M/s Maharshi World peace Turst , Bhopal V. Commissioner of Income-tax -Exemption, Bhopal

ITA 553/Ind/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4133 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 07-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Assessee Lawyers: N D PATWA
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

MAHARASHI WORLD PEACE TRUST ITA NO.553/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.553/IND/2017 REVENUE BY S HRI LAL CHAND, CIT ASSESSEE BY SHRI N.D. PATWA ,C.A DATE OF HEARING 11 .10 . 2018 DATE OF PRONOUNCEMENT 12 .10 .20 18 O R D E R PER MANISH BORAD, AM. THIS APPEAL OF ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX-EXEMPTIONS, BHOPAL (IN S HORT CIT(A)), DATED 24.05.2017 WHICH IS ARISING OUT OF THE ORDER U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT 1961(HEREINAF TER CALLED AS THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS; M/S. MAHARASHI WORLD PEACE TRUST, MCEE CAMPUS, LAMBAKHEDA, BERASIA ROAD, BHOPAL VS. COMMISSIONER OF INCOME TAX-EXEMPTION, BHOPAL ( APPELLANT ) (RESPONDENT ) PAN NO. A ACTM1734D MAHARASHI WORLD PEACE TRUST ITA NO.553/IND/2017 2 01. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER DATED 24.5.2017 PASSED BY THE HON'BLE CIT (EXEMPTIO N), BHOPAL, REFUSING TO GRANT THE REGISTRATION U/ S 12AA OF THE INCOME TAX ACT, 1961 TO THE APPELLANT IS BAD IN LAW, PERVERSE AND PASSED IN AN ARBITRARY MANNER. 02. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE HON'BLE CIT (EXEMPTION), BHOPAL HAS ERRED IN LAW IN NOT GRA NTING REGISTRATION U/ S 12AA OF INCOME TAX ACT, 1961 TO THE APPELLANT. TH EREFORE, IT IS PRAYED THAT PROPER DIRECTIONS MAY KINDLY BE ISSUED TO THE HON'BLE CIT- (EXEMPTION) TO GRANT REGISTRATION ULS 12AA AS APPLI ED BY THE APPELLANT. 03. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE HON'BLE CIT (EXEMPTION) WHILE NOT GRANTING REGISTRATION U/S 12AA OF INCOME TAX ACT, 1961 TO THE APPELLANT HAS GROSSLY ERRED IN PLA CING SOLE RELIANCE ON THE ASPECT THAT THE APPELLANT IS NOT REGISTERED UND ER THE PROVISIONS OF THE MP PUBLIC TRUST ACT, 1951, AT THE SAME TIME NOT CON SIDERING THAT THE PROVISIONS OF INCOME TAX ACT, 1961 DO NOT MANDATE F OR HAVING A REGISTRATION UNDER THE MP PUBLIC TRUST ACT, 1951 FO R THE PURPOSE OF HAVING REGISTRATION U] S 12AA UNDER THE INCOME TAX ACT, 1961. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT LD. CIT-EXEMPTIONS, BHOPAL DENIED THE REGISTRATION U/S 12AA OF THE ACT MERELY FOR THE REASON THAT THE ASSESSEE WAS NOT REG ISTERED AS A PUBLIC TRUST AS PER M.P PUBLIC TRUST ACT 1951. HE CONTENDED THAT THERE IS NO REQUIREMENT AS PER THE PROVISIONS OF IN COME TAX ACT FOR MAHARASHI WORLD PEACE TRUST ITA NO.553/IND/2017 3 THE PURPOSE OF REGISTRATION AS A PUBLIC TRUST IN OR DER TO GET THE REGISTRATION U/S 12AA OF THE INCOME TAX ACT. 4. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE SUPPO RTED THE ORDER OF LD.CIT-EXEMPTIONS. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE TRUST APPLIED FOR R EGISTRATION U/S 12AA OF THE I.T ACT IN FORM NO.10A ON 17.11.2016. PERUSAL OF THE ORDER OF LD.CIT-EXEMPTIONS, BHOPAL REJECTING THE AS SESSEES APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT SH OWS THAT IT WAS MERELY ON ACCOUNT THAT THE ASSESSEE TRUST DID NOT G ET ITSELF REGISTERED AS A PUBLIC CHARITABLE WITH REGISTRAR OF PUBLIC TRUST, MADHYA PRADESH. NOWHERE IN THE ORDER OF CIT-EXEMPT ION HAS ANY MENTION ABOUT THE OBJECTION RAISED AGAINST THE OBJE CTS OF THE TRUST AND THE GENUINENESS OF ACTIVITIES CARRIED OUT. 6. AS PER THE PROVISIONS OF SECTION 12AA(1) OF THE ACT PROVIDES THAT PRINCIPAL COMMISSIONER OR COMMISSIONER, ON RE CEIPT OF APPLICATION FOR REGISTRATION OF THE TRUST OR INSTIT UTION MADE UNDER CLAUSE A OR CLAUSE AA OF SUB-SECTION 1 OF SECTION 1 2A CAN CALL FOR MAHARASHI WORLD PEACE TRUST ITA NO.553/IND/2017 4 SUCH DOCUMENTS OR INFORMATION AS HE THINKS NECESSAR Y IN ORDER TO SATISFY HIMSELF ABOUT THE OBJECTS AND GENUINENESS O F ACTIVITIES OF THE TRUST OR INSTITUTION AND ALSO MAKE SUCH ENQUIRIES A S HE MAY DEEM NECESSARY IN THIS BEHALF AND AFTER SATISFYING HIMSE LF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINE NESS OF ITS ACTIVITIES HE MAY PASS AN ORDER IN WRITING REGISTER ING THE TRUST OR INSTITUTION OR IF HE IS NOT SO SATISFIED, HE MAY PA SS AN ORDER IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUT ION. PROVISION OF SECTION 12AA(1) OF THE ACT REFERS TO THE TRUST OR INSTITUTION. THERE SEEMS TO BE NO REQUIREMENT FOR A TRUST TO BE MANDATORILY REGISTERED AS A PUBLIC CHARITABLE TRUST IN THE STAT E OF INDIA WHERE IT IS LOCATED. THE ACTION OF LD.CIT-EXEMPTIONS DENYIN G THE REGISTRATION MERELY FOR THE REASON THAT THE ASSESSE E TRUST WAS NOT REGISTERED AS A PUBLIC CHARITABLE TRUST CANNOT BE H ELD TO BE JUSTIFIED. 7. WE THEREFORE ARE OF CONSIDERED VIEW THAT THE ISS UE OF REGISTRATION U/S 12AA OF THE ACT NEEDS TO BE SET AS IDE TO THE FILE OF LD.CIT-EXEMPTIONS FOR DENOVO ADJUDICATION AS PER THE PROVISIONS OF I.T. ACT SO AS TO SATISFY HIMSELF ABOUT THE GENUINE NESS OF THE MAHARASHI WORLD PEACE TRUST ITA NO.553/IND/2017 5 ACTIVITIES AS WELL AS OBJECTS OF THE TRUST TO BE A CHARITABLE IN NATURE. NEEDLESS TO SAY THAT PROPER OPPORTUNITY OF BEING HE ARD SHOULD BE PROVIDED TO THE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSE. THE ORDER PRONOUNCED IN THE OPEN COURT ON 12.10.201 8. SD/ SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 12 OCTOBER, 2018 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSTT.REGISTRAR,I.T.A.T., INDORE