Jain Swetamber Murtipujak Derasar Upashray Trust, Banaskantha V. The DIT(Exem.), Ahmedabad

ITA 2594/AHD/2013

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4426 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-09-2017
• Assessment Year: misc
• Appeal Filed On: 01-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: MEHUL K PATEL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER) 1. INCOME TAX APPEAL NO. 2592/AHD/2013 2. INCOME TAX APPEAL NO. 2594/AHD/2013 ( ASSESSMENT YEARS : NOT APPLICABLE ) 1. SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST, C/O. JAYANTILAL PANAMCHAND VAN AT & POST TIMBAWADI TAL. VADGAM. (PAN: AANTS 1280 K) 2. JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST, C/O. RAMESHCHANDRA KHUBCHANDBHAI MEHTA, 5-12-194, AMBIKANAGAR, JAIN DERASAR, NR. 50 QUARTERS, AT & PO. PALANPUR 385 001, DIST. BANSAKANTHA (PAN: AABTJ 4959 Q) / VS. DCIT(EXEMPTION) 2 ND FLOOR, NATURE VIEW BUILDING, ASHRAM ROAD, AHMEDABAD 380 009. ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY : SHRI MEHUL K. PATEL, A.R. REVENUE BY : SHRI SURENDRA KUMAR, CIT- D.R. / DATE OF HEARING 02/08/2018 / DATE OF PRONOUNCEMENT 23/10/2018 ITA NOS.2592 & 2594/AHD/2013 SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST & JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST VS DIT(E) - 2 - / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE DIFFERENT ASSESSEE AGAINST THE SEPARATE ORDERS OF T HE DIRECTOR OF INCOME TAX (EXEMPTIONS)- AHMEDABAD [DIT(E) IN SHORT] DATED 16.09.2013. FIRST WE TAKE UP THE APPEAL OF THE ASSESSEE IN ITA NO. 2594/AHD/2013: 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE I N BOTH THE APPEAL ARE IDENTICAL. THE GROUNDS RAISED IN ITA NO. 2594/AHD/2 013 READS AS UNDER:- (1) THE LEARNED DI (EX) HAS ERRED IN NOT GRANTING THE REGISTRATION U/S. 12AA OF THE INCOME TAX ACT, 1961 AND FAILED TO APPRECIATE THE REPLY SUBMITTED BY THE APPELLANT. (2) THE LEARNED DI (EX) ERRED IN REJECTING THE REG ISTRATION ON THE BASIS OF ABSENCE OF TRUST DEED & FAILED TO APPRECIA TE THE PROVISIONS OF THE BPT ACT AS WELL AS JUDGMENT OF HO N'BLE ITAT - B, BENCH AHMADABAD GIVEN IN CASE OF CIT V. GUJARAT CHIEF MINISTER'S RELIEF FUND. (3) THE LEARNED DI (EX) FAILED TO APPRECIATE THE R EPLY OF THE APPELLANT DATED 29/08/2013 WHEREIN ACTIVITIES OF TH E TRUST IS CLEARLY MENTIONED. (4) THAT IN VIEW OF THE ABOVE FACTS AND IN THE CIR CUMSTANCES OF THE CASE THE ORDER PASSED UNDER SECTION 12AA REJECTING REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961 NEEDS TO BE QUASHED AND ORDER GRANTING REGISTRATION U/S. 12AA OF THE I. T. ACT, 1 961 MAY PLEASE BE PASSED. (5) THE APPELLANT CRAVE LEAVE TO ADD, AMEND, ALTER , VARY OR WITHDRAW ANY OR ALL THE GROUNDS OF APPEAL BEFORE OR AT THE T IME OF HEARING OF APPEAL. ITA NOS.2592 & 2594/AHD/2013 SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST & JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST VS DIT(E) - 3 - 2. THE SOLITARY ISSUE RAISED BY THE ASSESSEE IS THA T LD. DIT(E) ERRED IN REJECTING THE APPLICATION FILED FOR REGISTRATION U/ S 12AA OF THE ACT. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IN TH E PRESENT CASE IS A TRUST AND CAME INTO EXISTENCE ON 17.12.1982. THE AS SESSEE MADE AN APPLICATION TO LD. DIT(E) FOR REGISTRATION U/S 12AA OF THE ACT VIDE APPLICATION DATED 31.03.2013. THE ASSESSEE IN THE R EGISTRATION PROCEEDINGS FILED ALL THE NECESSARY DOCUMENTS EXCEP T THE TRUST DEED. 3.1 ON QUESTION BY THE LD. DIT(E) THE ASSESSEE SUBM ITTED THAT IT WAS REGISTERED WITH THE CHARITY COMMISSIONER LONG BACK AND AT THAT RELEVANT TIME THERE WAS NO NEED TO REGISTER THE TRUST DEED. AS SUCH, THE OFFICE OF THE CHARITY COMMISSIONER USED TO MAINTAIN PTR REGIS TER & COPY OF WHICH WAS USED FOR THE PURPOSE OF OPENING THE BANK ACCOUNT, PAN NO ETC. THEREFORE, THE ASSESSEE JUSTIFIED THE NON AVAI LABILITY OF TRUST DEED. HOWEVER, THE LD. DIT(E) DURING THE REGISTRATION PRO CEEDINGS OBSERVED CERTAIN FACTS AS DETAILED UNDER: I. THE ASSESSEE HAS NOT FILED ACTIVITY REPORT. II. THE ASSESSEE HAS MOSTLY CLAIMED ADMINISTRATIVE EXPE NSES IN ITS INCOME AND EXPENDITURE ACCOUNT. III. THE ACTIVITIES CARRIED OUT BY THE ASSESSEE SINCE IN CEPTION WAS NOT VERIFIABLE. THEREFORE THE GENUINENESS OF THE AC TIVITIES OF THE TRUST WAS NOT ESTABLISHED. 