Jas Karan Amrav Devi Bothra Charitable Trust, Bikaner V. CIT (Exemption), Jaipur

ITA 320/JODH/2018

AI Insights

The case involves Jas Karan Amrav Devi Bothra Charitable Trust, which appealed against the order of the CIT (Exemptions) rejecting their application for registration under section 12AA of the Income Tax Act. The CIT(E) had found that certain objects of the trust, specifically related to commercial activities such as designing, manufacturing, and maintaining equipment for health facilities, and providing hotel accommodations, were not charitable in nature. The Tribunal examined the trust deed and the submissions made by the trust, ultimately agreeing with the CIT(E) and dismissing the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125595 (ITAT-JODHPUR)
• Duration Of Justice: 5 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 25-06-2018
• Other Referred Cases: M/s Ananda Social and Educational Trust Vs CIT (SC) 114 Taxman.com 093
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No. 320/Jodh/2018 (A.Y: 2018-19) Jas Karan Amrav Devi Bothra charitable Trust C/o. Surana and Co., 13/14, Industrial Area, Rani Bazar, Bikaner. Rajasthan. Vs. CIT (Exemptions), Kailash Heights,3 rdFlr, Lalkothi,Tonk Road, Jaipur-302015. Rajasthan. PAN/GIR No. : AABTJ4574F Appellant .. Respondent Assessee by : None Revenue by : Smt. Alka Rajvanshi jain, CIT-DR Date of Hearing 08.08.2023 Date of Pronouncement 09.08.2023 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal challenging the order of the Commissioner of Income Tax (Exemption), Jaipur rejecting the registration application u/s 12AA(1)(b) of the Act. 2. The brief facts of the case are that the assessee has filed an application for seeking registration u/s ITA No. 320/Jodh/2018 Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 2 - 12AA of the Act in Form No.10A. In the course of hearing proceedings, the CIT(E) has called for the certain documents, explanations and to produce the original deed/MOA for verification and the assessee has filed the written submissions. The CIT (E) has called for the additional information by letter dated 24.04.2018 to file activities of the trust and the clarifications on objects referred at Para 2 of the order as under: 2. The details / information /documents filed by the applicant alongwith application are examined. On perusal of trust deed, it is found that apart from other objects the following objects are shown in the objects of the trust. Objection No. IV- To design, manufacture, export, import, buy, sell, install, maintain and improve all kinds of equipments and instruments for hospitals, dispensaries, clinics and laboratories and health clubs. Objection No. V – To undertake to provide suitable hotel accommodation, dharamshala or serai primarily for patients, their friends, relatives and attendants and to undertake all or any other business activities incidental thereto. 3. Subsequently a show cause notice was issued on 24.04.2018 to furnish the clarifications with respect to the objects referred above are not in the nature of charitable activities and the applicable provisions ITA No. 320/Jodh/2018 Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 3 - U/sec2915) of the Act. Whereas the CIT(E) found that the assessee is emphasizing of commercial activites does not exceed 20% and therefore it is charitable dealt at Para 5 of the CIT(E) order. Further the CIT(E) observed that the application u/s 12AA of the Act cannot contain non charitable objects and does not satisfy the provisions U/sec2(15) of the Act and rejected the application and passed the order u/s 12AA(1)(b) of the Act dated 25.05.2018. Aggrieved by the order, the assessee has filed an appeal before the Hon’ble Tribunal. 4. At the time of hearing none appeared on behalf of the assessee. The Ld. DR supported the order of the CIT(E) and prayed for dismissal of assessee appeal. 5. We have heard the Ld.DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for registration under section 12AA of the Act, whereas the CIT(E) in course of hearing proceedings has called for certain clarifications and additional information to verify the genuineness of the activities of the trust and as per clause IV & VIII of the trust deed, they are non ITA No. 320/Jodh/2018 Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 4 - charitable clauses. The contentions raised by the assessee in the submissions that these clauses are only for attaining the main object clause I & II. But on perusal of the registered trust deed dated 4-04-2011, at page 2 at recital 3 , were the main objects of the trust are mentioned from clause I to xviii, which include disputed clauses emphasized by the CIT(E) and the submissions of the assessee are contrary to the facts and we relay on the decision of the Honble Supreme Court in M/s Ananda social and educational trust VsCIT (SC) 114 Taxman.com 093. We find the CIT(A) has considered the facts, circumstances, submissions, and provisions of Act and rejected the application. Accordingly, we do not find any infirmity in the order of the CIT(A) and uphold the same and dismiss the grounds of appeal of the assessee. 6. In the result, the appeal filed by the assesse is dismissed. Order pronounced in the open court on 09.08.2023 Sd/- Sd/- ( DR DIPAK P RIPOTE) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER ITA No. 320/Jodh/2018 Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 5 - Jodhpur, Dated 09.08.2023 KRK, PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. Concerned CIT 5. DR, ITAT, Jodhpur 6. Guard file. आदेशान ु सार/ BY ORDER, //True Copy// 1. ( Asst. Registrar) ITAT, Jodhpur