HAJRAT BABA LODHISHAH BAHUDDESHIYA SHIKSHAN SANSTHA , NAGPUR V. COMMISSIONER OF INCOME TAX ( EXEMPTION ) , PUNE

ITA 29/NAG/2018

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 6767 (ITAT-NAGPUR)
• Duration Of Justice: 5 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-09-2023
• Assessment Year: misc
• Appeal Filed On: 13-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12; 12AA

Judgement Text

।आयकर अपीलीय अिधकरण Ɋायपीठ नागपुर मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH : : NAGPUR [VIRTUAL HEARING AT PUNE] BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.29/NAG/2018 िनधाᭅरण वषᭅ / Assessment Year : - Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha, C/o.Chandak Umalkar & Associates, Chartered Accountants, Plot No.198, Akshay Aprtment, Near Dr.Dngre Homeopathy Clinic, Ngpur – 440015. PAN: AAATH 8449 J V s The Commissioner of Income Tax (Exemption), Pune. Appellant / Assessee Respondent / Revenue Assessee by None Revenue by Shri Kailash Kanojiya – DR Date of hearing 22/09/2023 Date of pronouncement 06/10/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.CIT(E), Pune under section 12AA of the Income Tax Act, 1961 dated 28.09.2017. ITA No.29/NAG/2018 Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A] 2 2. At the outset of hearing, no one appeared on behalf of the assessee. Findings & Analysis : 3. We have heard the ld.Departmental Representative for the Revenue. On perusal of the ld.CIT(E)’s order, it is observed that ld.CIT(E) has denied the registration only on one ground i.e. non-availability of “Dissolution Clause” in the Trust Deed. The relevant paragraph of the ld.CIT(E)’s order is reproduced here as under : “5.1 On the basis of information available on record, objects of the trust prima-facie appear to be “Charitable” in nature but the lack of clause on Dissolution and failure of the applicant to produce a copy of the application for amending the trust deed to include the “Dissolution Clause” filed before the Charity Commissioner the application for grant of registration u/s 12AA cannot be accepted. 6. In view of the above, the application is hereby rejected u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 on technical grounds. 4. Thus, the ld.CIT(E) himself stated in the order that prima- facie objects of the assessee are charitable in nature. The Commissioner has never doubted about the genuineness of the activities in the order. He rejected it only on one ground i.e. absence of “Dissolution Clause” in the Trust Deed. In the facts statement filed by the assessee along with appeal memo, it is ITA No.29/NAG/2018 Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A] 3 submitted by assessee that they have aggreed to add “Dissolution Clause” and assured the same to the Commissioner during the hearing. It is also mentioned in the facts of the case that Trust fulfilled all the conditions laid down under section 12AA of the Act. 5. The Hon'ble Gujarat High Court in the case of CIT Vs. Tapagachha Sangh Mota [2015] 59 taxmann.com 204 (Gujarat) has held as under : “In a given case even in absence of any provision in the trust with respect to "dissolution clause" if on facts the trust is found to be genuine and/or genuineness of the trust is established, the trust may be entitled to registration under Section 12 AA of the Act, however subject to fulfillment of conditions under Section 12 AA of the Act i.e. when the Commissioner is satisfied about the genuineness of the activities of the trust or the institution.” 6. Thus, the Hon'ble Gujarat High Court has held that if Trust fulfilled all other conditions, then the Trust will be eligible for registration even in the absence of Dissolution Clause in the Trust Deed. We have already mentioned that in this case, the ld.Commissioner was satisfied about the charitable nature of the objects. The ld.Departmental Representative for the Revenue has not brought to our notice any contrary decision of Jurisdictional High Court. In these facts and circumstances of the case, we direct the ld.CIT(E) to grant registration under ITA No.29/NAG/2018 Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A] 4 section 12AA of the Act, accordingly grounds of appeal raised by the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 6 th October, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 6 th October, 2023/ SGR* आदेशकᳱᮧितिलिप अᮕेिषत /Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर बᱶच, नागपुर/ DR, ITAT, Bench, Nagpur. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.