Shri Gondal Gujarati Machhu Kathiya Darji Gnati Trust, RAJKOT-GUJARAT V. The Commr. of Income Tax - 1, RAJKOT-GUJARAT

ITA 411/RJT/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94034 (ITAT-RAJKOT)
• Duration Of Justice: 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-05-2015
• Assessment Year: misc
• Appeal Filed On: 30-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: NITIN KAMDAR
• Keywords: Charitable institution; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE SHRI SHAILEND RA K UMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI , ACCOUNTANT MEMBER . ITA. NO. 411 / RJT /20 14 (ASSESSMENT YEAR: N.A. ) SHRI GONDAL GUJARATI MACHHU KATHIYA DARJ I GANTI TRUST, C/O. R. S. RATHOD, M/S. SHYAM TAILORS, NANI BAZAR, GUNDALA ROAD, GONDAL, RAJKOT. APPELLANT VS. CIT(A) - 1, RAJKOT RESPONDENT PAN: AAATG1466E / BY APPELLANT : SHRI NITIN KAMDAR, C.A. / BY RESPONDENT : SHRI M. L. MEENA, D.R. / DATE OF HEARING : 1 8 . 0 5 .2015 / DATE OF PRONOUNCEMENT : 20 . 0 5 .201 5 ORDER PER SHAILENDRA K UMAR YADAV, J.M: TH I S APPEAL HAS BEEN FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX , RAJKOT - I , DATED 29 . 0 1 . 20 1 4 ON THE FOLLOWING DESCRIPTIVE GROUND S : 1.T H E TR UST WAS WORK I NG AS UNREGISTERED CHARITA BLE TRUST AT I T A NO. 411 / RJT / 1 4 A.Y. N.A. [ SHRI GONDAL GUJARATI MACHHU KATHIYA VS. CIT - 1 ] PAGE 2 GONDAL HAVING A TEMPLE O F ' LO RD SHRI RAM' ON OPEN PLOT OF L AND RECEIVED FROM THEI R RU L E R OF GONDAL STATE B EFOR E 100 YEARS. IT WAS FUNCTIONING AS AOP MAINTA I NING , PROTECTING THE TEMPLE FOR HI ND U AND OTHER RELIGIOUS PEOPLE WITHOUT DIFFERENCE OF ANY CAST AND CREED . OPEN FOR A LL F O R DARSHAN OF LORD SHRI RAM AND SITA . 2. IN THE YEAR 1960, GOVERNMENT OF GUJARAT MANDATORY IMPOSE LAW THAT 'ALL PUBLIC CHARI TABLE TRUST ' MUST BE COMPULSORILY REGISTERED WITH OFFICE OF CHA R ITY COM MISSIONERS OFFICE IN GUJARAT STATE. 3. THE T R USTEES OF THE T RUST APPROACHED TO CHARITY OFF I CE RA J KOT WHERE CHARITY OFFICE HAD ENGAGED FIVE TO SIX THEIR CLERKS TO FILL UP TRUST REGISTRATION FORM. THE DETAILS WERE F I LL ED UP AS DESCRIBED BY THE TRUSTEES, NO DOCUMENTS OR TRUST DEED REQUIRED TO PRO DUCE. 4. TH E MAJORI TY OF TRUSTEES WERE OF DARJI GNAT I I . E . THEI R OCCUPATION WAS OF T A IL OR ING HENC E TH EY KEPT NAME OF T R UST AS 'GUJARATI MACHHU KATHIA DARJI GNATI TRUST' . IN FACT, ACTIVITY OF TRUST WAS TO MAINTAIN AND RUN TEMP L E OF ' SHR I RAM ' OPEN FOR ANY COMMU NITY OR CAST. 5. S I NC E 1 960 TO 2011 , THE TRUST HAD GROSS INCOME BELOW THE TAX FREE LIMIT 6 . I N THE Y EA R 2009, TRUST BU I LT UP ' COMMUN I TY HALL ' F O R WITH THE HE L P OF DONATIONS FROM PEOPL E F O R U SE OF MARR I AGE , RELIG I OUS FUNCT I ONS , TO HAVE RENTAL INCOME WHICH MAY BE HIGH THAN T A X AB L E LIMITS. 7. LOOKING TO AB O V E , T R UST APPLIED FOR REG I STRATION U / S. 12A(A). S I NCE TRUSTEES A R E ILLI TERATE NOT STUDIED MORE THAN 8 TH S TD. L ETTER OF C I T TO ATTEND BEFORE H I M WAS NOT A T TENDED AND CIT HAD REJECTED TH E A PPLICATI O N . 8 . THE LEARNED CI T - 1 SPE CI FIED I N HIS ORDER THAT THIS TRUST I S OF ON L Y FOR ' PA R T I CULAR CAST AND CREED'. IN FACT, THERE I S TEMPLE OF ' SHR I RAM AND SITA' OPEN FOR ANY PEOPLE FOR DARSHAN AND NEW COMMUNITY HALL CAN TA K EN ON RENT BY I T A NO. 411 / RJT / 1 4 A.Y. N.A. [ SHRI GONDAL GUJARATI MACHHU KATHIYA VS. CIT - 1 ] PAGE 3 ANY PERSON AS PER THE TERMS AND CONDITIONS. 9. ONLY THE PROMOTERS, FOUNDERS OF THIS AOP NOW AS TRUSTEES PUBLIC CHARITABLE TRUST WERE FROM ' GONDAL GUJARATI MACHHU KATHIA DARJI GNATI TRUST' BUT ACTIVITIES OF TRUST IS OPEN FOR ALL WITHOUT ANY CAST AND CREED. THE COMMUNITY HALL IS ALSO OPEN TO TAKE RE NT BY ANYBODY. WE PRAY: - 1 . KINDLY C L EAR THE MATTER THAT TH I S IS NOT SPECIFIC TRUST FOR PARTICULAR CAST AND CREED BUT ANY PUBLIC CHARITABLE TRUST FOR PEOPLE AT LARGE . 