Shri Tulshishyam Mandir Trust, RAJKOT-GUJARAT V. The Commr. of Income Tax (Exemptions), Ahmedabad

ITA 471/RJT/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2274 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 09-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDEY
• Assessee Lawyers: NITIN KAMDAR
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] SHRI TULSHI SH YAM MANDI TRUST - JUNAGADH, C/O SHYAM SURGICAL HOSPITAL, GIR GADHA ROAD, OPP. SARKARI GUEST HOUSE, UNA - 362560 (APPELLANT) VS THE COMMISSIONER OF INCOME TAX(EX EMPTION), 1 ST FLOOR, ROOM NO. 111 - 112, AAYAKAR BHAVAN, ANNEXY BUILDING, ASHRAM ROAD, AHMEDABAD - 380009 (RESPONDENT) REVENUE BY : S H RI YOGESH PANDEY , D . R. ASSESSEE BY: S H RI NITIN KAMDAR , A.R. DATE OF HEARING : 04 - 12 - 2 015 DATE OF PRONOUNCEMENT : 03 - 03 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S ASSESSEE S APPEAL AR ISES FROM ORDER OF THE CIT(E), AHMEDABAD DATED 22 - 06 - 2015 IN APPEAL NO. I T A NO . 471 / RJT /20 1 5 A SSESSMENT YEAR NA I.T.A NO. 471 /RJT /20 15 A.Y. NA PAGE NO SHRI TULSHISHYAM MANDIR TRUST VS. CIT(E) 2 CIT(E) / AHD/80G / 286/2015 - 16 DENYING REGISTRATION IN PROCEEDINGS UNDER SECTION 80G(5) OF THE INCOME TAX ACT , 1961; IN SHORT THE ACT . 2. WE COME TO FACTS OF THE CASE. THE ASSESSEE - TRUST HAS BEEN SET UP WITH THE FOLLOWING OBJECTS: - A. RUNNING TRUST FOR THE PURPOSE OF PRAYER TO GOD. B. TO GIVE ALL FACILITIES WHICH ARE REQUIRE TO SAINTS AND VISITORS WHO C OME TO THIS TEMPLE. C. RUNNING GAUSHALA. D. RUNNING DHARMASHALA FOR VISITORS TO GIVE FACILITY TO REST. IT APPLIED FOR THE IMPUGNED SECTION 80G ON 15 - 12 - 2014. THE CIT CONSIDERED ITS OBJECTS TO COME TO A CONCLUSION THAT THE SAME ARE RELIGIOUS IN NATUR E. HE SOUGHT FOR NECESSARY DETAILS. THE CASE WAS FIXED FOR HEARING ON 19 - 06 - 2015. THE ASSESSEE DOES NOT SEEM TO HAVE APPEARED REPRESENTED IN THE SAID PROCEEDINGS. THIS MADE THE CIT TO DISCUSS A CATENA OF CASE LAW AND HOLD THAT THE ASSESSEE IS A WHOLLY RELIGIOUS TRUST NOT ENTITLED FOR SECTION 80G REGISTRATION. 3 . WE HAVE HEARD BOTH THE PARTIES. THERE IS NO DISPUTE ABOUT THE ASSESSEE S ABOVE EXTRACTED OBJECTS. IT EMERGES FROM THE CASE FILE THAT THE ASSESSEE S GROSS INCOMES FROM FINANCIAL YEARS 2011 - 1 2 TO 2013 - 14 ARE OF RS. 75,35,581/ - , RS. 93,92,601/ - AND RS. 1,08,48,331/ - AND EXPENDITURE INCURRED CORRESPONDING THERETO IS RS. 73,94,446/ - , RS. 98,17,024/ - AND RS. 80,29,426/ - ; RESPECTIVELY. WE NOTICE FROM THE RELEVANT TABULATION THAT RELIGIOUS EXPENSES ARE OF RS. I.T.A NO. 471 /RJT /20 15 A.Y. NA PAGE NO SHRI TULSHISHYAM MANDIR TRUST VS. CIT(E) 3 1,51,542/ - , RS. 2,28,703/ - AND RS. 1,88,594/ - COMING TO BE LESS THAN 2.5% IN EACH CASE; RESPECTIVELY. THE SAME ARE IN THE NATURE OF TEMPL E AND SWAMIJEE MANDIR EXPENSES . THE REVENUE SEEKS TO MAKE OUT A STRONG CASE IN FAVOUR OF THE CIT S ORDER H OLDING THE ASSESSEE TO HAVE BEEN HAVING WHOLLY RELIGIOUS OBJECTS AS WELL AS ACTIVITIES. WE PROCEED FURTHER AND FIND THAT SECTION 80G(5B) INSERTED BY THE FINANCE ACT, 1999 W.E.F. 01 - 04 - 2000 IS IN THE NATURE OF NON - OBSTANTE CLAUSE TO THE OTHER CORRESPONDIN G PROVISIONS WHICH CLEARLY STIPULATES THAT WHEN AN INSTITUTION OR A FUND INCURS EXPENDITURE OF A RELIGIOUS NATURE NOT EXCEEDING 5% OF ITS TOTAL INCOME IN THE PREVIOUS YEAR, IT IS DEEMED TO BE AN INSTITUTION OR FUND TO WHICH PROVISIONS OF SECTION 80 G(5) APPLY . THE REVENUE IS UNABLE TO DISPUTE CORRECTNESS OF THE ABOVE STATED FACTS AND FIGURES DEMONSTRATING THE IMPUGNED APPLICATION OF INCOME ON RELIGIOUS PURPOSES TO BE LESS THAN 5%. WE ACCEPT ASSESSEE S ARGUMENTS I N THIS BACKDROP OF FACTS. IT IS MADE CLEAR THAT OUR INSTANT ADJUDICATION IS SOLELY ON THE BASIS OF ABOVE STATED STATUTORY PROVISION ONLY AND NOT ON MERITS OF THE CASE. THE ASSESSEE S SOLE SUBSTANTIVE GROUND SUCCEEDS. 4. THIS ASSESSEE S APPEAL IS ALLOWED . ORDER PR ONOUNCED IN THE OPEN C OUR T ON 03 - 03 - 201 6 SD/ - SD/ - (PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 03 /03 /2016 AK I.T.A NO. 471 /RJT /20 15 A.Y. NA PAGE NO SHRI TULSHISHYAM MANDIR TRUST VS. CIT(E) 4 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT