Shree Kadva Patidar Patel Samaj, AMRELI V. Pr. Commr. of Income Tax(OSD) (Exemptions), Ahmedabad

ITA 229/RJT/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2273 (ITAT-RAJKOT)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-01-2016
• Assessment Year: misc
• Appeal Filed On: 26-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDAY
• Assessee Lawyers: DM RINDANI
• Keywords: Benefit of exemption
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - CO URT AT AHMEDABAD] SHREE KADVA PATIDAR PATEL SAMAJ - LATHI, DIST: AMRELI (APPELLANT) VS PRINCIPAL COMMISSIONER OF INCOME TAX(OSD) (EXEMPTION), AHMEDABAD (RESPONDENT) REVENUE BY : S H RI YOGESH PANDAY , D . R. ASSESSEE BY: S H RI D.M. RINDANI , A.R. DATE OF HEARING : 2 1 - 01 - 2 016 DATE OF PRONOUNCEMENT : 03 - 03 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S ASSESSEE S APPEAL AR ISES FROM ORDER OF THE PCIT(OSD ) (E), AHMEDBAD DATED 2 8 - 04 - 2015 IN APPEAL NO. PR. CIT(A)/AHD/12AA/RAJ - 91/2015 - 16/25 REFUSING REGISTRATION IN PROCEEDINGS UNDER SECTION 12AA OF THE INCOME TAX ACT, 1 961; IN SHORT THE ACT . I T A NO . 229 / RJT /20 15 A SSESSMENT YEAR NA I.T.A NO. 229 /RJT /20 15 A.Y. NA PAGE NO SHREE KADVA PATIDAR P A TEL SAMAJ VS. PCIT(OSD) (E ) 2 2. FACTS OF THE CASE ARE IN A NARROW COMPASS. THE ASSESSEE - TRUST HAS BEEN SET UP WITH FOLLOWING OBJECTS: - 1. TO PROVIDE FACILITIES LIKE BOARDING, GIVING UTENSILS, MANDAP, BEDDING, ETC., FOR THE DEVELOPMENT OF THE ENTIRE PATEL COMMUNITY'S SOCIAL OCCASIONS SUCH AS WEDDINGS, SOCIAL GATHERINGS AND OTHER SOCIAL ACTIVITIES WHICH WOULD HELP THEM IN CELEBRATING FESTIVALS FOR WHICH SAID THINGS MAY BE BOUGHT AND BE GIVEN ON RENT. 2. TO UNDERTAKE VARIOUS ACTIVITIES TO PROVIDE EDUCATION AND KNOWLEDGE ABOUT CULTURE TO EACH FAMILY OF THE CASTE. FOR PRIMARY, SECONDARY AND HIGHER SECONDARY EDUCATION NECESSARY HELP WILL BE PROVIDED AND BOARDING FACILITY WILL ALSO BE ESTABLISHED AND FOR GROWTH SCHEMES WILL BE MADE. NECESSARY ARRANGEMENTS WILL BE MADE BY TRUST TO PROVIDE BUSINESS ORIENTED EDUCATION TO STUDENTS. TRUST WILL CONDUCT ACTIVITIES PHASE WISE WITHIN ITS INCOME. AND WILL PROVIDE UNCALCULATED SCHOLARSHIP AND HELP TO STUDENTS. 3. TO PROVIDE FINANCIAL HELP TO THE PO OR PEOPLE OF CASTE. 4. TO HELP IN PROVIDING GUIDANCE AND TO CREATE FACILITIES FOR THE TREATMENT OF PEOPLE OF THE CASTE WHO ARE ILL AND SUFFERING FROM DISEASES. 5. FOR UPLIFTMENT OF THE CASTE, ACT OF THE LEADERS WILL BE HONOURED FOR THEIR ENCOURAGEMEN T. THEY WILL BE HONOURED AND AWARDED. 6. TO UNDERTAKE CELEBRATIONS OF DIFFERENT FESTIVALS AND TO CONDUCT ACTS FOR PROMOTING AND SPREADING THE OBJECTIVES OF FESTIVALS. 7. HUMAN UPLIFTMENT AND WELFARE: TO BRING HUMANS' PHYSICAL, MENTAL, INTELLECTUAL, SPIRITUAL LIFE TO A HIGHER LEVEL, WELFARE OF HUMANS AND TO MARKET THEIR STRENGTHS EVERY NECESSARY HELP WILL BE PROVIDED IN ANY MANNER AND FOR THAT FUNCTIONS AND CELEBRATIONS WILL BE CONDUCTED AND ORGANIZATIONS WILL BE OPERATED. AND TO MAKE EVERY EFFORT TO PROMOTE HUMAN RELIGION. 8. TO MAKE EVERY POSSIBLE EFFORT TO HELP SOCIETY AT TIME OF PROBLEMS LIKE DROUGHT, FEMINE, EARTHQUAKE, ETC. TO SAVE CATTLES AT THE TIME OF DROUGHTS. TO RUN AND MANAGE CATTLE CAMPS. I.T.A NO. 229 /RJT /20 15 A.Y. NA PAGE NO SHREE KADVA PATIDAR P A TEL SAMAJ VS. PCIT(OSD) (E ) 3 9. TO HELP FINANCIALLY AND TO PROVIDE ALL FA CILITIES TO THE ORGANIZATIONS OF SIMILAR PURPOSES OR PERSONS CONDUCTING THIS TYPE OF WORK. 10. TO CONDUCT ANY SERVICE RELATING TO PUBLIC. 3. IT EMERGES THAT THE ASSESSEE FILED SECTION 12AA REGISTRATION ALONG WITH ITS REGISTRATION CERTIFICATE OF CHAR ITY COMMISSIONER . THE CIT SOUGHT FOR ALL DETAILS. HE EXAMINED ITS ABOVE STATED OBJECTS TO COME TO A CONCLUSION THAT THIS TRUST HAS BEEN CREATED ONLY FOR THE BENEFIT OF PATEL COMMUNITY AND NOT FOR GENERAL PUBLIC. HE IS FURTHER OF THE VIEW THAT ITS ACTIVI TIES HAVE NOT BEEN ABLE TO BE VERIFIED. THIS RESULTS IN DENIAL OF THE IMPUGNED SECTION 12AA REGISTRATION. 4. WE HAVE HEARD RIVAL CONTENTIONS. BOTH PARTIES REITERATE THEIR RESPECTIVE PLEADINGS FOR AND AGAINST THE IMPUGNED SECTION 12AA REGISTRATION. IT IS AN UNDISPUTED FACT THAT THE CIT HAS DENIED THE SAME ON TWO COUNTS I .E. THIS TRUST HA S BEEN CREATED FOR THE BENEFIT OF PATEL COMMUNITY AND ITS ACTIVITIES HAVE NOT BEEN VERIFIED. IT IS TO BE SEEN ASSESSEE S OBJECTS HEREINABOVE NOWHERE RESTRICT OPERATION THEREOF ONLY FOR PATEL CASTE/COMMUNITY PEOPLE. IT IS FURTHER CLEAR THAT THIS ARRAY OF OBJECTS COMPRISE OF SOME CLAUSE NOTABLY 7, 8, AND 10 EXPRESSLY INTENDING TO BENEFIT GENERAL PUBLIC. WE NOTICE IN THIS BACKDROP FACTS THAT THE HON BLE JURISDICTIONAL HI GH COURT CIT VS. LEUVA PATEL SEWA SAMAJ TRUST (2014) 220 TAXMANN . 75 (GUJ) HOLDS THAT THE QUESTION WHETHER OR NOT A TRUST IS CREATED OR ESTABLISHED FOR A PARTICULAR RELIGIOUS COMMUNITY OR CASTE IS RELEVANT WHEN ITS INCOME IS BEING ASSESSED AND NOT AT THE S TAGE OF REGISTRATION SINCE THE RELEVANT I.T.A NO. 229 /RJT /20 15 A.Y. NA PAGE NO SHREE KADVA PATIDAR P A TEL SAMAJ VS. PCIT(OSD) (E ) 4 QUESTION FOR THE SAME IS ONLY TO FIND OUT IF NECESSARY REQUIREMENT AS PROVIDED HAVE BEEN FULFILLED OR NOT. THE REVENUE FAILS TO POINT OUT ANY EXCEPTION TO THIS SETTLED LAW. THE CIT S LATTER REASONING THAT ASSESSEE S ACTIVITIES ARE NOT VERIFIABLE IS ALSO NOT FOUND SU STAINABLE AS PER THE CASE LAW IN VIEW OF THE FACT THAT WE ARE DEALING WITH SECTION 12AA REGISTRATION ONLY AT THIS STAGE. IT IS MADE CLEAR THAT THIS COMMENCEMENT OF ACTIVITIES WOULD BE EXAMINED AT THE TIM E OF ASSESSEE CLAIMING RELEVANT EXEMPTION BENEFIT U/S. 11 OF THE ACT. WE ACCEPT ASSES SEE S ARGUMENTS IN THESE FACTS AND CIRCUMSTANCES . 5. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 03 - 03 - 201 6 SD/ - SD/ - (PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 03 /03 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT