Ananta Foundation, Pune V. Commissioner of Income-tax -1,

ITA 2118/PUN/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1773 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-05-2016
• Assessment Year: misc
• Appeal Filed On: 26-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KUMAR
• Keywords: Charitable institution

Judgement Text

] IQ.KS ] IQ.KS ] IQ.KS ] IQ.KS IQ.KS IQ.KSIQ.KS IQ.KS IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , ' # BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.2118/PN/2014 ANANTA FOUNDATION, OFFICE NO.403 & 404, 4 TH FLOOR, CHINTAMANI PRIDE, NEAR CITY PRIDE, KOTHRUD, PUNE 411038 PAN NO. AAETA1206E . / APPELLANT V/S CIT - I, PUNE . / RESPONDENT / ASSESSEE BY : SHRI C.H. NANIWADEKAR / RESPONDENT BY : SHRI NARENDRA KUMAR / ORDER PER VIKAS AWASTHY, JM : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX-I, PUNE DATED 29-09-2014 PA SSED U/S.12AA(1)(B)(II) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO A S THE ACT) READ WITH RULE 17 OF THE INCOME TAX RULES, 1962, REJECT ING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S.12A OF THE ACT. 2. THE ASSESSEE IS A TRUST AND REGISTERED UNDER THE B OMBAY PUBLIC TRUST ACT, 1950 VIDE CERTIFICATE OF REGISTRATION DATED 08-0 1-2014. THE ASSESSEE FILED AN APPLICATION IN THE PRESCRIBED FORM BEFORE T HE CIT FOR / DATE OF HEARING :05.05.2016 / DATE OF PRONOUNCEMENT: 25.05.2016 2 ITA NO.2118/PN/2014 GRANT OF REGISTRATION U/S.12A. THE SAME WAS REJECTED BY THE CIT ON THE GROUND THAT THE TRUST DEED CONTAINS 32 OBJECTS COVER ING EDUCATION, MEDICAL RELIEF TO THE POOR AND ALSO GENERAL PUBLIC ACTIVITY. IT IS NOT CLEAR AS TO WHICH ONE IS THE PRIMARY OBJECT OF ASSESSEE. THE CI T FURTHER HELD THAT THE ASSESSEE IS MERELY GIVING DONATION TO CERTAIN PERSON S WHICH IS NOT EXPLICITLY THE OBJECT OF THE TRUST. THE CIT OBSERVED TH AT THE ASSESSEE HAS NO INFRASTRUCTURE TO CARRY OUT VARIOUS OBJECTS OF THE T RUST DEED. AGAINST THE ORDER OF CIT REJECTING THE APPLICATION FOR GRANT OF RE GISTRATION U/S.12A, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL 3. SHRI C.H. NANIWADEKAR APPEARING ON BEHALF OF THE ASSESS EE SUBMITTED THAT THE CIT HAS REJECTED THE APPLICATION OF T HE ASSESSEE FOR GRANT OF REGISTRATION ON FRIVOLOUS GROUNDS. THE ASSESSEE H AD FILED A COPY OF THE TRUST DEED BEFORE THE CIT. A PERUSAL OF THE SAME W OULD CLEARLY SHOW THAT NONE OF THE OBJECTS OF THE TRUST ARE IN VIOLATION OF THE PRINCIPLES OF CHARITY. THE CIT HAS ERRED IN OBSERVING THAT IT IS NOT CLEAR AS TO WH ICH ONE IS THE PRIMARY OBJECT ALTHOUGH CIT HAS SPECIFICALLY STATED THAT THE OBJECTS OF THE ASSESSEE COVER EDUCATION, MEDICAL, RELIEF TO THE POOR AND GENERAL PUBLIC ACTIVITY. INFRASTRUCTURE FACILITIES OF THE TRUST IS NOT A PRE-CONDITION FOR SEEKING REGISTRATION. THUS, THE FINDINGS OF THE CIT THAT THE ASSESSEE HAS NO INFRASTRUCTURE TO CARRY OUT VARIOUS OBJECTS OF T HE TRUST AND REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION O N THIS GROUND IS SUPERFLUOUS. THE LD. AUTHORISED REPRESENTATIVE PRAYED FOR GRANTING REGISTRATION TO THE ASSESSEE IN THE LIGHT OF THE OBJECTS OF THE TRUST. 4. SHRI NARENDRA KUMAR REPRESENTING THE DEPARTMENT S UPPORTED THE FINDINGS OF THE CIT. HOWEVER, THE LD. DEPARTMENTAL REPRESE NTATIVE CONTENDED THAT MATTER CAN BE SET ASIDE TO THE FILE OF CI T FOR FRESH CONSIDERATION OF THE APPLICATION OF THE ASSESSEE. 3 ITA NO.2118/PN/2014 5. THE LD. AUTHORISED REPRESENTATIVE STRONGLY OBJECTE D TO THE SUBMISSIONS OF THE LD. DEPARTMENTAL REPRESENTATIVE FOR REM ITTING THE FILE BACK TO THE CIT. THE LD. AUTHORISED REPRESENTATIVE SUBM ITTED THAT THE OBJECTS OF THE TRUST WERE FURNISHED TO THE CIT IN THE FIR ST INSTANCE. HE HAS ALREADY APPLIED HIS MIND AND HAS REJECTED THE APPLICATION O F THE ASSESSEE IN AN ARBITRARY AND UNJUSTIFIED MANNER. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESEN TATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF THE AUTHORITIES BE LOW. WE HAVE ALSO EXAMINED THE TRUST DEED WHICH HAS BEEN FURNISHED BY THE LD. AUTHORISED REPRESENTATIVE IN THE FORM OF PAPER BOOK. AT THE TIME OF CONSIDERATION OF APPLICATION FOR GRANT OF REGISTRATION U/S.12A, THE CIT IS RE QUIRED TO EXAMINE THE OBJECTS OF THE TRUST AND THE ACTIVITIES. THE OBJECTS O F THE TRUST SHOULD FALL WITHIN THE MEANING OF TERM CHARITABLE PURPOSE D EFINED U/S.2(15) OF THE ACT. FURTHER, THE CIT HAS TO SEE THAT T HE ACTIVITIES OF THE TRUST ARE GENUINE AND IN CONSONANCE WITH THE OBJECTS OF THE TRUST . IN THE PRESENT CASE, WE FIND THAT THE OBJECTS OF THE TR UST AS SPECIFIED IN CLAUSE 9 OF THE TRUST DEED INCLUDE EDUCATION, MEDICAL, RELIE F TO THE POOR, ETC. UNDER THIS BROAD CLASSIFICATION OF ACTIVITIES, THE DETAILS OF THE ACTIVITIES AND OBJECTS ARE LISTED. THE CIT IN HIS ORDER HA S CATEGORICALLY MENTIONED THAT THE ASSESSEE HAS GIVEN DONATION OF RS.10 LAKHS TO LATA MANGESHKAR FOUNDATION FOR MEDICAL TREATMENT OF NEEDY PAT IENTS. THE CIT HAS FURTHER OBSERVED THAT THE ASSESSEE HAS GIVEN RS.1 5,000/- AS EDUCATIONAL AID TO MS. ANKITA K. PUJARE WHO IS FROM POOR FAM ILY AND RURAL AREA. THE ABOVE INSTANCES OF FINANCIAL ASSISTANCE PROVIDED BY ASSESSEE ARE VERY MUCH FOR CHARITABLE PURPOSE. IT IS NOT THE CASE O F THE DEPARTMENT THAT THESE DONATIONS/AID GIVEN BY THE ASSESSEE ARE IN R ETURN OF SOME SERVICES OR THE OBJECTS OF THE ASSESSEE ARE NOT CHARIT ABLE. THUS, WE DO NOT FIND MERIT IN THE REASONS GIVEN BY THE CIT IN REJECTING TH E APPLICATION FOR 4 ITA NO.2118/PN/2014 GRANT OF REGISTRATION U/S.12A TO THE ASSESSEE. AS FAR AS THE OBSERVATION OF THE CIT THAT THE ASSESSEE DOES NOT HAVE ANY INFRASTRU CTURE TO CARRY OUT VARIOUS OBJECTS, WE CONCUR WITH THE SUBMISSIONS OF THE LD . AUTHORISED REPRESENTATIVE THAT INFRASTRUCTURE FACILITY IS NOT A PRE-R EQUISITE FOR GRANT OF REGISTRATION U/S.12A. AFTER CONSIDERING THE OBJECTS AS STA TED IN CLAUSE 9 OF THE TRUST DEED AND THE FACTS OF THE CASE, WE DIRECT THE CIT TO GRANT REGISTRATION U/S.12A TO THE ASSESSEE FROM THE DATE OF FILIN G OF THE ORIGINAL APPLICATION. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON WEDNESDAY, THE 25 TH DAY OF MAY, 2016. SD/- SD/- ( R.K.PANDA ) ( VIKAS AWASTHY ) ACCOUNTANT MEMBER JUDICIAL MEMBER IQ.KS PUNE ; # DATED : 25 TH MAY, 2016. LRH'K % &'( ) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT (A) - I , PUNE 4. 5. ' *, *, IQ.KS / DR, ITAT, B PUNE; / GUARD FILE. / BY ORDER , ' //TRUE COPY// / * / SR. PRIVATE SECRETARY *, IQ.KS / ITAT, PUNE