3.2 IN THE ABSENCE OF TRUST DEED IT WAS NOT POSSIBL E TO ASCERTAIN THE PURPOSE FOR WHICH THE TRUST WAS ORIGINALLY ESTABLIS HED. SIMILARLY, ANY ITA NOS.2592 & 2594/AHD/2013 SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST & JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST VS DIT(E) - 4 - CHANGE IN THE OBJECTS CAN ALSO NOT BE ASCERTAINED A S WELL AS ANY CHANGE IN FUTURE WILL ALSO NOT BE VERIFIABLE. IT IS NOT CLEAR WHETHER SOCIETY BELONGS TO ANY CASTE, CREED ETC. IN VIEW OF ABOVE, THE LD. DIT(E) REJECTED THE REGIS TRATION APPLICATION FILED BY THE ASSESSEE VIDE ORDER DATED 16.09.2013. BEING AGGRIEVED BY THE ORDER OF LD. DIT(E) THE ASSE SSEE IS IN APPEAL BEFORE US. 4. THE LD. AR FOR THE ASSESSEE BEFORE US HAS FILED A PAPER BOOK RUNNING FROM PAGES 1-33. THE LD. COUNSEL FOR THE AS SESSEE HAS ALSO FILED THE TRUST DEED AND THE ORDER OF CHARITY COMMISSIONE R, GUJARAT STATE AHMEDABAD REGISTERING THE TRUST. ACCORDINGLY, THE L D. AR PRAYED FOR THE GRANT OF REGISTRATION U/S 12AA OF THE ACT. 5. ON THE OTHER HAND, THE LD DR SUBMITTED THAT REGI STRATION U/S 12AA OF THE ACT CANNOT BE GRANTED WITHOUT VERIFYING THE ACTIVITIES OF THE TRUST SATISFACTORILY. THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF LD. DIT(E). 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THERE IS NO DOUBT THAT THE ASSESSEE HAS NOT FURNISHED TRUST DEED DURING THE REGISTRATIO N PROCEEDINGS. THEREFORE THE ACTIVITIES OF THE TRUST WERE NOT VERI FIABLE AT THAT RELEVANT ITA NOS.2592 & 2594/AHD/2013 SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST & JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST VS DIT(E) - 5 - TIME. HOWEVER, THE ASSESSEE SUBSEQUENTLY GOT THE TR UST REGISTERED AND ACCORDINGLY FILED A COPY OF TRUST DEED WHICH IS PLA CED ON RECORD. 6.1 THERE IS NO DOUBT THAT THE LD. DIT(E) REJECTED THE REGISTRATION APPLICATION MAINLY ON THE GROUND OF NON AVAILABILIT Y OF TRUST DEED. HOWEVER, THE TRUST DEED IS NOW AVAILABLE ON RECORD. THEREFORE IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE ARE INCLINED TO REMIT THE MATTER BACK TO THE FILE TO LD. DIT(E) TO RECORD THE SATISFACTIO N AS REQUIRED U/S 12AA OF THE ACT FOR GRANTING THE REGISTRATION. IT IS NEE DLESS TO MENTION THAT THE ASSESSEE SHALL FILE THE ANNUAL REPORT JUSTIFYING TH E ACTIVITIES CARRIED OUT IN THE LAST THREE YEARS. THE ASSESSEE SHALL COOPERATE DURING THE REGISTRATION PROCEEDINGS BEFORE THE LD. DIT(E). HENCE, THE GROUN D OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. NOW WE TAKE UP APPEAL OF THE ASSESSEE IN ITA NO.259 2/AHD/2013: 7. AT THE OUTSET, WE NOTE THAT THE ISSUES RAISED BY THE ASSESSEE IN ITA NO. 2592/AHD/2013 ARE EXACTLY IDENTICAL TO THE ISSU ES RAISED IN ITA NO. 2594/AHD/2013 WHICH HAVE ALREADY DECIDED IN THE AFO RESAID PARAGRAPHS. BOTH THE LD. DR & AR AGREED BEFORE US THAT WHATEVER WILL BE TAKEN IN ITA 2594/AHD/2013 WILL BE APPLIED FOR THE APPEAL ON HAND. ACCORDINGLY, WE ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES IN TERMS OF ABOVE. ITA NOS.2592 & 2594/AHD/2013 SHRI TIMBACHUDI SWETAMBER MURTI PUJAK JAIN MAHAJAN DERASAR UPASHRAY TRUST & JAIN SWETAMBER MURTIPUJAK DERASAR UPASHRAY TRUST VS DIT(E) - 6 - 8. IN THE RESULT, BOTH THE APPEALS FILED BY THE DIF FERENT ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 23/10/2018 SD/- SD/- (RAJPAL YADAV) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 23/10/2018 PRITI YADAV, SR.PS !' #' /COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. $%$&' ( / CONCERNED CIT 4. ( ( ) / THE DIT(A)- AHMEDABAD. 5. ')* &' , &' / DR, ITAT, 6. *+, - / GUARD FILE. / BY ORDER , TRUE COPY . / / $0 (DY./ASSTT.REGISTRAR) &' , /1% / ITAT, AHMEDABAD 1. DATE OF DICTATION 04/10/2018 (PAGE-3) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER : .. 17/10/2018 3. OTHER MEMBER.. 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 25/10/2018 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT.. 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER 10. DATE OF DESPATCH OF THE ORDER