Vidhabha Mahakaushal Hai Hai Kshatriya Sabha, Nagpur V. Commissioner of Income tax-I, Nagpur

ITA 188/NAG/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3875 (ITAT-NAGPUR)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 24-05-2012
• Court: TRIBUNAL
• Department Lawyers: PRAKASH MORE
• Assessee Lawyers: A S DANI
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR E-BENCH, NAGPUR (THROUGH VIDEO CONFERENCE AT MUMBAI) BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.188/NAG/2012 (AY: ) VIDHABHA MAHAKAUSHAL HAI HAI KSHATRIYA SABHA, C/O BASNAT LALL SHAW NECO HOUSE, 246 PT RAVI SHANKAR MARG, CIVIL LINES, NAGPUR- 440001. PAN: VS. COMMISSIONER OF INCOME TAX-I, AAYAKAR BHAVAN, CIVIL LINES, NAGPUR-440001. (APPELLANT) (RESPONDENT) ASSESSEE BY : A.S. DANI REVENUE BY : PRAKASH MORE DATE OF HEARING: 14.03.2013 DATE OF PRONOUNC EMENT : 03.04.2013 O R D E R PER R.K. GUPTA (JM): THIS IS AN APPEAL BY ASSESSEE TRUST AGAINST THE ORD ER OF CIT WHO REFUSED TO GRANT REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT MOST OF THE ACTIVITIES CARRIED O UT BY THE TRUST WORKING FOR A PARTICULAR COMMUNITY. 2. THE TRUST FIELD AN APPLICATION IN FORM NO. 10A ON 05.09.2011 SEEKING REGISTRATION UNDER SECTION 12AA OF THE ACT. ON REQUIREMENT OF CIT, THE CERTIFICATE ISSUED BY CHARITY COMMISSIONER ON 05.01 .1982 WAS FILED. THE CIT NOTED THAT HE HAS NOT FILED ANY RETURN OF INCOME AN D HAS ALSO NOT APPLIED FOR PAN. THE TRUST HAS APPLIED FOR A PAN ONLY ON 17.12. 2011. THE LEARNED CIT AFTER TAKING INTO CONSIDERATION THE REPORT FROM THE AO FO UND THAT ASSESSEE TRUST IS DOING ACTIVITY FOR A PARTICULAR COMMUNITY KNOWN AS HAI HAI KSHATRIYA SABHA, THEREFORE HE WAS OF THE VIEW THAT SINCE ASSESSEE IS DOING CHARITY FOR A PARTICULAR COMMUNITY IS NOT ALLOWABLE FOR REGISTRATION UNDER S ECTION 12AA OF THE ACT. ACCORDINGLY, APPLICATION OF THE TRUST WAS REJECTED. AGAINST THIS ORDER OF LEARNED CIT THE ASSESSEE TRUST IS IN APPEAL HELD BEFORE THE TRIBUNAL. LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THERE IS NO BAR UNDER T HE ACT THAT IF CHARITY IS FOR A PARTICULAR COMMUNITY REGISTRATION U/S 12AA IS NOT A LLOWABLE. IT WAS FURTHER SUBMITTED THAT IF CERTAIN INCOME IS NOT ALLOWABLE F OR EXEMPTION THEN DEDUCTED EXEMPTION IN THE ASSESSMENT PROCEEDING BUT REFUSAL OF REGISTRATION IS NOT JUSTIFIED, RELIANCE WAS PLACED ON THE DECISION OF H ONBLE SUPREME COURT IN CASE OF AHAMDABAD RANA CASTE ASSOCIATION, 82 ITR 704 SC. RE LIANCE WAS ALSO PLACED ON THE DECISION OF THE TRIBUNAL IN THE CASE OF AGGARWA L MITRA MANDAL 106 ITD 531 DELHI. THE RELIANCE WAS ALSO PLACED ON THE DECISION OF HONBLE PUNJAB AND HARYANA HIGH COURT IN CASE OF SURYA EDUCATIONAL AND CHARITABLE TRUST, DECIDED IN ITA NO. 701/10 VIDE ORDER DATED 05.10.11. COPY OF THE SAME ARE PLACED ON RECORD. ON THE OTHER HAND LEARNED DR PLACED RELIANCE ON T HE ORDER OF LEARNED CIT AND ALSO PLACED RELIANCE ON THE DECISIO N OF HONBLE M.P HIGH COURT REPORTED IN 302 ITR 321. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CONSIDE RED THEM CAREFULLY AFTER CONSIDERING THE SUBMISSION AND PERUSING THE M ATERIAL ON RECORD, WE ARE OF THE VIEW THAT DENIAL OF REGISTRATION U/S 12AA OF TH E ACT WAS NOT JUSTIFIED. HONBLE SUPREME COURT IN CASE OF AHAMDABAD RANA CASTE ASSOC IATION (SUPRA) HAVE HELD THAT AN OBJECT BENEFICIAL TO THE SECTION OF THE PUB LIC AN OBJECT OF WHICH PUBLIC UTILITY AND TO SERVE A CHARITABLE PURPOSE, IT IS NO T NECESSARY THAT OBJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OR ALL THE PERSON I N A PARTICULAR COUNTRY OR STATE MEANING THEREBY CHARITABLE ACTIVITY COULD BE ADVANC ED TO A SOCIETY OR A COMMUNITY OR CLASS OF PERSONS IN THE AREA. THIS DEC ISION OF THE HONBLE SUPREME COURT WAS CONSIDERED BY THE TRIBUNAL IN CASE OF AGG ARWAL MITRA MANDAL TRUST (SUPRA) AND REGISTRATION U/S 12AA WAS GRANTED. IN T HIS CASE ALSO THE REGISTRATION WAS REFUSED IN VIEW OF PROVISION OF SECTION 13 (1) (B) OF THE ACT THAT IT WAS SUBMITTED THAT IT IS NOW NECESSARY THAT CHARITABLE ACTIVITY SHOULD BE FOR WHOLE OF THE MANKIND OR A COMMUNITY IN A COUNTRY OR STATE AN D RELIANCE WAS PLACED ON THE DECISION OF AHMEDABAD RANA CASTE ASSOCIATION (SUPRA ). AFTER CONSIDERING THE SUBMISSION THE TRIBUNAL FOUND THAT ONLY FOR THE REA SON THAT CHARITABLE ACTIVITY WERE GIVEN TO A SPECIFIC CASTE THE REGISTRATION U/S 12AA CANNOT BE DENIED RELIANCE WAS ALSO PLACED ON VARIOUS OTHER CASES ALSO I.E. IN CASE OF ST. DON BOSCO EDUCATIONAL SOCIETY 90 ITD 477 AND IN CASE OF ARYAN EDUCATIONAL SOCIETY 93 ITD 546 (DEL). IN VIEW OF THE ABOVE DECISIONS WE ARE OF THE VIEW THAT THE REGISTRATION U/S 12AA DENIED BY THE CIT WAS NOT JUSTIFIED. 4. WE HAVE ALSO TAKEN INTO CONSIDERATION THE DECIS ION OF THE HONBLE M.P. HIGH COURT IN CASE OF SRI DHAKAR SAMAJ DHARMSH ALA BHAWAN TRUST 302 ITR 321 RELIED UPON BY LEARNED DR AND FOUND THAT OBJECT OF THE TRUST WAS ESTABLISHED DHARMSHALA ONLY FOR THE MEMBER OF DHAKAR SAMAJ. THE REFORE THE REGISTRATION WAS NOT GRANTED BY LEARNED CIT AND APPEAL OF THE TR UST WAS DISMISSED BY THE HONBLE HIGH COURT BY OBSERVING THAT THE DHARMSHALA WAS ONLY FOR A SAMAJ AND NOT DOING ANY OTHER CHARITABLE ACTIVITY. IN THE CAS E IN HAND THE FACTS ARE TOTALLY DISTINGUISHABLE AS IN THE PRESENT CASE THE ASSESSEE TRUST IS DOING OR DEPARTING CHARITABLE ACTIVITIES IN VARIOUS MANNERS, THEREFORE THE REGISTRATION OF THE HONBLE M.P. HIGH COURT IS NOT APPLICABLE ON THE FACTS OF T HE PRESENT CASE. EVEN AND OTHERWISE THE DECISION OF THE HONBLE SUPREME COURT IN CASE OF AHMEDABAD RANA CASTE ASSOCIATION WHERE VIEW HAS BEEN EXPRESSED IN FAVOUR OF ASSESSEE TRUST. WE HAVE ALSO SEEN AND FOUND THAT THE DECISION OF THE H ONBLE SUPREME COURT WAS NOT CONSIDERED BY THE HONBLE M.P. HIGH COURT FOR T HE REASON THAT MAY NOT BE BROUGHT TO THE KNOWLEDGE OF THE HONBLE HIGH COURT. 5. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, W E ARE OF THE VIEW THAT ASSESSEE TRUST IS ENTITLED FOR REGISTRATION U/ S 12AA OF THE ACT. ACCORDINGLY WE DIRECT THE LEARNED CIT TO GRANT REGISTRATION TO THE TRUST AS PER ITS APPLICATION FILED. 6. WE ORDERED ACCORDINGLY IN THE RESULT THE APPEAL OF THE ASSESSEE TRUST IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3RD DAY OF APRIL 2013. SD/- SD/- (D. KARUNAKARA RAO) (R.K. GUPTA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE : 03.04.2013 AT :MUMBAI SK COPY TO: 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE DCIT (A), CONCERNED. 4. THE CIT CONCERNED. 5. THE DR NAGPUR, BENCH, ITAT, NAGPUR. 6. GUARD FILE. // TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI