KUND KUND KAHAN DIGAMBER JAIN MUMOKSHU ASHRAM, Kota V. CIT-EXEMPTION, Jaipur

ITA 39/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4854 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 06-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR CIT DHK
• Keywords: Charitable institution
• Section: 12AA; 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH HKKXPAN] YS[KK LNL; ,OA JH DQY HKKJR ] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 39/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : .............. KUND KUND KAHAN DIGAMBER JAIN MUMOKSHU ASHRAM, BAJAJ PALACE, NEAR PALIWAL COMPOUND, CAHWANI, KOTA. CUKE VS. CIT(EXEMPTIONS), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABTK 9217 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ANIL KUMAR (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30/11/2016 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 09/12/2016 VKNS'K@ ORDER PER: KUL BHARAT, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 16/12/2015 PASSED BY THE LD. CIT(EXEMPTIONS), JAIPU R, WHEREIN THE ASSESSEE HAS TAKEN SOLE EFFECTIVE GROUND, WHICH IS A S UNDER:- 1 THE LD. COMMISSIONER OF INCOME TAX HAS ERRED ON FACTS AND IN LAW IN REFUSING THE REGISTRATION TO THE ASSESSEE U/S 12AA OF INCOME TAX ACT, 1961 BY HOLDING THAT THE OBJECTS OF THE TRUST ARE FOR THE BENEFIT OF PARTICULAR RELIGIOUS COMMUNITY AND ITA 39/JP/2016_ KUND KUND KAHAN DIGAMBER JAIN VS CIT(E) 2 THEREFORE PROVISIONS OF SECTION 13(1)(B) ARE ATTRAC TED AND IT CANNOT BE HELD AS A CHARITABLE TRUST. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAD F ILED AN APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12AA OF TH E INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS THE ACT). THE LD. CIT(E ) DISMISSED THE APPLICATION FOR SEEKING REGISTRATION ON THE GROUND THAT FROM THE OBJECTS OF THE TRUST, IT CAN BE INFERRED THAT THE TRUST HAS B EEN CREATED FOR THE BENEFIT OF JAIN SAMAJ ONLY. AS THE SOCIETY IS WORK ING FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY I.E. JAIN SAMAJ, IF VIOLATES THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. THUS, THE APPLICATION WAS REJECTED. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(E), T HE ASSESSEE IS IN APPEAL BEFORE US. THE LD. AR OF THE ASSESSEE HAS REI TERATED THE ARGUMENTS AS MADE IN THE WRITTEN SUBMISSIONS AND SUB MITTED THAT AS PER SUB-SECTION (1) OF SECTION 12AA OF THE ACT IS R EQUIRED TO SATISFY HIMSELF ABOUT THE OBJECTIVES OF THE TRUST AND THE GE NUINENESS OF ITS ACTIVITIES. HE HAS FURTHER SUBMITTED THAT THE LD. C IT HAS INCORRECTLY REFERRED TO SECTION 12AA(4) OF THE ACT, WHICH WAS INS ERTED W.E.F. 01/10/2014, WHICH EMPOWERS FOR CANCELLATION OF THE RE GISTRATION IF IT IS SUBSEQUENTLY NOTICED THAT ACTIVITIES OF THE TRUST AR E CARRIED OUT IN THE MANNER THAT PROVISIONS OF SECTION 11 AND 12 DO NOT APPLY DUE TO ITA 39/JP/2016_ KUND KUND KAHAN DIGAMBER JAIN VS CIT(E) 3 OPERATION OF SECTION 13(1) OF THE ACT. HE HAS SUBMI TTED THAT IT IS A SETTLED LAW THAT AT THE STAGE OF GRANT OF REGISTRATI ON, CIT IS NOT REQUIRED TO ENQUIRE WHETHER THE CONDITION OF SECTIONS 11 TO 1 3 IS FULFILLED OR NOT. CONDITION OF SECTION 13(1)(B) DO NOT APPLY TO REGIS TRATION U/S 12AA OF THE ACT AND THEREFORE THE REGISTRATION U/S 12AA REF USED BY THE CIT IS BAD IN LAW. LD. COUNSEL FOR THE ASSESSEE PLACED RELI ANCE ON THE JUDGMENT OF THE HONBLE RAJASTHAN HIGH COURT IN THE CASE OF CIT VS BIGABASS MAHESHWARI SEWA SAMITI (2008) 14 DTR 0029 (RA J) (HC). HE ALSO PLACED RELIANCE ON THE DECISION IN THE CASE OF ST. JOSEPH ACADEMY VS. DIT (EXEMPTION) (2015) 153 ITD 669 (HYD)(TRIB), B HAI MANSA SINGH JI WELFARE SOCIETY VS. CIT (2016) 156 ITD 0117 (CHD. )(TRIB). LD. COUNSEL ALSO PLACED RELIANCE ON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS DAWOODI BOHARA JAMAT 364 ITR 0031 (SC). THE LD AR OF THE ASSESSEE HAS ALSO PLACED RELIANCE O N THE FOLLOWING DECISIONS:- (I) BHAGWAN MAHAVIR PURUSHARTH PRERNA NIDHI NYAS VS. CIT (2012) 144 TTJ 379 (JPR)(TRIB). (II) KUL FOUNDATION VS. CIT (2015) 43 CCH 0115 (PUNE )(TRIB). (III) AGGARWAL MITRA MANDAL TRUST VS. DIT(EXEMP) 293 I TR (AT) 259/106 ITD 531 (DEL)(TRIB). (IV) DIOCESE OF PUNE (CNI) VS. CIT (2015) 42 ITR (TRIB ) 0348 (PUNE DECISION DATED 31/3/2015. ITA 39/JP/2016_ KUND KUND KAHAN DIGAMBER JAIN VS CIT(E) 4 (V) CIT VS CHRISTIAN MEDICAL COLLEGE (2015) 374 ITR 0 017 (P&H) (HC). (VI) SHIV MANDIR DEVSTTAN PANCH COMMITTEE SANSTHAN VS. CIT (2012) 79 DTR 276 (NAG)(TRIB). (VII) UMAID CHARITABLE TRUST VS. UOI & ORS. 307 ITR 2 26 (2008) (RAJ) (HC). HE SUBMITTED THAT IN VIEW OF THE JUDICIAL PRECEDENT S, THE LD. CIT OUGHT TO HAVE GRANTED THE REGISTRATION. 4. ON THE CONTRARY, THE LD. CIT DR HAS SUPPORTED THE ORDER OF THE LD. CIT AND SUBMITTED THAT FROM THE OBJECTS OF THE TRUST, IT CAN BE INFERRED THAT THIS TRUST IS FOR THE BENEFIT OF A PARTICULAR C OMMUNITY. IN THE REJOINDER, THE LD. COUNSEL FOR THE ASSESSEE HAS SUB MITTED THAT THE JAINSIM IS NOT A RELIGION BUT IS A PHILOSOPHY. HE S UBMITTED THAT FOR PROMOTING AND PROPAGATING A PHILOSOPHY NECESSARILY FALL WITHIN THE AMBIT OF CHARITABLE OBJECTIVES. HE FURTHER SUBMITTED THAT , EVEN OTHERWISE ALSO, THE LD. CIT(E) HAS NOT CONSIDERED THE OBJECTIVES OF THE TRUST. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON THE RECORD AND ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE WITH REGAR D TO THE FACT THAT AT THE TIME OF GRANTING REGISTRATION U/S 12AA OF THE A CT, THE LD. CIT(E) HAS TO SATISFY ITSELF ABOUT THE GENUINENESS OF THE OBJE CTS OF THE TRUST ITA 39/JP/2016_ KUND KUND KAHAN DIGAMBER JAIN VS CIT(E) 5 SEEKING REGISTRATION U/S 12AA OF THE ACT. IT IS ALS O WITHIN THE POWER OF THE LD. CIT TO REFUSE SUCH REGISTRATION IF HE FOUND THAT THE TRUST HAS BEEN CREATED AND ITS ACTIVITIES ARE CARRIED OUT FOR THE BENEFIT OF A PARTICULAR COMMUNITY. IN THE PRESENT CASE, AS PER T HE OBJECTS OF THE TRUST, CLAUSE (6) OF THE OBJECTS READS AS UNDER:- 6 . LEKT DS VLGK;] CHEKJ] VIKFGT O VU; IZDKJ LS NQ%[KH EUQ'; DS FY;S HKKSTU] VKS'KF/K] VKOKL ,OA LQJ{KK DH O;OLFKK DJUK VKSJ MUGSA THOU FUOKZG ,OA /KEZ LK/KU GSRQ VKO';D O MI;QDR LK/KU MIYC/K DJKUK A AS PER CLAUSE (6) OF THE OBJECTS OF THE TRUST, THE A SSESSEE TRUST IS ALSO GIVING MEDICAL HELP TO THE HELPLESS, SICK AND HANDI CAPPED PERSONS. THIS CLAUSE IS NECESSARILY OF CHARITABLE IN NATURE. HOWEV ER, THE LD. CIT HAS NOT GIVEN A FINDING THAT WHETHER THIS CLAUSE RESTRIC TS THE BENEFIT TO THE PEOPLE BELONGING TO JAIN COMMUNITY OR IT IS AVAILAB LE TO PUBLIC AT LARGE. THIS REQUIRES FURTHER ENQUIRY FOR THE PURPOSE OF FIN DING OUT WHETHER THE OBJECTS ARE GENUINE OR NOT. HENCE, WE SET ASIDE THE ORDER OF THE LD. CIT(E) AND RESTORE THE APPLICATION FOR REGISTRATION FOR DECISION AFRESH. THE LD. CIT WOULD CONDUCT AN ENQUIRY WITH REGARD TO OB JECTIVES OF THE ASSESSEE TRUST. IF THE LD. CIT FINDS THAT THE BENEFIT IS NOT LIMITED TO PEOPLE BELONGING TO A PARTICULAR COMMUNITY BUT IS A VAILABLE TO PUBLIC AT ITA 39/JP/2016_ KUND KUND KAHAN DIGAMBER JAIN VS CIT(E) 6 LARGE, HE WOULD GRANT REGISTRATION AS PER LAW. ACCORD INGLY, THIS GROUND OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES ONLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH DECEMBER, 2016. SD/- SD/- HKKXPAN DQY HKKJR (BHAGCHAND) (KUL BHARAT) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09 TH DECEMBER, 2016 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- KUND KUND KAHAN DIGAMBER JAIN MUMOKSHU ASHRAM, KOTA. 2. IZR;FKHZ @ THE RESPONDENT- THE CIT(EXEMPTIONS), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 39/JP/2016) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR