Pavitra Ashirwadit Prarthana Sangh, Ahmednagar V. Commissioner of Income-tax - 1,

ITA 1826/PUN/2013

• Counselvise Citation: 182624514 RSA 2013
• Duration Of Justice: 1 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-06-2015
• Assessment Year: misc
• Appeal Filed On: 09-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K MODI
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE M S SUSHMA CHOWLA , JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO. 1826 /PN/201 3 [ ORDER UNDER SECTION 12AA OF THE ACT ] PAVITRA ASHIRWADIT PRARTHANA SANGH, BURUDGAON, TAL. & D IST. AHMEDNAGAR. 414001 . APPELLANT PAN: A A BTP9914H VS. THE COMMISSIONER OF INCOME TAX - I, PUNE . RESPONDENT A PPELLANT BY : NONE RESPONDENT BY : S HRI A.K. MODI DATE OF HEARING : 2 3 - 0 6 - 201 5 DATE OF PRONOUNCEMENT : 2 5 - 0 6 - 201 5 ORDER ORDER PER SUSHMA CHOWLA, J M : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT - I, PUNE DATED 29 . 0 8 .201 3 PASSED U NDER SECTION 12AA (1)(B) ( II ) OF THE INCOME - TAX ACT, 1961 R EAD WITH RULE 17A OF THE INCOME - TAX RULES, 1962 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1 . THE LEARNED COMMISSIONER OF INCOME TAX - I, PUNE ERRED ON FACTS AND IN LAW IN REJECTED & HIT FORM NO.10A BY THE PROVISIONS OF SECTION 13(1)(B) . 2 . THE APPELLANT PRAYS THAT THE APPELLANT MAY KINDLY BE PROVIDED SUFFICIENT OPPORTUNITY FOR PROVING ITS CASE. 3 . THE APPELLANT CRAVES TO ADD, ALTER, MODIFY OR SUBSTITUTE ANY OF THE GROUND OF APPEAL AT THE TIME OF HEARING. 3. THE APPEAL WAS ADJOURNED FROM TIME TO TIME FROM DAY TO DAY, BUT NONE 3. THE APPEAL WAS ADJOURNED FROM TIME TO TIME FROM DAY TO DAY, BUT NONE APPEARED ON BEHA LF OF THE ASSESSEE ON ANY OF THE DATES FIXED FOR HEARING. ITA NO. 1826 /PN/201 3 PAVITRA ASHIRWADIT PRARTHANA SANGH 2 THEREAFTER, NOTICE WAS ISSUED FIXING THE HEARING ON 23.06.2015 , ON WHICH DATE ALSO NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT . CONSEQUENTLY, WE PROCEED T O DECIDE THE PRESENT APPEAL AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST REFUSAL OF REGISTRATION UNDER SECTION 12AA OF THE ACT BY THE CIT - I, PUNE. 5. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE HAD MOVED AN APPLICATION IN FORM NO.10A FOR GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT. THE COMMISSIONER NOTED THAT THE APPLICANT TRUST WAS SET UP VIDE TRUST DEED EXECUTED ON 01.07.2010 , WHICH WAS REGISTERED UNDER THE BOMBA Y PUBLIC TRUSTS ACT, 1950 . THE APPLICANT WAS ASKED TO FURNISH CERTAIN DOCUMENTS, DETAILS AND INFORMATION INCLUDING THE CHARITABLE ACTIVITIES CARRIED OUT BY THE TRUST SINCE INCEPTION ALONG WITH PROOF, BANK ACCOUNT DETAILS, STATEMENT OF ACCOUNTS FOR THE LAS T THREE YEARS AND PROOF OF FILING THE RETURNS OF INCOME FOR ACCOUNTS FOR THE LAS T THREE YEARS AND PROOF OF FILING THE RETURNS OF INCOME FOR THE PAST THREE YEARS. THERE WAS NO COMPLIANCE INITIALLY BEFORE THE COMMISSIONER. THEREAFTER, WRITTEN SUBMISSIONS WERE FILED ON 26.07.2013 . IN THE M EANWHILE, THE ASSESSING OFFICER ON 12.07.2013 HAD SUBMITTED HIS REPORT ALONG WITH STATEMENT OF ACCOUNTS, WHICH THE APPLICANT HAD FURNISHED BEFORE HIM. THE COMMISSIONER NOTED THAT WHILE THE OBJECTS OF THE APPLICANT WERE MAINLY CHARITABLE, BUT THERE WERE FEW RELIGIOUS OBJECTS AS WELL. SO, ANOTHER COMM UNICATION WAS ISSUED TO THE APPLICANT TO EXPLAIN HOW IT COULD BE REGISTERED AS A PUBLIC CHARITABLE TRUST IN VIEW OF THE RELIGIOUS OBJECTS BEING CARRIED ON BY IT. THE APPLICANT WAS ALSO CALLED UPON TO EXPLAIN THE OBJECTS WHICH WERE NEITHER WHOLLY CHARITABL E NOR WHOLLY RELIGIOUS, BUT INSTEAD WERE MIXED. IN REPLY, THE ASSESSEE STATED THAT THE RELIGIOUS OBJECTS IN THE TRUST DEED WERE ONLY MEANT TO GATHER PEOPLE AND NOT TO CATER TO ANY SPECIFIC CASTE OR RELIGIOUS GROUP. SINCE ITS OBJECTS CAME WITHIN THE AMBIT OF EXPRESSION ANY ITA NO. 1826 /PN/201 3 PAVITRA ASHIRWADIT PRARTHANA SANGH 3 OTHER OBJECTS OF GENERAL PUBLIC UTILITY AS USED IN SECTION 2(15) OF THE ACT, THE ASSESSEE REQUESTED THAT REGISTRATION UNDER SECTION 12A OF THE ACT BE GRANTED. THE COMMISSIONER ON CONSIDERING THE ISSUE HELD THAT OBJECTS OF THE TRUST WE RE MIXED AND ALSO SOME OF THE OBJECTS WERE FOR THE BENEFIT OF A SPECIFIC RELIGIOUS COMMUNITY I.E. THE CHRISTIANS AND HENCE, IT WAS HIT BY THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT AND CONSEQUENTLY, REGISTRATION UNDER SECTION 12A OF THE ACT WAS DENIED T O THE ASSESSEE. 6. ON THE PERUSAL OF RECORD, WE FIND THAT THE APPLICANT BEFORE US HAS FAILED TO MEET THE OBJECTIONS RAISED BY THE COMMISSIONER , WHILE ISSUING THE ORDER UNDER SECTION 12AA OF THE ACT. AS NOTED BY THE COMMISSIONER, THE FOLLOWING OBJECTS O F THE ASSESSEE WERE FOR A SPECIFIC RELIGIOUS COMMUNITY I.E. CHRISTIANS: - 14. TO CREATE HIGH STANDARD CHRISTIAN PHILOSOPHICAL ADHYATHMIC MUSIC. 19. TO PROVIDE GUIDANCE TO ADDICTED PEOPLE THROUGH BIBLE AND FREE THEM FROM ADDICTION. 21. TO MAKE EFFORTS FO R CREATION OF CHRISTIAN COMMUNITY AS PER BIBLE. 22. TO SPREAD THE RELIGION OF CHRISTIANS. 7. THE FINDING OF THE COMMISSIONER IN THIS REGARD WAS THAT WHERE THE OBJECTS OF THE TRUST WERE FOR THE BENEFIT OF A SPECIFIC RELIGIOUS COMMUNITY , THE SAME WAS HIT B Y THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. IN ANY CASE, WHERE THE TRUST IS FORMULATED FOR THE BENEFIT OF A SPECIFIC RELIGIOUS COMMUNITY I.E. CHRISTIAN , IN THIS CASE, THE SAID TRUST CANNOT BE SAID TO BE CHARITABLE IN NATURE AND IS HIT BY BASIC PROVIS IONS OF SECTION 2(15) OF THE ACT, UNDER WHICH IT IS PROVIDED THAT CHARITABLE PURPOSE WOULD INCLUDE RELIEF TO THE POOR , EDUCATION, MEDICAL RELIEF, PRESERVATION OF ENVIRONMENT AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTERES T AND THE ADVANCEMENT OF ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY. THE OBJECTS OF THE ASSESSEE ARE GOVERNED BY ADVANCEMENT OF ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY . ONCE IT IS FOR GENERAL PUBLIC UTILITY, THEN IN CASE THE OBJECTS OF THE TRUST A RE SPECIFICALLY FOR THE BENEFIT OF PARTICULAR RELIGIOUS COMMUNITY, THEN THE ACTIVITIES ITA NO. 1826 /PN/201 3 PAVITRA ASHIRWADIT PRARTHANA SANGH 4 CARRIED ON BY SUCH BODY / ASSOCIATION CANNOT BE SAID TO BE CHARITABLE. UPHOLDING THE ORDER OF COMMISSIONER, WE DISMISS THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE. 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER P RONOUNCED ON THIS 25 TH DAY OF JUNE , 201 5 . SD/ - SD/ - ( R.K. PANDA ) ( SUSHMA CHOWLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 25 TH JUNE , 201 5 . GCVSR COPY OF THE ORDER IS FORWARDED TO : - 1 ) THE ASSESSEE; 2 ) THE DEPARTMENT; 3 ) THE CIT - I , PUNE ; 4 ) THE DR B BENCH, I.T.A.T., PUNE; 5 ) GUARD FILE. BY ORDER BY ORDER //TRUE COPY// SR. PRIVATE SECRETARY I.T.A.T., PUNE