Shri Nandotara Swetamber Murtipujak Jain Mahajan Derasar Upashray, Banaskantha V. The DIT(Exem.), Ahmedabad

ITA 2593/AHD/2013

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8199 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-06-2017
• Assessment Year: misc
• Appeal Filed On: 01-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: M K PATEL

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 2593/AHD/2013 ( ASSESSMENT YEAR : N.A.) SHRI NANDOTARA SHWETAMBER MURTIPUJAK JAIN MAHAJAN DERASAR UPASHRAY C/O. PUNAMCHAND BHIKHALAL DOSHI AT & POST NANDOTARA 385421 TA. VADGAM, DIST.- BANASKANTHA / VS. DIRECTOR OF INCOME TAX (EXEMPTION) 2 ND FLOOR, NATURE VIEW BUILDING, ASHRAM ROAD, AHMEDABAD - 380009 ./ ./ PAN/GIR NO. : AAITS7409K ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI M. K. PATEL, A.R. / RESPONDENT BY : SHRI LALIT P. JAIN, SR.D.R. DATE OF HEARING 31/12/2018 !'# / DATE OF PRONOUNCEMENT 07/01/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE DIRECTOR OF INCOM E TAX (EXEMPTIONS), AHMEDABAD (DIT(E) IN SHORT), DATED 16.09.2013 ITA NO. 2593/AHD/13 [SHRI NANDOTARA S. M. JAIN VS. DIT(E)] - 2 - WHEREBY THE REGISTRATION SOUGHT UNDER S.12AA OF THE INCOME TAX ACT, 1961 (THE ACT) WAS DECLINED. 2. THE ASSESSEE, AS PER ITS GROUNDS OF APPEAL, HAS CHALLENGED THE ACTION OF THE DIT(E) IN REFUSING TO GRANT THE REGIS TRATION DEMANDED BY THE ASSESSEE UNDER S.12AA OF THE INCOME TAX ACT, 19 61. 3. THE ASSESSEE IS A PUBLIC TRUST WHICH RUNS AND MA INTAINS A DERASAR (JAIN TEMPLE). IT CLAIMS TO BE A VERY OLD TRUST REGISTERED WITH CHARITY COMMISSIONER AND CAME INTO EXISTENCE ON 08. 04.1953. THE PRESENT CONTROVERSY IS OWING TO THE FACT THAT THE A PPLICATION FILED BY THE ASSESSEE IN PRESCRIBED FORM FOR REGISTRATION UN DER S.12AA OF THE ACT WAS DENIED TO IT BY THE DIT(E) VIDE ORDER DATED 16.09.2013. 4. AGGRIEVED BY THE DENIAL OF REGISTRATION, THE ASS ESSEE PREFERRED APPEAL BEFORE THE TRIBUNAL. IT WAS CONTENDED ON BE HALF OF THE ASSESSEE BEFORE THE TRIBUNAL THAT, ADMITTEDLY, NO TRUST DEED WAS FILED BY THE ASSESSEE BEFORE THE DIT(E) AS THE SAME IS NOT AVAIL ABLE WITH THE ASSESSEE. THE LEARNED AR FOR THE ASSESSEE HOWEVER CONTENDED THAT THE ASSESSEE TRUST IS VERY OLD ONE WHICH CAME INTO EXIS TENCE IN APRIL 1953 AT WHICH TIME NO TRUST DEED WAS EXECUTED IN WRITING . THE ASSESSEE TRUST HOWEVER IS REGISTERED WITH THE CHARITY COMMIS SIONER AND HOLDS BANK ACCOUNT AND PAN NUMBER. THE MAIN ACTIVITY OF THE TRUST IS TO RUN AND MAINTAIN DERASAR AND UPASHRAY. IT WAS CONT ENDED THAT IN VIEW ITA NO. 2593/AHD/13 [SHRI NANDOTARA S. M. JAIN VS. DIT(E)] - 3 - OF THE DECISION OF THE HONBLE GUJARAT HIGH COURT I N THE CASE OF PR.CIT(E) VS. DAWOODI BOHRA MASJID (2018) 402 ITR 2 9 (GUJ), THE REGISTRATION APPLIED UNDER S.12AA OF THE ACT OUGHT TO HAVE BEEN GRANTED. 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS MAD E ON BEHALF OF THE ASSESSEE AS WELL AS THE ORDERS OF THE AUTHORITI ES BELOW. THE DIT(E) HAS DENIED REGISTRATION UNDER S.12AA OF THE ACT OWING TO ALLEGED LACK OF SATISFACTION OF GENUINENESS OF ACTI VITIES. THE PRIMARY REASON FOR HOLDING SO APPEARS TO BE ABSENCE OF WRIT TEN INSTRUMENT (TRUST DEED) BY WAY OF WHICH THE TRUST AND INSTITUT ION WAS CREATED/ESTABLISHED AND FROM WHICH ITS OBJECT CAN B E SEEN. 6. IN THE LIGHT OF THE DECISION OF THE HONBLE GUJA RAT HIGH COURT IN DAWOODI BOHRA MASJID (SUPRA), WE ARE OF THE VIEW TH AT MERE ABSENCE OF TRUST DEED CANNOT BE A HANDICAP FOR GRANTING OF REGISTRATION UNDER S.12AA OF THE ACT OR OTHERWISE IN APPROPRIATE CASES . THUS, IT IS OPEN TO THE ASSESSEE TO SATISFY THE DIT(E) ABOUT THE BON AFIDES OF ITS CHARITABLE ACTIVITIES BY OTHER DOCUMENTS IN ITS POS SESSION. HENCE, WE CONSIDER IT EXPEDIENT TO RESTORE THE ISSUE BACK TO THE FILE OF THE DIT(E) FOR A FRESH LOOK ON THE ENTIRE ISSUE IN ACCORDANCE WITH LAW AND IN THE LIGHT OF THE DECISION OF THE HONBLE GUJARAT HIGH C OURT IN DAWOODI BOHRA MASJID (SUPRA). THE ASSESSEE WILL BE ENTITLE D TO JUSTIFY THE DETAILS OF OBJECTS AND FUNCTIONS OF THE ASSESSEE BY PRODUCING THE ITA NO. 2593/AHD/13 [SHRI NANDOTARA S. M. JAIN VS. DIT(E)] - 4 - RELEVANT DOCUMENT AS MAY BE CONSIDERED NECESSARY IN THIS REGARD. THE ISSUE IS ACCORDINGLY SET ASIDE AND RESTORED TO THE FILE OF DIT(E) FOR DE NOVO CONSIDERATION IN ACCORDANCE WITH LAW. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 07/01/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 07/01/201 9