Shree Veer Teja Jat Vishram Graha Trust, NOKHA V. CIT (Exemption), JAIPUR

ITA 269/JODH/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1959 (ITAT-JODHPUR)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-05-2017
• Assessment Year: misc
• Appeal Filed On: 01-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALKA R JAIN
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JODHPUR BENCH , JODHPUR BEFORE: SMT. DIVA SINGH, JM & SHRI BHAGCHAND, AM ITA NO. 269/JODH/2016 ASSESSMENT YEAR : . SHREE VEER TEJA JAT VISHRAM GRAHA TRUST, BHAGAY SINGH COLONY, NOKHA. VS. CIT (EXEMPTION), JAIPUR. PAN NO.: AANTS 1525 P APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SMT. ALKA R. JAIN (CIT D.R.) DATE OF HEARING : 02/05/2017 DATE OF PRONOUNCEMENT : 02/05/2017 ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATES F ROM THE ORDER DATED 23/03/2015 PASSED BY THE LD. CIT(EXEMPTIONS), JAIPU R, WHEREIN THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL: 1. THAT ORDER PASSED BY THE CIT(EXEMPTIONS) JAIPUR U/S 12AA IN THE CASE OF THE ASSESSEE IS BAD IN LAW AND ON FACTS. 2. THAT CIT(EXEMPTIONS) HAS WRONGLY REJECTED APPLIC ATION SEEKING REGISTRATION OF THE ASSESSEE U/S 12AA OF IT ACT, 1961 IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT CIT(EXEMPTIONS) HAS FAILED TO CONSIDER LETT ER AND SPIRIT OF THE OBJECTIVE SOUGHT TO BE ACHIEVED BY THE TRUST. THE OBJECTIVES ARE FOR BENEFIT OF PUBLIC AT LARGE HENCE ELIGIBLE TO BE REGISTERED U/S 12AA OF I T ACT, 1961. 4. THAT CIT(EXEMPTIONS) SHOULD HAVE CONSIDERED OVER ALL FACTS AND CIRCUMSTANCES OF THE CASE BUT FAILED TO DO SO. ITA 269/JODH/2016_ SHREE VEER TEJA JAT VISHRAM GRAHA TRUST VS. CIT(E) 2 2. ALL THE GROUNDS OF THE APPEAL ARE INTERLINKED AN D ARE AGAINST NOT GRANTING REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). 3. IN THIS CASE, AN APPLICATION FOR ADJOURNMENT WAS RECEIVED ON 28/04/2017. AT THE TIME OF HEARING OF THE APPEAL AND ON THE ADJ OURNMENT APPLICATION, NO ONE APPEARED ON BEHALF OF THE ASSESSEE. FROM THE RE CORD, IT IS NOTICED THAT THE ORDER OF THE LD. CIT(E) AGAINST WHICH THIS APPEAL H AS BEEN PREFERRED IS DATED 23/3/2015. IN THE APPEAL MEMO I.E. FORM NO. 36, THE DATE OF COMMUNICATION OF THE ORDER APPEALED AGAINST IS MENTIONED AS 21/7/201 6. A DEFECT MEMO WAS ISSUED WITH REGARD TO THIS ISSUE AS PRIMA FACIE THE APPEAL WAS BARRED BY LIMITATION OF MORE THAN 15 MONTHS. HOWEVER, NO COMM UNICATION WAS RECEIVED FROM THE SIDE OF THE ASSESSEE TO REMOVE THE DEFECT. THE LD. CIT D.R. WAS HEARD. 4. THE LD. CIT(E) HAS DISMISSED THE APPLICATION FOR GRANTING REGISTRATION U/S 12AA OF THE ACT BY HOLDING AS UNDER:- ALL THE EXPENSES ARE MAINLY OF ADMINISTRATIVE NATUR E. NONE OF THE EXPENSES ARE TOWARDS ANY OF THE OBJECTS OF THE TRUST. THUS THE A CTIVITIES OF THE TRUST CANNOT BE HELD AS GENUINE AS THEY ARE NOT TOWARDS THE OBJECTS OF THE TRUST. FURTHER THE ACTIVITY OF ESTABLISHING DHARAMSHALA FOR JAT COMMUN ITY IS FOR THE BENEFIT OF A PARTICULAR COMMUNITY. FROM THE DISCUSSION MADE ABOVE, IT IS CLEAR THAT TH E OBJECT AND ACTIVITIES OF THE TRUST ARE NOT CHARITABLE IN NATURE AS THEY ARE FOR THE BENEFIT OF THE PARTICULAR RELIGIOUS COMMUNITY. IN THE INSTANT CASE, THE AUTHO R OF THE TRUST HAS EXPRESSED IN ITA 269/JODH/2016_ SHREE VEER TEJA JAT VISHRAM GRAHA TRUST VS. CIT(E) 3 CLEAR TERM THAT THE PURPOSE OF TRUST IS TO ESTABLIS H A DHARAMSHALA FOR THE BENEFIT OF PERSONS BELONGING TO JAT COMMUNITY. AS THE BENEF ECIERS ARE NOT THE PUBLIC AT LARGE, THEREFORE IT CANNOT BE HELD THAT AS TRUST IS ESTABLISHED FOR CHARITABLE PURPOSE. IN SECTION 2(15) THE LEGISLATURE HAS USED LANGUAGE OF GREAT AMPLITUDE CHARITABLE PURPOSE WHICH NOT ONLY INCLUDE THE SPECIFIC PURPOSE OF EDUC ATION MEDICAL ETC. BUT ALSO ADVANCEMENT OF OTHER OBJECTS OF GENERAL PUBLIC UTILIT Y. THE CLAUSE IS INTENDED TO SERVE PUBLIC AT CHARITABLE FA LLING UNDER THE HEAD ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY. THIS IS TOTALLY MISSING IN THE CASE OF APPLICANT. THEREFORE, THE TRUST CANN OT BE HELD AS CHARITABLE WITHIN THE MEANING OF SEC. 2(15) OF THE I.T. ACT. BASED ON THE MATERIAL AVAILABLE ON RECORD, I AM SAT ISFIED THAT THE OBJECTS OF THE TRUST ARE NOT CHARITABLE AND THEREFORE REGISTRATION TO THE TRUST IS REFUSED. 5. AFTER HEARING OF THE LD. CIT D.R. AND PERUSING T HE MATERIAL AVAILABLE ON THE RECORD, WE FIND THAT THE APPEAL IS DEFECTIVE AN D BARRED BY LIMITATION. THE ASSESSEE HAS NOT REMOVED THE DEFECT BY REPLY TO THE DEFECT MEMO ISSUED, THEREFORE, THIS APPEAL IS DISMISSED IN LIMINE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT ON 02/05/2017. SD/- SD/- (DIVA SINGH) (BHAGCHAND) JUDICIAL MEMBER ACCOUNTANT MEMBER JODHPUR DATED:- 02 ND MAY, 2017. *RANJAN COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHREE VEER TEJA JAT VISHRAM GRAHA TR UST, NOKHA. ITA 269/JODH/2016_ SHREE VEER TEJA JAT VISHRAM GRAHA TRUST VS. CIT(E) 4 2. THE RESPONDENT- THE CIT (EXEMPTION), JAIPUR. 3. CIT 4. THE CIT(A) 5. DR, ITAT, JODHPUR 6. GUARD FILE (ITA NO. 269/JODH/2016) BY ORDER, ASST. REGISTRAR