Shree Golsheri Jain Dharamshala, Surat V. The CIT,- II, Surat

ITA 2734/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9608 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-12-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 13-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R N VEPARI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA K. YADAV, JUDICIAL MEMBER ./ ITA NO. 2734/AHD/2014 / ASSESSMENT YEAR: 2014-15 SHREE GOLSHERI JAIN DHARAMSHALA, 6/1038-40-41, GOLSHERI, GALEMANDI, MAHIDHARPURA, SURAT 395 003 .. APPELLANT PAN : AADTS 1234 P VS THE COMMISSIONER OF INCOME-TAX-II SURAT .. RESPONDENT ASSESSEE(S) BY : SHRI R.N. VEPARI, AR REVENUE BY : SHRI D ILEEP KUMAR , SR. DR / DATE OF HEARING 17/12/2015 /DATE OF PRONOUNCEMENT 03/02/2016 / O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME-TAX-II, SURAT D ATED 16.09.2014 PASSED FOR ASSESSMENT YEAR 2014-15, ON T HE FOLLOWING GROUNDS:- 1. REFUSAL FOR REGISTRATION U/S 12A(A) OF THE ACT; (I) THE COMMISSIONER OF INCOME-TAX-II, SURAT ERRED IN REJECTING THE APPLICATION FOR REGISTRATION U/S 12A( A) ON GROUNDS WHICH ARE NOT RELEVANT. (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND AS PER LAW, THE REGISTRATION U/S 12A(A) MAY BE GRANTED (SMC) ITA NO. 2734/AHD/2014 SHREE GOLSHERI JAIN DHARAMSHALA VS. CIT AY 2014-2015 2 2. IN THIS CASE, THE COMMISSIONER OF INCOME-TAX, ON VERIFICATION OF APPLICATION BY THE ASSESSEE FOR REG ISTRATION U/S 12A(A) OF THE ACT, NOTICED THAT THE APPLICATION WAS NOT ACCOMPANIED BY DOCUMENTS WHICH ARE REQUIRED FOR REG ISTRATION UNDER RULES 17A OF THE INCOME-TAX RULES. THE ASSES SEE WAS GIVEN OPPORTUNITIES TO FURNISH EVIDENCES WITH REGAR D TO ACTIVITIES OF TRUST AND DETAILS OF EXPENSES. IN RESPONSE TO T HE SAME, THE ASSESSEE-TRUST SUBMITTED COPY OF BANK ACCOUNT STATE MENT, COPY OF CERTIFICATE OF REGISTRATION OF TRUST AND AUDIT R EPORT OF LAST THREE YEARS VIDE LETTER DATED 11.08.2014. ON PERUS AL OF THOSE DETAILS SUBMITTED BY THE ASSESSEE, THE COMMISSIONER OF INCOME- TAX OBSERVED THAT THE MAIN OBJECT OF THE TRUST WAS TO MAINTAIN THE JAIN DHARAMSHALA BUILDING, BUT THE ASSESSEE-TRU ST DID NOT PROVIDE ANY EVIDENCE REGARDING ITS ACTIVITIES/PROGR AMMES AS PER DEED. THE COMMISSIONER OF INCOME-TAX ALSO OBSERVED THAT THE CONCERNED ASSESSING OFFICER HAS ALSO REPORTED THAT THE TRUST WAS MAINTAINING A JAIN DHARAMSHALA IN A VERY OLD BU ILDING AND RECONSTRUCTION OF THE SAME WAS BEING CARRIED OUT AT THE SAID PREMISES. HE ALSO NOTICED THAT ALMOST ALL THE EVIDE NCES SUBMITTED/COLLECTED REGARDING EXPENSES OF THE TRUST WERE RELATED TO THE RECONSTRUCTION WORK CARRYING OUT AT THE SAME (SMC) ITA NO. 2734/AHD/2014 SHREE GOLSHERI JAIN DHARAMSHALA VS. CIT AY 2014-2015 3 PREMISES. IN THIS REGARD, THE AUTHORIZED REPRESENT ATIVE OF THE ASSESSEE SUBMITTED THAT THE RECONSTRUCTION OF DHARA MSHALA WAS BEING TAKEN PLACE AS IT WAS MORE THAN A HUNDRED YEAR OLD AND THE EXPENSES ALSO HAVE BEEN CONSIDERED FOR THAT PURPOSE ONLY. THE AUTHORIZED REPRESENTATIVE FOR THE ASSESS EE ALSO SUBMITTED THAT SINCE DHARAMSHALA WAS IN A DILAPIDAT ED CONDITION AND WHEN HIRING OF DHARAMSHALA WAS THE ON LY ACTIVITY, THERE IS NO QUESTION OF ASSESSEE DOING OT HER ACTIVITIES TILL THE RECONSTRUCTION WAS OVER. HE FURTHER STATE D THAT THE ASSESSEE-TRUST HAS FOLLOWED AND ACTED IN PURSUANCE OF ITS OBJECTS OF MAINTAINING DHARAMSHALA FOR WHICH IT HAS BEEN RECEIVING THE USAGE CHARGES OF DHARAMSHALA AND UTEN SILS. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, IN THE INTEREST OF JUSTICE, IT IS CONSIDERED APPROP RIATE TO SET ASIDE THE ORDER PASSED BY THE COMMISSIONER OF INCOM E-TAX IN THIS REGARD AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO VERIFY THE CLAIM OF THE ASSESSEE-TRUST AS INDICA TED ABOVE. THEREAFTER, THE COMMISSIONER OF INCOME-TAX WILL DEC IDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER PROVIDIN G ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. SINCE I AM RESTORING THE MATTER TO THE FILE OF COMMISSIONER OF INCOME-TAX ON PRELIMINARY (SMC) ITA NO. 2734/AHD/2014 SHREE GOLSHERI JAIN DHARAMSHALA VS. CIT AY 2014-2015 4 ISSUE AS DISCUSSED ABOVE, I AM REFRAINING TO COMMEN T ON THE MERIT OF CASE AT HAND. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 3RD FEBRUARY, 2016 AT AHMEDABAD. SD/- (SHAILENDRA K. YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 03/02/2016 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / DR, ITAT, AHMEDABAD 6. (- . / GUARD FILE. / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD