Sh Krishna Charitable Trust, Bathinda V. The Commissioner of Income Tax, Chandigarh

ITA 182/ASR/2015

• Counselvise Citation: [2015] 128 COUNSELVISE.COM (IT) 9792 (ITAT-AMRITSAR)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 06-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12AA; 201

Judgement Text

I.T.A. NO.: 182/ASR/2015 ASSESSMENT YEAR: 2015 - 16 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL A MRITSAR BENCH, AMRITSAR. [CORAM: PRAMOD KUMAR AM AND A.D.JAIN, JM ] I.T.A. NO.: 182/ASR/2015 ASSESSMENT YEAR: 2015 - 16 SHRI KRISHNA CHARITABLE TRUST, B - 5, CIVIL LINES, BATHINDA . ......... ...... .... APPELLANT PAN AAOTS 2442N VS. COMMISSIONER OF INCOME - TAX (EXEMPTION), CHANDIGARH. . . RESPONDENT APPEARANCES BY: T.S. ARORA, ADVOCATE ..... FOR THE APPELLANT TARSEM LAL, DR ...... THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 8/6/2015 DATE OF PRONOUNCING THE ORDER : 31/8/ 201 5 O R D E R PER PRAMOD KUMAR , AM : BY WAY OF THIS APPEAL, THE ASSESSEE APPLICANT HAS CHALLENGED THE CORRECTNESS OF THE ORDER DATED 4 TH FEBRUARY, 2015 PASSED BY THE LD. COMMISSIONER OF INCOME - TAX (EXEMPTION), CHANDIGARH, DEC LINING REGISTRATION UNDER SECTION 12AA OF THE INCOME - TAX ACT, 1961. 2. THE GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS : - (1) THAT THE ORDER OF COMMISSIONER OF INCOME - TAX (EXEMPTION), CHANDIGARH FOR REJECTING THE GRANT OF EXEMPTION U/S 12A OF THE INCOME - TAX ACT IS BEING CONTESTED ON FACTS AND LAW. I.T.A. NO.: 182/ASR/2015 ASSESSMENT YEAR: 2015 - 16 PAGE 2 OF 3 (2) THAT THE ORDER OF THE COMMISSIONER OF INCOME - TAX (EXEMPTION), CHANDIGARH IS CONTRARY TO THE MATERIAL FACTS CONTAINING MATERIAL PARTICULARS ON RECORD. (3) THAT THE ORDER IS BEING CONTRARY TO THE PROVISIONS OF SECTION 12AA OF THE INCOME - TAX ACT, 1961 SINCE THE PROCEEDINGS WAS HEARD BY ACIT (EXEMPTION), CHANDIGARH WHEREAS THE ORDER WAS PASSED BY THE COMMISSIONER OF INCOME - TAX (EXEMPTION), CHANDIGARH HENCE THERE IS APPLICATION OF MIND ON THE INFORMATION PROVIDED B Y THE ACIT (EXEMPTION) AND NOT ON THE ORAL AND DOCUMENTARY EVIDENCE ADVANCED BY THE ASSESSEE DURING THE COURSE OF HEARING HENCE THE ORDER IS EX - FACIE ERRONEOUS AND UNREASONABLE. 3. BRIEFLY STATED THE RELEVANT MATERIAL FACTS ARE LIKE THIS. THE ASSESSEE TRUST MOVED AN APPLICATION SEEKING REGISTRATION UNDER SECTION 12AA OF THE INCOME - TAX ACT, 1961. THE HEARING OF THE APPLICATION FOR REGISTRATION WAS FIXED ON 16.12.2014 AND 26.12.2014 WHEN DETAILS REGARDING THE ACTIVITIES OF THE TRUST, BYE - LAWS, COPIES OF A UDITED BALANCE SHEET AND OTHER RECORDS WERE PRODUCED BEFORE THE LD. COMMISSIONER. THE LD. COMMISSIONER NOTED THAT THE TRUST HAS BEEN FORMED ON 7.7.2014 WITH THE AIM OF CONSTRUCTION OF DHARAMSHALA, EDUCATIONAL INSTITUTE, HOSPITAL AND GAUSHALA BUT THE LD. CO MMISSIONER WAS OF THE VIEW THAT THE OBJECTS WERE GENERAL IN NATURE AND NO CHARITABLE OBJECTS WERE INCORPORATED IN THE TRUST DEED. IT WAS ALSO NOTED THAT THE TRUST DEED DID NOT HAVE DISSOLUTION CLAUSE IN THE TRUST WHICH IS A MANDATORY REQUIREMENT . LD. COMMI SSIONER, ALSO , NOTED THAT NO ACTIVITY HAS BEEN CARRIED OUT SO FAR AND THE TRUSTEES ARE STILL IN THE PROCESS FOR SEARCHING LAND A T VRINDAVAN. WITH TH E S E OBSERVATION S THE LD. COMMISSIONER DISMISSED THE APPLICATION FILED BY THE ASSESSEE, AGGRIEVED BY WHICH TH E ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL CONTENTIONS. IN OUR CONSIDERED VIEW THE LD. COMMISSIONER (EXEMPTION) WAS CLEARLY IN ERROR IN HOLDING THAT THE CONSTRUCTION OF DHARAMSHALA, EDUCATIONAL INSTITUTE, HOSPITAL AND GAUSHALA ARE THE O BJECTS OF GENERAL NATURE WHICH CANNOT BE CONSIDERED TO BE SPECIFIC CHARITABLE OBJECTS. THE CONSTRUCTION OF DHARAMSHALA BY ITSELF, NO MATTER HOW SO EVER, OUTDATED IT MAY SEEM TO BE , AT A PLACE LIKE VRINDAVAN IS STILL A CHARITABLE OBJECT. IT IS ONLY ELEMENTARY THAT IN THE CASE OF NEW INSTITUTION ; I.T.A. NO.: 182/ASR/2015 ASSESSMENT YEAR: 2015 - 16 PAGE 3 OF 3 REGISTRATION CANNOT BE DECLINED MERELY ON THE GROUND THAT CHARITABLE ACTIVITIES HAVE NOT BEEN CARRIED OUT. IN SUCH CASES THE LD. COMMISSIONER WAS REQUIRED TO EN SURE AS TO WHETHER OR NOT THE OBJECTS LIKE EDUCATIONAL INS TITUTIONS ARE CHARITABLE OR NOT. THE OCCASION FOR CARRYING OUT CHARITABLE ACTIVITY WILL ONLY ARISE WITH THE TRUST OR INSTITUTION REACHING AT A STAGE IN WHICH IT HAS REACHED A SITUATION, SUCH ACTIVITY CAN BE CARRIED OUT . ALL THESE THINGS CLEARLY SHOW THAT T HE IMPUGNED ORDER HAS BEEN PASSED WITHOUT PROPER APPLICATION OF MIND AND WITHOUT EXAMINING THE THINGS IN RIGHT, FAIR AND REASONABLE MANNER. IN THIS VIEW OF THE MATTER AND AS WE FAIRLY AGREE WITH THE LD. AR, WE DEEM IT FIT AND PROPER TO RESTORE THE ISSUE TO THE FILE OF COMMISSIONER TO RE - ADJUDICATE DE NOVO IN ACCORDANCE WITH LAW AND BY WAY OF SPEAKING ORDER AND INTER ALIA IN THE LIGHT OF OUR OBSERVATIONS ABOVE. THE MATTER STANDS RESTORED TO THE FILE OF COMMISSIONER (EXEMPTION). 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED TODAY ON 31 ST DAY OF AUGUST 2015 UNDER PROVISO TO RULE 34(4) OF THE APPELLATE TRIBUNAL (INCOME - TAX) RULES, 1963. SD/XX SD/XX A. D. JAIN PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AMRITSAR, THE 31 ST DAY OF AUGUST 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT ( 3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL A MRITSAR BENCH AMRITSAR