Vishwakrupa Vidya Pratishthan, Solapur V. Commissioner of Income-tax - IV,

ITA 1904/PUN/2013

• Counselvise Citation: 190424514 RSA 2013
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 25-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M S VERMA
• Assessee Lawyers: S N DOSHI
• Keywords: Charitable institution; Principle of natural justice
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.1904/PN/2013 VISHWAKRUPA VIDYA PRATISHTHAN C/O SHRI DIGAMBAR DHEPE HOUSE NO.9, OPP. KHANDOBA TEMPLE BALE, SOLAPUR. PAN: AABTV2897H APPELLANT VS. CIT-IV, PUNE RESPONDENT APPELLANT BY : SHRI S.N. DOSHI RESPONDENT BY : MS. M.S. VERMA, CIT DATE OF HEARING : 01.10.2014 DATE OF PRONOUNCEMENT : 09.10.2014 ORDER PER SHAILENDRA KUMAR YADAV : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-IV, PUNE DATED 30.08 .2013 ON THE FOLLOWING GROUNDS. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD CIT HAS ERRED IN REJECTING THE REGISTRATION SOUGHT U/S.12AA(1) OF THE I.T. ACT, 1961 ON THE ERRONEOUS GROUND THAT TRUST CANNOT HAVE THE EXISTENCE UNLESS IT HAS TRUST CORPU S. 2. THE ABOVE GROUND MAY KINDLY BE ALLOWED TO BE AMENDE D, ALTERED, MODIFIED ETC., IN THE INTEREST OF NATURAL JUSTICE. 2. THE ASSESSEE M/S. VISHWAKRUPA VIDYA PRATISHTHAN C/O SHRI DIGAMBAR DHEPE, HOUSE NO.9, OPP. KHANDOBA TEMPLE, B ALE, SOLAPUR HAS APPLIED FOR REGISTRATION U/S. 12A OF TH E INCOME TAX ITA NO.1904/PN/13 VISHWAKRUPA VIDYA PRATISHTHAN ACT, 1961 VIDE APPLICATION DATED 12.02.2013. THE F OLLOWING DOCUMENTS WERE SUBMITTED ALONG WITH THE APPLICATION . 1. FORM 10A 2. CERTIFIED COPY OF THE TRUST DEED 3. CERTIFIED COPY OF CERTIFICATE OF REGISTRATION OF TH E TRUST UNDER SOCIETIES REGISTRATION ACT, 1860 4. NOTE ON THE OBJECTS OF THE TRUST 5. CERTIFICATE U/S 13(3) OF THE IT ACT 6. CERTIFICATE U/S 13(1)(D) OF THE IT ACT 7. STATEMENT OF INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 ST MARCH, 2009, 2010 AND 2011 8. BALANCE SHEET AS AT 31 ST MARCH, 2009, 2010 AND 2011 2.1 THE CIT OBSERVED THAT A TRUST IN THE NORMAL COU RSE, WAS REFERRED TO AS THE CONFIDENCE WHICH ONE PERSON REPO SES IN ANOTHER PERSON TO WHOM HE TRANSFERS THE PROPERTY WITH AN OB LIGATION THAT THE FUNDS SO GENERATED THEREFROM SHALL BE UTILIZED FOR THE CHARITABLE AND / OR RELIGIOUS PURPOSES. THE ASSESSEE FAILED T O CONFORM TO THE STATUS OF A VALID TRUST AS ITS CORPUS IS NIL. SO, THE REGISTRATION COULD NOT BE GRANTED BY CIT. 2.2 REGARDING ALTERNATIVE CONTENTION OF THE ASSESSE E WITH REFERENCE TO CONTRIBUTION MADE BY WAY OF MEMBERS S UBSCRIPTION, DONATIONS, GOVERNMENT AND COOPERATIVE SECTOR GRANTS AND OTHER RECEIPTS AS PART OF CORPUS, THE CIT HAS NOT ACCEPTE D THE SAME. THE CIT WAS OF THE VIEW THAT THE DONOR MUST SPECIFICALL Y MENTION THAT FUNDS SO DONATED BY HIM ARE TOWARDS CORPUS OF FUNDS , WHICH WAS NOT DONE IN CASE OF THE ASSESSEE. THERE IS NOTHING ON RECORD TO SUGGEST THAT WHETHER DONATIONS WERE TOWARDS CORPUS OR OTHERWISE. SO, THE CIT REJECTED THE ASSESSEES CLAIM OF REGIST RATION ON THIS ACCOUNT AS WELL. 2.3 WE FIND THAT ITAT, DELHI E BENCH IN THE CASE OF SHRI SAIN JI DHARMARTH TRUST VS. CIT (2006) 8 SOT 446 (DEL), HAS HELD THAT WHILE DISPOSING OF AN APPLICATION U/S 12A, CIT IS O NLY REQUIRED TO ITA NO.1904/PN/13 VISHWAKRUPA VIDYA PRATISHTHAN EXAMINE WHETHER OBJECTS OF TRUST OR INSTITUTION ARE FOR CHARITABLE PURPOSE. AT THE STAGE OF GRANTING OR REFUSING REGI STRATION, CIT IS NOT REQUIRED TO EXAMINE AS TO WHAT AMOUNT SHOULD FO RM CORPUS OF TRUST, IN WHAT MANNER ACCOUNTS WERE MAINTAINED AND WHAT SHOULD APPEAR IN BALANCE SHEET. 2.4 IN VIEW OF ABOVE, WE ARE OF THE VIEW THAT THE C IT MERELY NEED TO EXAMINE WHETHER OBJECTS OF TRUST WERE FOR CHARIT ABLE PURPOSE AND WHETHER ACTIVITIES OF TRUST WERE GENUINE. IN V IEW OF ABOVE DISCUSSION, THE CIT WAS NOT JUSTIFIED IN REJECTING THE REGISTRATION IN QUESTION AND HE IS DIRECTED TO ALLOW THE SAME. OUR THIS VIEW IS FORTIFIED BY THE DECISION OF SHRI SAIN JI DHARMARTH TRUST (SUPRA). 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 9 TH DAY OF OCTOBER, 2014. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YAD AV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 9 TH OCTOBER, 2014 GCVSR COPY TO:- 1) ASSESSEE 2) THE DEPARTMENT 3) THE CIT-IV, PUNE 4) THE DR, A BENCH, I.T.A.T., PUNE. 5) GUARD FILE BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, PUNE.