Dawoodi Bohra Jamat Trust (Taheri Mohalla), JAMNAGAR V. The Commr. of Income Tax, JAMNAGAR

ITA 526/RJT/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89143 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-03-2015
• Assessment Year: misc
• Appeal Filed On: 05-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI, ACCOUNTANT MEMBER. ITA. NO. 526/RJT/2014 (ASSESSMENT YEAR:NA) DAWOODI BOHRA JAMAAT TRUST (TAHERI MOHALLA JAMNAGAR) OUTSIDE KALAVAD NAKA, NEAR S T DIVISION, JAMNAGAR APPELLANT VS. COMMISSIONER OF INCOME TAX, JAMNAGAR RESPONDENT PAN: AABTD9840J & ITA. NO. 527/RJT/2014 (ASSESSMENT YEAR:NA) DAWOODI BOHRA JAMAAT TRUST (ZAKAVI MOHALLA JAMNAGAR) INSIDE VOHRA HAJIRA, NAGESHWAR COLONY, JAMNAGAR APPELLANT VS. COMMISSIONER OF INCOME TAX, JAMNAGAR RESPONDENT PAN: AABTD9841K ITA NO. 526/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (TAH ERI MOHALLA)] & 527/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (ZAKAVI MO HALLA)] PAGE 2 / BY ASSESSEE : SHRI CHETAN AGARWAL, C.A . / BY REVENUE : SHRI M. L. MEENA, D.R. /DATE OF HEARING :16.03.2015 /DATE OF PRONOUNCEMENT :20.03.2015 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THESE TWO APPEALS FILED BY TWO ASSESSEES ARE ARISIN G OUT FORM THE ORDERS OF CIT, JAMNAGAR, DATED 05.08.2014. SO, THEY ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER F OR THE SAKE OF CONVENIENCE. 2. IN ITA NO. 526/RJT/2014, ASSESSEE HAS FILED THE APPEAL ON THE FOLLOWING GROUNDS: 1. HON . CIT ERRED IN LAW AS WELL ON FACT IN REFUSING TO GRANT REGISTRATION U/S.12AA OF THE ACT, RELYING ON RECOMMENDATION OF ASSESSING OFFICER AND JOINT COMMISSIONER OF INCOME TAX THAT TRUST IS ONLY FOR SPECIFIED COMMUNITY AND NOT FOR PUBLIC AT LARGE. HO N. CIT ERRED IN NOT CONSIDERING DECISION OF HON. SUPRE ME COURT IN THE CASE OF CIT VIS. DAWOODI BOHARA JAMAT APPEAL NO . 2492 OF 2014 DATED 19.03 . 2014 2. THE COMMISSIONER OF INCOME TAX , JAMNAGAR HAS ERRED IN LAW AS WELL AS ON FACTS OF THE CASE IN NOT GRANT ING REGISTRATION TO THE APPELLANT TRUST U/S. 12AA OF TH E INCOME TAX ACT, 1961. 3. THE COMMISSIONER OF INCOME TAX, JAMNAGAR HAS ERR ED IN HOLDING THAT THE TRUST WAS PURELY FOR THE BENEFI T OF A ITA NO. 526/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (TAH ERI MOHALLA)] & 527/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (ZAKAVI MO HALLA)] PAGE 3 PARTICULAR COMMUNITY OR CASTE . 4. YOUR APPELLANT PRAYS THAT TRUST BE GRANTED REGIS TRATION U/S . 12AA OF THE INCOME TAX ACT , 1961. 2.1 CIT DENIED THE GRANT OF REGISTRATION U/S. 12AA OF INCOME TAX ACT ON THE GROUND THATTRUSTEES ONLY FOR SPECIFI C COMMUNITY AND NOT FOR PUBLIC AT LARGE. ACCORDING TO ASSESSEE , CIT ERRED IN NOT CONSIDERING THE DECISION OF HONBLE SUPREME COU RT IN CASE OF CIT VS. DAWOODI BOHARA JAMAT APPEAL NO. 2492 OF 2014 DATED 19.03.2014. 3. WE FIND THAT HONBLE GUJARAT HIGH COURT IN ASSES SEES OWN CASE IN TAX APPEAL NO. 1187 OF 2006, FOLLOWING THE HONBLE SUPREME COURT DECISION IN COMMISSIONER OF INCOME TA X VS. DAWOODI BOHRA JAMAT REPORTED IN (2009) 314 ITR 309, HAS DECIDED THIS ISSUE IN FAVOUR OF ASSESSEE BY OBSERVI NG AS UNDER: 6. HAVING HEARD MR. PARIKH, LEARNED ADVOCATE APPEA RING ON BEHALF OF THE DEPARTMENT AND MR. SHAH, LEARNED ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE AND TH E QUESTION POSED FOR CONSIDERATION BY US REPRODUCED HEREINABOVE AND CONSIDERING THE DECISION OF THE HON BLE THE SUPREME COURT IN THE CASE OF DAWOODI BOHRA JAMAT (S UPRA), THE QUESTION WHICH IS RAISED IN THE PRESENT APPEAL IS REQUIRED TO BE ANSWERED IN FAVOUR OF THE ASSESSEE. WE ARE NOT GIVING ANY ELABORATE REASONS FOR THE SAME AS IN THE CASE OF VERY SAME ASSESSEE I.E. DAWOODI BOHRA JAMAT (SUP RA), IT IS HELD BY HONBLE THE SUPREME COURT THAT RESPONDEN T-TRUST WAS A CHARITABLE AND RELIGIOUS TRUST WHICH DID NOT BENEFIT ANY SPECIFIC RELIGIOUS COMMUNITY AND THEREFORE, IT COULD NOT BE HELD THAT SECTION 13(1)(B) OF THE ACT WOULD BE A TTRACTED TO THE ASSESSEES TRUST AND THEREBY IT WOULD BE ELIGIB LE TO CLAIM EXEMPTION U/S. 11 OF THE ACT. EVEN OTHERWISE THERE ARE ITA NO. 526/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (TAH ERI MOHALLA)] & 527/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (ZAKAVI MO HALLA)] PAGE 4 CONCURRENT FINDING OF FACTS WITH WHICH WE ALSO CONC UR AND THEREFORE NO ELABORATE REASONS ARE REQUIRED. 7. IN VIEW OF THE ABOVE, THE PRESENT TAX APPEAL IS HELD IN FAVOUR OF THE ASSESSEE AND CONSEQUENTLY, THE IMPUGN ED JUDGMENT AND ORDER PASSED BY; THE ITAT IS CONFIRMED . HENCE, THE PRESENT TAX APPEAL IS DISMISSED. NO COS TS. 3.1 LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE DECISION OF HONBLE KERALA HIGH COURT IN CASE OF TELLICHERRY MI NORITY WELFARE TRUST VS. COMMISSIONER OF INCOME-TAX, KANNU R REPORTED IN [2014] 45 TAXMANN.COM 395 (KERALA). RA TIO OF TELLICHERRY MINORITY WELFARE TRUST WILL NOT HELP RE VENUE BECAUSE JURISDICTIONAL HIGH COURT IS IN FAVOUR OF A SSESSEE AS DISCUSSED ABOVE. 3.2 SO, WE ARE NOT INCLINED TO CONQUER WITH THE FIN DING OF CIT AND WE HOLD THAT ASSESSEE BEING CHARITABLE AND RELI GIOUS TRUST WHICH DID NOT BENEFIT IN SPECIFIC RELIGIOUS COMMUNI TY. THEREFORE, IT COULD NOT BE HELD THAT SECTION 13(1)( B) OF THE ACT WOULD BE ATTRACTED TO THE ASSESSEES TRUST AND THER EBY IT WOULD BE ELIGIBLE TO CLAIM EXEMPTION U/S. 11 OF THE ACT. ACCORDINGLY, ASSESSEE IS ENTITLED FOR REGISTRATION U/S. 12AA OF THE INCOME TAX ACT. CIT IS DIRECTED ACCORDINGLY. 4. IN ITA NO. 527/RJT/2014, ISSUES AND FACTS ARE SI MILAR TO ITA NO. 526/RJT/2014, WHEREIN WE HAVE DECIDED THIS ISSUE IN FAVOUR OF ASSESSEE VIDE PARA 3 OF THIS ORDER. SO, RELYING UPON THE SAME REASONING, CIT IS DIRECTED TO GRANT REGIST RATION U/S. 12AA OF THE ACT. ITA NO. 526/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (TAH ERI MOHALLA)] & 527/RJT/14 [DAWOODI BOHRA JAMAAT TRUST (ZAKAVI MO HALLA)] PAGE 5 5. IN THE RESULT, APPEALS FILED BY BOTH ASSESSEES A RE ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF MARCH, 2015. SD/- SD/- (N. S. SAINI) (SHAILENDR A KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R RAJKOT : DATED 20/03/2015 TRUE COPY S K SINHA COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 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