Apurva society A Cultural Organisation, JODHPUR V. CIT-2, JODHPUR

ITA 528/JODH/2014

• Counselvise Citation: 52823314 RSA 2014
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 20-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENA
• Assessee Lawyers: RAJENDRA JAIN
• Keywords: Charitable institution
• Section: 12; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.C. GUPTA G.C. GUPTA G.C. GUPTA G.C. GUPTA, , , , HONBLE HONBLE HONBLE HONBLE VICE VICE VICE VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA, , , , HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 528/JODH/2014 528/JODH/2014 528/JODH/2014 528/JODH/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : N.A. N.A. N.A. N.A. APURVA SOCIETY APURVA SOCIETY APURVA SOCIETY APURVA SOCIETY A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, C/O SHR C/O SHR C/O SHR C/O SHRI U.C. JAIN, ADVOCATE, I U.C. JAIN, ADVOCATE, I U.C. JAIN, ADVOCATE, I U.C. JAIN, ADVOCATE, SHATRUNJAY HARI SINGH SHATRUNJAY HARI SINGH SHATRUNJAY HARI SINGH SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, NAGAR, PALI ROAD, NAGAR, PALI ROAD, NAGAR, PALI ROAD, JODHPUR. JODHPUR. JODHPUR. JODHPUR. PAN : AAAAA0724C. PAN : AAAAA0724C. PAN : AAAAA0724C. PAN : AAAAA0724C. VS. VS. VS. VS. COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX - -- - II IIII II , ,, , JODHPUR. JODHPUR. JODHPUR. JODHPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDRA JAIN, ADVOCATE. RESPONDENT BY : SHRI M.S. MEENA , D.R. DATE OF HEARING : 01.09.2015 01.09.2015 01.09.2015 01.09.2015 DATE OF PRONOUNCEMENT: 04.09.2015 04.09.2015 04.09.2015 04.09.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT : :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED COMMISSIONER OF INCOME TAX-II, JODHPUR DATE D 22 ND AUGUST, 2014 REJECTING THE CLAIM OF THE ASSESSEE FOR REGIST RATION U/S 12A OF THE INCOME-TAX ACT, 1961. 2. THE GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UND ER:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE ORDER PASSED BY LD. CIT-II, JODHPUR U/S 1 2A OF I.T. ACT 1961 IS BAD IN LAW, BAD IN FACTS AND PERVE RSE. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT-2, JODHPUR GROSSLY ERRED IN REJEC TING THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF TH E ACT ITA-528/JODH/2014 2 PARTICULARLY WHEN THE ASSESSEE SOCIETY SATISFY ALL THE CONDITION LAID DOWN FOR GRANT OF REGISTRATION. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE STATUTORY CONDITIONS FOR GRANT OF REGISTRATION U/S 12A OF THE ACT ARE SATISFIED IN THIS CASE AND THE OBJECTS OF THE ASSESSEE WERE CHAR ITABLE IN NATURE. HE REFERRED TO THE OBJECTS OF THE ASSESSEE TRUST FILED IN THE COMPILATION AND SUBMITTED THAT THE ASSESSEE IS REGISTERED WITH THE REGISTRAR AS PER RAJASTHAN INSTITUTIONS REGISTRATION ACT, 1958. 4. LEARNED DR SUBMITTED THAT THE ASSESSEE COULD NOT ESTABLISH THE CHARITABLE PURPOSE OF THE TRUST AND, THEREFORE, THE REGISTRATION U/S 12A OF THE ACT WAS RIGHTLY REFUSED BY THE CIT-II. HE R EFERRED TO THE RELEVANT PORTION OF THE ORDER U/S 12A OF THE ACT PASSED BY L EARNED CIT-II. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE LEARNED CIT-II REFUSING THE REGISTRATI ON U/S 12A OF THE ACT AND ALSO VARIOUS DOCUMENTS IN THE COMPILATION FILED BEFORE THE TRIBUNAL. WE FIND THAT THE LEARNED CIT HAS RECORDE D IN HIS IMPUGNED ORDER THREE REASONS FOR REFUSING THE REGISTRATION U /S 12A, VIZ., THAT THE ASSESSEE COULD NOT FILE NOTES ON CHARITABLE ACTIVIT IES CARRIED OUT SINCE INCEPTION OF THE TRUST, SECONDLY, NOT PRODUCED THE BOOKS OF ACCOUNT MAINTAINED BY THE TRUST AND THIRDLY, COMPLETE DETAI LS OF DONATIONS RECEIVED BY THE TRUST DURING THE LAST THREE YEARS W ERE NOT FILED. WE FIND THAT THESE QUERIES BY THE LEARNED CIT RELATE T O THE ASSESSMENT OF THE ASSESSEE UNDER THE PROVISIONS OF THE INCOME-TAX ACT. WHILE MAKING ENQUIRY DURING THE COURSE OF PROCEEDINGS FOR DISPOSAL OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12 A OF THE ACT, THE CIT SHOULD HAVE GONE INTO THE OBJECTS OF THE ASSESSEE A S PROVIDED IN ARTICLES OF ASSOCIATION AND SHOULD HAVE RECORDED A FINDING THAT WHETHER THEY WERE CHARITABLE IN NATURE. WE HAVE GONE THROU GH THE OBJECTS CLAUSE OF THE ASSESSEE IN THE ARTICLES OF ASSOCIATI ON AS FILED BY THE ASSESSEE IN THE COMPILATION BEFORE THE TRIBUNAL AND FIND THAT THEY WERE ITA-528/JODH/2014 3 CHARITABLE IN NATURE. WE FIND THAT THE OTHER REQUI REMENTS OF LAW FOR GRANT OF REGISTRATION U/S 12A HAVE BEEN COMPLIED WI TH BY THE ASSESSEE. IN THIS VIEW OF THE MATTER, WE HOLD THAT THE ASSESS EE WAS ENTITLED TO REGISTRATION U/S 12A OF THE ACT AND, ACCORDINGLY, L EARNED CIT-II IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE U/S 12A OF THE ACT WITHIN A PERIOD OF FIFTEEN DAYS FROM RECEIPT OF THIS ORDER . WE MAKE IT CLEAR THAT THE DEPARTMENT SHALL BE FREE TO TAKE ANY ACTIO N BY MAKING ADDITION/DISALLOWANCE AS PER LAW AFTER GOING THROUG H THE ACCOUNT BOOKS OF THE ASSESSEE WHILE FRAMING THE ASSESSMENT IN THE CASE OF THE ASSESSEE. WE DIRECT ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 04.09.2015 . SD/- SD/- ( (( ( R.C. SHAR R.C. SHAR R.C. SHAR R.C. SHAR MA MAMA MA ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : APURVA SOCIETY APURVA SOCIETY APURVA SOCIETY APURVA SOCIETY A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, A CULTURAL ORGANISATION, C/O SHRI U.C. JAIN, ADVOCATE, C/O SHRI U.C. JAIN, ADVOCATE, C/O SHRI U.C. JAIN, ADVOCATE, C/O SHRI U.C. JAIN, ADVOCATE, SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, JODHPUR. JODHPUR. JODHPUR. JODHPUR. 2. RESPONDENT : COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX- -- -2, JODHPUR. 2, JODHPUR. 2, JODHPUR. 2, JODHPUR. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR