JEEVAN JYOT CHARITABLE TRUST, THANE V. CIT-III, THANE

ITA 3130/MUM/2009

• Counselvise Citation: 313019914 RSA 2009
• Duration Of Justice: 2 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 05-09-2011
• Assessment Year: 2009-2010
• Appeal Filed On: 13-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: VIJAT KOTHARI
• Keywords: Charitable institution
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J : MUMBAI BEFORE SHRI D.K. AGARWAL, (JUDICIAL MEMBER) AND SHRI RAJENDRA SINGH,(ACCOUNTANT MEMBER) ITA NO. 3130/MUM/2009 ASSESSMENT YEAR : 2009-2010 JEEVAN JYOT CHARITABLE TRUST 1 & 2 SAGAR MANTHAN, OPP. BANK OF MAHARASHTRA DIST. THANE, W. RLY. DAHANU-401 601. ..( APPELLANT ) P.A. NO. (AAATJ 4239 Q) VS. COMMISSIONER OF INCOME TAX-III THANE. ..( RESPONDENT ) APPELLANT BY : SHRI VIJAT KOTHARI RESPONDENT BY : SHRI S. K. SINGH DATE OF HEARING : 5.9.2011 DATE OF PRONOUNCEMENT : 5 TH SEPTEMBER, 2011 O R D E R PER RAJENDRA SINGH (AM). THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER D ATED 25.9.2008 OF CIT-III. THE ONLY DISPUTE RAISED IS REGA RDING DENIAL OF RENEWAL OF CERTIFICATE UNDER SECTION 80G(5) OF THE INCOM E TAX ACT. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE T RUST HAD APPLIED FOR RENEWAL OF CERTIFICATE UNDER SECTION 80G VI DE APPLICATION DATE 26.3.2008. THE DIT(E) AFTER EXAMINING THE INCO ME AND EXPENDITURE ACCOUNT NOTED THAT THE TRUST WAS SPENDING SU BSTANTIAL ITA NO.3130/M/09 A.Y:09-10 2 AMOUNTS ON RELIGIOUS TOURS TO PANDHARPUR AND DELHI AND HAD ORGANIZED BHAGWAT SAPTAH. THE EXPENDITURE INCURRED ON SUCH RELI GIOUS ACTIVITIES CONSTITUTED 31%, 20% AND 33% RESPECTIVELY FOR THE FINAN CIAL YEAR 2004-05, 2005-06 AND 2006-07 WHICH WAS MORE THAN THE LIMIT OF 5% PROVIDED IN SECTION 80G(5B). THE ASSESSEE EXPLAINED THA T IT HAD ORGANIZED BHAGWAT SAPTAH AND HAD CONDUCTED RELIGIOUS PILGRIMAGE TOURS MAINLY FOR SENIOR CITIZENS WHO WERE WILLING TO CON TRIBUTE. THE TRUST HAD NOT INCURRED EXPENDITURE OUT OF DONATIONS. THE CIT HOWEVER DID NOT ACCEPT THE CONTENTIONS RAISED. IT WAS HELD BY HI M THAT THE CONTRIBUTION RECEIVED CONSTITUTED INCOME OF THE TRUST AND APPLICATION TOWARDS RELIGIOUS PURPOSES WAS MORE THAN 5% OF THE TOTAL INCOME. ACCORDINGLY HE REJECTED THE APPLICATION FOR RENEWAL OF CERTIFICATE OF 80G(5) AGGRIEVED BY WHICH, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE PARTIES IN THE MATTER. THE LD. AR SUBMITTED THAT THE EXPENDITURE HAD BEEN INCURRED ONLY FROM THE CONTRIBUTIONS RECEIVED FROM THE MEMBERS SPECIFICALLY FOR T HE PURPOSE AND, THEREFORE, THE SAME WAS NOT INCOME OF THE ASSESSEE. IT WAS ALSO POINTED OUT THAT THE TRUST HAD ALREADY BEEN GRANTED CERTIFICATE UP TO 31.3.2008 AND RENEWAL APPLICATION WAS FOR THE PERIOD BEYOND THAT DATE. CIT HAD NOT POINTED OUT ANY EXPENDITURE ON R ELIGIOUS ACTIVITIES FOR THE PERIOD FOR WHICH APPLICATION HAD BEEN MADE. HOWEVER, TO A ITA NO.3130/M/09 A.Y:09-10 3 QUERY BY THE BENCH THE LD. AR COULD NOT GIVE DETAILS O F SUCH EXPENSES ON RELIGIOUS EXPENSES FOR THE PERIOD BEYOND 31.3.2008. HE AGREED THAT HE HAD NO OBJECTION IF THE ISSUE WAS RESTORED TO CI T FOR FRESH ORDER AFTER NECESSARY VERIFICATION. THE LD. DR HAD AL SO NO OBJECTION IN THE MATTER. WE THEREFORE, SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER BACK TO HIM FOR PASSING A FRESH ORDER AFTER NECE SSARY EXAMINATION OF THE RELIGIOUS EXPENSES FOR THE PERIOD FOR WHICH THE RENEWAL OF EXEMPTION UNDER SECTION 80G HAD BEEN SOUGH T AND AFTER ALLOWING OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5.9.2011. SD/- SD/- (D.K. AGARWAL) (RAJENDRA SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 5.9.2011. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.