AL - Alam Education and Wealfare Trust, Murshidabad V. C.I.T Kol - XXI, Kolkata

ITA 378/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99879 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 25-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIRAJ KUMAR
• Assessee Lawyers: D K BANDYOPADHYAY
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRIN.V.VASUDEVAN, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO. 378 / KOL / 2013 AL-ALAM EDUCATION AND WELFARE TRUST VILL. RAMNAGAR, P.O. JINNATPARA, DIST. MURSHIDABAD, PIN 742308 [ PAN NO. AACTA 3405 D ] V/S . COMMISSIONER OF INCOME-TAX, KOLKATA- XXI, 3, GOVT. PLACE (WEST), KOLKATA 700 001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI D.K. BANDYOPADHYAY, FCA /BY RESPONDENT SHRI NIRAJ KUMAR, CIT-DR /DATE OF HEARING 07-10-2015 /DATE OF PRONOUNCEMENT 16-10-2015 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF OR DER OF COMMISSIONER OF INCOME TAX KOLKATA-XXI U/S 80G OF THE INCOME TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORDER DATED 31.1 2.2012. ASSESSEE HAS RAISED GROUNDS, WHICH REPRODUCED AS UNDER:- 1. FOR THAT THE LD. COMMISSIONER OF INCOME-TAX, KO LKATA-XXI HAS PASSED ORDER OF REJECTION FOR RENEWAL OF EXEMPTION U/S 80G DTD. 31-12- 2012 AGAINST APPLICATION FOR RENEWAL OF EXEMPTION O N 14-06-2012 AND ACCORDINGLY, THERE IS CLEAR VIOLATION OF CLAUSE-6 O F 11AA OF THE I.T. RULES, 1962. HENCE, THE ORDER OF REJECTION IS INVALID AND BAD IN LAW. ITA NO.378/KOL/2013 AL-ALAM EDUCATION & WELFARE TRUST V, CIT-XXI, KOL. PAGE 2 2. FOR THAT THE LD. CIT, KOLKATA-XXI HAS AGAIN FALL EN TO ERROR BY IGNORING THE CBDT CIRCULAR NO. 5 OF 2010 READ WITH AMENDMENT MADE BY THE FINANCE (NO.2) ACT, 2009 W.E.F. 01-10-2009 WHEREBY THE RENEWAL OF EXEMPTION U/S. 80G SHALL BE GRANTED IN PERPETUITY A ND NO APPLICATION IS REQUIRED FOR RENEWAL OF EXEMPTION U/S. 80G(5)(VI) O F THE I.T. ACT, 1961 AFTER 30-09-2009. 3. FOR THAT THE LD. CIT, KOLKATA-XXI HAS THOROUGHLY MISCONCEIVED THE OBJECTS OF THE TRUST WHICH IS NOT ESTABLISHED JUST FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE AS REFERRED TO IN SECTION 80G(5)(III) READ WITH EXPLANATION 1 THERETO AND HEN CE, THE ORDER OF REJECTION OF RENEWAL OF EXEMPTION U/S. 80G OF THE I .T. ACT, 1961 IS VOID AND BAD IN LAW. 4. FOR THAT THE ORDER OF REJECTION FOR RENEWAL OF E XEMPTION U/S. 80G FOR REASONS AS REFERRED TO GROUND NO. 1 TO 3 IS PERVERS E. SHRI D.K.BANDYOPADHYAY, LD. AUTHORIZED REPRESENTATI VE APPEARING ON BEHALF OF ASSESSEE AND SHRI NIRAJ KUMAR, LD. DEPARTMENTAL REPRESENTATIVE APPEARING ON BEHALF OF REVENUE. 2. AT THE OUTSET, LD. AR OF THE ASSESSEE CONCEDED T HAT HE HAS NOT PRESSED GROUND NO. 1, 2 & 4.ANDLD. DR HAS NOT RAISED ANY OB JECTION. HENCE, GROUND NO. 1, 2 AND 4 ARE DISMISSED AS NOT PRESSED. 3. THE ONLY ISSUE RAISED BY ASSESSEE IN THIS APPEAL IS THAT LD. CIT HAS ERRED IN NOT ALLOWING THE RENEWAL OF REGISTRATION U /S. 80G(5)(VI) OF THE ACT BY HOLDING THAT THE AIMS AND OBJECTS ARE FOR THE UPLIF TMENT OF THE MINORITY COMMUNITY. 4. BRIEFLY STATED FACTS ARE THAT ASSESSEE IS AN EDU CATION AND WELFARE TRUST DULY REGISTERED ON 14.08.2007WITH ADDITIONAL REGIST RAR OF ASSURANCE, GOVT. OF WEST BENGAL. AFTER REGISTRATION, ASSESSEE APPLIED F OR REGISTRATION U/S 12AA AND U/S. 80G OF THE ACT. THE LD. CIT HAS REGISTERED THE ASSESSEE-TRUST UNDER THE RESPECTIVE SECTIONS AS STATED ABOVE BY ORDER DA TED ON 24-03-2010 AND HELD REGISTRATION U/S 80G OF THE ACT VALID FOR THE PERIOD BEGINNING FROM ITA NO.378/KOL/2013 AL-ALAM EDUCATION & WELFARE TRUST V, CIT-XXI, KOL. PAGE 3 01.04.2009 TO 31.03.2012. AFTER THE EXPIRY OF THE V ALIDITY PERIOD PROVIDED FOR REGISTRATION U/S. 80G OF THE ACT THE ASSESSEE APPLI ED FOR RENEWAL OF EXEMPTION REGISTRATION CERTIFICATE U/S. 80G OF THE ACT. HOWEV ER, LD. CIT HAS REJECTED THE REGISTRATION BY OBSERVING THAT THE AIMS AND OBJECTS OF THE ASSESSEE-TRUST OR FOR THE UPLIFTMENT OF THE MINORITY COMMUNITY IN PARTICU LAR WHICH CLEARLY INFRINGES THE PROVISION OF SECTION 80G SUB (5) CLAUSE (III) O F THE ACT. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE US. 5. WE HAVE HEARD RIVAL PARTIES AND PERUSED THE MATE RIALS AVAILABLE ON RECORD. BEFORE US LD. AR SUBMITTED THAT THERE IS NO CHANGE IN ITS MAIN OBJECTS AND AIMS SINCE DATE OF ITS INCEPTION. THE LD AR HAS HIGHLIGHTED THAT LD. CIT HAS GRANTED INITIAL REGISTRATION U/S 80G/ 12AA OF T HE ACT ON THE EARLIER OCCASION VIDE NO. CIT-XXI/KOL/EXMP.U/S80G/2009-10/324 DATED 24.03.2010, ON THE BASIS OF SAME AIMS AND OBJECTS. THE LD. CIT DID NOT RAISE ANY QUESTION ABOUT THE VIOLATION OF THE PROVISION OF SEC.80G(5)(III) O F THE ACT. LD. AR FURTHER PLEADED THAT ASSESSEE-TRUST IS AN OLD TRUST AND HAS BEEN DOING CHARITABLE ACTIVITIES FOR THE LAST SEVERAL YEARS. SINCE THERE IS NO CHANGE IN AIMS AND OBJECTS OF THE ASSESSEE-TRUST SINCE DATE OF ITS INC EPTION AND NOW REJECTING THE REGISTRATION ON THE GROUND THAT THE OBJECT OF THE T RUST IS FOR THE UPLIFTMENT OF MINORITY COMMUNITY DOES NOT HOLD ANY MERIT. IT WAS ALSO SUBMITTED THAT RENEWAL APPLICATION WAS PLACED ON 14.06.2012 AND LD . CIT WAS TO PASS THE ORDER EITHER TO ACCEPT OR REJECT THE REGISTRATION U /S. 80G WITHIN THE PERIOD OF SIX MONTHS FROM THE DATE OF APPLICATION AND IN THIS CAS E THE FIRST HEARING ONLY WAS GRANTED BY LD. CIT ON DATE 17.12.2012 AFTER THE EXP IRY OF THE TIME OF SIX MONTHS. SO THERE CLEAR VIOLATION OF SUB CLAUSE OF (6) RULE 11AA OF THE ACT. SO ORDER PASSED BY LD. CIT IS ERRONEOUS. ON THE OTHER HAND, LD. DR HAS SUBMITTED THAT OBJECTS OF THE ASSESSEE TRUST CONTAI NS THE WORDS FOR UPLIFTMENT OF CHILDREN BELONGING TO MINORITY COMMUNITIES IN PA RTICULAR AND THE SAME REPRODUCED BELOW FOR THE SAKE OF UNDERSTANDING. ITA NO.378/KOL/2013 AL-ALAM EDUCATION & WELFARE TRUST V, CIT-XXI, KOL. PAGE 4 2. AIMS AND OBJECTVES OF THE TRUST 2.1 TO ESTABLISH AND MAINTAIN AND/OR TO MAKE GRANT TO AND/OR PROVIDE FUNDS FOR ESTABLISHMENT AND MAINTENANCE OF SCHOOLS INCLUDING KINDERGARTEN SCHOOLS, COLLEGES, LIBRARIES, READING ROOMS, HOSTELS, RESEARCH CENTERS AND SUCH INSTITUTIONS IN VARIOUS P LACES TO PROMOTE EDUCATION AND DIFFUSION OF USEFUL KNOWLEDGE IN ARTS , FINE ARTS, SCIENCE, COMMERCE, TECHNOLOGY, HANDICRAFTS, THEOLOGY AND MOR AL UPLIFTMENTS FOR STUDENTS OF ALL COMMUNITIES IN GENERAL AND TO THE C HILDREN BELONGING TO MINORITY COMMUNITIES IN PARTICULAR UNDER THE PROVIS ION OF ARTICLE 30 OF CONSTITUTION OF INDIA. IT WAS ALSO SUBMITTED BY LD. DR THAT ALL THE MEMBER S OF THE GOVERNING BODIES OF THE TRUST ARE PEOPLE OF MINORITY. THEREFORE, THI S TRUST IS PRACTICALLY WORKING FOR UPLIFTMENT OF MINORITY COMMUNITY AND PRAYED FOR THE GRANT OF REJECTION OF SEC.80G OF THE ACT. LD. DR HAS ALSO SUBMITTED CASE LAWS:- A) UPPER GANGES SUGAR MILLS LTD. V. CIT (1997) 93 2 27 ITR 578 (SC) B) SANGATSHIBBHAIPHERU SIKH EDUCATIONAL SOCIETY V. CIT (2014) 43 TAXMANN.COM 368 (AMRITSAR-TRIB.) THE LD DR ALSO SUBMITTED THAT THE IN COMPUTING THE PERIOD OF SIX MONTHS, ANY TIME TAKEN BY THE APPELLANT IN NOT COMPLYING THE WI TH THE DIRECTIONS OF THE COMMISSIONER UNDER SUB RULE (3) OF RULE 11 AA SHALL BE EXCLUDED. 6 WE FIND FROM THE AFORESAID DISCUSSION OF BOTH PAR TIES THAT ASSESSEE- TRUST WAS GRANTED INITIAL REGISTRATION AT THE TIME OF MAKING FIRST APPLICATION U/S 80G OF THE ACT ON THE BASIS OF SAME AIMS AND OBJECT S. ONCE THE REGISTRATION IS GRANTED TO THE TRUST, IT IS WELL PRESUMED THAT ALL THE COMPLIANCE HAVE BEEN DULY VERIFIED BY LD. CIT AND THERE IS NO INFRINGEMENT IN THE PAPERS AND BY-LAWS OF THE TRUST.THERE IS NO DOUBT ABOUT THE GENUINENESS O F THE ACTIVITIES FOR WHICH THE TRUST WAS ESTABLISHED. HOWEVER, IT IS ALSO OBSE RVED THAT THERE WAS NO CHANGE IN BYLAWS OF THE TRUST SINCE THE DATE OF ITS INCEPTION. SO REJECTING THE REGISTRATION ON THE BASIS OF DOCUMENTS WHICH WERE A CCEPTED ON THE EARLIER OCCASION FOR THE SAME REGISTRATION DOES NOT HOLD GO OD JUSTIFICATION. IT IS ALSO IMPORTANT TO NOTE THAT THE INCOME TAX ACT HAS BEEN AMENDED THAT THE ONCE ITA NO.378/KOL/2013 AL-ALAM EDUCATION & WELFARE TRUST V, CIT-XXI, KOL. PAGE 5 REGISTRATION GRANTED UNDER SECTION 80 G OF THE ACT IS PERPETUAL IN NATURE IN TERMS OF CIRCULAR NO. 5 OF 2010 AND THERE IS NO NEE D TO FILE RENEWAL APPLICATION FOR THE REGISTRATION UNDER SECTION 80 G OF THE ACT AFTER 30-9-2009. NOW FROM THE AFORESAID DISCUSSION AND SUBMISSION OF THE ASSE SSEE WE FIND THAT THE AIMS AND OBJECTS OF THE ASSESSEE-TRUST ARE THE SAME AS E ARLIER AND ON THE BASIS OF SAME OBJECTS THE REGISTRATION WAS GRANTED. THEREFOR E, THE ACTION OF LD. CIT IS ERRONEOUS. SO WE DIRECT THE LD. CIT TO RESTORE THE REGISTRATION U/S. 80G OF THE ACT. HENCE, APPEAL OF ASSESSEE IS ALLOWED. 7. IN THE RESULT, APPEAL FILED ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 16/1 0/2015 SD/- SD/- (N.V.VASUDEVAN) (WASEEM AHMED) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 16/ 10/2015 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT-AL-ALAM EDUCATION & WELFARE TRUST, VIL L. RAMNAGAR, P.O. JINNATPARA, DIST. MURSHIDABAD, PIN. 742308 2. / RESPONDENT-CIT-XXI,KOL, 3,GOVT. PLACE (W), KOLKA TA-01 3. * +, - - . / CONCERNED CIT KOLKATA 4.- - .- / CIT XXI KOLKATA 5. 012 33+,,- +, , / DR, ITAT, KOLKATA 6. 267 89 / GUARD FILE. BY ORDER/ - , /TRUE COPY / - +, ,