAL LIFE, LIFE OF PLANTS AND OTHER RELATED SUBJECTS. EXPLORE THE METHODS TO REJUVENATE BODY AND MIND WITH THE HELP OF NATURE. ITA NO.1522 /BANG/2019 PAGE 4 OF 9 10) TO EXPLORE NEW WAYS TO STRENGTHEN THE PRACTICE OF OUR BHARATIYA CULTURE WHICH WE HAVE INHERITED DURING TH E LAST NINE THOUSAND YEARS. THESE AIMS INCLUDE FOCUSI NG ON OUR ORAL TRADITION, LEARNING SANSKRIT AND VARIOUS I NDIAN LANGUAGES, HELPING ONE ANOTHER AND RESPECTING ALL. 11) TO EDUCATE ALL PERSONS ABOUT LOW COST HOUSING, ALTERNATE ENERGY SOURCES AND ECONOMIC USE OF NON- RENEWABLE SOURCES ABOUT THE STUDY OF ECOLOGY. 12) TO AID IN UNDERSTANDING THE RELEVANCE OF THE AN CIENT BOOKS FOR THE MODERN LIFE. 13) TO ORGANIZE YOGA, PRANAYAMA AND RELATED SPIRITU AL RETREATS. 14) TO OPEN SCHOOLS FOR THE EDUCATION OF BOYS AND G IRLS IN PERFORMING ARTS, VOCATIONAL PURSUITS AND TO DEVELOP THE CHARACTER OF THE STUDENTS AS WELL AS TO EDUCATE THE M IN THE FIELD OF INDIAN CULTURE. 15) TO AID THE PRESERVATION, PROPAGATION AND RESEAR CH ON VEDA KNOWLEDGE. 16) TO START AND AID IN TRANSLATION OF THE VEDIC TE XTS INTO ENGLISH AND ALL INDIAN LANGUAGES. 17) TO START OR AID IN DEEP STUDY OF THE HARMONY OF NATURE EMBEDDED IN THESE TEXTS AND WRITTEN EXPOSITIONS ABO UT THESE TEXTS AND RELATING THEM TO THE MODERN ECOLOGY ESPECIALLY THE RELATIONSHIP BETWEEN SOIL, TREES, PL ANTS AND MANKIND AND RELATED ISSUES OF HORTICULTURE AND AGRICULTURE. 18) TO GIVE AID BY WAY OF DONATIONS OUT OF THE INCO ME OR THE CORPUS OF THE TRUST OR OTHERWISE, TO DIFFERENT ITA NO.1522 /BANG/2019 PAGE 5 OF 9 CHARITABLE INSTITUTIONS, SOCIETIES, ORGANIZATIONS O R TRUSTS IN INDIA WHICH MAY HAVE BEEN ESTABLISHED OR WHICH M AY HEREINAFTER BE ESTABLISHED FOR THE LIKE CHARITABLE PURPOSES MENTIONED IN THESE PRESENTS OR ANY OF THEM TO ENABL E SUCH INSTITUTIONS, SOCIETIES, ORGANIZATION OR TRUST EES TO START, MAINTAIN OR CARRY OUT SUCH CHARITABLE OBJECT S. 19) TO START OR AID IN STARTING OF EXPERIMENTAL COM MUNITIES TO IMPLEMENT THESE IDEAS IN THE PRACTICES. 20) FOR SERVICE TO AND FOR RELIEF OF THE POOR, INDI GENT, ILLITERATE, SICK, THE DISABLED, BLIND, GIVING OF ED UCATION, MEDICAL RELIEF, RELIEFS OF ALL KINDS AND HELP AND S UCCOR, AND AMELIORATION IN TIMES OF DISTRESS, FLOOD, FAMIN E, WAR, EARTHQUAKE, FIRE OR OTHER CALAMITY OR HAVOC, SCARCI TY OF DIFFERENT KINDS, TO THE AFFLICTED, AND THE ADVANCEM ENT OF ALL OBJECTS OF GENERAL PUBLIC UTILITY IN A SELFLESS AND ALTRUISTIC SPIRIT AND PARTICULARLY TO PROMOTE A SEN SE OF ONENESS OF HUMANITY, TOLERANCE, GOOD WILL AMONG HUMANITY IN CONSONANCE WITH THE EXAMPLE OF DIVINE LIMITLESS COMPASSION AND LOVE OF WHICH SRI AUROBINDO, WAS UNQUESTIONABLY ACKNOWLEDGED AND RECOGNIZED ALL THE WORLD OVER AS THE EMBODIMENT AND PERSONIFICATION. ANY OTHER PURPOSE OF A CHARITABLE NATURE', INCLUDING MAKING OF DONATIONS ENDURING FOR THE BENE FIT OF THE PUBLIC OR A CROSS-SECTION OF THE PUBLIC, IRRESP ECTIVE OF CASTE, RELIGION, CREED, COMMUNITY OR SEX, WHICH THE TRUSTEES MAY THINK FIT OR EXPEDIENT OR FEASIBLE FRO M TIME TO TIME, ALTHOUGH NOT SPECIFICALLY ENUMERATED IN TH E ABOVE. ITA NO.1522 /BANG/2019 PAGE 6 OF 9 21) TO UNDERTAKE AND PROMOTE THE PUBLICATION AND TRANSLATION OF JOURNALS, RESEARCH PAPERS AND BOOKS AND TO DEVELOP THE AUDIOVISUAL PROGRAMS TO DISSEMINATE KNOWLEDGE PERTAINING TO THE OBJECTIVES OF THE TRUST . 22) TO ORGANIZE AND TAKE UP HEALTH, EDUCATIONAL AND WELFARE PROGRAMS FOR NEEDY WOMEN AND CHILDREN ON PRIORITY BASIS. 23) TO PROMOTE CHARITABLE VALUES, LITERATURE, SCIEN CE, ART, EDUCATION AND CULTURE. 24) TO COMMUNICATE AND COORDINATE WITH THE GOVT. LO CAL AND PUBLIC AUTHORITIES ON VARIOUS ISSUES RELATED TO EDUCATION, DEVELOPMENT WELFARE AND PUBLIC INTEREST ON DIFFERENT SUBJECTS. 25) TO CONSTRUCT, MAINTAIN, ALTER, IMPROVE OR DEVEL OP ANY BUILDING BELONGING TO THE TRUST OR WORKS NECESSARY OR CONVENIENT FOR PURPOSE OF THE TRUST. 26) TO CAUSE AWARENESS IN PEOPLE ABOUT VARIOUS SOCI AL ISSUES TO FIGHT AGAINST EVILS. 27) TO ISSUE APPEALS, RAISE FUNDS AND ACCEPT GIFTS, DONATION SUBSCRIPTIONS IN CASH OR IN KIND AND ANY PROPERTY EITHER MOVABLE OR IMMOVABLE FOR THE ACHIEV EMENT OF THE OBJECTIVE OF THE TRUST. 28) TO ACQUIRE, PURCHASE OR OTHERWISE OWN OR UNDERT AKE ON LOAN OR LEASE OR HIRE TEMPORARILY OR PERMANENTLY AND MOVABLE OR IMMOVABLE PROPERTY NECESSARY OR CONVENIE NT FOR THE FURTHERANCE OF THE OBJECTS OF THE TRUST. 29) TO SUPPORT THE FAMILIES AND RELATIVES OF VEDIC SCHOLARS FOR PROMOTING THE AIMS OF THE TRUST. ITA NO.1522 /BANG/2019 PAGE 7 OF 9 30) TO ESTABLISH AWARDS FOR THE DESERVING PEOPLE IN THE FIELD OF EDUCATION, MUSIC, ART, SOCIAL SERVICE, COM MUNAL HARMONY, BROTHERHOOD AND PEACE. 31) TO ENCOURAGE THE EMERGING ARTISTS AND THEIR TALENTS SO THAT. THEY CAN GET PROPER RECOGNITION WI THIN AND BEYOND THE COUNTRY. 5. ON A PERUSAL OF VARIOUS OBJECTS MENTIONED IN THE TRUST DEED WE AGREE WITH THE CONTENTIONS OF THE LD DR THAT TH E ASSESSEE HAS INCLUDED VARIOUS TYPE OF OBJECTS IN THE OBJECT CLAU SE. EVEN THOUGH THE ASSESSEE HAS SHOWN CERTAIN PHOTOGRAPHS WHICH AR E PLACED IN THE PAPER BOOK, THE SAME WILL NOT PROVE THAT THE AS SESSEE IS ENGAGED IN THE EDUCATIONAL ACTIVITIES OR ANY OTHER SPECIFIC ACTIVITIES AS CLAIMED BY IT. NO OTHER MATERIAL WAS PLACED BEF ORE US IN ORDER TO COMPEL US TO INTERFERE WITH THE ORDER PASSED BY LD CIT(E). UNDER THE SET OF FACTS WE HAVE NO OTHER OPTION BUT TO CON FIRM THE ORDER PASSED BY LD CIT(E) 6. IN THE RESULT, THE APPEALS OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEMBER, 2019. SD/ - (BEENA PILLAI) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 27 TH NOVEMBER, 2019. / VMS / ITA NO.1522 /BANG/2019 PAGE 8 OF 9 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. ITA NO.1522 /BANG/2019 PAGE 9 OF 9 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DICTATION NOTE ENCLOSED DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED