SHRI DIGAMBER JAIN MANDIR SHRI NEMINATHJI SANWALAJI, Jaipur V. CIT-EXEMPTION, Jaipur

ITA 356/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4889 (ITAT-JAIPUR)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 08-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Assessee Lawyers: SATHISH AJMERACA
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO.356/JP/2016 APPLICATION UNDER SECTION: 12AA SHRI DIGAMBER JAIN MANDIR SHRI NEMINATHJI SANWALAJI, AJMER. CUKE VS. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAATD 3672 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SANJEEV MATHUR & SATHISH AJMERA(CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 11/08/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), DATED 17.02.2016. THE ASSESSEE HAS RAISED THE FOLLOWINGS GROUNDS OF A PPEAL:- 1. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) HAS ERRED IN NOT ISSUING THE REGISTRATION NO U/S 12AA FROM 1 ST APRIL 1973, EVEN THOUGH AN APPLICABLE WAS THEN FILED AND THE TRUST HAS BEEN FILING ITS RETURNS FOR ALL THE YEARS SINCE THEN AND HAVE BEEN ACCEPTED BY THE DEPARTMENT. 2. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) JAIPUR HAS ERRED IN REFUSING THE REGISTRATION OF TRUST U/S 12AA OF THE INCOME TAX ACT 1961, BY STATING THAT THE TRUST IS FOR ONE COMMUNIT Y BY PICKING AND CHOOSING FROM THE TRUST DEED FILED WHEREAS IT IS SE TTLED LAW THAT ANY DOCUMENT HAS TO BE CONSIDERED IN TOTO. 3. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) JAIPUR HAS ERRED IN HOLDING THAT OBJECTS OF THE TRUST ARE NOT CHARITABL E IN NATURE ITSELF AND 2 ITA NO. 356/JP/2016. SHRI DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI, AJMER. ALSO THAT THEY ARE FOR THE BENEFIT OF THE PARTICULA R RELIGIOUS COMMUNITY AND THEREFORE, THE PROVISIONS OF SECTION 13(1) ARE ATTRACTED AND SOCIETY/ TRUST CANNOT BE HELD AS CHARITABLE WITHIN THE MEANING OF SEC 2(15) OF THE INCOME TAX ACT. 4. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) JAIPUR HAS ERRED IN NO ACKNOWLEDGING THE DEEMED REGISTRATION OF TRUST U /S 12AA W.E.F. 1973. 5. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) JAIPUR HAS ERRED IN NOT PROVIDING A REASONABLE OPPORTUNITY OF BEING HEA RD TO THE ASSESSEE BEFORE PASSING AN ORDER U/S 12AA (1)(B) OF THE INCO ME TAX ACT, 1961. 6. THE ASSESSEE CRAVES THE RIGHT TO ADD, ALTER OR IN ANY WAY AMEND THE GROUNDS OF APPEAL ON OR BEFORE THE HEARING. THE ASSESSEE HAS ALSO FILED AN ADDITIONAL GROUND OF THIS APPEAL THAT READS AS UNDER:- 1. THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) JAIP UR HAS ERRED IN REFUSING REGISTRATION U/S 12AA OF THE INCOME TAX AC T 1961 BY APPLYING THE PROVISIONS OF SECTION 13(1)(B) OF INCOME TAX AC T 1961, AS THE PROVISIONS OF SEC. 13(1)(B) IS ONLY APPLICABLE IN C ASE OF A TRUST FOR CHARITABLE PURPOSE OR A CHARITABLE INSTITUTION CREA TED OR ESTABLISHED AFTER THE COMMENCEMENT OF THE INCOME TAX ACT 1961. 2. BRIEFLY, STATED THE FACTS ARE THAT, THE ASSESSEE TRUST FILED AN APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12AA OF THE A CT. THE SAID APPLICATION WAS REJECTED BY THE LD. CIT(E), ON THE GROUND THAT THE OBJECT OF THE TRUST ARE NOT CHARITABLE IN NATURE. AGAINST THIS, THE ASSESSEE P REFERRED THE PRESENT APPEAL. 3. APROPOS TO GROUND NOS. 1 TO 4, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(E) WAS NOT JUSTIFIED IN REJECTING THE APPLICATION. HE SUBMITTED THAT THE UNDISPUTED FACTS REMAINS THAT THE ASSESSEE HAD FILED AN APPLICATION ON 1 ST APRIL 1973, AND SINCE THEN THE ASSESSEE HAS BEEN FILLING ITS RETURN. 3.1 LD. DEPARTMENTAL REPRESENTATIVES OPPOSED THE SU BMISSIONS. 3 ITA NO. 356/JP/2016. SHRI DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI, AJMER. 3.2 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD. THE UNDISPUTED FACT IS THAT THE ASSESSEE TR UST HAD ALSO FILED AN APPLICATION WAY BACK IN 1973. THIS ASPECT IS NEITHER EXAMINED NOR ADJUDICATED BY THE LD. CIT(E). THEREFORE, THESE GROUNDS ARE RESTORED TO T HE FILE OF THE LD. CIT(E) FOR DECIDING THE APPLICATION AFRESH. 4. GROUND NO. 5 , IS IN RESPECT OF NON-GRATING OF SUFFICIENT OPPORT UNITIES, SINCE WE HAVE ALREADY RESTORE THE GROUND NOS. 1 TO 4 TO T HE FILE OF THE LD. CIT(E). WE DIRECT THE LD. CIT(E) TO GRANT SUFFICIENT OPPORTUNI TY BEFORE DECIDING THE GROUND NOS. 1 TO 4. 5. COMING TO ADDITIONAL GROUND, LD. COUNSEL SUBMITTED THAT THE PROVISION OF SECTION 13(1)(B) OF THE INCOME TAX ACT, 1961 WOULD NOT BE APPLICABLE AS THE TRUST WAS IN EXISTENCE PRIOR TO THE INCOME TAX ACT. 1961, SINCE, THIS GROUND WAS NOT TAKEN UP BEFORE LD. CIT(E) AND BEING LEGAL GROUND ADMIT T HE SAME AND RESTORE THIS GROUND TO THE FILE OF THE LD. CIT(E) FOR ADJUDICATION. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO. 356/JP/2016 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER IS PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 11 TH DAY OF AUGUST 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 11/08/2017 POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 4 ITA NO. 356/JP/2016. SHRI DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI, AJMER. 1. THE APPELLANT- SHRI DIGAMBER JAIN MANDIR SHRI N EMINATHJI SANWALAJI, AJMER. 2. THE RESPONDENT COMMISSIONER OF INCOME TAX (EXE MPTION), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 356/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR