Munambam Daiva Sabha, Cochin V. CIT( Exemption), Cochin

ITA 252/COCH/2015

• Counselvise Citation: [2015] 128 COUNSELVISE.COM (IT) 9786 (ITAT-COCHIN)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 18-11-2015
• Assessment Year: 2015-2016
• Appeal Filed On: 01-05-2015
• Court: TRIBUNAL
• Department Lawyers: SHANTAM BOSE
• Assessee Lawyers: DAVIS CHAKKALAKKAL
• Keywords: Charitable institution; Set aside
• Section: 12A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH C OCHIN BEFORE S/SHRI B.P. JAIN, AM AND GEORGE GEOR GE K., JM I.T.A. NOS. A.Y. AP PELLANT RESPONDENT 1.292/COCH/2015 SACRED HEART CHURCH, CIT(EXEMPTIONS), MU DICKAL P.O., KOCHI. KO CHI-683 547 [P AN:AAOTS 2879P] 2.293/COCH/2015 ST. ANTON YS CHURCH, -DO- 03 /172, CHENUR, KO THAD P.O., KO CHI-682 018. [P AN:AAHAS 8578D] 3.294/COCH/2015 OUR LADY OF ROSARY CHURCH, -DO- MA LOTH, KARINGAMTHURUTHU, KO NGORPILLY, KOCHI-683 525 [P AN:AAATQ 447R] 4.458/COCH/2015 ST. ANTON YS CHURCH, -DO- 29 /221, ELOOR SOUTH, UD YOGMANDAL P.O., KO CHI-682 501. [P AN:AAOTS 4401A] 5.459/KOCHI/2015 CHURCH O F OUR LADY DOLOURS, -DO- 0 1/403A, THUTHIYOOR, K AKKANAD, KOCHI-37 [ PAN:AABTC 6789R] 6.460/COCH/2015 ST. ANTO NYS CHURCH, -DO- X/1036,ATHANI, KUSUMAGIRI P.O. KOCHI-682 030. [PAN:AAOTS 5563J] 7.252/COCH/2015 MUNAMBAM DAIVA SABHA, -DO- DOOR NO. XIX-405, JANATHA BEACH ROAD, I.T.A. NO.292 ETC./COCH/2015 2 NEAR ASWATHY FIRE WORKS, CHERAI, KOCHI-683514. [PAN:AAYFM 3430A] ASSESSEE BY SHRI DAVIS CHAKKALAKKAL, ADV. REVENUE BY SHRI SHANTAM BOSE, CIT(DR) DATE OF HEARING 18/11/2015 DATE OF PRONOUNCEMENT 19/11/2015 O R D E R PER BENCH: THESE SEVEN APPEALS OF DIFFERENT ASSESSEES ARISE FROM DIFFERENT ORDERS OF THE LD. CIT)(EXEMPTIONS), KOCHI AS PER DETAILS BELOW : NAME OF THE ASSESSEE DATE OF CI T(EXEMPTIONS) ORDER 1. SACRED HEART CHURCH KOCHI 27 /04/2015 2. ST. ANTONYS CHURCH, KOCHI 2 8/04/2015 3. OUR LADY OF ROSARY CHURCH, KOCHI 28/04 /2015 4. ST. ANTONYS CHURCH, KOCHI 28/07/2015 5. CHURCH OF OUR LADY DOLOURS, KOCHI 15/07 /2015 6. ST. ANTONYS CHURCH, KOCHI 13/07/2015 7. MUNAMBAM DAIVA SABHA, KOCHI 26/02/ 2015 2. THE ISSUES IN ALL THE ABOVE SAID APPEALS ARE IDE NTICAL AND HENCE THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY TH IS COMMON CONSOLIDATED ORDER. I.T.A. NO.292 ETC./COCH/2015 3 3. THE GROUNDS IN ALL THE ABOVE APPEALS ARE ALM OST IDENTICAL IN ALL THE ABOVE APPEALS. WE SHALL TAKE UP THE APPEAL IN THE C ASE OF SACRED HEART CHURCH IN I.T.A. NO.292/COCH/2015 AND REPRODUCE THE GROUNDS AS UNDER: 1. THE LEARNED COMMISSIONER OF INCOME TAX SHOULD H AVE NOTED THAT, THE APPLICATION OF OUR RELIGIOUS INSTITUTION WAS QU ITE IN ORDER IN EVERY RESPECT AS PER THE PROVISIONS OF INCOME TAX AS WELL AS THE RULE MADE THEREON. 2. THE LEARNED COMMISSIONER OF INCOME TAX OUGHT TO HAVE NOTED THAT, THERE WAS NO REQUIREMENT UNDER THE INCOME TAX ACT O R IN THE RULE THAT, A RELIGIOUS INSTITUTION MUST BE REGISTERED AS A TRU ST WITH THE REGISTRAR OF DOCUMENTS. RELIANCE IS PLACED ON THE DECISION OF A LLAHABAD HIGH COURT REPORTED IN 186 TAXMAN, PAGE -460. 3. AS A MATTER OF CONSISTENCY, THE COMMISSIONER OF INCOME TAX, ERNAKULAM SHOULD HAVE FOLLOWED HIS PREDECESSORS, ORD ER IN IDENTICAL SITUATION. 4. SUCH OTHER GROUNDS AS MAY BE RAISED AT THE TI ME OF HEARING OF THE APPEAL. 4. OUR ORDER HEREINBELOW IN THE CASE OF SACRED HEART CHURCH IN I.T.A. NO.292/COCH/2015 SHALL BE IDENTICALLY APPLICABLE TO ALL THE OTHER APPEALS MENTIONED HEREINABOVE. 5. THERE ARE TWO-FOLD QUESTIONS IN THE APPEALS A S UNDER: THE FIRST QUESTION IS WHETHER THE ASSESSEE HAS FILE D THE INSTRUMENT IN ORIGINAL OR COPY THEREOF EVIDENCING THE CREATION OF THE TRUST. SECONDLY, WHETHER THE TRUST SHOULD BE A REGISTERED TRUST, I.E ., THE TRUST DEED SHOULD BE REGISTERED OR NOT. I.T.A. NO.292 ETC./COCH/2015 4 6. THE LD. CIT(EXEMPTIONS) HAS DENIED REGISTRATI ON U/S. 12A OF THE ACT AS THE ASSESSEE HAS NOT FILED THE INSTRUMENT IN ORI GINAL OR A COPY THEREOF, EVIDENCING THE CREATION OF THE TRUST. IN THE ABSEN CE OF REGISTERED DEED, THE TRUST CANNOT BE TREATED AS GENUINE. 7. AS REGARDS THE FIRST QUESTION, THE LD. COUNS EL FOR THE ASSESSEE STATED AT BAR THAT THE REGISTERED TRUST DEED WAS PRODUCED BEFORE THE LD. CIT(EXEMPTIONS) AND A COPY THEREOF WAS FILED ALONG W ITH THE APPLICATION EVIDENCING THE CREATION OF THE TRUST. THE LD. COUN SEL FOR THE ASSESSEE STATED THAT HE WAS HAVING THE REGISTERED TRUST DEED AND WAS READY TO PRODUCE IT BEFORE THE LD. CIT(EXEMPTIONS). IN SUCH CIRCUMSTANCES AND FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE AS CONCE DED BY THE LD. AR AND THE LD. DR ALSO, THE MATTER IS REMITTED BACK TO THE FIL E OF THE LD. CIT(EXEMPTIONS) TO EXAMINE THE ORIGINAL TRUST DEED A ND THE ASSESSEE SHALL FILE A COPY THEREOF BEFORE THE LD. CIT(EXEMPTIONS). THE LD. AR SHOULD UNDERTAKE TO CO-OPERATE IN THE PROCEEDINGS BEFORE T HE LD. CIT(EXEMPTIONS) IN THIS REGARD. ACCORDINGLY, FOR THE LIMITED PURPOS E, THE MATTER IS SET ASIDE TO THE FILE OF LD. CIT(EXEMPTIONS) TO EXAMINE THE OR IGINAL TRUST DEED AND DECIDE THE ISSUE ACCORDINGLY. I.T.A. NO.292 ETC./COCH/2015 5 8. AS REGARDS THE SECOND QUESTION, THE LD. COUNSE L FOR THE ASSESSEE RELIED UPON THE DECISION OF THE HONBLE ALLAHABAD HIGH COU RT IN THE CASE OF CIT VS. KRISHI UTPADAN MANDI SAMITI REPORTED IN 186 TAXMAN 460 WHICH IS PLACED AT PB PGS. 18 TO 31. THE LD. COUNSEL FOR THE ASSESSEE ALSO INVITED OUR ATTENTION TO PB PG. 20 OF THE DECISION OF THE HONB LE ALLAHABAD HIGH COURT (SUPRA) WHEREIN THE HONBLE HIGH COURT HAS CLEARLY MENTIONED THAT THERE IS NO REQUIREMENT UNDER THE ACT THAT AN INSTITUTION CO NSTITUTED FOR ADVANCEMENT OF ANY OBJECT OF GENERAL PUBLIC UTILITY MUST BE REGISTERED AS A TRUST. THE LD. COUNSEL FOR THE ASSESSEE HAS ALSO RELIED UPON THE DECISION OF THE ITAT, AMRITSAR BENCH IN THE CASE OF MALLI RA M CHARITABLE TRUST VS. CIT WHICH IS PLACED AT PB PG. 14 WHEREIN IT WAS HEL D THAT THE APPLICATION FOR REGISTRATION OF A TRUST CANNOT BE REFUSED MERELY ON THE BASIS OF THAT THE TRUST DEED WAS NOT REGISTERED EITHER WITH THE REGIS TRAR OF SOCIETIES OR WITH THE REGISTRAR OF DOCUMENTS. IN THE FACTS AND CIRCUM STANCES OF THE CASE, AND IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH C OURT IN THE CASE OF CIT VS. KRISHI UTPADAN MANDI SAMITI (SUPRA) AND THE DEC ISION OF ITAT, AMRITSAR BENCH IN THE CASE OF MALLI RAM CHARITABLE TRUST VS. CIT (SUPRA), WE ARE OF THE VIEW THAT THE APPLICATION FOR REGISTRATION OF T RUST CANNOT BE REFUSED MERELY ON THE BASIS THAT THE TRUST DEED WAS NOT REG ISTERED EITHER WITH THE REGISTRAR OF SOCIETIES OR WITH THE REGISTRAR OF DOC UMENTS. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE SECOND QUESTION RAIS ED BY THE ASSESSEE IS I.T.A. NO.292 ETC./COCH/2015 6 ANSWERED IN ITS FAVOUR. THE LD. CIT(EXEMPTIONS ) IS NOT JUSTIFIED IN DENYING EXEMPTION ON THIS COUNT. 9. SINCE THE ISSUES IN ALL THE APPEALS ARE IDENT ICAL, OUR ORDER IN THE CASE OF THE ASSESSEE IN I.T,A. NO. 292/COCH/2015 HEREINABOV E IS IDENTICALLY APPLICABLE TO ALL THE OTHER APPEALS MENTIONED HEREI NABOVE. 10. IN THE RESULT, ALL THE APPEALS OF THE ASSESSE ES ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 19-11-2015. SD/- SD/- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACC OUNTANT MEMBER PLACE: KOCHI DATED:19TH NOVEMBER, 2015 GJ COPY TO: 1. SACRED HEART CHURCH,MUDICKAL P.O., KOCHI-683 54 7. 2. ST. ANTONYS CHURCH, 03/172, CHENUR, KOTHAD P.O ., KOCHI- 682 018. 3. OUR LADY OF ROSARY CHURCH, MALOTH, KARINGAMTHUR UTHU, KONGORPILLY, KOCHI-683 525. 4. ST. ANTONYS CHURCH, 29/221, ELOOR SOUTH, UDYOGM ANDAL P.O., KOCHI-682 501. 5. CHURCH OF OUR LADY DOLOURS, 01/403A, THUTHIYOOR , KAKKANAD, KOCHI-37. 6. ST. ANTONYS CHURCH, X/1036, ATHANI, KUSUMAGIRI P.O., KOCHI-682 030. 7. MUNAMBANAM DAIVA SABHA, DOOR NO. XIX-405, JANAT HA BEACH ROAD, NEAR ASWATHY FIRE WORKS, CHERAI, KOCHI-683 514. 8. THE COMMISSIONER OF INCOME TAX(EXEMPTIONS),KOCHI . 9. THE COMMISSIONER OF INCOME TAX(APPEALS), KOCHI. 10. THE D.R., I.T.A.T., COCHIN. 11. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T. A.T., COCHIN I.T.A. NO.292 ETC./COCH/2015 7