Krishna Yajurvedi Taittiriya Apastamb Bramhan Sabha, Pune V. CIT-I, Pune

ITA 1680/PUN/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0871 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 26-03-2015
• Assessment Year: misc
• Appeal Filed On: 03-09-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K RASTOGI
• Keywords: Charitable institution; Additional evidence
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUN E , , !'!! # , $ % BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM / ITA NO. 1680/PN/2013 KRISHNA YAJURVEDI TAITTIRIYA APASTAMB BRAHMAN SABHA, 1009, SHUKRAWAR PETH, PUNE 411002 PAN : AAATK7090A ....... / APPELLANT &' / V/S. COMMISSIONER OF INCOME TAX I, PUNE / RESPONDENT ASSESSEE BY : SHRI KISHORE PHADKE REVENUE BY : SHRI S.K. RASTOGI / DATE OF HEARING : 07-10-2015 / DATE OF PRONOUNCEMENT : 13-11-2015 ( / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX - I, PUNE DATED 28-06-2013, R EJECTING THE APPLICATION OF ASSESSEE FOR GRANT OF REGISTRATION U/S. 12A O F THE INCOME- TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. IN APPEAL, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- 1. THE LEARNED CIT-I, PUNE, ERRED IN LAW AND ON FA CTS IN NOT APPRECIATING THAT THE APPELLANT TRUST IS DEEMED TO HAVE BEEN REGISTERED U/S 12A SINCE NO ORDER OF REFUSING REGIS TRATION WAS PASSED WITHIN SIX MONTHS OF APPLICATION VIDE FORM 1 0A FILED ON 17/04/2006. 2 ITA NO. 1680/PN/2013 2. THE LEARNED CIT-I, PUNE, ERRED IN LAW AND ON FAC TS IN APPLYING THE PROVISIONS OF THE SECTION 13(1)(B) OF ITA, 1961 IN APPELLANTS CASE AND NOT GRANTING THE REGISTRATION U/S. 12A. 3. THE LEARNED CIT-I, PUNE ERRED IN LAW AND ON FACT S IN ASSUMING THAT NO CHARITABLE ACTIVITIES AS PER THE TRUST DEED OF THE TRUST ARE CARRIED OUT BY THE APPELLANT. 3. THE LD. AR OF THE ASSESSEE STATED AT THE BAR THAT H E IS NOT PRESSING THE FIRST GROUND RAISED IN THE APPEAL. ACCORDINGL Y, THE SAME IS DISMISSED AS HAVING NOT PRESSED. 4. THE LD. AR SUBMITTED THAT THE ASSESSEE IS A TRUST, CR EATED ON 20.05.1946 AND IS REGISTERED UNDER THE BOMBAY PUBLIC TRUS T ACT, 1950. THE ASSESSEE APPLIED FOR REGISTRATION IN THE PRESCRIBED FOR M U/S. 12A OF THE ACT ON 17.12.2012. THE COMMISSIONER OF INCOME-TAX RE JECTED THE APPLICATION OF THE ASSESSEE VIDE IMPUGNED ORDER PRIMARILY ON TWO GROUNDS: (I) THE ASSESSEE COULD NOT PROVE THAT IT WAS IN-EXISTENCE PRIOR TO THE ENACTMENT OF INCOME-TAX ACT, 1961, AND (II) THE ACTIVITIES OF THE ASSESSEE ARE PRE-DOMINANTLY IN TH E NATURE OF LETTING OUT OF BUILDING / HALL AND LAND. THE LD. AR SUBMITTED THAT AT THE TIME OF PROCEEDINGS BEFOR E THE COMMISSIONER OF INCOME-TAX THE ASSESSEE COULD NOT PLACE ON RECORD THE CERTIFICATE / DOCUMENT TO SHOW THAT THE ASSESSEE WAS R EGISTERED WITH THE CHARITY COMMISSIONER OR WAS IN EXISTENCE PRIOR TO THE ENACTMENT OF THE INCOME TAX ACT, 1961. THE ORIGINAL CERTIFICATE OF REGIS TRATION WAS MISPLACED. THE ASSESSEE HAD APPLIED FOR DUPLICATE COPY OF R EGISTRATION CERTIFICATE. THE DUPLICATE COPY OF CERTIFICATE COULD BE OBTA INED FROM THE OFFICE OF CHARITY COMMISSIONER ON 10.10.2013 I.E. AFTER THE DAT E OF 3 ITA NO. 1680/PN/2013 PASSING OF IMPUGNED ORDER. THE LD. AR PRAYED FOR ADMITTING THE SAID CERTIFICATE AS ADDITIONAL EVIDENCE. THE LD. AR FURTHER CONTE NTED THAT AT THE TIME OF REGISTRATION, ONLY GENUINENESS OF THE OBJECTS OF THE TRUST ARE TO BE SEEN AND NOT THE ACTIVITIES. THE COMMISSIONER OF IN COME-TAX HAS TO SATISFY ABOUT THE OBJECTS OF THE TRUST. THE REGISTR ATION U/S. 12A OF THE ACT CANNOT BE DENIED ON THE GROUND THAT THE ASSE SSEE HAD SPENT ONLY SMALL AMOUNT TOWARDS CHARITABLE ACTIVITIES. THE COMMIS SIONER OF INCOME-TAX IN THE PRESENT CASE HAS ERRED IN OBSERVING THAT THE ACTIVITIES OF THE ASSESSEE ARE NOT CHARITABLE MERELY AFTER EXAMINING THE INCOME & EXPENDITURE OF THE ASSESSEE. IN SUPPORT OF HIS SUBMISSION S, THE LD. AR PLACED RELIANCE ON THE FOLLOWING DECISIONS:- 1. DIRECTOR OF INCOME-TAX (EXEMPTION), CHENNAI VS. R.J.B .V. VASUDEVAN EDUCATIONAL & CHARITABLE TRUST; 49 TAXMANN.COM 99 (MADRAS), AND 2. COMMISSIONER OF INCOME-TAX VS. VIJAY VARGIYA VANI CHARITABLE TRUST; 369 ITR 360 (RAJ) 5. ON THE OTHER HAND, THE LD. DR REPRESENTING THE DEPAR TMENT VEHEMENTLY SUPPORTED THE FINDINGS OF COMMISSIONER OF INCOME-TAX. T HE LD. DR CONTENDED THAT THE COMMISSIONER OF INCOME-TAX HAS GIVEN A CATEGORIC FINDING THAT THE TRUST HAS BEEN FORMED EXCLUSIVE LY FOR THE BENEFIT OF A PARTICULAR COMMUNITY. THE COMMISSIONER OF INCOM E-TAX IN THE IMPUGNED ORDER HAS POINTED OUT THAT THE PRIMARY AC TIVITY OF THE ASSESSEE IS LETTING OUT OF BUILDING / HALL AND THERE IS NO CH ARITABLE ACTIVITY, WHICH IS BEING CARRIED OUT BY THE ASSESSEE. THE LD. DR PRAYED FOR DISMISSING THE APPEAL OF ASSESSEE AND UPHOLDING THE ORD ER OF COMMISSIONER OF INCOME-TAX. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESEN TATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF THE AUTHORITIE S BELOW. WE 4 ITA NO. 1680/PN/2013 HAVE ALSO CONSIDERED THE DECISIONS ON WHICH THE LD. AR HAS PLACED RELIANCE. THE ASSESSEE HAS FILED AN APPLICATION FOR PRODUCIN G ADDITIONAL EVIDENCE. THE ASSESSEE HAS PLACED ON RECORD A PHOTO C OPY OF DUPLICATE CERTIFICATE ISSUED BY THE CHARITY COMMISSIONER AT PAGE 66 OF THE PAPER BOOK. THE DUPLICATE CERTIFICATE HAS BEEN ISSUED ON 10.10.20 13. A PERUSAL OF THE SAID DOCUMENT SHOWS THAT THE ORIGINAL DOCU MENT WAS ISSUED ON 10.04.1952. THE CASE OF THE ASSESSEE IS THAT IT IS IN-EXISTENC E SINCE 1946, THEREFORE, THE PROVISIONS OF SECTION 13(1)(B) OF TH E INCOME- TAX ACT, 1961 WILL NOT BE APPLICABLE. ONE OF THE GROUNDS FOR REJECTING THE APPLICATION OF THE ASSESSEE U/S. 12A OF THE ACT BY T HE COMMISSIONER OF INCOME-TAX IS THAT THE ASSESSEE HAS NOT BEEN ABLE TO PLACE ON RECORD ANY DOCUMENT TO SHOW THAT IT HAD COME INTO EXISTENCE IN THE YEAR 1946 AND THUS, THE PROVISIONS OF SECTION 13(1)(B ) OF THE ACT ARE NOT APPLICABLE. WE ARE OF THE VIEW THAT THE ADDITIONAL EVIDENCE PLACED ON RECORD BY THE ASSESSEE IS A VITAL DOCUMENT, WH ICH SHOWS THAT THE ASSESSEE WAS IN-EXISTENCE PRIOR TO ENACTMENT OF THE INCOME-TAX ACT, 1961. THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT ARE NOT APPLICABLE ON THE TRUSTS OR INSTITUTIONS CREATED OR ESTABLISHED PRIOR T O THE ENACTMENT OF THE INCOME-TAX ACT, 1961. THUS, THE CONSIDERATION OF SAID DOCUMENT IS CRUCIAL FOR ADJUDICATING THE ELIGIBILITY OF ASSESSEE FOR GRAN T OF REGISTRATION U/S. 12A OF THE ACT. 7. SINCE THE CERTIFICATE WHICH HAS NOW BEEN PLACED ON RECO RD BY THE ASSESSEE WAS NOT AVAILABLE WITH THE COMMISSIONER OF INCOM E-TAX, WE DEEM IT APPROPRIATE TO REMIT THE FILE BACK TO COMMISSIONER OF INCOME- TAX TO CONSIDER THE SAME AND DECIDE THE APPLICATION OF TH E ASSESSEE AFRESH, IN ACCORDANCE WITH LAW. 5 ITA NO. 1680/PN/2013 8. AS FAR AS THE SECOND SUBMISSION OF THE ASSESSEE WITH R EGARD TO EXAMINATION OF ACTIVITIES AT THE TIME OF REGISTRATION IS CONCE RNED, IT IS A WELL SETTLED LAW THAT AT THE TIME OF REGISTRATION, THE COMP ETENT AUTHORITY HAS TO EXAMINE THE GENUINENESS OF THE OBJECTS OF THE TR UST AND NOT THE INCOME OF THE ASSESSEE OR THE MANNER IN WHICH THE INCOM E HAS BEEN UTILIZED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY A CCEPTED FOR STATISTICAL PURPOSE IN THE AFORESAID TERMS. ORDER PRONOUNCED ON FRIDAY, THE 13 TH DAY OF NOVEMBER, 2015. SD/- SD/- ( . . / R.K. PANDA) ( ! ' / VIKAS AWASTHY) #' / ACCOUNTANT MEMBER $ % #' / JUDICIAL MEMBER / PUNE; &# / DATED : 13 TH NOVEMBER, 2015 GCVSR ()*$+,'-'.+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ' / THE CIT-I, PUNE 4. !() %%*+ , *+ , , -./ , / DR, ITAT, A BENCH, PUNE. 5. ) 0 12 / GUARD FILE. / #3 / BY ORDER, ! % // TRUE COPY // 456 %7 */ / SR. PRIVATE SECRETARY *+ , / ITAT, PUNE