2 . ONLY THE PROMOTERS WERE AND ARE OF DARJI GNATI (TAI L OR AS OCCUPATION WHO COLLECTED DONAT IONS FROM PEOPLE OF S OCIETY AT LARGE AND CONSTRUCTED COMMUNITY HALL) . HENCE, THE NAME OF TRUST IS KEPT 'GUJARATI MACHHU KATHIA DARJI GNATI TRUST ' . 3 . THE TRUST IS A REL I GIOUS PUBLIC CHARITABLE TRUST AND NOT PRIVATE TRUST OR FOR ANY PARTICULAR CAST OR CREED AND AS PER PROVISION OF INCOME TAX ACT 1961 IT HAS TO B E REGISTERED U/S. 12A(A) OF THE ACT HENCE TRUSTEES HAVE A PPLI E D FOR THE REGISTRATION . 2. SHRI GONDAL GUJARATI MACHHU KATHIYA DARJI GNATI TRUST (HEREINAFTER CALLED TRUST ) MADE AN APPLICATION FOR REG ISTRATION U/S.12A OF INCOME TAX ACT VIDE APPLICATION RECEIVED THROUGH OFFICE OF CIT ON 07.08.2013 IN FORM NO. 10A. TRUST DID NOT PROVIDE TRUST DEED ALONGWITH APPLICATION. IN ORDER TO VERIFY THE OBJECTS AND GENUINENESS OF ITS ACTIVITIES, CIT ISSUED NOTICE DATED 13.11.2013 CALLING NECESSARY INFORMATION AND DOCUMENTS VIZ. TRUST DEED, ITS REGISTRATION CERTIFICATE, MINUTE S BOOKS AND BOOKS OF ACCOUNTS ETC. HOWEVER, TRUST COULD NOT I T A NO. 411 / RJT / 1 4 A.Y. N.A. [ SHRI GONDAL GUJARATI MACHHU KATHIYA VS. CIT - 1 ] PAGE 4 RESPOND TO THE NOTICE IN REASONABLE TIME ACCORDING TO ASSESSEE. SO, CIT CONCLU DED THAT TURST FAILED TO PROVIDE NECESSARY INFORMATION AND IN PROVIDING SUCH VITAL DOCUMENTS, MATTER WAS DECIDED ON MERITS CONSIDERING THE MATERIAL AVAILABLE ON RECORD. AS OBJECT OF TRUST WERE NO FOUND CHARITABLE, SO TRUST WAS NOT FOUND FIT FOR GRANTING R EGISTRATION U/S.12A OF THE ACT AND ACCORDINGLY, SAME WAS REJECTED. 2 . 1 BEFORE US, ASSESSEE HAS FILED APPLICATION FOR CONDONATION OF DELAY IN FILING APPEAL FOR THE REASONS OF COMMUNICATION GAP DUE TO INADEQUATELY EDUCATION AND LACK OF KNOWLEDGE OF ENGLISH BY CONCERN PERSON . MAINLY, APPEAL COULD NOT BE FILED IN TIME DUE TO LACK OF KNOWLEDGE OF ENGLISH . INDIANS SHOULD NOT BE DEPRIVED OF THEIR LEGAL RIGHT FOR LACK OF ENGLISH KNOWLEDGE. E DUCATION IS NOT COMPULSORY IN INDIA. THOUGH EFFORTS ARE BEING MADE IN DIRECTION BUT THEY ARE NOT SUFFICIENT AS ON DATE. IN SUCH A SITUATION, ASSESSEE SHOULD NOT SUFFER FOR LACK OF ENGLISH KNOWLEDGE. SO, IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY IN QUESTION. 2.2 COMING ON MERIT, AS STATED ABOVE, CIT HAS PASSED THE ORDER WITHOUT PROVIDING REASONABLE TIME TO ASSESSEE TO RESPOND THE QUERY. STAND OF ASSESSEE BEFORE US HAS BEEN THAT IN THE YEAR 2009, TRUST BUILT UP COMMUNITY HALL FOR WITH THE HELP OF DONATIONS FROM PEOPLE FOR USE OF MARRIAGE, RELIGIOUS FUNCTIONS, TO HAV E RENTAL INCOME . TRUST PURSUE THEIR SOCIAL OBJECTIVES AND WANTED TO REGISTER TRUST IN QUESTION. THE TRUST PEOPLE COULD I T A NO. 411 / RJT / 1 4 A.Y. N.A. [ SHRI GONDAL GUJARATI MACHHU KATHIYA VS. CIT - 1 ] PAGE 5 NOT RESPOND TO QUERIES OF CIT AS DISCUSSED ABOVE AND THIS WENT AGAINST THEM BECAUSE CIT PASSED THE ORDER WITHOUT PROVIDING REASONABLE O PPORTUNITY TO ASSESSEE. SO, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIM WITH DIRECTION TO DECIDE THE SAME AS PER FACT AND LAW AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO ASSESSEE AND ASSESSEE IS ALSO DIRECTED TO COOPERATE IN PROCEEDING. SINCE WE ARE RESTORING THE APPEAL ON PRELIMINARY ISSUE, SO WE ARE REFRAINING TO COMMENT ON MERIT OF ISSUE AT HAND. 3 . IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF MA Y , 201 5 . SD/ - SD/ - (N. S. SAINI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT : DATED 20 /0 5 /2015 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLA NT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, RAJKOT . 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKOT