SUKOON ACDEMY OF SPRITUAL SCIENCES SOCIETY, Jaipur V. CIT, Jaipur

ITA 61/JPR/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70134 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 19-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K KHANDELWAL
• Keywords: Charitable institution
• Section: 12AA; 11

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI B.R. JAIN AND SHRI KUL BHARAT) ITA NO. 61/JP/2012 UNDER SECTION 12AA OF I.T. ACT, 1961 PAN: AAFAS 9668 E M/S. SUKOON ACADEMY OF SPIRITUAL SCIENCES SOCIETY VS. THE CIT B-99A, UNIVERSITY MARG, BAPU NAGAR, JAIPUR JAIPU R-II, JAIPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MANISH AGARWAL DEPARTMENT BY: SHRI A.K. KHANDELWAL DATE OF HEARING: 21-08-2013 DATE OF PRONOUNCEMENT: 21-08-2013 ORDER PER KUL BHARAT, JM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. CIT(A), JAIPUR II, JAIPUR DATED 18-11-2011 WHEREIN THE SOLITARY GROUND OF THE ASSESSEE IS THAT THE LD. CIT, JAIPUR II, JAIPUR HAS ERRED IN REJECTING THE APPLICATION U/S 12AA OF THE I.T. ACT, 1961 BY HOLDING THAT THE OBJECTS ARE MIXED, CHARITA BLE AS WELL AS RELIGIOUS. 2.1 BRIEFLY, THE FACTS STATED ARE THAT THE ASSESSEE SOCIETY FILED AN APPLICATION BEFORE THE LD. CIT SEEKING REGISTRATION U/S 12AA OF I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) ON 30-05-2011. THE LD. CIT AFTER CONSIDERING THE SU BMISSIONS OF THE ASSESSEE REJECTED THE APPLICATION ON THE GROUND THAT OBJECTS ARE MIXED, C HARITABLE AS WELL AS RELIGIOUS. THEREFORE, THERE IS A VIOLATION OF PROVISION OF SEC TION 11 OF THE ACT. 2.2 DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ORDER OF THE LD. CIT IS NOT JUSTIFIED. THE LD. COUN SEL FOR THE ASSESSEE HAS FILED THE WRITTEN SUBMISSION TO THIS EFFECT. 2 2.3 ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORD ER OF THE LD. CIT AND FURTHER SUBMITTED THAT AS PER LAW THE OBJECTS ARE TO BE CHA RITABLE BUT IN THE CASE OF THE ASSESSEE THE OBJECTS ARE MIXED. 2.4 WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED TH E MATERIALS AVAILABLE ON RECORD. WE FIND THAT THE LD. CIT HAS REJECTED THE APPLICATI ON OF THE ASSESSEE SOCIETY ON THE GROUND THAT THE OBJECTS AS PER CLAUSE 3 (13) ARE NOT RELIG IOUS. HOWEVER, THE CLAUSE 3(13) OF THE SOCIETY IS REPRODUCED AS UNDER:- 13 LKSLK;VH }KJK HKKJRH; XZUFKKS TSLS] HKKXOR XHRK] JK EK;.K O VU; }KJK EKUORK DK IKB I<+K;K TKDJ YKSXKSSA O CPPKSA DKS VKNKZOKNH O VKKKDKJH CUKUSA ESA ;KSXNKU NSUKAAA 2.5 WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO T HE REASONS AS GIVEN BY THE LD. CIT FOR REJECTING THE APPLICATION OF THE ASSESSEE SOCIE TY. THE REASONS AS GIVEN BY THE LD. CIT IS THAT THE SOCIETY HAS DONE ITS OBJECT OF GIVING EDUC ATION ON TEACHING THE SCRIPTURES LIKE BHAGWAD GITA, RAMAYAN ETC FOR MAKING THE CHILDREN A ND PEOPLE AS HUMAN BEING. IN OUR CONSIDERED VIEW, SUCH CLAUSE CANNOT BE TERMED AS PU RELY RELIGIOUS. IT DOES NOT STIPULATE THAT TEACHING AS EMBODIED IN BHAGWAD GITA AND RAMAY AN WOULD BE TAUGHT ONLY TO THE FOLLOWER OF A PARTICULAR RELIGION. MOREOVER, THE SA ME CLAUSE ALSO ENVISAGES THE SCRIPTURES AND OTHER INDIAN SCRIPTURES WOULD INCLUDE THE TEACH ING IN OTHER SCRIPTURES. THEREFORE, IN OUR VIEW THE CLAUSE IS PURELY SECULAR CLAUSE AND NO T A RELIGIOUS CLAUSE. WE ARE ALSO FORTIFIED BY THE DECISION OF HON'BLE MADRAS HIGH C OURT IN THE CASE OF CIT, MADURAI VS. ARULMIGU SRI KMACHI AMMAN TRUST, 206 TAXMAN 69 WHER EIN IT HAS BEEN HELD THAT APPLICATION CANNOT BE REJECTED ON THE GROUND THAT T HE TRUST HAD A MIXTURE OF BOTH RELIGIOUS AND CHARITABLE PURPOSES. FOLLOWING THE SAME, WE RES TORE THIS MATTER TO THE FILE OF THE LD. CIT TO DECIDE THE APPLICATION OF THE ASSESSEE FOR G RANT OF REGISTRATION AFRESH IN THE LIGHT OF 3 THE DECISION RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE AND MORE PARTICULARLY THE DISCUSSIONS MADE HEREINABOVE IN RESPECT OF THE CLAU SE 3 (13) OF THE OBJECTS OF THE SOCIETY. THUS THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES . THE ORDER PRONOUNCED IN THE OPEN COURT IMMEDIATELY AFTER CONCLUSION OF HEARING ON 21-08-2013. SD/- SD/- (B.R. JAIN) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR DATED: 21 ST AUG, 2013 *MISHRA COPY FORWARDED TO:- BY ORDER 1. M/S. SUKOON ACADEMY OF SPIRITUAL SCIENCES SOCIE TY, JAIPUR 2. THE LD. CIT, JAIPUR II, JAIPUR 3. THE LD. CIT 4. THE LD. DR 5. THE GUARD FILE (IT NO.61/JP/12 ) A.R. ITAT: JAIPUR 4 5