Shri 5 Navtanpuridham Gaushala Trust, JAMNAGAR V. The Commr. of Income Tax, JAMNAGAR

ITA 531/RJT/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0500 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 11-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DS VARIA
• Keywords: Charitable institution
• Section: 12AA; 12

Judgement Text

ITA NO .5 31 /RJT/2014 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] ITA NO. 531 / RJT / 2 0 1 4 SHRI 5 NAVTANPURIDHAM GAUSHALA TRUST ....... .. . ..... APPELLANT KHJIJADA MANDIR, NAVTANPURIDHAM CHOWK, KHAMBHALIA GATE, JAM NAGAR. [PAN A A M T S 9349 A ] VS. COMMISSIONER OF INCOME TAX , ....... ..................RESPONDENT JAMNAGAR . APPEARANCES BY: D.S. VARIA FOR THE A PPELLANT YOGESH PANDEY FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : OCTOBER 6 TH , 201 5 DATE OF P RONOUNCING THE ORDER : OCTOBER 7 TH , 2015 O R D E R PER PRAMOD KUMAR AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPLICANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 14 TH JULY , 2014 PASSED BY THE LD. CIT , REJECTING GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER) . 2. LD. COUNSEL FOR THE ASSESSEE INVITES OUR ATTENTION TO THE FACTS THAT THE REGISTRATION HAS BEEN DECLINED ON THE SHORT GROUND THAT THE ASSESSEE COULD NOT INCLUDE THE PROVISIONS IN THE RELATED TR UST DEED TO THE EFFECT THAT UPON THE DISSOLUTION , IF ANY PROPERTY REMAINS AFTER SATISFACTION OF ITS DEBT S AND LIABILITIES , THE SAME SHALL BE TRANSFERRED TO ANOTHER T RUST HAVING SIMILAR OBJECTS. HE FURTHER POINTS OUT THAT THIS ISSUE IS NO W COVERED IN FAVOU R OF THE ASSESSEE BY THE DIVISION BENCH ORDER OF THE TRIBUNAL IN ITA NO .5 31 /RJT/2014 PAGE 2 OF 4 THE CASE OF SHREE CHARG AM DASHA PORWAD VS. DIRECTOR OF INCOME TAX (EXEMPTION) IN ITA NOS.337 & 338/AHD/2013 , ORDER DATED 08.05.2013 . 3. LD. D EPARTMENTAL REPRESENTATIVE, HOWEVER , INVITES OU R ATTENTION TO SMC ORDER DATED 20 TH JUNE 201 3 IN THE CASE OF LATE SHRI MOHA NLAL KANJIBHAI PANSARA EDUCATION & CHARITABLE TRUST VS. CIT WHEREIN THE MATTER WAS SET ASIDE TO THE FILE OF A . O . FOR APPROPRIATE MODIFICATION IN THE TRUST DEED. 4. HEAVING HEARD TH E RIVAL CONTENTIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE A RE OF THE CONSIDERED VIEW THAT THE ISSUE IS NO W COVERED IN FAVOUR OF THE ASSESSEE , IN PRINCIPLE, BY THE JUDGEMENT DATED 25.03.2015 OF HON BLE HIGH COURT OF GUJARAT AT AHMEDABAD IN THE CASE OF CIT VS. TAPAGACHHA SANGH MOTA (TAX APPEAL NOS.915, 916 & 917 OF 2014) , WHEREIN THEIR LORDSHIP S HAVE HELD AS FOLLOWS: - 12. FROM THE ORDERS PASSED BY THE COMMISSIONER REFUSING TO GRANT REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT AND EVEN FROM THE ORDER PASSED BY THE LEARNED TRIBUNAL, IT APPEARS THAT NONE OF THE AUTHORITIES BELOW HAVE CONSIDERED THE ABOVE MATERIAL AND RELEVANT ASPECT WITH RESPECT TO THE SATISFACTION OF THE COMMISSIONER WITH RESPECT TO GENUINENESS OF THE TRUST. IN A GIVEN CASE E VEN IN ABSENCE OF ANY PROVISION IN THE TRUST WITH RESPECT TO DISSOLUTION CLAUSE IF ON FACTS THE TRUST IS FOUND TO BE GENUINE AND/OR GENUINENESS OF THE TRUST IS ESTABLISHED, THE TRUST MAY BE ENTITLED TO REGISTRATION UNDER SECTION 12AA OF THE ACT, HOWEVER SUBJECT TO FULFILMENT OF CONDITIONS UNDER SECTION 12 AA OF THE ACT I.E. WHEN THE COMMISSIONER IS SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR THE INSTITUTION. AS OBSERVED HEREIN ABOVE, BOTH THE COMMISSIONER AS WELL AS LEARNED TRIBUNAL HAVE NOT ADDRESSED THEMSELVES ON THE AFORESAID RELEVANT ASPECT, WE ARE OF THE OPINION THAT MATTERS ARE REQUIRED TO BE REMITTED BACK TO THE FILE OF THE COMMISSIONER AND REMANDED T O THE LEARNED COMMISSIONER TO CONSIDER THE ISSUE/GRANT OF REGISTRATION CERTIFI CATE UNDER SECTION 12AA OF THE ACT AFRESH IN ACCORDANCE WITH LAW AND ON MERITS AND TO CONSIDER THE GENUINENESS OF THE TRUST/INSTITUTION/GENUINENESS OF THE ACTIVITIES OF THE TRUST AFTER GIVING AN OPPORTUNITY TO THE TRUST TO MAKE SUBMISSIONS AND/OR PRODUCE O N RECORD ANY MATERIAL IN RESPECT OF THEIR CASE THAT THERE IS NO REASON TO DOUBT THE GENUINENESS OF THE ACTIVITIES OF THE T R UST. ITA NO .5 31 /RJT/2014 PAGE 3 OF 4 13. IN VIEW OF THE ABOVE AND FOR THE REASONS STATED ABOVE, ALL THE APPEALS SUCCEED IN PART. THE IMPUGNED JUDGEMENT AND ORDERS PASSED IN ITA NO . 440/RJT/2013, ITA NO.441/RJT/2013 AND IT A NO. 442/RJT/2013 DATED 29.05.2014 AND 30.05.2014 RESPECTIVELY PASSED BY THE LEARNED ITAT AND THE ORDERS PASSED BY COMMISSIONER , JAMNAGAR REJECTING THE REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT TO THE RESPECTIVE ASSESSEE TRUSTS ARE HEREBY QUASHED AND SET ASIDE AND MAT T ERS ARE REMITTED TO FILE OF THE COMMISSIONER/ APPROPRIATE AUTHORITY TO CONSIDER THE APPLICATIONS OF THE RESPECTIVE ASSESSEE TRUST FOR ISSUANCE OF REGISTRATION CERTIFICATE UND ER/SECTION 12AA OF THE ACT AFRESH AND IN ACCORDANCE WITH LAW AND ON MERITS AND IN LIGHT OF THE OBSERVATIONS MADE HEREIN ABOVE AND AFTER GIVING AN OPPORTUNITY TO THE RESPONDENT TRUSTS TO PRODUCE ON RECORD ANY MATERIAL IF THEY SO CHOSE, IN SUPPORT OF THE GEN UINENESS OF THE ACTIVITIES OF THE TRUST. THE AFORESAID EXERCISE SHALL BE COMPLETED WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF RECEIPT OF THE PRESENT ORDER. IT WILL BE OPEN FOR THE TRUST TO SUBMIT ADDITIONAL MATERIAL, IF ANY, IN SUPPORT OF THEIR CLA IM THAT SINCE MANY YEAS TRUST IS FILING RETURN OF INCOME AND CLAIMING E XEMPTION UNDER SECTION 12AA OF THE ACT MEANING THEREBY TO ESTABLISH THE GENUINE NE SS OF THE TRUST AND/OR ITS ACTIVITIES, TO BE PRODUCED WITHIN A PERIOD OF ONE MONTH FROM THE DATE OF RECE IPT OF THE PRESENT ORDER AND THE SAME BE CONSIDERED BY THE APPROPRIATE AUTHORITY/CONCERN COMMISSIONER IN ACCORDANCE WITH LAW AND ON ITS OWN MERITS. WITH THIS, ALL THESE APPEALS ARE ALLOWED TO THE AFORESAID EX T EN T . IN THE FACTS AND CIRCUMSTANCES OF THE CA SE , THERE SHALL BE NO ORDER AS TO COSTS. 5. RESPECTFULLY FOLLOWING THE ESTEEMED VIEWS OF THE HON BLE JURISDICTIONAL HIGH COURT , WE REMIT THE MATTER TO THE FILE OF LD . CIT FOR FRESH CONSIDERATION IN T H E LIGHT OF DIRECTIONS OF HON BLE HIGH COURT OF GUJAR AT AS SET OUT ABOVE. THE SAME WILL APPLY MUTAT IS MUTANDIS IN THIS CASE AS WELL. 6. AS THE MATTER SANDS REMITTED TO THE FILE OF LD . CIT FOR FRESH ADJUDICATION AS ABOVE, WE SEE NO NEED TO DEAL WITH THE ISSUE AS REGARDS TO GENUINENESS OF THE ACTIVITIES AT T HIS STAGE. THAT ASPECT OF THE MATTER IS TO BE EXAMINED ON MERITS BY THE LD . CIT AND THE LD . CIT SHALL PASS A SPEAKING ORDER ON THE SAME IN ACCORDANCE WITH LAW AND AFTER GIVING A DUE AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NO .5 31 /RJT/2014 PAGE 4 OF 4 7 . IN THE RESULT , A PPEAL IS ALLOWED FOR STATISTICAL PURPOSES . P RONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF OCTOBER , 2015. SD/ - SD/ - RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT ME MBER) RAJKOT , THE 7 TH DAY OF OCTOBER , 2015 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX AP PELLATE TRIBUNAL RAJKOT BENCH, RAJKOT