SHRI DIGAMBER JAIN MANDIR SHRI NEMINATHJI SANWALAJI, Jaipur V. CIT, Jaipur

ITA 530/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4847 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 17-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D S KOTHARI CIT DR DHK
• Assessee Lawyers: SATISH AJMERA
• Keywords: Opportunity of being heard
• Section: 12AA; 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES , JAIPUR JH HKKXPUN] YS[KK LNL; ,O JH DQY HKKJR] U;KF;D L NL; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHAR AT, JM VK;DJ VIHY LA-@ ITA NO. 530/JP/2016 SECTION 12AA(1)(B) OF THE I.T. ACT DIGAMBAR JAIN MANDIR NEMINATHJI SANWALAJI BHATTARAK JI KI NASIYA NARAIN CIRCLE, JAIPUR CUKE VS. THECIT (EXEMPTIONS) LAL KOTHI, TONK ROAD, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAATD 3672 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI SATISH AJMERA, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI D.S. KOTHARI, CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08/12/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16 /12/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT (EXEMPTIONS) DATED 17-03-2016 U/S 12AA(1)(B) OF THE I.T. ACT , 1961 RAISING THEREIN FOLLOWING GROUNDS OF APPEAL. 1. THE LD. CIT (EXEMPTIONS) HAS ERRED IN REJECTIN G THE APPLICATION U/S 154 WITHOUT GIVING A REASONABLE OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE PASSING AN ORDER U/S 154 OF THE I.T. ACT , 1961 THOUGH THERE WAS A PRAYER FOR PERSO NAL HEARING. ITA NO. 530/JP/2016 DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI VS. CI T (EXEMPTION) JAIPUR . 2 2. THE LD. CIT (EXEMPTIONS) HAS ERRED IN NOT RECTIF YING THE ORDER EVEN THOUGH ALL THE FACTS WERE ON RECORD AND HE HAD NOT CONSIDERED IN TOTO THE DOCUMENT HE RELIED ON. 3. THE LD. CIT (EXEMPTIONS) ERRED IN NOT GRANTING T HE REGISTRATION NO. U/S 12AA EVEN THOUGH ALL THE DOCUM ENTS WERE ON RECORD SHOWING THAT THE TRUST WAS MORE THAN 500 YEA RS OLD AND THAT IT HAD APPLIED FOR REGISTRATION IN 1973 ITSELF. 2.1 THE FACTS AS EMERGES FROM THE ORDER OF LD. CIT (EXEMPTIONS) IS AS UNDER:- THE A/R OF THE SOCIETY/TRUST FILED AN APPLICATION U/S 154 OF THE I.T. ACT, 1961 ON 25-02-2016 TO RECTIFY THE ORD ER PASSED U/S 12AA(1)(B) OF THE I.T. ACT, 1961 ON 17-02-2016. THE APPLICANT RAISED A POINT THAT THE SAID TRUST WAS ESTABLISHED BEFORE THE COMMENCEMENT OF THE INCOME TAX ACT, 1961 AND THEREF ORE, THE PROVISION OF SECTION 13(1)(B) ARE NOT APPLICABLE. THE POINT RAISED BY THE APPLICANT IS A POINT OF LAW AND NOT THE MISTAKE OF FACT APPARENT FROM RECORD. THE APPLICATI ON OF THE TRUST WAS REJECTED BY PASSING A DETAILED ORDER AFTER GIVI NG RELEVANT AND COGENT REASONS. TAKING ANY FRESH VIEW WILL TANTAMOU NT TO REVIEW OWN ORDER WHICH IS NOT PERMISSIBLE UNDER THE LAW. A S THERE IS NO MISTAKE APPARENT FROM THE RECORD, THE APPLICATION F ILED BY THE A/R U/S 154 OF THE INCOME TAX ACT IS HEREBY REJECTED. 2.2 BRIEF FACTS OF THE CASE ARE THAT LD. CIT(EXEMPT IONS) VIDE HIS ORDER DATED 17-02-2006 HAD REFUSED THE REGISTRATION OF TH E ABOVE TRUST U/S 12AA(1)(B) OF THE ACT WITH THE OBSERVATION THAT THE OBJECTS OF THE TRUST ARE NOT CHARITABLE. THE LD. AR OF THE ASSESSEE TRUS T FILED AN APPLICATION U/S 154 OF THE ACT ON 25-02-2016 BEFORE THE LD. CIT (EXEMPTIONS) TO ITA NO. 530/JP/2016 DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI VS. CI T (EXEMPTION) JAIPUR . 3 RECTIFY THE ORDER PASSED U/S 12AA(1)(B) ON 17-02-20 16 WITH THE PRAYER THAT THE SAID TRUST WAS ESTABLISHED BEFORE THE COMM ENCEMENT OF INCOME TAX ACT, 1961 AND THUS THE PROVISIONS OF SECTION 13 (1)(B) ARE NOT APPLICABLE. THE LD. CIT TOOK INTO CONSIDERATION THE APPLICATION OF THE TRUST U/S 154 OF THE ACT WHICH PERTAINS TO MISTAKE OF THE FACT IN HIS ORDER BUT ACCORDING TO HIM THERE IS NO MISTAKE APPARENT ON RE CORD. HENCE THE APPLICATION FILED BY THE LD. AR OF THE ASSESSEE TR UST U/S 154 OF THE ACT WAS ALSO REJECTED BY THE LD. CIT (EXEMPTIONS). 2.3 DURING THE COURSE OF HEARING, THE LD. AR OF THE ASSESSEE TRUST PRAYED THAT LD. CIT HAS NOT TAKEN INTO CONSIDERATIO N HIS SUBMISSION AS TO REGISTRATION OF THE TRUST. THE LD. AR OF THE TRUST FURTHER SUBMITTED THAT THE TRUST WAS CONSTITUTED ON 5-05-1955 (PAGE 4 OF THE P APER I.E. MEMORANDUM OF TRUST OBJECTS) AND THE TRUST GRANTED PERMISSION BY SAHAYAK. DEV SANSTHAN AAYUKT, JAIPUR VIDE CERTIFICATE LETTER DAT ED 14-04-1952. THE MAIN THRUST OF THE LD. AR OF THE ASSESSEE TRUST W AS THAT HE WAS NOT PROVIDED PROPER OPPORTUNITY OF BEING HEARD BY THE L D. CIT (EXEMPTIONS) INTO THE MERITS OF THE REGISTRATION OF THE TRUST.. 2.4 THE LD. DR RELIED ON THE ORDER OF THE LD. CIT ( EXEMPTIONS) WITH THE OBJECTION THAT THE LD. AR OF THE ASSESSEE TRUS T WANTS TO GET THE LD. ITA NO. 530/JP/2016 DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI VS. CI T (EXEMPTION) JAIPUR . 4 CITS (EXEMPTIONS) ORDER REVIEWED BY FILING THIS A PPEAL BEFORE THE ITAT, JAIPUR BENCH. 2.5 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOTED FROM THE RECORDS T HAT THE LD. CIT(EXEMPTIONS) HAD REFUSED THE REGISTRATION OF TR UST U/S 12AA(1)(B) OF THE ACT ON THE GROUND THAT THE OBJECTS OF THE ASSES SEE TRUST ARE NOT CHARITABLE. THE LD. AR OF THE ASSESSEE FILED AN APP LICATION U/S 154 OF THE ACT BEFORE THE LD. CIT WHICH HAS ALSO BEEN REJECTED BY THE LD. CIT ON THE GROUND THAT THERE IS NO MISTAKE APPARENT ON RECORD IN HIS ORDER AS TO REFUSAL OF REGISTRATION OF THE TRUST. IT IS ALSO NO TED FROM THE RECORDS THAT THE ASSESSEE TRUST WAS CONSTITUTED ON 5-05-1955 AND IT WAS GRANTED PERMISSION FOR REGISTRATION BY THE SAHAYAK DEV SANSTHAN AYUKT, JAIPUR VIDE ORDER DATED 5-04-1972. THE ISSUE IN QUESTION ARISES FROM THE SUBMISSION OF THE LD. AR OF THE TRUST THAT THE ASSESSEE TRUST WAS EST ABLISHED BEFORE THE COMMENCEMENT OF THE INCOME TAX ACT, 1961 AND THE P ROVISIONS OF SECTION 13(1)(B) ARE NOT APPLICABLE. THE PRAYER OF THE LD. AR OF THE ASSESSEE TRUST WAS THAT THE HE WAS NOT PROVIDED A N OPPORTUNITY OF BEING HEARD INTO THE MERITS OF THE TRUST. HENCE, IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL OF THE ASSESS EE TRUST IS RESTORED TO THE FILE OF THE LD. CIT (EXEMPTIONS) TO DECIDE IT A FRESH BY PROVIDING ITA NO. 530/JP/2016 DIGAMBER JAIN MANDIR SHRI NEMINATH SANWALAJI VS. CI T (EXEMPTION) JAIPUR . 5 REASONABLE OPPORTUNITY OF BEING HEARD TO THE LD. AR OF THE ASSESSEE TRUST. THE LD. AR OF THE ASSESSEE TRUST IS ALSO DIRECTED T O SUBMIT ALL THE RELEVANT PAPERS CONCERNING THE REGISTRATION OF THE TRUST BEF ORE THE LD. CIT (EXEMPTIONS). THUS THE APPEAL OF THE ASSESSEE TRUST ALLOWED FOR STATISTICAL PURPOSES. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 -12-2 016. SD/- SD/- DQY HKKJR HKKXPUN (KUL BHARAT) ( BHAGCHAND) U;KF;D LNL; / JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/12/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- DIGAMBAR JAIN MANDIR SHRI NEMINAT HJI SANWALJI, JAIPUR 2. VK;DJ VK;QDR@ CIT (EXEMPTION). 3. VK;DJ VK;QDR@ CIT, 4. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 5. XKMZ QKBZY@ GUARD FILE (ITA NO. 530/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR