M/s. Anglican Church Welfare Association, Gurgaon V. CIT(E), Chandigarh

ITA 4868/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3014 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 27-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEETA SINGH
• Keywords: Opportunity of being heard; Question of law
• Section: 80G; 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4868/DEL./2015 ANGLICAN CHURCH WELFARE ASSOCIATION, VS. CIT, C/O SHRI PRADEEP LAKHANI, CHANDIGARH. C/O KUMAR VIJAY GUPTA & CO., 301, 3 RD FLOOR, APNA BAZAR, GURGAON 122 001 (HARYANA). (PAN : AABAA0291M) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KAPIL GOEL, ADVOCATE REVENUE BY : SMT. MEETA SINGH, CIT DR DATE OF HEARING : 21.03.2018 DATE OF ORDER : 23.03.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ANGLICAN CHURCH WELFARE ASSOCIATION (HEREINAFTER REFERRED TO AS THE ASSESSEE TRUST) B Y FILING THE PRESENT APPEAL, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATE D 25.05.2015 PASSED BY LD. CIT(EXEMPTIONS), CHANDIGARH ON THE GR OUNDS INTER ALIA THAT :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF CASE AND IN LAW, THE LD. CIT HAS ERRED BOTH ON FACT S AND IN LAW IN REJECTING THE APPLICATION FOR GRANT O F ITA NO.4868/DEL/2015 2 CERTIFICATE UNDER SECTION 80G OF THE INCOME TAX ACT , 1961. 2. THAT THE LD. CIT HAS WRONGLY DISMISSED THE APPLICATION FOR CERTIFICATION U/S 80G OF THE INCOME -TAX ACT, 1961, IGNORING ALL MERITS OF THE CASE. 3. THAT OPPORTUNITY OF BEING HEARD WAS NOT GIVEN TO THE ASSESSEE BY THE LD. CIT IN VIOLATION OF THE PRO VISO TO THE SUB-RULE (5) OF RULE 11AA OF INCOME TAX RULES. 4. THAT THE LD. CIT HAD IGNORED THE FACT THAT THE CHARITABLE ACTIVITIES WERE BEING UNDERTAKEN BY THE SOCIETY AND HAS WRONGLY CONCLUDED THAT THE SOCIETY HAS BEEN CONSTITUTED SOLELY FOR THE BENEFIT OF A PARTIC ULAR RELIGIOUS COMMUNITY OR CASTE. 5. THAT THE LD. CIT HAS NOT PROPERLY CONSIDERED THE BYE-LAWS, BOOKS OF ACCOUNTS, VOUCHERS, INVOICES AND WRITTEN SUBMISSIONS BEFORE DISPOSING OF OUR APPLICA TION FOR GRANT OF APPROVAL OF EXEMPTION U/S 80G OF THE INCOME TAX ACT, 1961. 6. THAT THE LD. CIT HAS PASSED THE ORDER IN HASTE AND IS AGAINST THE FACTS, LAW AND PROVISIONS OF THE INCOME TAX ACT, 1961 AND RULES MADE THERE UNDER. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICA TION OF THE CONTROVERSY AT HAND ARE : ON THE BASIS OF REGISTRAT ION ACCORDED TO THE ASSESSEE TRUST VIDE ORDER DATED 10.09.2014, APP LICATION HAS BEEN MOVED BY THE ASSESSEE TRUST FOR GRANT OF APPRO VAL UNDER SECTION 80G OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) WHICH HAS BEEN REJECTED BY THE LD. CIT (EXEMPTIONS) BY INVOKING THE PROVISIONS CONTAINED U/S 13(1)(A) & (B) OF THE ACT ON THE GROUND THAT THE ASSESSEE TRUST IS RUNNING A CHURCH WITH NAME HOLY ITA NO.4868/DEL/2015 3 TRINITY CHURCH IN 231/12, KRISHNA COLONY, GURGAON-1 22 001, HARYANA AND GODS WORSHIP ACTIVITIES ARE UNDERTAKEN THERE. 3. FEELING AGGRIEVED, THE ASSESSEE TRUST HAS COME U P BEFORE THE TRIBUNAL BY WAY OF FILING THE PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. TO PROCEED FURTHER IN ORDER TO DECIDE THE CONTRO VERSY AT HAND, IT IS NECESSARY TO PERUSE AIMS AND OBJECTS OF THE ASSESSEE TRUST, WHICH ARE AVAILABLE AT PAGE 24 OF THE PAPER BOOK AND REPRODUCED AS UNDER FOR READY REFERENCE :- 1. TO DO CHARITABLE WORK THROUGH SPREADING THE GOOD NEWS OF JESUS CHRIST AS REVEALED IN THE HOLY SCRIPTURE. 2. TO PROMOTE THE SPIRITUAL, SOCIAL, ECONOMIC AND CULTURAL WELFARE OF THE PUBLIC AT LARGE. 3. TO ARRANGE RELIGIOUS; SOCIAL, LITERACY AND CULTU RAL FUNCTIONS FOR THE BENEFIT OF THE SOCIETY. 4. TO ESTABLISH BOUNDS OF FRIENDSHIP AND CORDIALITY WITH OTHER RELIGIOUS AND SOCIAL ORGANIZATION AND COMMUNITIES WITH A VIEW TO PROMOTE PATRIOTISM AND NATIONAL INTEGRATION. 5. TO ASSIST GOVERNMENT AND OTHER ASSOCIATION / SOCIETIES OF LIKE NATURE DURING DISASTERS, EARTHQUA KES, FAMINES, SPREAD OF EPIDEMICS AND OTHER EMERGENCY CA LLS FOR THE WELFARE OF THE HUMANITY. ITA NO.4868/DEL/2015 4 6. TO PROVIDE MEDICAL AID IN SHAPE OF CONSULTATION/ADVICE TO THE MEMBERS AND THEIR WARDS AND OTHER MEMBERS OF THE WEAKER AND DOWN- TRODDEN SECTION. 7. TO CONSTRUCT CHURCHES, CRECHES, SCHOOLS, TECHNICAL INSTITUTIONS, COMMUNITY CENTERS, DHARAMSA LAS IN COLONIES, VILLAGES AND CITIES SUBJECT TO THE AVA ILABILITY OF FUNDS AND LAND PROVIDED BY EITHER THE MEMBER OR BY THE GOVERNMENT. 8. TO CO-OPERATE WITH THE MOVEMENT AIMING AT THE REMOVAL OF POVERTY, ILLITERACY AND PROMOTION OF CIV IC, ECONOMIC, CULTURAL AND RELIGIOUS INTERESTS OF THE P EOPLE. 9. TO DO ALL SUCH THINGS AS MAY BE INCIDENTAL AND CONDUCIVE TO THE ATTAINMENT OF THE ABOVE OBJECTIVES . 6. IN THE BACKDROP OF THE UNDISPUTED FACT THAT THE ASSESSEE TRUST HAS ALREADY BEEN REGISTERED U/S 12A OF THE ACT WHIC H HAS NOT BEEN WITHDRAWN, IN THE LIGHT OF THE AIMS AND OBJECTS OF THE ASSESSEE TRUST AND THE ARGUMENTS ADDRESSED BY THE LD. AUTHORIZED R EPRESENTATIVES OF THE PARTIES, THE SOLE ISSUE ARISES FOR DETERMINA TION IN THIS CASE IS:- AS TO WHETHER A TRUST REGISTERED U/S 12A IS HIT BY PROVISIONS CONTAINED U/S 13(1)(A)&(B) BECAUSE OF TH E FACT THAT THE TRUST HAS BEEN RUNNING A CHURCH AND H AS BEEN CONSTITUTED MERELY FOR A BENEFIT OF A PARTICUL AR RELIGION ONLY AND NOT FOR THE BENEFIT OF PUBLIC AT LARGE? 7. WHEN WE EXAMINE THE AIMS AND OBJECTS OF THE ASSE SSEE TRUST IN ENTIRETY, IT GOES TO PROVE THAT THE BROAD AIMS A ND OBJECTS OF THE ASSESSEE TRUST IS TO ASSIST GOVERNMENT AND OTHER ASSOCIATION / SOCIETIES OF LIKE NATURE DURING DISASTERS, EARTHQUA KES, FAMINES, ITA NO.4868/DEL/2015 5 SPREAD OF EPIDEMICS AND OTHER EMERGENCY CALLS FOR T HE WELFARE OF THE HUMANITY; TO PROVIDE MEDICAL AID IN SHAPE OF CONSULTATION/ADVICE TO THE MEMBERS AND THEIR WARDS AND OTHER MEMBERS OF THE WEAKER AND DOWN-TRODDEN SECTION; TO CO-OPERATE WITH THE MOVEMENT AIMING AT THE REMOVAL OF POVERTY, ILLITERACY AND PROMOTION OF CIVIC, ECONOMIC, CULTURAL AND RELIGIOU S INTERESTS OF THE PEOPLE; AND TO PROMOTE THE SPIRITUAL, SOCIAL, ECONO MIC AND CULTURAL WELFARE OF THE PUBLIC AT LARGE . TO OUR MIND, ALL THESE AIMS AND OBJECTS OF THE ASSESSEE TRUST ARE NOWHERE INTENDED TO BE DIRECTED TOWARDS A PARTICULAR RELIGIOUS COMMUNITY BECAUSE AT THE TIME OF CALAMITIES NO TRUST WOULD ASK THE VICTIM HIS/HER RE LIGION BEFORE PROVIDING RELIEF, AS HELD BY LD. CIT, RATHER ARE AI MED FOR THE PUBLIC AT LARGE. 8. EVEN OTHERWISE, IF THE AIMS AND OBJECTS OF A PAR TICULAR TRUST ARE PARTLY RELIGIOUS AND PARTLY CHARITABLE, THE APP ROVAL U/S 80G OF THE ACT CANNOT BE DENIED. HONBLE SUPREME COURT IN CASE CITED AS CIT VS. DAWOODI BOHARA JAMAT (2014) 364 ITR 31 (S C) HAS DEALT WITH THE IDENTICAL ISSUE BY FRAMING THE FOLLO WING QUESTION OF LAW :- THUS, THE SECOND ISSUE WHICH ARISES FOR OUR CONSID ERATION AND DECISION IS, WHETHER THE RESPONDENT-TRUST IS A CHAR ITABLE AND RELIGIOUS TRUST ONLY FOR THE PURPOSES OF A PARTICUL AR COMMUNITY AND THEREFORE, NOT ELIGIBLE FOR EXEMPTION UNDER SEC TION 11 OF THE ACT IN VIEW OF PROVISIONS OF SECTION 3 L)(B) OF THE ACT. ITA NO.4868/DEL/2015 6 9. HONBLE SUPREME COURT IN THE CASE CIT VS. DAWOODI BOHARA JAMAT (SUPRA) HAS HELD AS UNDER :- 49. IN THE PRESENT CASE, THE OBJECTS OF THE RESPON DENT-TRUST ARE BASED ON RELIGIOUS TENETS UNDER QURAN ACCORDING TO RELIGIOUS FAITH OF ISLAM. WE HAVE ALREADY NOTICED THAT THE PE RUSAL OF THE OBJECTS AND PURPOSES OF THE RESPONDENT-TRUST WOULD CLEARLY DEMONSTRATE THAT THE ACTIVITIES OF THE TRUST THOUGH BOTH CHARITABLE AND RELIGIOUS ARE NOT EXCLUSIVELY MEANT FOR A PARTI CULAR RELIGIOUS COMMUNITY. THE OBJECTS, AS EXPLAINED IN THE PRECEDI NG PARAGRAPHS, DO NOT CHANNEL THE BENEFITS TO ANY COMM UNITY IF NOT THE DAWOODI BOHRA COMMUNITY AND THUS, WOULD NOT FAL L UNDER THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. IN THAT VIEW OF THE MATTER, WE ARE OF THE CONSIDERE D OPINION THAT THE RESPONDENT-TRUST IS A CHARITABLE AND RELIGIOUS TRUST WHICH DOES NOT BENEFIT ANY SPECIFIC RELIGIOUS COMMUNITY A ND THEREFORE, IT CANNOT BE HELD THAT SECTION 13(1)(B) OF THE ACT WOULD BE ATTRACTED TO THE RESPONDENT/TRUST AND THEREBY, IT W OULD BE ELIGIBLE TO CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT. 10. IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, WE AR E OF THE CONSIDERED VIEW THAT LD. CIT HAS ERRED IN DENYING T HE APPROVAL U/S 80G OF THE ACT AS SOUGHT FOR BY THE ASSESSEE TRUST BY NOT APPRECIATING THE AIMS AND OBJECTS OF THE ASSESSEE T RUST IN ENTIRETY. SO, WE HEREBY ALLOW THE APPEAL FILED BY THE ASSESSE E TRUST AND DIRECT THE LD. CIT (EXEMPTIONS) CONCERNED TO GRANT THE APPROVAL U/S 80G OF THE ACT. ORDER PRONOUNCED IN OPEN COURT ON THIS 23 RD DAY OF MARCH, 2018. SD/- SD/- (R.K. PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 23 RD DAY OF MARCH, 2018/TS ITA NO.4868/DEL/2015 7 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(E), CHANDIGARH. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.