Gurukrupa Vaidyakiya Trust, Sindhudurg V. CIT-II, Kolhapur

ITA 2190/PUN/2012

• Counselvise Citation: 219024514 RSA 2012
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 02-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS M S VERMA
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO.2190/PN/2012 A.Y. 2011-12 GURUKRUPA VAIDYAKIYA TRUST A/P PADEL, TAL. DEOGAD, DIST. SINDHUDURGA PAN: AABTG6189K APPELLANT VS. CIT-II, KOLHAPUR RESPONDENT APPELLANT BY : SHRI M.K. K ULKARNI RESPONDENT BY : MRS. M.S . VERMA DATE OF HEARING: 20.12.2013 DATE OF ORDER : 24.12.2013 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX-II, [SHORT CIT-II] KO LHAPUR, DATED 29.08.2012 FOR A.Y. 2011-12 ON THE FOLLOWING GROUND S. 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT-II, KOLHAPUR WAS NOT JUSTIFIED IN REJE CTING THE APPLICATION FOR REGISTRATION OF THE TRUST PASSING O RDER UNDER S. 12AA(L)(B)(II) OF THE ACT. THE REGISTRATION HAS BEEN REFUSED BY MISREADING THE PROVISIONS OF LAW. THE LD. CIT-II - KOLHAPUR BE DIRECTED TO GRANT REGISTRATION TO THE T RUST. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT-II WAS NOT JUSTIFIED IN REJECTING THE A PPLICATION FOR REGISTRATION OF THE TRUST U/S 12AA(1) OF THE AC T AS IN VIEW OF SETTLED POSITION OF LAW THE COMMISSIONER WA S OBLIGED ONLY TO SATISFY ABOUT THE GENUINITY OF THE ACTIVITI ES OF THE TRUST. THE INVOKING THE PROVISIONS OF S.1 2AA(L)(B)(II)IS BEYOND THE POWERS OF THE COMMISSIONER. THE SUITABLE DIRECTIONS BE ISSUED TO COMMISSIONER TO GRANT REGIS TRATION. 2 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW AND ON CAREFUL VERIFICATION OF THE OBJECTS OF THE T RUST REVEALS THAT SUCH OBJECTS ARE ACCORDING TO S. 2(15) OF THE ACT. THE LD. CIT WAS NOT JUSTIFIED IN RELYING ON THE JUDGMEN T OF DAULATRAM CHARITABLE TRUST V. CIT 244 ITR 514. THOU GH TRUST HAS SEVERAL OBJECTS THEY DO SATISFY THE PROVI SIONS OF S. 2(15) OF THE ACT. THE REGISTRATION BE GRANTED TO THE TRUST. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT-II-KOLHAPUR WAS NOT JUSTIFIED IN REJECT ING THE APPLICATION FOR REGISTRATION WITHOUT GRANTING SUFFI CIENT OPPORTUNITY OF HEARING TO THE TRUST. 5. THE APPELLANT CRAVES/LEAVE TO ADD, AMEND OR ALTER A NY OF THE ABOVE GROUNDS OF APPEAL. 2. THE ISSUE BEFORE US IS REGARDING THE GRANT OF R EGISTRATION U/S.12A OF I.T. ACT. ON PERUSAL OF DOCUMENT ATTACH ED WITH THE APPLICATION, IT WAS OBSERVED BY THE CONCERNED CIT T HAT THE TRUST HAS BEEN CREATED WITH CORPUS AMOUNT OF RS.7000/- TO CARRY OUT VARIOUS 30 OBJECTS AS ENUMERATED IN SUB CLAUSE 1 TO 30 OF CLAUSE 3 OF TRUST DEED DATED 03-09-2010, WHICH INCLUDES OB JECTS OF CULTURAL AND SOCIAL IN NATURE. THE OBJECTS WERE FOU ND MIXED IN NATURE I.E. CHARITABLE AND NON CHARITABLE. THE STA ND OF THE ASSESSEE HAS BEEN THAT ALL OBJECTS ARE CHARITABLE I N NATURE. THE CIT OBSERVED THAT ASSESSEE HAS NOT GIVEN BIFURCATIO N OF PRIMARY AND SECONDARY OBJECTS WHICH ARE INDEPENDENT AND DIS TINCT. THEREFORE, IT WAS FOUND NOT ELIGIBLE FOR REGISTRATI ON U/S.12A OF I.T. ACT. CIT ALSO FOUND THAT THERE WAS NO CHARITABLE A CTIVITY AND THERE WAS NO EXPENDITURE ON ANY OF ITS OBJECTS. IT WAS ALSO MADE A REASON FOR REJECTING THE REGISTRATION. ACCORDING TO US THE ASSESSEE IS OBLIGED TO SATISFY GENUINENESS OF THE A CTIVITIES WHICH ARE REFLECTED IN THE OBJECTS OF TRUST. CARRYING OU T CHARITABLE ACTIVITIES AS PER OBJECTS DEPEND ON VARIOUS FACTORS AT INITIAL STAGE. WHETHER THE TRUST HAD CARRIED OUT THE CHARITABLE AC TIVITY AS PER OBJECTS AT THE RELEVANT POINT OF TIME DOES NOT DEBA RRED THE ASSESSEE FROM GRANTING THE REGISTRATION. NONE ACTI VITY TILL RELEVANT POINT OF TIME IS NOT VALID REASON FOR REJECTING THE REGISTRATION IN 3 QUESTION. ACCORDING TO US, THIS ISSUE OF REGISTRAT ION NEEDS TO BE RE-LOOKED BY CONCERNED CIT AS PER FACT AND LAW AFTE R PROVIDING A DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE CI T IS DIRECTED ACCORDINGLY. 3. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE DAY 24 TH OF DECEMBER, 2013. SD/- SD/- (G.S.PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 24 TH DECEMBER 2013 SUJEET / GCVSR COPY TO:- 1) ASSESSEE 2) DEPARTMENT 3) THE CIT-II, KOLHAPUR 4) THE DR, A BENCH, I.T.A.T., PUNE. 5) GUARD FILE BY ORDER //TRUE COPY// SENIOR PRIVATE SECRETARY, I.T.A.T., PUNE