Maa Bhagwati Samagra Utthan Trust, Agra V. CIT, Agra

ITA 293/AGR/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 2457 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-03-2011
• Assessment Year: 2009-2010
• Appeal Filed On: 20-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Benefit of exemption
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO.293/AGR/2009 ASST. YEAR: 2009-10 MAA BHAGWATI SAMAGRA UTTHAN TRUST, VS. COM MISSIONER OF INCOME TAX-1, 318-B, KEDAR NAGAR, AGRA. AGRA. (PAN : AACTM 2372 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPENDRA MOHAN, C.A. RESPONDENT BY : SHRI VINOD KUMAR, JR. D.R. ORDER PER H.S. SIDHU, J.M. : THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER DATED 15.05.2009 PASSED BY THE LD. CIT-1 ON THE FOLLOWING GROUNDS :- 1. THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRE D IN LAW AND ON FACTS IN NOT ALLOWING REGISTRATION U/S 80G OF TH E INCOME TAX ACT, 1961 EVEN WHEN THE TRUST IS ESTABLISHED FOR CHARITA BLE PURPOSES. 2. THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AND ON FACTS IN NOT GRANTING REGISTRATION U/S 80G EVEN WHEN HE HIMSELF HAS ALLOWED REGISTRATION U/S 12AA TREATING IT AS A CHAR ITABLE TRUST. 3. THAT THE ORDER PASSED BY THE LEARNED COMMISSIONE R OF INCOME TAX IS BAD IN LAW AND AGAINST THE FACTS OF THE CASE . 2 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR VARY THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. THE ASSESSEE TRUST HAS APPLIED TO THE CIT, AGRA FOR THE EXEMPTION UNDER SECTION 80G(5) OF THE INCOME TAX ACT, 1961 (THE AC T HEREINAFTER) ON 24.12.2008. THE CIT ISSUED NOTICE DATED 16.02.2009 TO THE ASSES SEE TRUST FOR HEARING ON 26.03.2009. IN RESPONSE TO THE SAME, NEITHER THE A SSESSEE NOR THE LD. AUTHORISED REPRESENTATIVE APPEARED AND THE HEARING WAS ADJOURN ED FOR 08.05.2009. IN RESPONSE TO THE SAME, SHRI PANKAJ MISHRA, CHARTERED ACCOUNTANT APPEARED AND CASE WAS ADJOURNED FOR 15.05.2009. ON 15.05.2009, THE C IT, AGRA REJECTED THE REQUEST OF THE ASSESSEE TRUST FOR GRANTING EXEMPTION UNDER SECTION 80G(5) OF THE ACT BY HOLDING THAT THE ASSESSEE HAS FAILED TO ESTABLISH T HE GENUINENESS OF ITS ACTIVITIES AND HE REJECTED THE APPLICATION DATED 24.12.2008 FILED BY THE ASSESSEE TRUST FOR GRANTING EXEMPTION UNDER SECTION 80G(5) OF THE ACT VIDE HIS IMPUGNED ORDER DATED 15.05.2009 AGAINST WHICH THE ASSESSEE HAS FILED THE PRESENT APPEAL. 3. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE FILED AN ORDER DATED 15.05.2009 PASSED BY THE SAME CIT GRANTING THE REGI STRATION UNDER SECTION 12AA OF THE ACT AND TREATING THE TRUST OF THE ASSESSEE A S CHARITABLE TRUST. HE STATED THAT WHEN THE CIT HAS RECOGNISED THE ASSESSEE AS A TRUST FOR CHARITABLE PURPOSE UNDER SECTION 12A(A) AND REGISTERED UNDER SECTION 12AA TH EN DENYING THE BENEFIT OF EXEMPTION UNDER SECTION 80G(5) IS ILLEGAL. IN SUPP ORT OF THIS CONTENTION, HE FILED 3 COPY OF ORDER PASSED BY THE HONBLE GUJARAT HIGH CO URT IN THE CASE OF HIRALAL BHAGWATI VS. CIT, 246 ITR 188 (GUJ). ON THE CONTRA RY, THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER PASSED BY THE CIT, AGRA. 4. WE HAVE HEARD BOTH THE PARTIES AND THOROUGHLY GO NE THROUGH THE IMPUGNED ORDER AS WELL AS THE ORDER GRANTING REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT. WE ARE OF THE CONSIDERED OPINION THAT ON 15.05.2009 THE CIT, AGRA HAS REJECTED THE APPLICATION DATED 24.12.2008 FILED BY THE ASSESSEE FOR GRANTING EXEMPTION UNDER SECTION 80G(5) OF THE ACT AND ON THE SAME DATE I.E. 15.05.2009 THE SAME CIT HAS GRANTED REGISTRATION TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT. WE ARE OF THE VIEW THAT WHEN THE CIT, AGRA HAS GRANTED THE REGISTRATION UNDER SECTION 12AA OF THE ACT AFTER EX AMINING THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST, THEN IT IS NOT PR OPER ON BEHALF OF THE CIT, AGRA TO REJECT THE APPLICATION OF THE ASSESSEE FOR THE BENE FIT OF EXEMPTION UNDER SECTION 80G(5) OF THE ACT BY HOLDING THAT THE ACTIVITIES OF THE ASSESSEE TRUST ARE NOT GENUINE. WE HAVE ALSO GONE THROUGH THE ORDER PASSE D BY THE HONBLE GUJARAT HIGH COURT (SUPRA) AND WE ARE OF THE OPINION THAT THE FA CTS OF THE PRESENT CASE ARE SIMILAR TO THE CASE CITED SUPRA. KEEPING IN VIEW OF THE FA CTS AND CIRCUMSTANCES OF THE PRESENT CASE AS WELL AS THE ORDER DATED 15.05.2009 PASSED BY CIT-1, AGRA UNDER SECTION 12AA IN THE CASE OF THE ASSESSEE TRUST, WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE TRUST IS ENTITLED FOR THE BENEFIT OF EXEMPTION UNDER SECTION 80G(5) 4 OF THE ACT AND, THEREFORE, WE DIRECT THE CIT-1, AGR A TO GRANT EXEMPTION TO THE ASSESSEE UNDER SECTION 80G(5) OF THE ACT. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 18.03.2011 ). SD/- SD/- (P.K. BANSAL) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: AGRA DATE: 18 TH MARCH, 2011 PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR, ITAT, AGRA BENCH, AGRA 6. GUARD FILE ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRI BUNAL, AGRA TRUE COPY