SHRI MAHESHWARI VIVAH PRAKOSHTA, Indore V. THE ACIT-1(2), Indore

ITA 366/IND/2015

• Counselvise Citation: 36622714 RSA 2015
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 25-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Charitable institution
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO.366/IND/2015 A.Y. : 2010-11 SHRI MAHESHWARI VIVAH PRAKOSHTA, ACIT, INDORE. INDORE. VS. APPELLANT RESPONDENT PAN NO. AAATM7029H A PPELLANT S BY : SHRI PRAKASH JAIN, C. A. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-I, INDORE, DATED 28.01.2015 FOR THE ASSES SMENT YEAR 2010-11. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A TRUST CREATED BY REGISTERED TRUST DEED DATED 05.02. 1990, AND DATE OF HEARING : 15 .12. 2015 . DATE OF PRONOUNCEMENT : 15 . 1 2 .2015 SHRI MAHESHWARI VIVAH PRAKOSHTA, INDORE VS. ACIT, I NDORE - I.T.A.NO. 366/IND/2015 A.Y. 2010-11. 2 2 REGISTERED U/S 12A SINCE INCEPTION VIDE F.NO. HQRS/ INSP/12- A/9/90-91 DATED 09.08.1990. THE ASSESSEE HAS FILED THE COPY OF TRUST DEED AND THE TRUST DEED IS OF CHARITABLE N ATURE AND IT IS NOT FOR PARTICULAR CASTE. SINCE ASSESSMENT YEAR 1991-92, THE TRUST IS FILING THE RETURN IN ASSESSMENT YEAR 2004- 05 AND 2005-06. THE TRUST WAS ACCEPTED AS REGISTERED TRUST BY ORDER U/S 143(3). THE AO HAS REJECTED THE CLAIM U/S 12 BY STATING THAT THE ASSESSEE TRUST IS ENGAGED IN THE BUSINESS ACTIVITIES PROVIDING MATRIMONIAL SERVICES AND THE AO HAS ALSO DISALLOWED RS. 8,77,840/- AS CORPUS DONATION ON THE GROUND THA T THIS TRUST IS NOT A CHARITABLE TRUST. 3. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DISMISSED THE APPEAL. 4. HAVING HEARD BOTH THE PARTIES AND LOOKING TO THE FA CTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT DURING T HE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS GIVING MATRIMONIAL SERVICES LIKE CORPOR ATE, BUT ALL THESE ACTIVITIES ARE NOT FOR MAHESHWARI COMMUNITY, BUT FOR ALL THE COMMUNITIES. THE TRUST IS CREATED FOR BENEFIT O F PUBLIC AT LARGE AND THE LD. CIT HAS GRANTED REGISTRATION U/S 12A. I FIND SHRI MAHESHWARI VIVAH PRAKOSHTA, INDORE VS. ACIT, I NDORE - I.T.A.NO. 366/IND/2015 A.Y. 2010-11. 3 3 THAT THE ASSESSEE HAS RECEIVED THE CORPORATE DONATI ON THAT WAS ALSO DISALLOWED ON THE GROUND THAT THE ASSESSEE TRU ST WAS DOING BUSINESS, BUT ASSESSEE TRUST IS CHARITABLE TR UST. THEREFORE, I AM OF THE VIEW THAT THE AO AND CIT(A) HAS DISALLOWED THIS EXPENDITURE AND DONATION ON THE GRO UND THAT THE TRUST IS CARRYING OUT BUSINESS ACTIVITIES. THER EFORE, WHEN THE TRUST HAS BEEN GRANTED REGISTRATION U/S 12A AND PARTICULARLY WHEN IN ASSESSMENT YEARS 2004-05 AND 2 005-06, THE TRUST WAS ALLOWED BENEFIT U/S 11 & 12, THE ASSE SSMENT SHOULD HAVE BEEN DONE U/S 12A OF THE ACT. THEREFORE , I REVERSE THE FINDING OF CIT(A) AND SEND BACK TO THE AO TO DE CIDE THE MATTER AFRESH AFTER GIVING DUE OPPORTUNITY OF HEARI NG. THE AO IS DIRECTED TO TREAT THIS TRUST AS CHARITABLE TRUST U/S 12A OF THE ACT AND ASSESS THE INCOME ACCORDINGLY. THE ASSESSEE IS DIRECTED TO REMAIN PRESENT WITHIN 2 MONTHS FROM THE DATE OF ORDER BEFORE THE AO AND THE AO SHOULD DECIDE THE MA TTER AFRESH AS PER LAW. SHRI MAHESHWARI VIVAH PRAKOSHTA, INDORE VS. ACIT, I NDORE - I.T.A.NO. 366/IND/2015 A.Y. 2010-11. 4 4 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 15 TH DECEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 15 TH DECEMBER, 2015. CPU*