AUM SHREE MAHAKAAL BHAIRAVNATH TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 5980/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5816 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-03-2014
• Assessment Year: misc
• Appeal Filed On: 26-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S J SINGH
• Assessee Lawyers: SAMEER G DALAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 80G; 12A; 12AA; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI . .. . . . . . , ,, , !'# !'# !'# !'# $ $ $ $ %&. ! !! !. .. .' '' '. .. . . . . . $( $( $( $(, ,, , ) !'# ) !'# ) !'# ) !'# !* !* !* !* BEFORE SHRI P.M. JAGTAP, AM AND DR. S.T.M. PAVALAN, JM !./ I.T.A. NO. 5980/MUM/2011 ( )( , $-, )( , $-, )( , $-, )( , $-, / / / / ASSESSMENT YEAR : NOT APPLICABLE ) AUM SHREE MAHAKAAL BHAIRAVNATH TRUST PLOT NO.171, D-5 GORAI(2) SHRINAGAR CHSL R.S.C.51, BORIVALI WEST, MUMBAI 400091 ( ( ( ( / VS. DIRECTOR OF INCOME - TAX (EXEMPTION), 6 TH FLOOR PIRAMAL CHAMBERS, LALBAUG, MUMBAI-400012 #. ! ./ PAN : AACTA8940M ( ./ / // / ASSESSEE ) .. ( 01./ / RESPONDENT ) ASSESSEE BY : SAMEER G. DALAL 01./ 7 8 ! / RESPONDENT BY : S.J.SINGH ! ($ 7 / // / DATE OF HEARING : 19/03/2014 9:- 7 / DATE OF PRONOUNCEMENT : 28/03/2014 '; / O R D E R PER P.M.JAGTAP, AM :- . .. . . .. . , ,, , !'# !'# !'# !'# THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. DIT(EXEMP.), MUMBAI, DATED 28/07/2011, WHER EBY HE GRANTED THE REGISTRATION TO THE ASSESSEE ONLY AS A RELIGIOU S TRUST WITH EFFECT FROM 06/07/2010 WHILE DISPOSING OF THE APPLICATION FOR REGISTRATION AS CHARITABLE TRUST U/S 12A. 2 ITA NO.5980/MUM/2011 AUM SHREE MAHAKAL BHAIRAVNATH TRUST. 2. THE ASSESSEE IN THE PRESENT CASE IS A TRUST CON STITUTED BY TRUST DEED DATED 11/03/2010 AND REGISTERED WITH THE CHARI TY COMMISSIONER ON 06/07/2010. APPLICATION FOR REGIST RATION U/S 12A OF INCOME-TAX ACT, 1961 WAS FILED BY THE ASSESSEE I N THE PRESCRIBED FORM ON 24/01/2011 AND WHILE DISPOSING OF THE SAID APPLICATION VIDE ORDER DATED 28/07/2011, THE LD. DIT (EXEM), MUMBAI, GRANTED THE REGISTRATION TO THE ASSESSEE ONLY AS RELIGIOUS TRUS T W.E.F. 06/07/2010 BY OBSERVING AS UNDER:- 2. THE NAME OF THE TRUST/INSTITUTION HAS BEEN ENTE RED AT NO.44285 IN THE REGISTER OF APPLICATION U/S 12A(A) OF THE INCOME TA X ACT, 1961 MAINTAINED IN THIS OFFICE. 3. NO CHANGE IN THE DEED OF THE TRUST/ASSOCIATION S HALL BE EFFECTED WITHOUT DUE PROCEDURE OF LAW I.E. BY THE ORDER OF T HE JURISDICTIONAL HIGH COURT AND ITS INTIMATION SHALL BE GIVEN IMMEDIATELY TO TH IS OFFICE. 4. THE REGISTRATION U/S 12AA OF THE I.T. ACT, 1961, DOES NOT AUTOMATICALLY EXEMPT THE INCOME OF THE TRUST /INSTITUTION. THE Q UESTION OF TAXABILITY OF THE INCOME OF THE TRUST/INSTITUTION SHALL BE EXAMINED A ND DECIDED UPON BY THE ASSESSING OFFICER (A.O.) BASED ON THE ACTIVITIES, C OMPLIANCE WITH VARIOUS STATUTORY AND OTHER REQUIREMENTS, ETC, WITHOUT PREJ UDICE TO THE FACT OF GRANTING MERE IN PRINCIPLE REGISTRATION BY THIS ORDER. 5. THE REGISTRATION U/S.12AA OF THE I.T. ACT, 1961 DOES NOT AUTOMATICALLY CONFER ANY RIGHT OF DEDUCTION U/S 80G TO THE DONORS . 3. AGGRIEVED BY THE ORDER OF THE DIT (EXEMP.) PASSE D U/S 12AA GRANTING IT REGISTRATION ONLY AS RELIGIOUS TRUST, T HE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LD. C OUNSEL FOR THE ASSESSEE HAS POINTED OUT FROM THE RELEVANT TRUST DE ED THAT ALTHOUGH THE FIRST FEW OBJECTS ARE OF RELIGIOUS NATURE, THE REMAINING OBJECTS OF THE ASSESSEE TRUST ARE OF CHARITABLE NATURE. HE HA S CONTENDED THAT THE ASSESSEE ACTUALLY HAS PURSUED MAINLY THESE CHAR ITABLE OBJECTS AND SINCE NO OPPORTUNITY OF HEARING WAS GRANTED BY THE LD. DIT (EXEMP) BEFORE PASSING THE IMPUGNED ORDER TREATING THE ASSE SSEE AS RELIGIOUS 3 ITA NO.5980/MUM/2011 AUM SHREE MAHAKAL BHAIRAVNATH TRUST. TRUST, THE ASSESSEE COULD NOT SUPPORT AND SUBSTANTI ATE ITS CASE FOR REGISTRATION AS A CHARITABLE TRUST. HE HAS CONTEND ED THAT MATTER MAY THEREFORE BE REMITTED BACK TO THE LD. DIT(EXEMP) FO R GIVING SUCH OPPORTUNITY. SINCE THE LD. DR HAS NOT RAISED ANY O BJECTION IN THIS REGARD, WE SET-ASIDE THE IMPUGNED ORDER OF THE LD. DIT (EXEMP) PASSED U/S 12A OF THE ACT AND REMAND THE MATTER BACK TO HI M FOR DISPOSING OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12A OF THE ACT AFRESH ON MERIT AFTER GIVING A PROPER AND SUFFICIEN T OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MARCH 2014. '; 7 9:- <'(= 28TH B, ,2014 : 7 SD/- SD/ - ( DR. S.T.M. PAVALAN ) ( P.M. JAGTAP ) ) !'# / JUDICIAL MEMBER !'# / ACCOUNTANT MEMBER MUMBAI; <'( DATED.- 28 /03/2014 F{X~{T? P.S/. )(.!. '; 7 0)CD ED- '; 7 0)CD ED- '; 7 0)CD ED- '; 7 0)CD ED-/ COPY OF THE ORDER FORWARDED TO : 1. ./ / THE APPELLANT 2. 01./ / THE RESPONDENT. 3. F ( ) / THE CIT(A)- CONCERNED, MUMBAI 4. F / CIT CONCERNED, MUMBAI 5. D$I 0))( , , / DR, ITAT, MUMBAI E BENCH 6. %, J / GUARD FILE. ';( ! ';( ! ';( ! ';( ! / BY ORDER, !1D 0) //TRUE COPY// K KK K/ // /!L !L !L !L (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI