Dr. Ramendra Mohan Mishra Memorial Trust, Faizabad V. Commissioner of Income Tax, Faizabad

ITA 617/LKW/2014

• Counselvise Citation: 61723714 RSA 2014
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K M DIXIT
• Assessee Lawyers: P K KAPOOR
• Keywords: Principle of natural justice
• Section: 80G; 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.617/LKW/2014 ASSESSMENT YEAR:N.A. DR. RAMENDRA MOHAN MISHRA MEMORIAL TRUST, RAJ SADAN, AYODHYA, FAIZABAD. PAN:AABTD2989C VS. COMMISSIONER OF INCOME TAX, FAIZABAD. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI P. K. KAPOOR, C.A. RESPONDENT BY SHRI K. M. DIXIT, CIT, D.R. DATE OF HEARING 03/09/2014 DATE OF PRONOUNCEMENT 2 1 /10/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT, FAIZABAD DATED 27/06/2014 PASSED BY HIM U/S 80G OF THE INCOME TAX ACT. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. BECAUSE THE 'CIT' HAS GROSSLY ERRED IN LAW AND ON FACTS IN HOLDING THAT THE 'APPELLANT' HAS NOT BEEN FULFILLING THE CONDITIONS LAID DOWN UNDER THE STATUTE FOR THE PURPOSES OF GRANTING APPROVAL UNDER SECTION 80G OF THE ACT. 2 2. BECAUSE THE 'APP ELLANT' TRUST HAS BEEN IMPARTING EDUCATION THROUGH THE SCHOOL SET UP BY IT AND ALL THE CONDITIONS [FOR GRANT OF APPROVAL UNDER SECTION 80G(5)] BEING FULLY SATISFIED THE CLAIM FOR APPROVAL UNDER SECTION 80G DESERVED TO BE ALLOWED, AND VIEW TO THE CONTRARY A S TAKEN BY THE CIT IS NOT SUSTAINABLE. 3. BECAUSE THE VIEW EXPRESSED BY THE 'CIT' FOR THE PURPOSES OF GRANTING APPROVAL UNDER SECTION 80G, IS NOT ONLY BEYOND THE SCOPE OF SECTION 80G BUT SUFFERS FROM CONTRADICTION ALSO. 4. BECAUSE THE 'CIT' AFTER FULL EXAMINATION OF THE OBJECTS OF THE TRUST AND ACTIVITIES CARRIED ON BY IT THEREUNDER HAS SEPARATELY GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT VIDE ORDER DATED 20.12.2013 (AS PER ANNEXURE - I HERETO) AND DENIAL OF APPROVAL UNDER SECTION 80G(5) SUFFERS FROM THE VICES OF ARBITRARINESS CONTRADICTION ALSO. 5. BECAUSE THE ORDER APPEALED AGAINST IS CONTRARY TO THE FACTS , LAW AND PRINCIPLES OF NATURAL JUSTICE. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE ASSESSEE TRUST HAS ALREADY BEEN GRA NTED REGISTRATION U/S 12AA OF THE ACT AS PER ORDER OF CIT, FAIZABAD DATED 20 TH DECEMBER, 2013 AND SUBMITTED COPY OF THE ORDER OF LEARNED CIT. HE FURTHER SUBMITTED THAT HAVING GRANTED REGISTRATION TO THE ASSESSEE U/S 12AA OF THE ACT, IT IS NOT JUSTIFIED ON THE PART OF THE SAME CIT TO SAY IN HIS ORDER U/S 80G THAT HE IS NOT SATISFIED THAT THE ASSESSEE TRUST WAS DOING ANY CHARITY FOR THE POOR OR NEEDY PEOPLE OF THE SOCIETY. HE ALSO SUBMITTED THAT IT CAN BE SEEN ON PAGE NO. 21 & 22 OF THE PAPER BOOK THAT THE ASSESSEE TRUST HAS TAKEN OVER THE MANAGEMENT OF MAHARAJA PUBLIC SCHOOL SITUATED AT AYODHYA, FAIZABAD SINCE THE ACADEMIC YEAR 2009 - 10 THROUGH WHICH IT HAS BEEN IMPARTING EDUCATION UP TO JUNIOR HIGH SCHOOL LEVEL. HE FURTHER SUBMITTED THAT THE SCHOOL WAS S HIFTED IN THE 3 BUILDING CONSTRUCTED AT A DIFFERENT SITE TAKEN ON LONG TERM LEASE F ROM ANOTHER TRUST NAMELY PRATAP DHARAM SETU. HE ALSO SUBMITTED THAT THE EDUCATION IS BEING PROVIDED AS PER THE FORMAT OF CBSE, DELHI AND AFFILIATION CERTIFICATE HAS BEEN ISSUED BY CBSE, NEW DELHI FOR THIS SCHOOL. HE ALSO SUBMITTED THAT ON PAGE NO. 22 IS A CHART OF NUMBER OF STUDENTS ENROLLED DURING ACADEMIC SESSION 2011 - 11, 2011 - 12 & 2012 - 13 FOR DIFFERENT STANDARD I.E. FROM CLASS 1 TO 8. HE POINTED OUT THAT THE TOTAL NUMBER OF STUDENTS IN ACADEMIC YEAR 2010 - 11 WAS 394, IN 2011 - 12 IT WAS 382 AND IN 2012 - 1 3 IT WAS 434. HE SUBMITTED THAT IN THE LIGHT OF THESE FACTS, WHICH WERE BROUGHT ON RECORD BEFORE CIT ALSO AS PER ITS LETTER DATED 18/02/2014 AVAILABLE ON PAGE NO. 12 TO 25, CIT WAS NOT JUSTIFIED IN SAYING THAT NO EVIDENCE WAS PLACED ON RECORD WHICH MAY LE AD TO CONCLUSION THAT THE ASSESSEE TRUST WAS DOING ANY CHARITY FOR POOR OR NEEDY PEOPLE. 4. ON THE OTHER HAND, LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN THE LIGHT OF THE FACTS, AS DISCUSSED ABOVE, WE FIND THAT THIS WAS VERY MUCH BROUGHT ON RECORD BEFORE LEARNED CIT ALSO THAT THE ASSESSEE HAS TAKEN OVER THE MANAGEMENT OF MAHARAJA PUBLIC SCHOOL SITUATED AT AYODHYA, FAIZABAD SINCE THE ACADEMIC YEAR 2009 - 10 AND THE TOTAL NUMBER OF STUDE NTS IN ACADEMIC YEAR 2010 - 11 WAS 394, IN 2011 - 12 IT WAS 382 AND IN 2012 - 13 IT WAS 434 RESPECTIVELY. THE SCHOOL IS ALSO GRANTED AFFILIATION BY CBSE, NEW DELHI. IN THE LIGHT OF THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT IT HAS TO BE ACCEPTED THAT T HE ASSESSEE IS CARRYING OUT ITS ACTIVITY FOR PROMOTION OF EDUCATION AND THEREFORE, THE ASSESSEE DESERVES THE REGISTRATION U/S 80G OF THE ACT ALSO PARTICULARLY IN VIEW OF THE FACT THAT THE SAME CIT HAS ALREADY 4 GRANTED REGISTRATION TO THE ASSESSEE TRUST U/S 12AA OF THE ACT. WE, THEREFORE, DIRECT THE CIT, FAIZABAD TO GRANT APPROVAL TO THE ASSESSEE TRUST U/S 80G OF THE ACT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAP TION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 1 /10/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR