Sri Gurutegh Bahadur Education Society, Jabalpur V. Commissioner of Income Tax Exemption, Bhopal

ITA 30/JAB/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2265 (ITAT-JABALPUR)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 02-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: H S MODH
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 30/JAB/2017 / ASSESSMENT YEAR : 2018-19 SRI GURUTEGH BAHADUR EDUCATION SOCIETY, 1, SRI GURUTEGH BAHADUR KHASA COLLEGE, MAHANADDA, NAGPUR ROAD, JABALPUR (MP) PAN : AAEAS 6226 R VS COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BHOPAL (MP) / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI H.S. MODH, AR REVENUE BY : SHRI. P.D. CHOUGULE, DR / DATE OF HEARING : 12/03/2018 / DATE OF PRONOUNCEMENT: 14/03/2018 / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF T HE LEARNED COMMISSIONER OF INCOME-TAX (EXEMPTION), BHOPAL DATED 02. 06.2017 DECLINING THE REGISTRATION U/S 12AA OF THE INCOME-TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) . 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. CIT HAS GROSSLY ERRED IN FACTS AND CIRCUM STANCES OF THE CASE TO REFUSE THE REGISTRATION U/S 12AA(1)(B)(II) OF THE I NCOME-TAX ACT, 1961. 2. THAT THE ORDER OF REFUSAL OF REGISTRATION IS NOT JUS TIFIED. 3. THAT THE INSTITUTION APPLIED FOR REGISTRATION ON THE BA SIS OF CHARITABLE AIMS AND OBJECTS OF THE TRUST, THEREFORE, REJECTION OF REGISTRATION ON THE GROUND THAT THE INSTITUTION IS RELIGIOUS MINORITY INSTI TUTION COVERED U/S 13(10(B) GIVING THE BENEFIT TO SIKH STUDENTS IS NOT PROPER. ITA NO. 30/JAB/2017 SRI GURUTEGH BAHADUR EDUCATION SOCIETY VS. CIT AY : 2018-19 2 4. THAT THE AIM AND OBJECT OF THE SOCIETY TO PROMOTE EDUC ATIONAL INSTITUTION, UPLIFT MEN OF POOR SECTOR OF THE SOCIETY AND OTHER CHARI TABLE ACTIVITIES CANNOT BE TREATED AS RELIGIOUS MINORITY INSTITUTION, HENCE THE COMMISSIONER OF INCOME-TAX MAY KINDLY BE DIRECTED TO GRANT REGISTRATION U/ S 12AA OF INCOME- TAX ACT, 1961. 5. THAT THE AIMS AND OBJECT TO RUN THE EDUCATIONAL INSTIT UTION CONSIDERED AS RELIGIOUS MINORITY INSTITUTION BY THE CIT FOR REJECTIO N OF REGISTRATION IS NOT JUSTIFIED. 6. THAT THE ASSESSEE CRAVES LEAVE TO RAISE ANY OTHER GRO UND/S ON OR BEFORE THE DATE OF HEARING TO PROVE THAT THE ORDER OF THE CIT IS BAD. 3. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE REITERAT ED THE SUBMISSIONS AS WERE MADE BEFORE THE LD. CIT (EXEMPTION) AND SUBMIT TED THAT THE CIT(EXEMPTION) WAS NOT JUSTIFIED IN DECLINING THE RE GISTRATION U/S 12AA OF THE ACT. HE SUBMITTED THAT LD. CIT WAS WRONGLY APPLI ED THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. HE ALSO SUBMITTED THAT LD. CIT FAILED TO APPRECIATE THE FACT THAT THE ASSESSEE-SOCIETY IS ALSO PRO VIDING FREE CONCESSION ETC. TO STUDENTS BELONGING TO SC/ST/OBC. 4. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HA ND, SUPPORTED THE ORDER OF THE CIT AND OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT BENEFIT OF SECTION 13(1) (B) OF THE ACT WOULD NOT BE AVAILABLE IN THE CASE OF A TRUST FOR CHARITAB LE PURPOSE OR A CHARITABLE INSTITUTION CREATED OR ESTABLISHED AFTER THE COMMENCEMENT OF THIS ACT, ANY INCOME THEREOF IF THE TRUST OR INSTITUTION IS CREATED OR ESTABLISHED FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR C ASTE. IT IS CONTENDED THAT THERE IS NO RESTRICTION TO A PARTICULAR RELIGIOUS COMMUNITY, BUT IN FACT ITA NO. 30/JAB/2017 SRI GURUTEGH BAHADUR EDUCATION SOCIETY VS. CIT AY : 2018-19 3 THERE IS NO SUCH OBJECT OF THE SOCIETY. THE OBJECTS OF THE SOCIETY, IN CLAUSE (3) OF THE CONSTITUTION OF SOCIETY, ARE AS UNDER:- LHKK DH LFKKIUK DS M|S; KKIU ESA VAFDR FUEUKUQLKJ GS% & 1- FO|K FOKKU] DYKK RFKK HKKKK DK IZPKJ GS A 2- JKV~H; HKKKKVKSA DK IZLKJ A 3- PKFJF=D ,OA UHFR FK{KK RFKK JKV~H;RK DS ,DHDJ.K DS FL)KARKSA DK IZLKJ A 4- FHKUU & FHKUU LEIZNK;KSA ESA IJLIJ HKKR`RK] LUSG ,OA H KKOUK DK MIKTZU A 5- [KSY DWN IZFK{K.K A 6- IZFK{K.K NLRDKJH ,OA IZFK{K.K OKLRS LSFUD LSOK A AFTER CONSIDERING TOTALITY OF THE FACTS AND MATERIALS AV AILABLE ON RECORD, WE DEEM IT FIT AND PROPER TO RESTORE THIS IS SUE TO THE FILE OF THE CIT FOR DECISION AFRESH AND THE LEARNED CIT WOULD MAKE PROP ER INQUIRY IN RESPECT OF THE CLAIM OF THE ASSESSEE THAT THE SOCIETY IS NOT CREATED OR ESTABLISHED FOR THE BENEFIT OF ANY PARTICULAR RELIGIOU S COMMUNITY OR CASTE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 14 TH MARCH, 2018 AT JABALPUR. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (KUL BHARAT) JUDICIAL MEMBER JABALPUR; DATED 14/03/ 2018 *BIT / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, JABALPUR 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, JABALPUR