Patidar Sarvodaya Trust, RAJKOT-GUJARAT V. The Commissioner of Income Tax-I, RAJKOT-GUJARAT

ITA 413/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85423 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-12-2014
• Assessment Year: misc
• Appeal Filed On: 01-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA

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.413/RJT/2013 ( / ASSESSMENT YEAR : - ) PATIDAR SARVODAY TRUST C/O.SARDA & SARDA 1 ST FLOOR, SAKAR DR.RADHAKRISHNA MARG BESIDE KATHIAWAR GYMKHANA RAJKOT 360 001 / VS. THE COMMISSIONER OF INCOME TAX-1 RAJKOT #) !' & ./ * & ./ PAN/GIR NO. : AALTS 4933 M ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . ! / APPELLANT BY : SHRI VIMAL DESAI, C.A. ,-)+ / . ! / RESPONDENT BY : SHRI M.L. MEENA, CIT-DR 0 / ' / DATE OF HEARING 03/12/2014 12 / ' / DATE OF PRONOUNCEMENT 04/12/2014 !3 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX, RAJKOT-I (CIT IN SHORT) DATED 23/08/2013. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- ALL THE BELOW MENTIONED GROUNDS OF APPEAL ARE INDE PENDENT AND WITHOUT PREJUDICE TO EACH OTHER. ITA NO.413/RJT/ 2013 PATIDAR SARVODAY TRUST VS. THE CIT-I - 2 - 1. THE ORDER U/S.12AA(1)(B)(II) IS BAD IN LAW. 2. THE LD.COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION OF THE APPELLANT TRUST. 3. THE LD.COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN NOT APPRECIATING THE CHARITABLE OBJECTS OF THE TRUST AND IN HOLDING THAT THE ACTIVITIES OF THE TRUST WERE NOT G ENUINE. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND, DE LETE OR WITHDRAW ONE OR MORE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE FILE D AN APPLICATION FOR SEEKING 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 BY HOLDING THAT ALL THE TRUSTEES ARE BELONG TO A COMMUNITY AND BENEFICIARIES OF THE ACTIVITIES ARE ALSO BELONGING TO A PARTICULAR COMMUNITY. 3. THE LD.COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS WERE MADE VIDE WRITTEN SUBMISSIONS DATED 26/11/2013. TH E LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS ALSO DISTR IBUTED THE NOTE-BOOKS, ETC. TO THE STUDENTS OF THE PRIMARY SCHOOL. THE RE LEVANT EVIDENCE WAS FURNISHED BEFORE THE LD.CIT. HE SUBMITTED THAT ALT HOUGH THE TRUSTEES MAY BELONG TO A PARTICULAR COMMUNITY, BUT THE ACTIVITIE S CARRIED OUT BY THE ASSESSEE-TRUST ARE FOR THE BENEVOLENCE/BENEFITS OF ALL THE COMMUNITIES. 4. ON THE CONTRARY, LD.CIT-DR SUPPORTED THE ORDER O F THE LD.CIT AND SUBMITTED THAT THE ORDER OF THE LD.CIT IS JUSTIFIED . ITA NO.413/RJT/ 2013 PATIDAR SARVODAY TRUST VS. THE CIT-I - 3 - 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF T HE LD.CIT. WE FIND THAT THE LD.CIT IN PARA-4 OF HIS ORDER HAS OBSERVED AS UNDER:- 4. ON GOING THROUGH THE DETAILS OF EXPENSES INCUR RED FOR THE SAMAROH, IT IS OBSERVED THAT WHOLE EXPENDITURE WERE INCURRED FOR MAKING ARRANGEMENT FOR A FEAST ONLY. NO ANY VOUCHE R OR INVOICE WAS PRODUCED TO SHOW PROCUREMENT OF ANY ARTICLE/PRI ZE TO DISTRIBUTE AMONGST THE STUDENTS. THE TRUST EVEN CO ULD NOT PRODUCE SUCH EVIDENCES BEFORE THE INSPECTOR, WHO VISITED TH E TRUST FOR VERIFICATION OF ITS ACTIVITIES. ARRANGING A FEAST ONLY CANNOT BE TERMED AS A CHARITABLE ACTIVITY. BESIDES BENEFICIA RIES OF THE ACTIVITIES ARE ALSO BELONGING TO A PARTICULAR COMMU NITY PATIDAR, WHICH IS NOT A SCHEDULE CASTE, SCHEDULE TRIBE OR A WEAKER SECTION. UNDER THE CIRCUMSTANCES ACTIVITIES OF THE TRUST ARE NOT FOUND IN ACCORDANCE WITH ITS OBJECTS. 5.1. THE CONTENTION OF THE LD.COUNSEL FOR THE ASSES SEE IS THAT THE ASSESSEE-TRUST HAS CARRIED OUT OTHER ACTIVITIES WHI CH ARE IN THE NATURE OF CHARITABLE AS THE ASSESSEE HAS INCURRED EXPENDITURE ON PURCHASE OF SCHOOL NOTE-BOOKS FOR DISTRIBUTING THE SAME TO THE NEEDY S TUDENTS. HE HAS DRAWN OUR ATTENTION TOWARDS PAGE NOS.30,31,32 & 33 OF THE PAPER-BOOK OF THE ASSESSEE. THIS FACT IS REQUIRED TO BE VERIFIED AT THE END OF THE LD.CIT. THEREFORE, THE APPLICATION IS RESTORED BACK TO THE FILE OF LD.CIT FOR DECISION AFRESH. THE ASSESSEE IS DIRECTED TO PLACE ALL THE EVIDENCES IN SUPPORT OF THE ACTIVITIES CARRIED OUT BY IT. ACCOR DINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT. THUS, ALL THE GROUNDS RAISED IN ASSESSEES APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. ITA NO.413/RJT/ 2013 PATIDAR SARVODAY TRUST VS. THE CIT-I - 4 - 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON THURSDAY, THE 04 TH DAY OF DECEMBER , 2014 AT RAJKOT . SD/- SD/- ( ) ( $ ) !' # # ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT; DATED 04 / 12 /2014 .. , .../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. &6& 7 / CONCERNED CIT 4. 7 ( ) / THE CIT(A)-I, RAJKOT 5. 9$ : , , , /DR,ITAT, RAJKOT 6. : EF G 0 / GUARD FILE. / BY ORDER, - 9 , //TRUE COPY// !/ '# $% ( DY./ASSTT.REGISTRAR) # %&# ' , / ITAT, RAJKOT 1. DATE OF DICTATION .. 03.12.2014(DICTATION-PAD 4 -PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 4.12.14 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BAC K TO THE SR.P.S./P.S.4.12.14 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 4.12.14 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER