Jawahar Vidya Mandir Education Society, Ranchi V. CIT, Ranchi

ITA 312/RAN/2014

• Counselvise Citation: [2015] 128 COUNSELVISE.COM (IT) 9777 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 12-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROUSHAN SC
• Section: 13(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 312/RAN/2014 (ASST. YEAR : 2015-16) JAWAHAR VIDYA MANDIR EDUCATION SOCIETY, SHYAMALI COLONY, P.O. DORANDA, RANCHI. VS. CIT, RANCHI. PAN NO. AABTJ 0278 N (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE. DEPARTMENT BY : SHRI DEEPAK ROUSHAN SR.SC DATE OF HEARING : 27/10/2015. DATE OF PRONOUNCEMENT : 27/10/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX, RANCHI, DATED 25/09/201 4. 2. THE SOLE GROUND OF APPEAL TAKEN BY THE ASSESSEE I S THAT THE COMMISSIONER OF INCOME TAX, RANCHI WAS NOT JUSTIFIE D IN NOT GRANTING THE APPROVAL UNDER SECTION 80G(5)(VI) OF THE ACT WH EN ALL THE CONDITIONS PRESCRIBED UNDER SECTION 80G(5) HAVE BEEN FULFILLED BY THE ASSESSEE. 3 . NONE APPEARED ON BEHALF OF THE ASSESSEE AND NEITH ER ANY ADJOURNMENT APPLICATION WAS FILED. THE APPEAL WAS HEARD EX-PARTE QUA THE ASSESSEE AND DISPOSED OFF BY CONSIDERING THE MA TERIALS AVAILABLE ON RECORD AND THE ARGUMENTS OF THE DEPARTMENTAL REPRES ENTATIVE. 2 ITA NO. 312/RAN/2014 4. AFTER HEARING THE DEPARTMENTAL REPRESENTATIVE, WE FIND THAT THE COMMISSIONER OF INCOME TAX HAS REFUSED APPROVAL UND ER SECTION 80G(5) OF THE ACT ON THE GROUND THAT THE DOCUMENTARY EVIDE NCE REGARDING THE CLAIM MADE BY THE SOCIETY THAT THE IMMOVABLE ASSETS HAVE BEEN PROVIDED BY MECON LTD. FOR USE BY THE SOCIETY TO PU RSUE ITS AIMS AND OBJECTS AND IN THE EVENT OF DISSOLUTION OF THE SOCI ETY, THE SAME SHALL REVERT TO MECON LTD. HAS NOT BEEN SUBMITTED. IT IS NOT CLEAR FROM THE SUBMISSION MADE BY THE SOCIETY THAT THERE EXISTS AN Y SUCH AGREEMENT BETWEEN THE SOCIETY AND THE MECON LTD. NO DOCUMENT INDICATING THE ALLOTMENT OF IMMOVABLE PROPERTY BY THE MECON LTD. H AS BEEN FOUND ATTACHED ALONG WITH THE SUBMISSION OF THE ASSESSEE. OVERALL THERE IS NO SATISFACTORY REPLY OR EXPLANATION IN THIS REGARD. 5. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX. 6 . WE FIND THAT THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF MEENAXI REPORTED IN (2011) 50 DTR 243 HAS HELD THAT THE TRUST SHOULD NORMALLY BE GRANTED REGISTRATION AS THE ASSESSEE-TR UST WOULD NOT BE ABLE TO PROVE ITS ACTIVITIES. WE FIND FROM THE ORDER OF THE COMMISSIONER OF INCOME TAX THAT HE HAS TRIED TO DO THE ASSESSMENT I N THE CASE OF THE ASSESSEE-TRUST INSTEAD OF FOLLOWING THE PROVISIONS OF SEC. 80G(5) OF THE ACT. RESPECTFULLY FOLLOWING THE DECISION OF THE HO N'BLE KARNATAKA HIGH COURT AS ALSO THE DECISION OF THE HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT REPORTED IN 185 ITR 634, THE COMMISSIONER OF INCOME TAX IS DIRECTED TO GRANT APPROVAL TO THE ASSESSEE-TRUST UNDER SECTION 80G(5) OF THE ACT AS CLAIMED BY IT. HOWEVER, IT IS LEFT OPEN TO THE REVENUE TO VERIFY T HE ACTIVITIES AND THE VIOLATION OF SECTIONS 11(5) AND 13(2) OF THE ACT IN THE COURSE OF ASSESSMENT PROCEEDINGS. 3 ITA NO. 312/RAN/2014 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON TUESDAY, THE 27 TH DAY OF OCTOBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27 TH OCTOBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 4 ITA NO. 312/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 27/10/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28/10/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 28/10/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 28/10/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 28/10/2015 SR.PS 6. DATE OF PRONOUNCEMENT 27/10/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 28/10/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER