M/s Shree Gopal Gaushala, Panchkula V. CIT(E), Chandigarh

ITA 1634/CHANDI/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3408 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 01-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA CIT DR
• Assessee Lawyers: AMITOZ SINGH
• Keywords: Charitable institution; Set aside
• Section: 12A; 12AA

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1634/CHD/2017 / ASSESSMENT YEAR : 2017-18 M/S SHREE GOPAL GAUSHALA, VILALGE RAM NAGAR, TEHSIL KALKA, PANCHKULA THE CIT (EXEMPTIONS) CHANDIGARH ./PAN NO: AAMTS0578H / APPELLANT /RESPONDENT ! ' /ASSESSEE BY : SHRI AMITOZ SINGH, CA # ! ' / REVENUE BY : SH. ASHISH GUPTA, CIT DR $ % ! & /DATE OF HEARING : 28.02.2019 '()* ! & / DATE OF PRONOUNCEMENT : 30. 04.2019 (* / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE TRUST AGITATING THE REJECTION OF THE APPLICATION OF THE ASSESSEE TR UST VIDE ORDER DATED 28.09.2017 BY THE COMMISSIONER OF INCOME TAX (EXEM PTIONS), CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(EXEMPTIONS)] FOR RE GISTRATION AS CHARITABLE TRUST U/S 12AA OF THE INCOME-TAX ACT, 1961 (IN SHO RT 'THE ACT'). 2. THE APPELLANT TRUST MOVED AN APPLICATION U/S 12A OF THE ACT READ WITH SECTION 12AA OF THE ACT TO THE LD. CIT(E) FOR REGISTRATION AS CHARITABLE TRUST U/S 12A OF THE ACT. IT WAS PLEAD ED THAT THE AIMS AND OBJECTS OF THE TRUST WERE TO MAINTAIN, RENOVATE AND MANAGE SHREE GOPAL GAUSHALA; TO CONSTRUCT AIRY SHEDS OF THE GAUSHALA HAVING ENOUGH SPACE FOR ITA NO. 1634/CHD/2017- SHREE GOPAL GAUSHALA, PANCHKULA 2 COWS, TO GIVE SHELTER TO STRAY COWS AND BULLS IN TH E GAUSHALA; TO APPOINT SHEPHERDS AND WORKERS TO TAKE CARE OF THE COWS; TO ARRANGE GREEN AND DRY GRASS AND FOOD LIKE BAJRA, MAIZE TO FEED THE COWS I N THE GAUSHALA; TO ARRANGE CLEAN WATER FOR DRINKING IN THE GAUSHALA; T O PROTECT COWS & OTHER ANIMALS AS A PART OF ANIMAL KINGDOM IN ENVIRONMENT; TO PROVIDE ALL FACILITIES FOR COWS IN GAUSHALA. THE LD. CIT (E) RA ISED SEVERAL QUERIES WHICH WERE REPLIED BY THE ASSESSEES TRUST, HOWEVER , THE LD. CIT (E) OBSERVED THAT EARLIER IN THE YEAR 2012, THE APPLICA NT- SOCIETY HAD MOVED AN APPLICATION FOR REGISTRATION US 12A READ WITH SECTI ON 12AA OF THE ACT, WHICH WAS REJECTED ON THE FOLLOWING GROUNDS: I) THE TRUST WAS NOT REGISTERED WITH THE REGISTRAR OF FIRMS AND SOCIETIES, HARYANA. II) THE LAND IN QUESTION ON WHICH GAUSHALA WAS TO BE ESTABLISHED HAS NO LIEN WITH THE TRUST AND SUCH THE FUNDS SO RAISED WILL BE THE PERSONAL ASSET OF THE TRUSTEE . 3. THE LD. CIT(E) FURTHER OBSERVED THAT THE ASSESSE E TRUST DID PREFER AN APPEAL AGAINST THE SAID REJECTION OF THE APPLICATIO N. THAT THE ASSESSEE AGAIN HAS MOVED THE PRESENT APPLICATION WITHOUT REMOVING THE DISCREPANCY WHICH HAD BEEN SPECIALLY POINTED OUT AT THE TIME OF EARLI ER REJECTION. APART FROM THAT, THE LD. CIT (E) TOOK NOTE OF THE FACT THAT TH E ASSESSEE TRUST WAS NOT THE OWNER OF THE LAND ON WHICH THE TRUST WAS ESTABL ISHED. THE DEED OF THE LAND WAS IN THE NAME OF ONE OF THE TRUSTEE NAMELY SHRI VED PARKASH GARG WHICH WAS ALLEGEDLY PURCHASED BY HIM FROM KRISHNA EDUCATIONAL SOCIETY (REGD), JALANDHAR THROUGH ITS SECRETARY SHRI PARSHA NT KUMAR CHANDRA RESIDENT OF H. NO. 1852/21, PANCHKULA WHICH INCIDEN TALLY WAS THE ADDRESS OF THE TRUSTEE OF THE APPLICANT SOCIETY ALSO. THE LD. CIT(A) NOTED THAT ITA NO. 1634/CHD/2017- SHREE GOPAL GAUSHALA, PANCHKULA 3 THE ASSESSEE SOCIETY COULD NOT ESTABLISH / EXPLAIN THIS ASPECT AND FURTHER IT WAS NOT POINTED OUT WHETHER THE SAID KRISHNA EDUCAT IONAL SOCIETY WAS ALSO REGISTERED U/S 12A READ WITH SECTION 12AA OF THE AC T OR NOT. THE LD. CIT (E) ALSO TOOK NOTE OF THE FACT THAT THE ASSESSEE SO CIETY RECEIVED HUGE DONATION OF 6 LACS DURING THE DEMONETIZATION PERIOD I.E. THE P ERIOD DURING WHICH CURRENCY NOTES OF CERTAIN DENOMINATION WERE B ANNED BY THE GOVERNMENT. HE FURTHER OBSERVED FROM THE PICTURES /PHOTOGRAPHS THAT THE BUILDING IN QUESTION FROM WHICH THE ASSESSEE SOCIET Y WAS WORKING WAS SEEMINGLY A RESIDENTIAL PREMISES AND DID NOT SHOW THAT THE SAME WAS A GAUSHALA. FURTHER, A STACK OF HAY WAS KEPT IN THE COMPOUND OF THE TWO STORIED BUILDING AND A GROUP OF 13 -14 CATTLE WAS THERE IN THE ENCLOSED AREA AND FURTHER A GROUP OF 10-11 CATTLE WAS THERE IN THE OPEN AREA. THE LD. CIT(E) CONCLUDED THAT FROM THE ABOVE FACTS, THE ASS ESSEE COULD NOT ESTABLISH THAT IT WAS RUNNING A GAUSHALA OR THAT ITS OBJECTS AND ACTIVITIES WERE CHARITABLE IN NATURE. 4. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUB MITTED THAT THERE ARE ABOUT 120 CATTLE IN THE GAUSHALA OUT OF WHICH 35 40 WERE CALFS AND THAT THERE WERE ONLY 10 MILKING COWS AND REST OF THE COW S WERE NON-MILKING. THAT THE ASSESSEE SOCIETY WAS ENGAGED IN THE GIVING HELP, SHELTER AND FOOD TO THE STRAY COWS / BULLS AND THAT THE OBJECTS OF T HE SOCIETY WERE CLEARLY CHARITABLE IN NATURE. THAT THE LD. CIT(E) WITHOUT PROPERLY EXAMINING THE OBJECTS AND ACTIVITIES OF THE ASSESSEE SOCIETY AND WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE HAS REJECTED THE APPLICATION OF THE ASSESSEE SOCIETY. ITA NO. 1634/CHD/2017- SHREE GOPAL GAUSHALA, PANCHKULA 4 5. THE LD. DR, ON THE OTHER HAND, HAS RELIED UPON T HE FINDINGS OF THE LD. CIT(A). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E ALSO GONE THROUGH THE RECORD. THE MAIN OBJECT OF THE ASSESSEE SOCIETY IS TO HELP, SHELTER AND PROVIDE FOOD TO THE STRAY COWS AND BULLS. THOUGH T HE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE PRESENTLY IS HAVING ABOUT 120 CATTLES, HOWEVER, THE LD. CIT(E) MAINLY RELYING UP ON THE PHOTOGRAPHS HELD THE ASSESSEE SOCIETY DID NOT SEEM TO HAVE BEEN RUN NING A GAUSHALA. AT THE TIME OF REGISTRATION OF THE TRUST AS PER THE PROVIS IONS OF SECTION 12A READ WITH SECTION 12AA OF THE ACT, WHAT IS TO BE SEEN IS THE CHARITABLE NATURE OF OBJECTS OF THE APPLICANT SOCIETY AND GENUINENESS OF THE ACTIVITIES OF THE SOCIETY / TRUST. 7. AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW, THAT THE LD. CIT (E) DID NOT MAKE PROPER ENQUIRIES AND ARRIVED AT A CONCLUSION BY MAKING CERTAIN ASSUMPTIONS FROM THE PHOTOGRAPHS. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER OF THE CIT (E) AND RESTORE THE MATTER TO THE FILE OF THE CIT(E) FOR DECISION AFRES H AFTER MAKING PROPER ENQUIRIES ABOUT THE OBJECTS OF THE ASSESSEE TRUST A ND GENUINENESS OF ITS ACTIVITIES AND TO DECIDE THE APPLICATION OF THE ASS ESSEE IN ACCORDANCE WITH LAW. THE LD. CIT(E) WILL ALSO LOOK INTO THE FACT O F THE EARLIER REJECTION OF THE APPLICATION AND WHETHER THE SAID GROUNDS / DISC REPANCIES, BECAUSE OF WHICH THE APPLICATION OF THE ASSESSEE WAS EARLIER R EJECTED, HAVE BEEN RECTIFIED / REMOVED AND WHETHER THE EARLIER DECISI ON STILL OPERATES AS RES JUDICATA AGAINST THE ASSESSEE OR NOT. WE DIRECT TH E LD. CIT(E) TO DECIDE ITA NO. 1634/CHD/2017- SHREE GOPAL GAUSHALA, PANCHKULA 5 THE APPLICATION OF THE ASSESSEE AFRESH IN ACCORDAN CE WITH LAW WITHIN SIX MONTHS FROM THE RECEIPT OF THE COPY OF THIS ORDER. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FO R STATISTICAL PURPOSES. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT ON 30.04.2019 SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 30. 04 .2019 .. (, ! -. /. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ 0 / CIT 4. $ 0 ( )/ THE CIT(A) 5. .12 3 , & 3 , 45627 / DR, ITAT, CHANDIGARH 6. 26 8% / GUARD FILE (, $ / BY ORDER, 9 # / ASSISTANT REGISTRAR