Satya Sharada Charitable Trust, Bhubaneswar V. CIT(Exemptions), Hyderabad

ITA 4/CTK/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5458 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 07-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUNAL SINGH
• Assessee Lawyers: T K AGARWALLA
• Keywords: Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAV AN KUMAR GADALE, JM ./ ITA NO. 04 / CTK /20 1 6 ( / ASSESSMENT YEAR : 2008 - 2009 ) SATYA SHARADA CHARITAB LE TRUST 118, SAHID NAGAR, BHUBANESWASR - 751007 VS. CIT(EXEMPTIONS) HYDERABAD ./ ./ PAN/GIR NO. : A AATT 9856 F ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : SHRI T.K.AGARWALLA, AR /REVENUE BY : SHRI KUNAL SINGH , CITDR / DATE OF HEARING : 26 / 0 7 /201 7 / DATE OF PRONOUNCEMENT 01/08 /201 7 / O R D E R PER SHRI PAV AN KUMAR GADALE, JM : TH E ASSESSEE HAS FILED AN APPEAL AGAINST THE RE JECTION ORDER OF CIT(EXEMPTIONS), HYDERABAD, PASSED IN F.NO.CIT(E). (3) /BBSR/ 12A/2014 - 15, DATED 28.09.2015 U/S.12AA(1)(B)(II) OF THE I.T.ACT. 2. THE ASSESSEE HAS RAISED THE GROUND OF APPEAL : - 1. BECAUSE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) ERRED IN LAW AS WELL AS BY REJECTING THE APPLICATION FOR REGISTRATION U/S.12AA OF THE INCOME TAX ACT, 1961 ON THE BASIS OF INCORRECT OBSERVATIONS (WITH RESPECT TO AVAILABILITY OF SPECIFIC CLAUSES) IN THE TRUST DEED. 3 . BRIEF FACTS OF THE CASE ARE THAT TH E ASSESSEE IS A REGISTERED TRUST AND MADE AN APPLICATION FOR REGISTRATION U/S.12AA ON 3 1 .3.2015. THE ASSESSEE TRUST IS A SOCIAL CHARITABLE ORGANISATION WORKING TO ENLARGE AND ENLIGHTEN MENTAL HORIZON OF MASSES, TO BUILT AND PROMOTE SOCIAL ECONOMIC AND EDU CATION DEVELOPMENT . THE ASSESSEE WAS REGISTERED WITH REGISTRAR AT BHUBANESWAR ON 21.05.2004. THE ASSESSEE S ACCOUNTS ARE AUDITED AND FILED AN APPLICATION IN FORM NO.10A ON 31.3.2015 FOR GRANT OF ITA NO. 04/CTK/2016 2 REGISTRATION U/S.12A OF THE ACT AND THE CASE WAS POSTED ON 13 . 8 .2015 , IN RESPONSE, THE CHAIRMAN OF THE ASSESSEE TRUST APPEARED AND FILED INFORMATION. T HE CIT(E) FOUND THAT THE ASSESSEE TRUST COULD NOT PROVIDE PROPER DETAILS FROM THE TRUST DEED ON AMENDMENT CLAUSE AND DISSOLUTION CLAUSE. THEREFORE, THE CIT( E ) OBSERV ED THAT THE AMENDMENT CLAUSE AND WINDING UP CLAUSE IS NOT PRESENT ED IN THE TRUST DEED AND ALSO THE INVESTMENT CLAUSE WAS NOT INCORPORATED IN THE DEED AND REJECTED THE APPLICATION OF THE ASSESSEE. 4 . AGGRIEVED BY THE ORDER OF CIT(E), THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 5 . BEFORE US, LD. AR OF THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS MADE BEFORE THE CIT(E) ON THE DISPUTED ISSUE OF AMENDMENT CLAUSE AND DISSOLUTION CLAUSE AND WINDING UP CLAUSE. THE LD. AR OF THE ASSESSEE D REW OUR ATTENTION TO THE TRUST DEED FILED BEFORE THE TRIBUNAL AND TO SUBSTANTIATE HIS ARGUMENTS THAT THE ABOVE CLAUSES HAVE BEEN INCORPORATED IN THE TRUST DEED. 6 . CONTRA, LD. DR RELIED ON THE CIT(E) AND OPPOSED TO THE GROUNDS. 7 . WE HAVE HEARD THE RIVAL S UBMISSIONS AND PERUSED THE MATERIAL ON RECORD. LD. ARS CONTENTION THAT THE CIT(E) HAS ERRED IN REJECTING THE REGISTRATION U/S.12AA ON THE GROUNDS AS MENTIONED I N THE ORDER PASSED ON 28.9.2015. A S FAR AS AMENDMENT CLAUSE IS CONCERNED, THE LD. AR DREW OUR A TTENTION TO THE PAGE 18 OF THE TRUST DEED THERE IS A CLAUSE OF POWER TO AMEND IS AVAILABLE . SIMILARLY ON THE WINDING UP CLAUSE, LD. AR DREW OUR ITA NO. 04/CTK/2016 3 ATTENTION TO THE PAGE 17 OF THE TRUST DEED WHERE CLAUSE XIX READS AS UNDER : - XIX) IN CASE, FOR ANY REASON THE BOARD OF TRUSTEE FAILS TO MANAGE THE TRUST, THE ENTIRE ASSETS OF THE TRUST SHALL BE VESTED TO ANY OTHER TRUST HAVING SIMILAR ACTIVITIES OR SHALL BE VESTED TO GOVERNMENT OF ORISSA. AND FINALLY I N RESPECT OF THE INVESTMENT CLAUSE, LD. DREW OUR ATTENTIO N TO PAGE 15 WHICH IS OPERATION OF THE TRUST FUND WHEREIN CLAUSE (I) MENTIONED AS UNDER : - I) THE CORPUS FUND OF THE TRUST SHALL BE DEPOSITED IN FIXED DEPOSIT/BOND/CERTIFICATE OPERATED BY GOVERNMENT OF INDIA OR ANY NATIONALIZED BANK OF INDIA. ON PERUS AL OF THE ABOVE CLAUSES, WE FOUND THAT THE CIT(E) HAS OVERLOOKED THESE FACTS AND MADE AN OBSERVATION IN HIS ORDER OF NON - AVAILABILITY OF AMENDMENT CLAUSES AND WINDING UP CLAUSE AND INVESTMENT CLAUSE. THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE SE T ASIDE THE ORDER OF CIT(E) AND REMIT THE ENTIRE DISPUTED ISSUE TO THE FILE OF CIT(E) TO CONSIDER THE ASSESSEES SUBMISSION S AND THE FINDINGS OF THE TRIBUNAL AND GRANT THE EXEMPTION U/S.12AA OF THE ACT. ACCORDINGLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES. 8 . THUS, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 01/08 / 201 7 . SD/ - ( N. S. SAINI ) SD/ - ( PA V AN KUMAR GADALE ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 01/08 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - SATYA SHARADA CHARITABLE TRUST 118, SAHID NAGAR, BHUBANES WASR - 751007 2. / THE RESPONDENT - CIT(E), HYDERABAD ITA NO. 04/CTK/2016 4 / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//