Shri Shivshakti (Dashnam) Yuvak Mandal, Pranchi, RAJKOT-GUJARAT V. The Commissioner of Income Tax, Rajkot-III, RAJKOT-GUJARAT

ITA 437/RJT/2013

• Counselvise Citation: 43724914 RSA 2013
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-12-2013
• Assessment Year: misc
• Appeal Filed On: 13-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M L MEENA
• Assessee Lawyers: D R ADHIA ITP
• Keywords: Opportunity of being heard
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 437/RJT/2013 SHRI SHIVSHAKTI (DASHNAM) YUVAK MANDAL, PRANCHI TAL. VERAVAL, DIST. JUNAGADH PAN : AALTS 6163 K ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX RAJKOT-III, RAJKOT / RESPONDENT / ASSESSEE BY SHRI D R ADHIA, ITP / REVENUE BY DR M L MEENA, CIT-DR / DATE OF HEARING 12.12.2013 !'# / DATE OF PRONOUNCEMENT 31.12.2013 / ORDER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DA TED 07.10.2013 OF COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT REFU SING RECOGNITION U/S 80G(5) OF THE INCOME-TAX ACT, 1961. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE-TRUST MADE AN APPLICATION FOR RECOGNITION U/S 80G(5) OF THE INCOME-TAX ACT ON 09. 04.2013 IN THE PRESCRIBED FORMAT. THE MAIN OBJECTS OF THE TRUST AS PER TRUST DEED ARE TO ESTABLISH WADI (DHARMSHALA) FOR SAMAJ ONLY AND HOSTELS FOR STUDENTS WHO BELONG TO D ASHNAM SAMAJ. ON THIS BASIS, THE LD. CIT IN THE IMPUGNED ORDER OBSERVED THAT THE TRUST HAS NOT FULFILLED ALL THE CONDITIONS AS PRESCRIBED U/S 80G(5) OF THE INCOME-T AX ACT AND THEREFORE RANGE JCIT HAS ALSO NOT RECOMMENDED THE RECOGNITION U/S 80G(5) IN VIEW OF THE FACTS REPORTED BY THE ASSESSING OFFICER. IN PARAGRAPH 3 OF THE IMPUG NED ORDER, THE LD. CIT OBSERVED THAT THE ASSESSEE-TRUST HAS CAME INTO EXISTENCE BY A BANDHARAN DATED 24.09.2008 AND THE TRUST HAD BEEN REGISTERED WITH THE CHARITY COMMISSIONER ON 24.09.2008. THE LD. CIT VIDE LETTER DATED 26.09.2013 ASKED THE ASSE SSEE-TRUST TO FURNISH CERTAIN DETAILS/DOCUMENTS FOR WHICH THE CASE WAS FIXED ON 0 4.10.2013. THE LD. CIT IN THE IMPUGNED ORDER REJECTED THE APPLICATION OF THE ASSE SSEE-TRUST FOR THE DETAILED REASON GIVEN IN PARAGRAPH NOS. 4 AND 5, WHICH READ AS UNDE R:- 4. IN VIEW OF THE ABOVE FACTS, VIDE THIS OFFICER L ETTER DATED 26.09.2013, THE ASSESSEE TRUST WAS REQUESTED TO FURNISH THE CERTAIN DETAILS/DOCUMENTS AND THE CASE WAS FIXED ON 04.10.2013. THE SAID LETTER WAS S ENT BY SPEED POST. 2 437-RJT-2013 - SHRI SHIVSHAKTI (DASHNAM) YUVAK MANDAL (SMC) HOWEVER, NEITHER THE ASSESSEE HAS ATTENDED ON THE A BOVE DATE NOR FURNISHED THE DETAILS CALLED FOR OR ANY ADJOURNMENT WAS SOUGH T FOR TILL DATE. THEREFORE, IT IS PRESUMED THAT THE ASSESSEE HAS NOTHING TO SAY IN THE ABOVE MATTER AND THE APPLICATION OF THE ASSESSEE FOR RECOGNITION U/S 80G (5) OF THE ACT IS DECIDED ON THE BASIS OF MATERIALS AVAILABLE ON RECORD. FURTHER , FROM THE DETAILS FILED, IT IS SEEN THAT THE OBJECTS OF THE TRUST ARE FOR THE PART ICULAR COMMUNITY I.E. DASHNAM SAMAJ. THUS, THE TRUST HAS VIOLATED THE PROVISIONS OF SUB SECTION (III) OF SECTION 80G(5) OF THE I.T. ACT. THEREFORE, THE TRUST HAS NO T FULFILLED ALL THE CONDITIONS AS PRESCRIBED UNDER THE ACT. 5. CONSIDERING THE ABOVE FACTS, IT IS HELD THAT THE OBJECTS OF THE TRUST ARE NOT FOR THE BENEFIT OF GENERAL PUBLIC, BUT FOR THE BENEFIT AND WELFARE OF A PARTICULAR RELIGIOUS COMMUNITY / CASTE. FURTHER, TH E ASSESSEE TRUST HAS NOT SUBMITTED THE REQUISITE DETAILS / DOCUMENTS AS CALL ED FOR VIDE THIS OFFICER LETTER DT. 26.09.2013. THEREFORE, THE APPLICATION OF THE A SSESSEE FOR RECOGNITION U/S 80G(5) OF THE ACT IS HEREBY REJECTED AS THE TRUST H AS NOT FULFILLED ALL THE CONDITIONS AS PRESCRIBED U/S 80G(5) OF THE INCOME-T AX ACT 1961. AGGRIEVED WITH THE ORDER OF LD COMMISSIONER OF INC OME-TAX, RAJKOT-III, RAJKOT THE ASSESSEE-TRUST IS NOW IN APPEAL BEFORE THIS TRI BUNAL. 3. AT THE TIME OF HEARING, ON BEHALF OF ASSESSEE-TR UST, SHRI D R ADHIA, AUTHORIZED REPRESENTATIVE, APPEARED AND POINTED OUT THAT THE A SSESSEE-TRUST VIDE ITS LETTER DATED 22.11.2012 SUBMITTED THE FOLLOWING REPLY:- 1. THE OBJECT OF THE TRUST ARE FOR THE BENEFIT OF DASNAM SAMAJ. THE DASNAM GYANTI IS CLASSIFY AS BACKWARD CLASS. AS P ER EXPLANATION OF SECTION 13 OF THE ACT, A TRUST CREATED FOR THE BENEFIT OF SCHEDULE CAST, BACKWARD CLASS, AND SCHEDULE TRIBAL OR WOMAN AND CHILDREN SHALL NOT BE DEEMED TO BE AS TRUST FOR THE BENEFIT OF RELIGIOUS COMMUNITY OR CAST. WIT HIN THE MEANING OF CLAUSE (B) OF SUBSECTION 1. THEREFORE, THE ABOVE TRUST IS COVE RED UNDER THE ABOVE EXPLANATION. 2. NOTES ON ACTIVITIES CARRIED OUT BY THE TRUST ALO NG WITH PROOF OF THE ACTIVITIES CARRIED OUT BY THE TRUST HAVE BEEN DULY FILED AS PER LETTER DATED 13.07.2012. 3. WINDING OF CLOSE HAS BEEN DULY AMENDED. COPY OF TRUST DEED DULY AMENDED IS ENCLOSED. 4. COPY OF AUDITED ACCOUNTS FOR THE YEAR ENDING 31. 03.2010, 31.03.2011 AND 31.03.2012 IS ENCLOSED. HE SUBMITTED THAT THE LD. CIT GRANTED REGISTRATION U/S 12A VIDE ORDER DATED 24.12.2012, COPY OF WHICH IS PRODUCED. HE ALSO SUBM ITTED THAT WHEN THE OBJECT IS FOUND IN ORDER AT THE TIME OF REGISTRATION U/S 12A, THE LD. CIT OUGHT TO HAVE ACCEPTED THE SAME FOR GRANT OF REGISTRATION U/S 80G(5) OF TH E INCOME-TAX ACT. 3 437-RJT-2013 - SHRI SHIVSHAKTI (DASHNAM) YUVAK MANDAL (SMC) 4. CONTINUING HIS ARGUMENTS, THE LD. AUTHORIZED REP RESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE DETAILS CALLED FOR BY THE LD. CI T VIDE HIS LETTER DATED 26.09.2013 WAS RECEIVED BY THE ASSESSEE-TRUST ON 05.10.2013, T HEREFORE VIDE LETTER DATED 08.10.2013 THE ASSESSEE-TRUST REQUESTED FOR TIME OF 15 DAYS. HOWEVER, LD. CIT PASSED THE ORDER ON 07.10.2013 REJECTING THE REGIST RATION OF ASSESSEE-TRUST. HE ALSO SUBMITTED THAT ALMOST ALL THE DETAILS WERE ALREADY MADE AVAILABLE; THE QUESTION OF SUBMITTING THE SAME AGAIN WAS CONSIDERED TO BE DUPL ICATION BECAUSE THE ORDER ITSELF DID NOT INDICATE THAT ANY SUCH MATERIAL INFORMATION WAS NOT SUBMITTED. HE FURTHER RELIED UPON THE JUDGMENT OF HONBLE PUNJAB A& HARYA NA HIGH COURT IN THE CASE OF IN THE CASE OF CIT V. O.P. JINDAL GLOBAL UNIVERSITY, ( 2013) 38 TAXMANN.COM 366 (P&H); WHEREIN THE HONBLE PUNJAB & HARYANA HIGH COURT HEL D THAT AT THE TIME OF GRANTING APPROVAL FOR EXEMPTION U/S 80G, OBJECT OF THE TRUST IS REQUIRED TO BE EXAMINED AND APPLICATION OF FUNDS CAN BE EXAMINED BY ASSESSING O FFICER AT THE TIME OF FRAMING ASSESSMENT. AS REGARDS TO THE OBJECTS OF THE TRUS T, THE LD. CIT HAS ACCEPTED WHILE GRANTING REGISTRATION U/S 12A THAT THE OBJECTS ARE IN ORDER AND ACCEPTABLE; THEREFORE THE SAME OBJECT CANNOT BE QUESTIONED WHILE GRANTING RECOGNITION U/S 80G(5) AS ENTIRE DASNAM SAMAJ IS CLASSIFIED AND ACCEPTED BY THE LD. CIT AS BELONGING TO SC/ST. TO SUM-UP, THE LD. AUTHORIZED REPRESENTATIVE OF THE AS SESSEE POINTED OUT THAT LD. CIT BE DIRECTED TO GRANT RECOGNITION U/S 80G(5) OF THE INC OME-TAX ACT, 1961. 5. DR. M. L. MEENA, DR APPEARED ON BEHALF OF THE RE VENUE VEHEMENTLY SUPPORTED THE ORDER OF LD. CIT. HE SUBMITTED THAT IN THE IMPUGNED ORDER THE LD. CIT CLEARLY MENTIONED THAT NO COMPLIANCE HAS BEEN MADE BY THE ASSESSEE-TRUST; THEREFORE, THE VIEW TAKEN BY THE LD. CIT REFUSING T O GRANT RECOGNITION U/S 80G(5) BE UPHELD. 6. HAVING HEARD BOTH SIDES, I HAVE CAREFULLY GONE T HROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT IN THE IMPUGNED ORDER THE LD. CIT HAS NOT CONSIDERED THE VARIOUS SUBMISSIONS ALLEGEDLY MADE B Y THE ASSESSEE-TRUST VIDE ITS LETTER DATED 22.11.2012. THE LD. CIT ALSO IGNORED T HE FACT THAT WHILE EXAMINING THE REGISTRATION U/S 12A, THE OBJECTS OF THE TRUST WERE EXAMINED BY HIM. BE THAT IT MAY BE, 4 437-RJT-2013 - SHRI SHIVSHAKTI (DASHNAM) YUVAK MANDAL (SMC) I AM OF THE VIEW THAT IT WILL MEET THE END OF JUSTI CE IF THE IMPUGNED ORDER OF LD. CIT IS SET ASIDE AND THE ASSESSEE-TRUST IS DIRECTED TO FUR NISH ALL THE DETAILS AFRESH AS CALLED FOR BY THE LD. CIT WHO WILL IN TURN VERIFY THE SAME AND PASS APPROPRIATE ORDER AS PER LAW AS DEEMED FIT WITHIN A REASONABLE TIME, AFTER P ROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I HOLD ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE-TRUST IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 31.12.2013 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- SHRI SHIVSHAKTI (DASHNAM) YUVAK MANDA L, PRANCHI TAL. VERAVAL, DIST. JUNAGADH 2. / RESPONDENT- THE COMMISSIONER OF INCOME-TAX, RAJK OT-III, RAJKOT 3. ,0,1 * * 2 / CONCERNED JCIT, RANGE-1, JUNAGADH 4 . 345 1, * 1#, !$ / DR, ITAT, RAJKOT 5 . 57 89 / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT