BGSAL CF TRY, JAIPUR V. CIT(EXEMPTION), JAIPUR

ITA 224/JPR/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9425 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 05-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRISH BEDI CIT A
• Assessee Lawyers: LAXMAN SINGH TRUSTEE
• Keywords: Charitable institution; Period of limitation; Time period of passing order; Set aside
• Section: 80G; 12AA; 12

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH LAANHI XKSLKBZ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 224/JP/2020 BGSAL CF TRY PLOT NO. 4 VIKASH NAGAR VISTAR, JHOTWARA, JAIPUR. CUKE VS. THE CIT(EXEMPTION) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AADTB 7324 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI LAXMAN SINGH (TRUSTEE) JKTLO DH VKSJ LS @ REVENUE BY : SHRI AMRISH BEDI (CIT) A LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 26/11/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 05/01/2021 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(E), JAIPUR DATED 19.02.2020 REJECTING THE A SSESSEES TRUST APPLICATION SEEKING REGISTRATION U/S 80G(5)(VI) OF THE ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE-TRUST HAS MOVED AN APPLICATION BEFORE THE LD CIT(E) FOR SEEKI NG REGISTRATION U/S 80G OF THE ACT. SUBSEQUENTLY, NOTICES WERE ISSUED S EEKING INFORMATION AND DOCUMENTS FROM THE ASSESSEE-TRUST AND CONSIDERI NG THE SUBMISSIONS SO FILED BY THE ASSESSEE-TRUST, THE LD. CIT(E) HELD THAT THE ASSESSEE-TRUST IS A PRIVATE RELIGIOUS TRUST AND THE REFORE, CANNOT BE HELD ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 2 AS A CHARITABLE TRUST WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. IT HAS ALSO BEEN HELD BY THE LD. CIT(E) THAT THE ASSES SEE-TRUST HAS FAILED TO FURNISH CLARIFICATION/DETAILS AS SOUGHT VIDE ORD ER SHEET ENTRY DATED 04.10.2019. ACCORDINGLY, THE APPLICATION SEEKING RE GISTRATION U/S 80G WAS REJECTED. AGAINST THE SAID ORDER AND THE FINDIN GS OF THE LD. CIT(E), THE ASSESSEE TRUST IS IN APPEAL BEFORE US. 3. DURING THE COURSE OF HEARING, THE LD. AR HAS SUB MITTED THAT THE ASSESSEE-TRUST IS DULY REGISTERED U/S 12AA OF THE A CT VIDE ORDER DATED 28.08.2019 PASSED BY THE LD. CIT(E), JAIPUR. IT WAS FURTHER SUBMITTED THAT ASSESSEE-TRUST IS ALSO REGISTERED UNDER THE RA JASTHAN SOCIETY REGISTRATION ACT, 1958 VIDE REGISTRATION CERTIFICAT E DATED 26.12.2019. IT WAS FURTHER SUBMITTED THAT THE NECESSARY INFORMATIO N AS CALLED FOR BY THE OFFICE OF THE LD. CIT(E) HAVE BEEN DULY SUBMITT ED IN TERMS OF FORM NO. 10G AS WELL AS COPY OF THE FINANCIAL STATEMENTS OF THE ASSESSEE TRUST. IT WAS SUBMITTED THAT NOTICES WERE ISSUED FO R HEARING ON A HOLIDAY AND THE ASSESSEE DID APPEAR ON THE SAID DATE BUT TH E MATTER WAS THEREAFTER ADJOURNED AND IN ANY CASE, NECESSARY INF ORMATION AS CALLED FOR BY THE OFFICE OF LD. CIT(E) WERE DULY SUBMITTED . IT WAS FURTHER SUBMITTED THAT IN RESPECT OF ANOTHER TRUST, THE REG ISTRATION HAS BEEN DULY GRANTED U/S 12AA AS WELL AS 80G ON THE SAME DA TE AND THEREFORE, IN THE CASE OF THE ASSESSEE, GREAT PREJUDICE HAS BE EN CAUSED BY DENYING REGISTRATION U/S 80G OF THE ACT. LASTLY, IT WAS SUBMITTED THAT THE ASSESSEE HAS FILED THE APPLICATION ON 01.08.201 9 AND THE ORDER HAS BEEN PASSED BY THE LD CIT(E) ON 19.02.2000 AND THER EFORE, THE SAME HAS BEEN PASSED BEYOND THE LIMITATION PERIOD OF 6 M ONTHS AS PRESCRIBED IN THE INCOME TAX RULES. IT WAS ACCORDINGLY SUBMITT ED THAT THE ORDER SO ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 3 PASSED BY THE LD. CIT(E) SHOULD BE SET ASIDE AND NE CESSARY RELIEF MAY BE PROVIDED TO THE ASSESSEE-TRUST BY GRANTING REGIS TRATION AS SOUGHT U/S 80G OF THE ACT. 4. PER CONTRA, THE LD. DR SUBMITTED THAT IT IS NOT IN DISPUTE THAT THE ASSESSEE-TRUST HAS BEEN GRANTED REGISTRATION U/S 12 AA OF THE ACT HOWEVER, MERE GRANT OF REGISTRATION U/S 12AA OF THE ACT DOES NOT AUTOMATICALLY ENTITLED THE ASSESSEE TO SEEK REGISTR ATION U/S 80G OF THE ACT. THE ASSESSEE-TRUST HAS TO SATISFY IN RESPECT O F THE GENUINENESS OF ITS ACTIVITIES AS WELL AS THE SATISFACTION OF OTHER CONDITIONS AS SO STIPULATED U/S 80G(5) OF THE ACT. IT WAS SUBMITTED THAT THE ASSESSEE- TRUST WAS GRANTED REGISTRATION U/S 12AA OF THE ACT UNDER THE CATEGORY OF ADVANCEMENT OF GENERAL PUBLIC UTILITY HOWEVER, ON EXAMINATION OF TRUST DEED, IT WAS NOTICED THAT TRUST HAS BEEN ESTA BLISHED ON 27.09.2017 AND THEREAFTER, THE TRUST DEED WAS AMENDED ON 03.10 .2017 BY INCORPORATING POINT NO. 23A IN THE TRUST DEED WHICH DESCRIBE THE PROPERTY OF THE TRUST I.E, BHAIRAV TEMPLE, HOWEVER, THE SAID PROPERTY HAS NOT BEEN DEPICTED IN THE BALANCE SHEET FURNISHE D FOR THE FINANCIAL YEARS 2017-18 & 2018-19 RESPECTIVELY. IT WAS SUBMIT TED THAT THE NECESSARY INFORMATION/CLARIFICATION WERE SOUGHT FRO M THE ASSESSEE-TRUST IN THIS REGARD HOWEVER, THERE HAS BEEN NO SATISFACT ORY EXPLANATION WHICH HAS BEEN SUBMITTED IN THIS REGARD. IT WAS ACC ORDINGLY SUBMITTED THAT THE ASSESSEE-TRUST WAS HAVING TEMPLE AS ITS PR OPERTY AND WAS CARRYING ON RELIGIOUS ACTIVITY IN TERMS OF RUNNING OF THE TEMPLE HOWEVER, THERE IS NO MENTION OF THE RELIGIOUS OBJECTS IN THE TRUST DEED AND THEREFORE, ACTIVITIES SO CARRIED OUT BY THE ASSESSE E-TRUST ARE NOT IN A CONSONANCE WITH THE OBJECTS FOR WHICH THE TRUST WAS GRANTED ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 4 REGISTRATION U/S 12AA OF THE ACT UNDER THE CATEGORY OF GENERAL PUBLIC UTILITY. IT WAS FURTHER SUBMITTED THAT ALL THE TRUS TEES OF THE ASSESSEE- TRUST BELONG TO A SINGLE FAMILY AND THEREFORE, TAKI NG INTO CONSIDERATION THE ACTIVITIES AS WELL AS THE ADMINISTRATION OF THE ASSESSEE-TRUST, IT WAS HELD TO BE A PRIVATE RELIGIOUS TRUST AND NOT A PUBL IC CHARITABLE TRUST AND THEREFORE, THE REGISTRATION U/S 80G HAS BEEN RIGHTL Y DENIED BY THE LD. CIT(E). IT WAS FURTHER SUBMITTED THAT THE ASSESSEE- TRUST WAS ISSUED NOTICE DATED 04.10.2019 SEEKING NECESSARY INFORMATI ON AND CLARIFICATION AND ONLY PART REPLY HAS BEEN SUBMITTED BY THE ASSES SEE TRUST AND THEREFORE, IT WAS SUBMITTED THAT IN ABSENCE OF THE NECESSARY INFORMATION SO SUBMITTED BY THE ASSESSEE-TRUST, THE LD. CIT(E) IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE HAD RIGHTLY DENIED THE RE GISTRATION U/S 80G OF THE ACT. HE ACCORDINGLY SUPPORTED THE ORDER AND THE FINDINGS OF THE LD. CIT(E). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FIRSTLY AS REGARD THE CONTENT ION RAISED BY THE LD. AR THAT THE IMPUGNED ORDER HAS BEEN PASSED BEYOND T HE LIMITATION PERIOD SO PRESCRIBED IN THE INCOME TAX RULES, WE FI ND THAT THE ASSESSEE-TRUST HAS MOVED ITS APPLICATION ON 01.08.2 019 AND THEREFORE, THE LIMITATION PERIOD HAS TO BE COUNTED FROM THE EN D OF THE MONTH IN WHICH THE APPLICATION HAS BEEN FILED AND THE SAID P ERIOD EXPIRED ON 28.02.2020. IN THE INSTANT CASE, THE IMPUGNED ORDE R WAS PASSED ON 19.02.2020, THEREFORE, THE SAME WAS PASSED WITHIN T HE LIMITATION PERIOD AS SO PRESCRIBED AND THEREFORE, THE CONTENTION SO A DVANCED BY THE LD. AR CANNOT BE ACCEPTED. ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 5 6. NOW COMING TO THE FINDINGS OF THE LD. CIT(E) AS ALSO CONTENDED BY THE LD. CIT/DR THAT THE ASSESSEE-TRUST IS A PRIV ATE RELIGIOUS TRUST WHICH DOESNT ENURE FOR THE BENEFIT OF PUBLIC AT LA RGE AND THUS CANNOT BE HELD AS CHARITABLE WITHIN MEANING OF SECTION 2(1 5) OF THE ACT. 7. IN THIS REGARD, WE ARE OF THE VIEW THAT WHAT IS RELEVANT TO EXAMINE IS WHETHER THE ACTIVITIES OF THE ASSESSEE-T RUST CATER TO THE PUBLIC AT LARGE OR LIMITED TO SELECTIVE INDIVIDUALS OR COMMUNITY. FURTHER, MERELY THE FACT THAT THE TRUSTEES BELONGS TO A SING LE FAMILY CANNOT BE A SOLE REASON FOR HOLDING THAT IT IS A CASE OF PRIVAT E TRUST AS COMPARED TO A PUBLIC TRUST MORE SO WHEN WE FIND THAT THE ASSESSEE -TRUST HAS ALREADY BEEN REGISTERED U/S 12AA OF THE ACT AS WELL AS UNDE R THE RAJASTHAN SOCIETY REGISTRATION ACT. THE TRUSTEES ARE THE SAM E AT THE TIME OF APPLYING FOR REGISTRATION U/S 12AA OF THE ACT AS WE LL AS WHILE APPLYING FOR THE IMPUGNED APPROVAL U/S 80G OF THE ACT AND TH EREFORE, WHERE THE REVENUE HAS ALREADY TAKEN A VIEW THAT THE ASSESSEE IS A PUBLIC TRUST, IN SUCH A SCENARIO, BASIS THE SAME DOCUMENTS, THE REVE NUE CANNOT PLEAD AND TAKE A DIFFERENT VIEW IN THE MATTER. HAVING SAI D THAT, WHERE THE REVENUE BELIEVES THAT THERE HAS BEEN A SUBSEQUENT C HANGE IN THE BASIC STRUCTURE OF THE ASSESSEE TRUST AND/OR VIOLATION OF ANY OF THE CONDITIONS SO SPECIFIED WHILE GRANTING APPROVAL U/S 12AA OF TH E ACT, THE REVENUE HAS THE NECESSARY RECOURSE UNDER SUB-SECTION (3) AN D (4) OF SECTION 12AA OF THE ACT. HOWEVER, HAVING GRANTED REGISTRAT ION U/S 12AA OF THE ACT WHICH CONTINUES TO REMAIN IN FORCE AND WHICH HA S NOT BEEN WITHDRAWN AS ON DATE, THE MAIN CHARACTER OF THE ASS ESSEE-TRUST AS THAT OF THE PUBLIC TRUST CANNOT BE CHALLENGED IN THE IMP UGNED PROCEEDINGS. ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 6 8. REGARDING THE BHAIRAV TEMPLE BEING DESCRIBED AS PROPERTY OF THE ASSESSEE TRUST AS PER THE AMENDED TRUST DEED AND CA RRYING ON THE ACTIVITIES OF RUNNING OF THE TEMPLE, THE QUESTION T HAT ARISES FOR CONSIDERATION IS WHETHER THE ACTIVITIES SO CONDUCTE D ARE FOR THE BENEFIT OF PARTICULARS RELIGIOUS COMMUNITY OR PUBLIC AT LAR GE AND THE QUANTUM OF EXPENDITURE WHICH HAS BEEN INCURRED IN RESPECT OF S UCH ACTIVITIES AND WHETHER THE PROVISIONS OF SUB-SECTION (5B) OF SECTI ON 80G ARE VIOLATED IN THE INSTANT CASE. ADMITTEDLY, ADDRESS OF THE ASS ESSEE-TRUST WHILE APPLYING FOR APPROVAL U/S 80G OF THE ACT AS STATED IN FORM NO. 10G IS PLOT NO. 4, TEMPLE BHARAV JI MAHARAJ, VIKASH NAGAR, KALWAR ROAD, JHOTWARA, JAIPUR AND THUS, THE ASSESSEE-TRUST WHICH HAS BEEN ESTABLISHED ON 27.09.2017 IS OPERATING OUT OF THE T EMPLE PREMISES, THEREFORE, IT IS A CASE OF A TRUST WHICH IS OPERATI VE AS ON THE DATE OF SEEKING REGISTRATION AND IT THUS BECOMES ESSENTIAL TO EXAMINE THE EXACT NATURE OF THE ACTIVITIES SO UNDERTAKEN BY THE ASSES SEE-TRUST. THE ASSESSEE TRUST HAS CLAIMED THAT THE NECESSARY INFOR MATION/DOCUMENTS HAVE BEEN SUBMITTED BEFORE THE LD CIT(E) HOWEVER, O N PERUSAL OF THE RECORDS, WE ARE UNABLE TO DECIPHER ANY INFORMATION AND DOCUMENTS WHICH HAVE BEEN SUBMITTED BY THE ASSESSEE-TRUST IN RELATION TO TEMPLE RELATED ACTIVITIES AND CORRESPONDING EXPENDITURE. A T THE SAME TIME, WE BELIEVE THAT THE ASSESSEE TRUST DESERVE ONE MORE OP PORTUNITY TO SUBMIT THE NECESSARY INFORMATION/DOCUMENTS AND IN THE INTE REST OF JUSTICE AND FAIR PLAY, WE ARE SETTING ASIDE THE MATTER TO THE F ILE OF LD. CIT(E) FOR THE PURPOSES OF EXAMINING THE ACTIVITIES OF THE ASSESSE ES TRUST INCLUDING THE ACTIVITIES IN RELATION TO BHAIRAV TEMPLE AND BASIS THE SAME, DECIDE THE MATTER AFRESH AS PER LAW PREFERABLY WITHIN THREE MO NTHS OF THE RECEIPT OF THIS ORDER. ITA NO.224/JP/2020 BGSAL CF TRY VS. CIT(E) 7 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05/01/2021. SD/- SD/- LANHI XKSLKBZ FOE FLAG ;KNO ( SANDEEP GOSAIN ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 05/01/2021. *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- BGSAL CF TRY, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- CIT-EXEMPTION, JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 224/JP/2020} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR