Shri Kadva Patidar Sanatan Parvadiyua(Shethiya) Parivar Trust, RAJKOT-GUJARAT V. The Commr. of Income Tax - 1, RAJKOT-GUJARAT

ITA 400/RJT/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8572 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-12-2014
• Assessment Year: misc
• Appeal Filed On: 19-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: KALESH DOSHI
• Keywords: Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBULAL, RAJKOT BENCH: RAJKOT , !' # $ , # % BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER &./ I.T.A. NO.400/RJT/2014 ( / ASSESSMENT YEAR : - ) SHREE KADVA PATIDAR SANATAN PARVADIYUA (SHETHIYA) PARIVAR TRUST - KUTCH C/O. KALPESH S.DOSHI & CO. CAS 411, COSMO COMPLEX MAHILA COLLEGE CIRCLE RAJKOT 360 001 / VS. THE COMMISSIONER OF INCOME TAX RAJKOT-1, RAJKOT #) !' & ./ * & ./ PAN/GIR NO. : AAMTS 5456 L ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . ! / APPELLANT BY : SHRI KALESH DOSHI, C.A. ,-)+ / . ! / RESPONDENT BY : SHRI M.L. MEENA, CIT-DR 0 / ' / DATE OF HEARING 04/12/2014 12 / ' / DATE OF PRONOUNCEMENT 05/12/2014 !3 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD.COMMISSIONER OF INCOME TAX, RAJKOT-I, RAJKOT (CIT IN SHORT) DATED 06/05/2014. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THAT, THE LEARNED COMMISSIONER OF INCOME TAX 1, RAJKOT HAS ERRED ON FACTS AND IN LAW IN REJECTING THE REGISTRATION U/S.12A OF THE I.T.ACT. 2. THAT, THE FINDING OF THE LEARNED CIT IS NOT JUSTIFIED AND REQUIRED TO BE DELETED. ITA NO.400 /RJT/2014 SHREE KADVA PATIDAR SANATAN PARVADIYUA (SHETHIYA) PARIVAR TRUST VS. CIT-RAJKOT - 2 - THE APPELLANT CRAVES TO ADD, ALTER, AMEND OR DELETE ANY FO THE ABOVE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE-TR UST HAD MADE AN APPLICATION FOR REGISTRATION U/S.12A OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT). THE SAID APPLICATION WAS REJECTED BY THE LD.CIT VIDE HIS ORDER DATED 06.05.2014. 3. DURING THE COURSE OF HEARING, THE LD.COUNSEL F OR THE ASSESSEE SUBMITTED THAT THE LD.CIT IS NOT JUSTIFIED IN REJEC TING THE APPLICATION ON THE BASIS THAT THE TRUST HAS BEEN ESTABLISHED FOR T HE BENEFIT OF PARTICULAR FAMILY. HE SUBMITTED THAT THE LD.CIT HAS REJECTED THE APPLICATION ON THE BASIS OF A SINGLE CLAUSE, HOWEVER, THE OTHER CLAUSE S OF THE OBJECTS WERE NOT TAKEN INTO ACCOUNT. HE SUBMITTED THAT A SIMILA R ISSUE HAS BEEN DECIDED BY THE HONBLE APEX COURT RENDERED IN THE C ASE OF CIT VS. DAWOODI BOHARA JAMAT REPORTED AT (2014) 364 ITR 31 (SC). THE LD.COUNSEL FOR THE ASSESSEE HAS ALSO PLACED RELIANC E ON THE JUDGEMENT OF HONBLE JURISDICTIONAL HIGH COURT RENDERED IN THE C ASE OF CIT VS. CHANDRA CHARITABLE TRUST REPORTED AT (2007) 294 ITR 86 (GUJ.). FURTHER, THE LD.COUNSEL FOR THE ASSESSEE RELIED ON THE DECIS ION OF COORDINATE BENCH (ITAT BENCH C AHMEDABAD) RENDERED IN THE CASE OF DY.DIRECTOR OF INCOME-TAX (EXEMPTIONS) VS. SHETH JIVANDAS GODIDAS BEARING ITA NO.1489/AHD/2010 FOR AY 2007-08, DATED 17/06/2011. 4. ON THE CONTRARY, LD.CIT-DR SUPPORTED THE ORDER O F THE LD.CIT AND PLACED RELIANCE ON THE DECISION OF THE COORDINATE B ENCH (ITAT AGRA ITA NO.400 /RJT/2014 SHREE KADVA PATIDAR SANATAN PARVADIYUA (SHETHIYA) PARIVAR TRUST VS. CIT-RAJKOT - 3 - BENCH) RENDERED IN THE CASE OF SHRI AGRAWAL SABHA V S. CIT IN APPEAL NO.317 OF 2013 :: (2014) 61 SOT 127 (AGRA TRIB.). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF T HE LD.CIT AS WELL AS THE JUDGEMENTS/DECISIONS RELIED UPON BY THE PARTIES . WE FIND THAT THE LD.CIT HAS REJECTED THE APPLICATION BY OBSERVING AS UNDER:- 4. KEEPING IN VIEW THE ABOVE FACTS, IT BECOMES CL EAR THAT THE TRUST IS ESTABLISHED FOR THE BENEFIT OF PARTICULAR FAMILY . FURTHER THE BENEFICIARIES ARE RESTRICTED TO THE FAMILY MEMBERS, WHO ARE NATIVE OF KUTCH ONLY. THE KADVA PATIDAR PARWADIYA FAMILY IS NOT A GROUP BELONGING TO SCHEDULE CASTE, BACKWARD CLASS, SCHEDULE TRIBES, HENCE THE PROVISIONS OF EXPLORATION 2 APPEN DED BELOW SEC. 13 ARE ALSO NOT APPLICABLE TO THE TRUST. UNDER THE CIRCUMSTANCES, IT IS FOUND THAT TRUST HAS BEEN CREATED FOR BENEFIT OF A PARTICULAR FAMILY OF KUTCH REGION ONLY. HENCE, ITS OBJECTS AR E NOT OF CHARITABLE NATURE. 5. AS PER THE PROVISIONS OF THE I.T.ACT, 1961, THE COMMISSIONER SHALL SATISFY HIMSELF WITH REGARD TO: I) OBJECTS OF THE TRUST/INSTITUTION AND II) GENUINENESS OF ITS ACTIVITIES. IN VIEW OF THE ABOVE DISCUSSED FACTS, IT TRANSPIRES THAT THE OBJECTS OF THE TRUST ARE NOT FOUND TO BE OF CHARITABLE NATURE. THUS, THE TRUST IS NOT FULFILLING THE CONDITIONS LAID DOWN FOR REGISTRATION U/S.12AA OF THE I.T.ACT, 1961 AND RULE 17A OF THE I.T. RULES, 1962. I, THEREFORE, REJECT THE ASSESSEES APPLICATION FOR REGISTRATION U/S.12A OF THE I.T.ACT. 5.1. THE ONLY BASIS ON WHICH THE APPLICATION OF THE ASSESSEE WAS REJECTED BY THE LD.CIT THAT OBJECT OF THE ASSESSEE- TRUST IS TO BENEFIT OF A PARTICULAR FAMILY. WE FIND THAT THE ASSESSEE-TRUST HAS OTHER OBJECTS AS ITA NO.400 /RJT/2014 SHREE KADVA PATIDAR SANATAN PARVADIYUA (SHETHIYA) PARIVAR TRUST VS. CIT-RAJKOT - 4 - WELL. AS PER CLAUSE (2) OF THE OBJECTS, THE ASSESS EE-TRUST HAS TO UNDERTAKE ALL THE ACTIVITIES IN THE FIELD OF EDUCATION AND TO ESTABLISH UNITS FOR EDUCATIONAL DEVELOPMENT. TO HELP THE STUDENTS THRO UGH STIPEND, REWARDS AND AWARDS. TO UNDERTAKE AND HELP THE ACTIVITIES I N THE FIELD OF CULTURAL DEVELOPMENT AND WELFARE OF PEOPLE. AS PER CLAUSE(3 ) OF THE OBJECTS, THE ASSESSEE-TRUST HAS TO UNDERTAKE AND HELP THE ACTIVI TIES IN THE FIELD OF COMPASSION FOR ALL THE FORMS OF LIFE (JIV DAYA). T O ESTABLISH, RUN AND MAINTAIN CATTELE-CAMPS, DHOR-WADA, PANJRA POL, ETC. TO PROVIDE FOOD AND OTHER NECESSARY HELP TO THE MISERABLE AND MUTE ANIMALS. TO UNDERTAKE ACTIVITIES IN THE FIELD OF WELFARE OF PEO PLE AND WELFARE OF ANIMALS AND PROVIDE HELP TO THEM AT THE TIME OF NAT URAL OR MANMADE CALAMITIES. AS PER CLAUSE (7) OF THE OBJECTS, THE ASSESSEE-TRUST HAS TO UNDERTAKE ACTIVITIES FOR THE PROTECTION OF ENVIRONM ENT, AFFORESTATION AND CONSERVATION OF FOREST. TO SAVE THE ENVIRONMENT FR OM GETTING POLLUTED. TO UNDERTAKE ACTIVITIES TO STOP SOIL EROSION AND TO STOP DESTRUCTION OF FOREST. TO UNDERTAKE ALL THE ACTIVITIES LIKE PLANT ATION ETC. TO SAVE THE ENVIRONMENT AND TO BE HELPFUL IN ALL SUCH ACTIVITIE S. 5.2. FROM THE OBJECTS, IT IS CLEAR THAT THE ASSESSE E-TRUST, APART FROM BENEFITTING A PARTICULAR FAMILY, ALSO HAVE OBJECTS WHICH WOULD BENEFIT THE PUBLIC AT LARGE WITHOUT BEING LIMITED TO A PARTICUL AR FAMILY OR A COMMUNITY. THE HONBLE APEX COURT IN THE CASE OF C IT VS. DAWOODI BOHARA JAMAT(SUPRA), HELD THAT WHERE OBJECTS OF ASS ESSEE-TRUST EXHIBIT DUAL TENOR OF RELIGIOUS AND CHARITABLE PURPOSES AND ACTIVITIES, ARE NOT EXCLUSIVELY MEANT FOR A PARTICULAR RELIGIOUS COMMUN ITY, PROVISIONS OF SECTION 13(1)(B) ARE NOT APPLICABLE AND ASSESSEE-TR UST IS ENTITLED TO CLAIM ITA NO.400 /RJT/2014 SHREE KADVA PATIDAR SANATAN PARVADIYUA (SHETHIYA) PARIVAR TRUST VS. CIT-RAJKOT - 5 - EXEMPTION U/S.11 OF THE ACT. FURTHER, RELIANCE HAS BEEN PLACED ON THE JUDGEMENT OF HONBLE JURISDICTIONAL HIGH COURT IN T HE CASE CIT VS. CHANDRA CHARITABLE TRUST. THIS JUDGEMENT OF JURISDI CTIONAL HIGH COURT IS NOT APPLICABLE ON THE FACTS OF THE PRESENT CASE. 6. AFTER CONSIDERING THE TOTALITY OF THE FACTS AND RATIO LAID DOWN BY THE HONBLE APEX COURT RENDERED IN THE CASE OF CIT VS. DAWOODI BOHARA JAMAT(SUPRA), WE ARE OF THE CONSIDERED VIEW THAT TH E LD.CIT WAS NOT JUSTIFIED IN REJECTING THE APPLICATION OF THE ASSES SEE. THEREFORE, WE HEREBY SET ASIDE THE ORDER OF THE LD.CIT AND DIRECT HIM TO GRANT REGISTRATION IN THE LIGHT OF THE JUDGMEENT OF THE H ONBLE SUPREME COURT RENDERED IN THE CASE OF CIT VS. DAWOODI BOHARA JAMA T. THUS, GROUND RAISED IN ASSESSEES APPEAL IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 05TH DAY OF DECEMBER, 2014 AT RAJKOT. SD/- SD/- ( ) ( $ ) !' # # ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT; DATED 05 / 12 /2014 .. , .../ T.C. NAIR, SR. PS