Dr. Geeta Gupta Charitable Trust, V. Commissioner of Income Tax-II, Jabalpur

ITA 192/JAB/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5587 (ITAT-JABALPUR)
• Duration Of Justice: 2 year(s) 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-04-2016
• Assessment Year: misc
• Appeal Filed On: 03-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D R LATHORIYA
• Assessee Lawyers: HEMANTA S MODH
• Keywords: Charitable institution; Principle of natural justice
• Section: 12A; 12AA; 12; 11

Judgement Text

1 DR GEETA GUPTA CHARITABLE TRUST IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BEFORE S/SHRI N.S. SAINI (AM) N. K. CHOUDHRY (JM ) I.T.A. NO.192 /JAB/2013 DR GEETA GUPTA CHARITABLE TRUST, C/O. C.G. NURSING HOSE, MADAN MOHAN CHOUBEY WARD, KATNI VS. CIT-11, JABALPUR PAN/GIR NO. : AABTD 6598D ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SH. HEMANTA S MODH RESPONDENT BY : SH. D.R.LATHORIYA DATE OF HEARING : 08-04-2016 DATE OF PRONOUNCEMENT : 08-04. 2016 O R D E R PER NARENDRA KUMAR CHOUDHRY, JM THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATING FROM AN ORDER OF THE LD CIT-II JABALPUR DATED 7.5.2013 UNDER SECTION 12AA(1)(B)(II) O F I.T.ACT, 1961 ON THE FOLLOWING GROUNDS: 1.THAT THE LD CIT HAS GROSSLY ERRED IN FACTS AND CIRCUMST ANCES OF THE CASE TO REJECT THE APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF INCOME TAX ACT, 1961. 2. THAT THE NON-REGISTRATION OF TRUST UNDER THE PU BLIC TRUST ACT CAN NOT BE A GROUND FOR REJECTION OF APPLICATION U/S 12 AA OF INCO ME TAX ACT, 1961. 3. THAT THE REGISTRATION UNDER THE INCOME TAX ACT I S INDEPENDENT PROCEDURE FOR REGISTRATION BASED ON THE INSTRUMENT OF T RUST SHOWING THE AIM AND OBJECTS OF INSTITUTION, HENCE, THE REJECTION OF REGISTRATION MERELY 2 DR GEETA GUPTA CHARITABLE TRUST ON THE GROUND OF NON REGISTRATION UNDER ANY OTHER ACT CAN'T BE A REASON FOR REJECTION OF APPLICATION. 4. THAT THE APPEAL FILED FOR ALLOWING REGISTRATION U/S 12AA BE ALLOWED IN THE INTEREST OF THE NATURAL JUSTICE WITH THE DIRECTION TO ALLOW REGISTRATION U/S 12AA OF INCOME TAX ACT, 1961. 5. THAT THE ASSESSEE CRAVES TO RAISE ANY OTHER GROUND/S ON OR BEFORE THE DATE OF HEARING TO PROVE THAT THE ORDER OF THE CIT (A) IS BAD. 2. FACTS AS EMERGED FROM THE ORDER OF LD CIT-II, JABAL PUR ARE THAT AN APPLICATION FOR REGISTRATION U/S.12AA WAS RECEIVED FROM THE ASSESSEE DR. G EETA GUPTA CHARITABLE TRUST ON 6.12.2012 ALONGWITH A DEED OF PUBLIC CHARITA BLE TRUST. THE LD CIT OBSERVED THAT THE TRUST IS NOT REGISTERED UNDER SOCIETIES REGISTRA TION ACT/INDIAN TRUST ACT/ANY STATE PUBLIC TRUST ACT. WHEN, THIS FACT WAS CONFRONTED B Y LD CIT, IT WAS SUBMITTED THAT UNDER SECTION 12AA, NO SUCH REGISTRATION IS REQUIRED. LD CIT DID NOT AGREE WITH THE CONTENTION OF THE ASSESSEE AND HELD THAT SINCE THE TRUST DE ED IS NOT REGISTERED AS PER THE PROVISIONS OF INDIAN REGISTRATION ACT 1908 OR STATE ENACTMENT RELEVANT TO THE PURPOSE AND THE APPLICABLE ALLIED LAW, IT CANNOT BE G RANTED REGISTRATION U/S.12AA. ACCORDINGLY, LD CIT REJECTED THE APPLICATION FOR REGISTR ATION U/S.12AA FILED BY THE ASSESSEE. BEING AGGRIEVED, THE ASSESSEE HAS FILED APPEAL B EFORE US. 3. AT THE TIME OF HEARING, LD AR OF THE ASSESSEE SUBMITT ED THAT THE LD CIT HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANT OF RE GISTRATION U/S.12AA OF THE ACT, ON THE GROUND THAT THE TRUST DEED IS NOT REGISTERED AS PER THE PROVISIONS OF INDIAN REGISTRATION ACT 1908. HE SUBMITTED THAT THE OBJECT OF THE TRUST IS TO PROVIDE RELIEF TO THE POOR, SPREAD OF EDUCATION, MORAL AND SPIRITUAL AD VANCEMENT, MEDICAL RELIEF AND ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTIL ITY. HE REFERRED TO THE DECISION DATED 23.11.2011 OF ITAT JABALPUR IN THE CASE OF AKHANDATMASMRATI PUBLIC 3 DR GEETA GUPTA CHARITABLE TRUST CHARITABLE TRUST & ANR (ITA NOS.115-118/JAB/2010) AND SUBMITTED THAT UNDER T HE SIMILAR FACTS, THE TRIBUNAL HAS DIRECTED THE LD CIT TO G RANT REGISTRATION UNDER SECTION 12AA OF THE ACT. LD A.R. ALSO REFERRED TO THE JUDGMEN T OF HONBLE M.,P. HIGH COURT IN THE CASE OF CIT VS. D.P.R.CHARITABLE TRUST (2011) 61 DTR 0410, WHEREIN, IT HAS BEEN HELD THAT WHILE DEALING WITH THE APPLICATION FOR REG ISTRATION, THE CIT HAS TO EXAMINE WHETHER APPLICATION IS MADE IN ACCORDANCE WITH SECTION 12A R.W.R. 17A AND WHETHER FORM NO.10A HAS BEEN PROPERLY FILLED UP. THE LANGUA GE EMPLOYED IN SECTION 12AA ONLY REQUIRES THAT ACTIVITIES OF THE TRUST OR INSTITUTIO N MUST BE GENUINE WHICH SHOULD BE IN CONSONANCE WITH THE OBJECT OF THE TRUST. HE SUBMITTED T HAT THE LD CIT BE DIRECTED TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE T RUST. 4. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDER OF LD CIT. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE RECORD. THE DECISION OF THE TRIBUNAL IN THE CASE OF AKHANDATMASMRATI PUBLIC TRUST (SUPRA) RELIED UPON BY COUNSEL FOR THE ASSESSEE HAS BEEN CONSIDERED BY LD CIT IN THE IMPUGNED ORDER, WHEREIN, LD CIT DISTINGUISHED THE REGISTRATION OF TRUST AND REGISTRATION OF TRUST DEED. HE HAS OPINED THAT IN THIS CASE, THE TRUST DEED IS REQUIRED TO BE REGISTERED AND NOT TRUST AS THE REGISTRATION OF THE TRUST DEED IS MADE AS PER THE PROVISIONS OF THE INDIAN REGISTRATION ACT, 1908. BE THAT AS IT MAY, IT IS NOW W ELL SETTLED THAT AT THE TIME OF GRANT OF REGISTRATION U/S 12AA, THE LD. COMMISSIONER IS REQUIR ED ONLY TO EXAMINE THE OBJECTS OF THE SOCIETY AND REGISTRATION OF TRUST IS NOT COMPULSORY. A BARE PERUSAL OF THE OBJECTS OF SOCIETY MAKES IT CLEAR THAT THE PRE-DOMINANT OBJECT OF TH E SOCIETY TRUST IS TO PROVIDE RELIEF 4 DR GEETA GUPTA CHARITABLE TRUST TO THE POOR, SPREAD OF EDUCATION, MORAL AND SPIRITUAL ADVANCEMENT, MEDICAL RELIEF AND ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTIL ITY. WHILE CONSIDERING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/ S 12 A OF THE ACT , ALL THAT THE LD. COMMISSIONER MAY EXAMINE IS WHETHER THE APPLICATION IS MADE BY THE ASSESSEE IN ACCORDANCE WITH THE REQUIREMENT OF THE SECTION READ WIT H RULE 17A AND ALSO WHETHER FORM NO. 10A HAS BEEN PROPERLY FILLED UP. HE MAY ALSO SEE WHETHER OBJECTS OF THE ASSESSEE SOCIETY ARE CHARITABLE OR NOT AS WAS HELD BY THE HO N'BLE HIGH COURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT 185 ITR 634 (ALL.). SO LONG AS THE TRUST HAS EDUCATION AS ONE OF ITS OBJECTS, IT HAS TO BE ACCE PTED THAT THE TRUST IS HAVING A CHARITABLE PURPOSE AS ITS OBJECTS AND MAY QUALIFY FOR CLAIMING EXEMPTION IN TERMS OF SECTION 11 & 12 OF THE ACT, SUBJECT TO FULFILLING THE CONDITIONS ENUME RATED THEREIN. UNDER SIMILAR FACTS, THE ITAT JABALPUR IN THE CASE OF AKHANDATMASMRATI PUBLIC CHARITABLE TRUST (SUPRA) HAS DIRECTED THE LD CIT TO GRANT REGISTRATION U/S.12A OF THE ACT. BEFORE US, NO CONTRARY DECISION OF HIGHER FORUM AG AINST THE AFOREMENTIONED DECISION OF THE TRIBUNAL (SUPRA) HAS BEEN PLACED ON RECOR D TO TAKE A DIFFERENT VIEW THAN THE VIEW TAKEN BY THE TRIBUNAL. IN VIEW OF ABOVE, W E SET ASIDE THE ORDER OF LD CIT AND RESTORE IT BACK TO HIS FILE TO CONSIDER THE REGISTRATION U /S.12A OF THE ACT AFTER CONSIDERING THE GENUINENESS OF ACTIVITIES OF THE ASSESSEE TRUST IN ACCOR DANCE WITH LAW. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 /4/2016 . SD/- SD/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER JABALPUR, DATED 8 / 4/2016 5 DR GEETA GUPTA CHARITABLE TRUST PARIDA , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT : DR GEETA GUPTA CHARITABLE TRUST, C/O. C.G. NURSING HOSE, MADAN MOHAN CHOUBEY WARD, KATNI 2. THE RESPONDENT: CIT-11, JABALPUR 3. THE CIT(A). JABALPUR 4. DR, ITAT, JABALPUR 5. GUARD FILE. BY ORDER, //TRUE COPY// SR. PS, ITA T, CAMP: JABALP UR