BHAGWAN ADINATH JANKALYAN SAMITI, Jaipur V. CIT, Jaipur

ITA 578/JPR/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2135 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 01-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 578/JP/2016 APPLICATION UNDER SECTION: 12AA BHAGWAN ADINATH JANKALYAN SAMITI, ADINATH DIGEMBER JAIN MANDIR, GOPALPURA BYPASS ROAD, MANGAL VIHAR COLONY, JAIPUR. CUKE VS. COMMISSI ONER OF INCOME TAX (EXEMPTION), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABAB 4281 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH KHANDELWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/08/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR DATED 31.03.2016. THE ASSESSEE HAS RAISED THE FOLLOWINGS GROUNDS OF A PPEAL:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(E) HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICAT ION OF THE ASSESSEE INSTITUTION FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND OR ALTER ANY OF THE GROUNDS OF APPEAL BEFORE HEARING. 2. THE ONLY EFFECTIVE GROUND IS AGAINST REJECTION O F APPLICATION SEEKING REGISTRATION U/S 12AA OF THE INCOME TAX ACT 1961 (H EREINAFTER REFERRED TO AS THE ACT). 2 ITA NO. 578/JP/2016. BHAGWAN ADINATH JANKALYAN SAMITI, JAIPUR. 3. BRIEFLY, STATED THE FACTS ARE THAT, THE ASSESSEE MADE AN APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12AA OF THE ACT. THE SAID APPLICATION WAS REJECTED BY THE LD. CIT(E), ON THE GROUND THAT THE OBJECT OF THE SAMITI ARE NOT CHARITABLE IN NATURE AND THEY ARE FOR THE BENEFIT OF THE PARTICUL AR RELIGIOUS COMMUNITY. 4. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBM ISSION AS MADE IN THE WRITTEN SYNOPSIS. THE WRITTEN SUBMISSIONS OF THE ASSESSEE ARE REPRODUCED AS UNDER:- ARGUMENTS : THE ALLEGATION THAT THE APPELLANT EXIST ONLY FOR A PARTICULAR COMMUNITY IS WRONG AS JAINISM IS THE PHILOSOPHY AND PRESERVATION OF SYMBOL OF SUCH PHILOSOPHY WOULD DEFINITELY COME INTO THE E MBRACE OF THE WORD CHARITABLE. IN THE OBJECTS CLAUSE ALL THE OBJECTS R UNNING FROM SERIAL NO. 1 TO 15 ARE FOR THE BENEFIT OF GENERAL PUBLIC. AS A MATTER OF FACT THE APPELLANT IN ADDITION TO MAINTAINING TEMPLE OF LORD ADINATH, MAI NTAINS A DRINKING WATER OUTLET, A READING HALL AND RUNS A CHARITABLE HOMEOP ATHIC DISPENSARY ALSO PROVIDING FREE MEDICAL TREATMENT TO PUBLIC AT LARGE , WITHOUT ANY DISCREMINATION. HENCE THE OBJECTS FALL UNDER THE CA TEGORY OF CHARITABLE PURPOSE AND CAN NOT BE CONSTRUED AS SOLELY FOR THE BENEFIT OF PARTICULAR RELIGIOUS COMMUNITY. RELIANCE IS PLACED ON 364 ITR 31 (SC) CIT V/S DAWOODI BOHARA JAMAT AND ON THE CASE OF SHRI DIGAMBAR JAIN MANDIR GODHAJI, NAGORION KA CHOWK, JOHARI BAZAR, JAIPUR - ITA NO. 742/JP/2015 ORDER DATED 28/07/2016 OF THIS HON`BLE BENCH WHEREIN ON ABSOLUTELY SIMILAR FACTS THE CIT (E) WAS DIRECTE D TO GRANT REGISTRATION. FURTHER THE PRINCIPLES ADOPTED AND ENUNCIATED BY LO RD MAHAVEER CAN NOT BE SAID AS BELONGING TO JAIN COMMUNITY ONLY AS SUCH PR INCIPLES ARE FOLLOWED BY COMMON MAN. EVEN THE TEMPLE MAINTAINED BY THE APPEL LANT SOCIETY DO NOT RESTRICT THE ENTRANCE OF PERSONS OF ONLY JAIN COMMU NITY. ANY PERSON ON THE EARTH IS ENTITLED TO ENTER INTO THE TEMPLE OF THE A PPELLANT SOCIETY AND HENCE ON THE BASIS OF OBJECT CLAUSE NO. 1 THE INSTITUTIO N CAN NOT BE SAID AS EXISTING FOR THE BENEFIT OF ANY PARTICULAR COMMUNITY. FURTHE R CLAUSE NO. 7 AS 3 ITA NO. 578/JP/2016. BHAGWAN ADINATH JANKALYAN SAMITI, JAIPUR. HIGHLIGHTED BY THE LD. CIT (E) IS ONLY IN CONSEQUEN CE TO CLAUSE NO. 1 AND CAN NOT BE SAID AS EXTENDING BENEFITS TO A PARTICULAR C OMMUNITY. FURTHER THE REGISTERING AUTHORITY AT THE TIME OF RE GISTRATION IS NOT EMPOWERED TO LOOK INTO THE ISSUE WHETHER THE ASSESSEE HAS VIO LATED THE PROVISIONS OF SECTION 13(1)(B) OF THE I.T. ACT, 1961. IN THE PRES ENT CASE THE LD. CIT (E) HAS UNDERTAKEN THIS EXERCISE WHICH IS VIOLATIVE TO THE JUDICIAL PRONOUNCEMENTS. RELIANCE IS MADE ON THE JUDGEMENT OF THIS HON`BLE I TAT IN THE CASE OF BHAGWAN MAHAVIR PURUSHARTH PRERNA NIDHI NYAS V/S CI T (144 TTJ 379 JAIPUR ITAT) WHEREIN IT WAS STATED THAT SECTION 13(1)(B) DOES N OT SAY THAT CONDITIONS MENTIONED THEREIN SHALL APPLY TO SE CTION 12AA. SECTION 13(1) REFERS TO PREVIOUS YEAR AND REGISTRATION IS NOT FOR A PARTICULAR PREVIOUS YEAR AND THE BASIC PURPOSE OF SAID SECTION IS NOT TO ALL OW EXEMPTION OF INCOME IF TRUSTEES MAKE SOME VIOLATION IN SOME PARTICULAR YEA R BUT SUCH VIOLATION SHALL NOT AFFECT THE REGISTRATION. THE OTHER OBJECTION ABOUT NATURE OF CERTAIN EXPENDI TURES CAN NEVER BE A SUBJECT MATTER OF REJECTION OF APPLICATION FOR REGI STRATION AS HELD BY VARIOUS JUDICIAL AUTHORITIES. IT IS SUBJECT MATTER OF VERIF ICATION DURING ASSESSMENT PROCEEDINGS AS HELD BY THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT, 185 ITR 634 AND HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. SURYA EDUCATION AND CHARITABLE TRUST, (2013) 355 ITR 280 (P&H) . HOWEVER THE EXPENSES SO INCURRED BY THE APPELLANT ARE ONLY FOR PURSUING THE OBJECTS OF THE SAMITI ONLY. 5. LD. D/R OPPOSED THE SUBMISSIONS. 6. HOWEVER, DURING THE COURSE OF HEARING, LD. COUNS EL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST WOULD MAKE THE NE CESSARY AMENDMENT IN ITS OBJECTS TO DISPEL THE IMPRESSION, THAT THIS ASSESSE E TRUST IS FOR BENEFIT OF THE PARTICULAR RELIGIOUS. WITHOUT PREJUDICE TO THE FAC T THAT THE OBJECTS OF THE TRUSTS ARE 4 ITA NO. 578/JP/2016. BHAGWAN ADINATH JANKALYAN SAMITI, JAIPUR. IN THE NATURE OF CHARITABLE AND IN PARTICULAR, IT I S NOT RESTRICTED TO A PARTICULAR RELIGIOUS COMMUNITY. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CONSIDER ED THE MATERIAL AVAILABLE ON RECORD. AFTER CONSIDERING THE TOTALITY OF THE FACT AND THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, WE DEEM IT PROPER TO REST ORE THE APPLICATION TO THE LD. CIT(E) FOR THE DECISION AFRESH AFTER THE ASSESSEE F URNISHES THE AMENDED AMENDMENT INTO THE OBJECTS OF THE TRUST. 8. IN THE RESULT, APPEAL OF THE ASSESSEEIN ITA NO. 578/JP/2016 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER IS PRONOUNCED IN THE OPEN COURT ON WEDNESDAY , THE 16 TH DAY OF AUGUST 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 16/08/2017 POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- BHAGWAN ADINATH JANKALYAN SAMITI , JAIPUR. 2. THE RESPONDENT COMMISSIONER OF INCOME TAX (EXE MPTION), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 578/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 578/JP/2016. BHAGWAN ADINATH JANKALYAN SAMITI, JAIPUR.