SHRI GOKUM CHAND RAMJI HAVELI PUSVIMARG TRUST, BHARATPUR V. DCIT, BHARATPUR

ITA 168/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5476 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 23-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAILASH MANGAL JCIT DH FRFFK
• Keywords: Charitable institution; Maximum Marginal Rate; Competent authority
• Section: 143(3); 12A; 12AA; 12

Judgement Text

VKBZVH, LA-168@TSIH@15& JH XKSDQY PANZEUH GOSYH IQ' RHEFXZ;K VLV] DKWAEK VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K (BEFORE SHRI T.R.MEENA, AM AND SHRI LALIET KUMAR, J M) ITA NO.168/JP/2015 ASSESSMENT YEAR : 2010-11 PAN NO. AAETS 2097M SHRI GOKUL CHANDRAMAJI HAVELI VS. THE DCIT, PUSTIMARGIYA TRUST, KAMAN. CIRCLE, BHARATPUR. VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KKZFJRH DH VKSJ LS@ ASSESSEE BY : SH.RAJENDRA AGARWAL, C.A. FOHKKX DH VKSJ LS@ DEPARTMENT BY : SH.KAILASH MANGAL (JCIT) LQUOKBZ DH FRFFK@ DATE OF HEARING : 01/02/2016 ?KKS'K.KK DH FRFFK@ DATE OF PRONOUNCEMTNT: 12/02/2016 VKNS'K ORDER PER T.R.MEENA, AM THE ASSESSEES APPEAL IS EMANATING FROM THE ORDER O F THE CIT(A), ALWAR ORDER DATED 12.12.2014 FOR ASSESSMENT YEAR 2010-11. THE SOLE GROUND OF ASSESSEES APPEAL IS AGAINST CONFIRMING THE ADDITIO N MADE BY THE AO AT RS.36,35,312/-. THE ASSESSEE IS A TRUST ITS FILE R ETURN FOR ASSESSMENT YEAR 2010- 2 11 ON 24.03.2011 AT NIL. THE CASE HAS BEEN SCRUTI NIZED BY THE AO U/S 143(3) OF THE IT ACT. THE AO OBSERVED THAT ASSESSEE TRUST IS MANAGING TEMPLE AT KAMAN (BHARATPUR) DURING THE YEAR UNDER CONSIDERATION THE TRUST HAS SHOWN ANNUAL RECEIPT OF RS.36,15,312/- WHICH HAS BEEN APPLIED AG AINST THE EXPENSES OF THE TEMPLE THE ASSESSEE HAS CLAIMED EXEMPTION U/S 11 OF THE IT ACT. THE AO ASKED TO FILE THE COPY OF REGISTRATION CERTIFICATE U/S 12 AA. HE FURTHER OBSERVED THAT THE ASSESSEE FAILED TO PRODUCE COPY OF REGISTRATION CERTIFICATE. IN ABSENCE OF REGISTRATION, HE HAS NOT ALLOW THE EXEMPTION U/S 1 1 AND TAXED TOTAL ANNUAL RECEIPT OF RS.36,15,312/- AT MAXIMUM MARGINAL RATE. 2. BEING AGGRIEVED BY THE ORDER OF THE ASSESSEE CAR RIED THE MATTER BEFORE THE CIT(A) WHO HAVE CONFIRM THE ADDITION MADE BY TH E AO BY OBSERVING AS UNDER :- 4.3 I HAVE PERUSED THE ASSESSMENT ORDER AS WELL AS SUBMISSIONS MADE BY THE APPELLANT AND FIND THAT THE TOTAL RECEIPTS OF THE TRUST HAVE BEEN TREATED AS INCOME O N THE GROUND THAT IT HAS FAILED TO SATISFY THE BASIC COND ITIONS FOR CLAIM OF EXEMPTION U/S 11 OF THE IT ACT. THE TRUST HAS FAILED TO PRODUCE A COPY OF THE REGISTRATION U/S 12AA OF T HE IT ACT, 1961. 4.4 THE APPELLANT HAS REITERATED THE SUBMISSIONS MA DE EARLIER AND HAS STATED THAT ALL THE EFFORTS FOR OBT AINING A COPY OF THE REGISTRATION CERTIFICATE U/S 12AA OF TH E IT ACT 3 HAVE FAILED AND COULD NOT PROCURE THE SAME. IT IS SUBMITTED THAT THE EXEMPTION U/S 11 OF THE IT ACT MAY BE ALLO WED TO THE TRUST. 4.5 HAVING CONSIDERED THE MATERIAL PLACED ON RECORD , I FIND THAT A NUMBER OF OPPORTUNITIES WERE GIVEN TO T HE APPELLANT IN THE COURSE OF APPELLATE PROCEEDINGS TO PRODUCE A CO PY OF THE REGISTRATION CERTIFICATE U/S 12AA OF THE IT ACT . THE APPELLANT HAS HOWEVER FAILED TO PRODUCE THE SAME AN D IN THE ABSENCE OF ANY FURTHER EVIDENCE BEING PRODUCED BY THE APPELLANT, I HAVE NO OPTION BUT TO CONFIRM THE ACTI ON OF THE AO IN ASSESSING THE TOTAL RECEIPTS AS INCOME OF THE TRUST WHICH IS TO BE TAXED AT THE MMR. ACCORDINGLY, I CO NFIRM THE ACTION OF THE AO IN ASSESSING THE INCOME OF THE TRUST AT RS.36,35,312 TO BE TAXED AT THE MAXIMUM MARGINAL RA TE. 3. NOW ASSESSEE IS BEFORE US THE LD.A.R. REITERATED THE ARGUMENT MADE BEFORE THE CIT(A). HE FURTHER SUBMITTED THAT THELD .A.O. TAKEN TOTAL ANNUAL RECEIPTS OF RS.36,15,312/- AS TOTAL INCOME OF THE T RUST FOR WANT OF COPY OF CERTIFICATE OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 AND CHARGED TAX AT MMR. THE ASSESSEE TRUST IS REGISTERED U/S 12A (A) OF TH E INCOME TAX ACT, 1961 VIDE REGISTRATION NO. TRUST/290 DT. 18.02.1976 AS E VIDENT FROM THE LETTER OF ITO (RECY) FOR THE CIT, JAIPUR REF.NO.RECY/12A(A)/1733/ 81-3732 DT. 04.03.1982 (PB- 4 1), BUT THE CERTIFICATE OF REGISTRATION U/S 12A(A) HAS MISPLACED SOMEWHERE AND PRESENTLY NOT TRACEABLE AND EVEN FOR THE A.Y. 1984- 85 VIDE ORDER U/S 143(3) DT. 27.01.1987 (PB-2) THE THAN LD.AO ALLOWED THE EXEMPT ION U/S 11 AFTER TREATING THE TRUST AS REGISTERED U/S 12A OF THE INCOME TAX A CT, 1961. WHEN THE TRUST IS REGISTERED U/S 12A(A), IT IS ELI GIBLE FOR CLAIMING EXEMPTION U/S 11 OF THE IT ACT, 1961 AND AFTER ALLO WANCE OF EXEMPTION U/S 11 OF THE I.T.ACT, 1961, THE TOTAL INCOME COMES TO NIL . IN TERMS OF SECTION 11(7) OF THE INCOME TAX ACT, 1 961 WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTED REGISTRATION U/S 12AA OR HAS OBTAINED REGISTRATION AT ANY TIME U/S 12A, THE TRUST OR AN INSTITUTION SH ALL BE ELIGIBLE TO GET THE EXEMPTION U/S 11 AND NO WHERE IT IS REQUIRED TO SU BMIT COPY OF CERTIFICATE OF REGISTRATION U/S 12A WHEN THE EVIDENCE OF REGISTRAT ION U/S 12A(A) OF THE INCOME TAX ACT, 1961 VIDE REGISTRATION NO.TRUST/290 DT.18. 03.1976 AS EVIDENT FROM THE LETTER OF ITO (RECY) FOR THE CIT, JAIPUR REF.NO.REC Y/12A(A)/1733/81-82/3732 DT. 04.03.1982 (PB-1) HAS BEEN FURNISHED. HOWEVER, FOR OBTAINING COPY OF CERTIFICATE OF REGI STRATION U/S 12A(A) WE HAVE TRIED OUR BEST FROM THE OFFICE THE CIT-JAIPUR- 1 BUT WE FAILED IN GETTING SO. EVEN WE MADE AN APPLICATION UNDER THE RTI ACT, 2005 BUT THE PIO HAS REJECTED 5 THE APPLICATION VIDE HIS ORDER DT. 16.07.2014 (PB-3 ) STATING THAT THE INFORMATION SOUGHT BY THE APPLICANT PERTAINS TO AGE D OLD RECORDS OF MORE THAN 38 YRS. IS NOT AVAILABLE IN HIS OFFICE AND, THEREFO RE CANNOT BE PROVIDED. SIMILARLY THE FIRST APPELLATE AUTHORITY UNDER THE R TI ACT VIDE HIS ORDER DT. 06.09.2014 (PB-4 TO 5) DISMISSED THE APPEAL FILED B EFORE HIM. SIR, THE ASSESSEE TRUST IS REGISTERED U/S 12A (A) OF THE INCOME TAX ACT, 1961 VIDE REGISTRATION NO. TRUST/290 DT. 18.03.1976 AS EVIDENT FROM THE LETTER OF ITO (RECY) FOR THE CIT, JAIPUR REF.NO.RECY/12A ( A)/1733/81-82/3732 DT. 04.03.1982 (PB-1). WHEN THE TRUST IS REGISTERED U/ S 12A(A), IT IS ELIGIBLE FOR FOR CLAIMING EXEMPTION U/S 11 OF THE I.T.ACT, 1961 AND AFTER ALLOWANCE OF EXEMPTION U/S 11 OF THE I.T.ACT, 1961, THE TOTAL IN COME COMES TO NIL. AT THE OUTSET THE LD. D.R. SUPPORTED THE ORDER OF C IT(A). 4. WE HAVE HEARD THE RIVAL CONTENTION PERUSED THE M ATERIAL AVAILABLE ON RECORD THE ASSESSEE TRUST HAD REGISTERED U/S 12A(A) VIDE ORDER NO. TRUST/290 DATED 18.03.2076. THE SAME REGISTRATION CERTIFICAT E HAD MISPLACED AND NOT TRACEABLE. THE CIRCUMSTANTIAL EVIDENCE PRODUCED BY THE ASSESSEE SHOWED THAT ASSESSEE TRUST HAD BEEN GRANTED REGISTRATION U/S 12 AA OF THE IT ACT BY THE CIT, JAIPUR. THE ASSESSEE TRUST FOR ASSESSMENT YEAR 198 4-85 HAS ASSESSED BY LD.A.O. 6 HELD THAT THE ASSESSEE TRUST HAD BEEN HELD TO BE A CHARITABLE INSTITUTION IN ALL THE PASTED YEARS. THE CLAIM OF EXEMPTION U/S 11/12 IS THEREFORE, GRANTED FOR THE ASSESSMENT YEAR 1984-85. THE LD.AO IN ASSESSME NT YEAR 1984-85 HAD ASSESSED THE ASSESSEE TRUST INCOME AT NIL. THE ASS ESSEE ALSO MADE REQUEST TO CIT, JAIPUR-1 TO PROVIDE PHOTO COPY OF REGISTRATION CERTIFICATE ISSUED BY THE COMMISSIONER, JAIPUR IN RTI ACT WHICH HAD BEEN INFO RMED BY THE CIT-1, JAIPUR THAT THE INFORMATIONS SOUGHT BY THE APPLICANT IS PE RTAINED TO AGE OLD RECORD OF MORE THEN 38 YEAR WHICH IS NOT AVAILABLE IN THE OFF ICE AND THEREFORE CANNOT BE PROVIDED. WE, THEREFORE, HOLD THAT ASSESSEE GOT TH E REGISTRATION FROM THE COMPETENT AUTHORITY WHICH HAS BEEN PROVED BY THE AS SESSEE THEREFORE IN THE INTEREST OF JUSTICE, WE DIRECT TO THE AO TO TREAT TH E ASSESSEE TRUST AS REGISTERED. ACCORDINGLY THE AO IS DIRECTED TO GIVE THE DEDUCTIO N U/S 11 OF THE IT ACT TO THE TRUST. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/02/2016. SD/- SD/- (LALIET KUMAR) (T.R.MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER T;IQJ@ JAIPUR, FNUKAD@ DATE : 12/02/2016 7 *BASANT* VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO :- 1- JH XKSDQY PUNZEKTH GOSYH IQLRHEKFXZ;K VLV] DKWA EK A 2- MIK;QDR VK;DJ] LFDZY] HKJRIQJ A 3- VK;DJ VK;QDR] 4- VK;DJ VK;QDR VIHYL~] 5- FOHKKXH; IZFRFUF/K] T;IQJ@ THE D.R. ITAT, JAIPUR 6- XKMZ QKBZY@ THE GUARD FILE (IN ITA NO.168/JP/2015) VKNS'KKUQLKJ LGK;D IATHDKJ@ ASSISTANT REGISTRAR