Dharampur Gauseva Samiti, V. The Commissioner of Income Tax, Rajkot-I, RAJKOT-GUJARAT

ITA 213/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85424 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-12-2014
• Assessment Year: misc
• Appeal Filed On: 08-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBULAL, RAJKOT BENCH: RAJKOT , !' # $ , # % BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER &./ I.T.A. NO.213/RJT/2013 ( / ASSESSMENT YEAR : - ) DHARAMPUR GAU SEVA SAMITI C/O. SARDA & SARDA 1 ST FLOOR, SAKAR DR.RADHAKRISHNA MARG BESIDE KATHIAWAR GYMKHANA RAJKOT 360 001 / VS. THE COMMISSIONER OF INCOME TAX-1 RAJKOT #) !' & ./ * & ./ PAN/GIR NO. : AABTD 7322 F ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . ! / APPELLANT BY : SHRI VIMAL DESAI, C.A. ,-)+ / . ! / RESPONDENT BY : SHRI M.L. MEENA, CIT-DR 0 / ' / DATE OF HEARING 03/12/2014 12 / ' / DATE OF PRONOUNCEMENT 04/12/2014 !3 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX, RAJKOT-I (CIT IN SHORT) DATED 25/02/2013. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- ALL THE BELOW MENTIONED GROUNDS OF APPEAL ARE INDE PENDENT AND WITHOUT PREJUDICE TO EACH OTHER. 1. THE ORDER U/S.12AA(1)(B)(II) IS BAD IN LAW. ITA NO.213/RJT/ 2013 DHARAMPUR GAU SEVA SAMITI VS. THE CIT-I - 2 - 2. THE LD.COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION OF THE APPELLANT TRUST. 3. THE LD.COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN NOT APPRECIATING THE CHARITABLE OBJECTS OF THE TRUST AND IN HOLDING THAT THE ACTIVITIES OF THE TRUST WERE NOT G ENUINE. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND, DE LETE OR WITHDRAW ONE OR MORE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAD MADE AN APPLICATION FOR SEEKING REGISTRATION U/S.12A OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT). THE APPLICATION WAS R EJECTED BY THE LD.CIT. AGAINST THIS, THE ASSESSEE HAS FILED AN APPEAL BEFO RE US. 3. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD.CIT HAS FAILED TO APPRECIATE THE ACTIVITIES OF THE ASSESSEE-TRUST THA T ARE BEING CHARITABLE IN NATURE. HE SUBMITTED THAT THE ASSESSEE-TRUST IS PR OVIDING/DISTRIBUTING GRASS AND FODDER TO THE COWS OF PEOPLE OF DHARAMPU R VILLAGE WHICH IS ONE OF ITS ACTIVITIES. HE PLACED RELIANCE ON THE DECISION OF THE COORDINATE BENCH (ITAT BENCH B AHMEDABAD) RENDERE D IN THE CASE OF SABARMATI ASHRAM GAUSHALA TRUST VS. ASST.DIRECTOR OF INCOME-TAX (EXEMPTION) REPORTED AT (2013) 35 TAXMANN.COM 552 ( AHMEDABAD-TRIB.) DATED 07 TH JUNE-2013 AND ALSO THE DECISION OF COORDINATE BENC H (ITAT CUTTACK BENCH) IN THE CASE OF SRI GOMANDIR SEVA TRU ST VS. CIT, SAMBALPUR REPORTED AT (2013) 31 TAXMANN.COM 142 (CU TTACK TRIB.) DATED 02 ND NOVEMBER-2012. HE SUBMITTED THAT THE LD.CIT HAS F AILED TO TAKE NOTE OF THE FACT THAT THE ASSESSEE HAS CARRIED OUT CHARITABLE ACTIVITIES. THE LD.COUNSEL FOR THE ASSESSEE REITERATED THE WRIT TEN SUBMISSIONS AS FILED ON 26/11/2013. ITA NO.213/RJT/ 2013 DHARAMPUR GAU SEVA SAMITI VS. THE CIT-I - 3 - 4. ON THE CONTRARY, LD.CIT-DR REITERATED THE WRITTE N SUBMISSIONS AS FILED ON 23.04.2014. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF T HE LD.CIT AS WELL AS THE DECISIONS OF THE COORDINATE BENCHES RELIED UPON BY THE LD.COUNSEL FOR THE ASSESSEE. WE FIND THAT THE LD.CIT IN PARAS-4, 5 & 6 OF HIS ORDER HAS OBSERVED AS UNDER:- 4.ALONGWITH THE LETTER, THE TRUST FURNISHED AN INC OME AND EXPENDITURE ACCOUNT AND BALANCE SHEET AS ON 31/12/2 013. HOWEVER, THE TRUST DID NOT SHOW ITS BOOKS OF ACCOUN TS AND OTHER DOCUMENTS TO THE INSPECTOR, WHO VISITED THE SITE OF THE TRUST IN DEC.2012, TO VERIFY THE GENUINENESS OF ITS ACTIVITI ES. BEFORE HIM, IT WAS CLAIMED THAT EXPENDITURE OF RS.7,500/- WAS MADE TOWARDS ADMINISTRATION EXPENDITURE WITH AN EVIDENCE OF WITH DRAWAL OF CASH OF RS.7,500 FROM DENA GUJARAT GRAMIN BANK. THE SUB SEQUENT FINANCIAL STATEMENT SHOWS EXPENSES OF ABOUT RS.5 LA KH AFTER THE VISIT OF INSPECTOR IN CASH AND KIND WITHOUT ANY DIR ECT EVIDENCE TO PROVE SUCH EXPENDITURE BY CHEQUE PAYMENT, ETC. 5. IT IS FURTHER NOTICED FROM THE PURPORTED VOUCHERS OF EXPENDITURE THAT THE TRUST HAS SHOWN ON ACCOUNT OF TRUST REGIST RATION EXPENSES WITH BPT, REGISTRATION U/S.12A, APPROVAL FROM STATE GOVERNMENT UNDER NANDIGHAR SCHEME AND MANAGEMENT EXPENSES, WER E ALL SELF MADE VOUCHERS AND WERE NOT SUPPORTED BY ANY THIRD P ARTY BILLS/INVOICES. HENCE, SUCH VOUCHERS WERE NOT FOUN D TO BE AUTHENTIC AND GENUINE. UNDER THE CIRCUMSTANCES, AC TIVITIES OF THE TRUST WERE NOT FOUND TO BE GENUINE. 6. AS PER THE PROVISIONS OF THE I.T.ACT, 1961, THE COM MISSIONER SHALL SATISFY HIMSELF WITH REGARD TO: I) OBJECTS OF THE TRUST/INSTITUTION AND II) GENUINENESS OF ITS ACTIVITIES. ITA NO.213/RJT/ 2013 DHARAMPUR GAU SEVA SAMITI VS. THE CIT-I - 4 - IN VIEW OF THE AOS REPORT IT TRANSPIRES THAT ACTIV ITIES OF THE TRUST WERE NOT FOUND TO BE GENUINE AS WELL AS WERE NOT VE RIFIABLE. THUS, THE TRUST IS NOT FULFILLING THE CONDITIONS LAID DOW N FOR REGISTRATION AS LAID DOWN U/S.12AA OF THE I.T.ACT, 1961 AND RULE 17A OF THE I.T.RULES, 1962. I THEREFORE, REJECT THE ASSESSEE S APPLICATION FOR REGISTRATION U/S.12A OF THE IT ACT. 5.1. THE CONTENTION OF THE LD.COUNSEL FOR THE ASSES SEE IS THAT THE EVIDENCES PLACED BEFORE THE LD.CIT ARE GENUINE AND THE LD.CIT HAS NOT MADE ANY ENQUIRY BEFORE DECLINING TO ACCEPT THE VOU CHERS, ETC. AFTER CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT THE MATTER BE RESTORED TO THE FILE OF LD. CIT FOR DECISION AFRESH. ACCORDINGLY, WE HEREBY SET ASIDE THE ORDER OF THE L D.CIT WITH THE DIRECTION TO DECIDE THE ASSESSEES APPLICATION FOR REGISTRATION AFRESH IN THE LIGHT OF THE DECISIONS OF THE COORDINATE BENCHES RE NDERED IN THE CASE OF SABARMATI ASHRAM GAUSHAL TRUST VS. ASST.DIRECTOR OF INCOME-TAX (EXEMPTION)[SUPRA] AND DECISION IN THE CASE OF SRI GOMANDIR SEVA TRUST VS. CIT (SUPRA). THUS, THE GROUNDS RAISED IN ASSES SEES APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON THURSDAY, THE 04 TH DAY OF DECEMBER , 2014 AT RAJKOT . SD/- SD/- ( ) ( $ ) !' # # ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT; DATED 04/ 12 /2014 .. , .../ T.C. NAIR, SR. PS ITA NO.213/RJT/ 2013 DHARAMPUR GAU SEVA SAMITI VS. THE CIT-I - 5 - / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. &6& 7 / CONCERNED CIT 4. 7 ( ) / THE CIT(A)-I, RAJKOT 5. 9$ : , , , /DR,ITAT, RAJKOT 6. : EF G 0 / GUARD FILE. / BY ORDER, - 9 , //TRUE COPY// !/ '# $% ( DY./ASSTT.REGISTRAR) # %&# ' , / ITAT, RAJKOT 1. DATE OF DICTATION .. 03.12.2014(DICTATION-PAD 5 -PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 3.12.14 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BAC K TO THE SR.P.S./P.S.4.12.14 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 4.12.14 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER