VEDANT VALLEY EDUCATION FOUNDATION, Jaipur V. CIT, Jaipur

ITA 629/JPR/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5120 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 29-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROLI AGARWAL CIT DHK
• Assessee Lawyers: RAGHUVEER SINGH POONIA TRUSTEE
• Keywords: Charitable institution
• Section: 12A; 12AA; 12; 11

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 DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 629/JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : VEDANT VALLEY EDUCATION FOUNDATION F-2, PLOT NO. 97, OFFICERS CAMPUS, SIRSI ROAD, JAIPUR. CUKE VS. THE CIT(E), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO.: AABTV9286E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRHDH VKSJ LS@ ASSESSEE BY : SHRI RAGHUVEER SINGH POONIA (TRUSTEE) JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROLI AGARWAL (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/07/2017 ?KKS'K .KK DH R KJH[K @ DATE OF PRONOUNCEMENT: 31/07/2017. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(E), JAIPUR DATED 13.04.2015 WHEREIN THE ASSESSEE HAS BE EN GRANTED APPROVAL U/S 12AA (1)(B) OF THE ACT. IN ITS APPEAL THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL ARE AS UNDER:- 1. UNDER THE FACTS AND CIRCUMSTANCES, LD. CIT HAS E RRED IN PASSING ORDER OF REGISTRATION U/S 12AA(1)(B) IN RESTRICTIVE MANNER AS GENERAL PUBLIC UTILITY. KINDLY DIRECT TO DELETE THE RESTRI CTIVE WORDS GENERAL PUBLIC UTILITY. 2. UNDER THE FACTS AND CIRCUMSTANCES, LD. CIT HAS E RRED IN PASSING ORDER OF REGISTRATION U/S 12AA(1)(B) IN RESTRICTIVE MANNER AS GENERAL PUBLIC UTILITY BY IGNORING THE OBJECTS OF THE TRUS T. KINDLY DIRECT TO ADD MORE CATEGORIES VIZ. EDUCATIONAL, MEDICAL & HEALTH, ENVIRONMENT CONSERVATION AS PER THE OBJECT OF THE TRUST MENTION ED IN TRUST DEED. ITA NO. 629/JP/15 VEDANT VALLEY EDUCATION FOUNDATION VS.CIT(E), JAIPUR 2 3. UNDER THE FACTS AND CIRCUMSTANCES, LD. CIT HAS E RRED BY NOT GRANTING REGISTRATION AS CHARITABLE PURPOSE. LD. CIT FURTH ER ERRED BY NOT CONSIDERING THE OBJECTS OF THE TRUST IN RIGHT PERSP ECTIVE. 2. THIS APPEAL WAS EARLIER DISMISSED EX-PARTE BY OR DER OF COORDINATE BENCH DATED 14.09.2016 AND SUBSEQUENTLY RECALLED VI DE ORDER DATED 7.04.2017. 3. DURING THE COURSE OF HEARING, OUR REFERENCE WAS DRAWN TO THE ORDER OF THE LD. CIT(E) WHICH READS AS UNDER:- 1. AN APPLICATION IN FORM NO. 10A SEEKING REGISTRA TION U/S 12A WAS FILED ON 29-12-2014. 2. THE TRUST/SOCIETY/NON-PROFIT COMPANY WAS CONSTIT UTED BY DEED OF TRUST, MEMORANDUM OF ASSOCIATION/INSTRUMENT DATED 1 9-05-2014 INDICATING ITS OBJECTS. 3. AFTER CONSIDERING THE MATERIAL AVAILABLE ON RECO RD, THE APPLICANT TRUST/SOCIETY/COMPANY/INSTITUTION IS GRANTED REGISTRATION AS GENERAL PUBLIC UTILITY TRUST/SOCIETY/COMPANY/INSTITUTION AND THE PROVISIONS OF SECTIONS 11 AND 12 SHALL APPLY IN THE CASE FROM 19-05-2014. THE TRUST/SOCIETY/COMPANY/INSTITUTION IS REGISTERED AT AABTV9286E/08/14-15/T- 0219 OF THE REGISTER MAINTAINED IN THIS OFFICE. THE REGISTRATION IS GRANTED SUBJECT TO THE FOLLOWING CONDITIONS. 4. FURTHER, OUR REFERENCE WAS DRAWN TO PARA 4 OF TH E TRUST DEED DATED 19.5.2014 WHICH IS AVAILABLE AT APB PAGES 1-10 WHIC H READS AS UNDER:- 4- U;KL DK MN~NS; & BL U;KL DS EQ[; MN~NS; FUEU I ZDKJ GS%& IZKFKFED] MPP IZKFKFED] EK/;FED] MPP EK/;FED] RDUHD H O;KOLKF;D] ISKSOJ] VKSIPKFJD] VUKSIPKFJD O BUDS VFRFJDR VU; FDLH HKH I ZDKJ DH FK{KK DK FODKL] IZPKJ] IZLKJ] KKS/K] LLFKKVKSA DK XBU] LFKK IUK ,OA LAPKYU DJUK] BU FK{KKVKSA DK O;KOGKFJD IZFK{K.K NSUK O O;OGKJ ESA YKXW DJUK] FPFDRLK ,OA ITA NO. 629/JP/15 VEDANT VALLEY EDUCATION FOUNDATION VS.CIT(E), JAIPUR 3 LOKLFK] TY LAJ{K.K] IS;TY O;OLFKK ,OA LAJ{K.K] LKEK FTD ,OA VKFFKZD :I LS DETKSJ OXKSZ DKS IZKSRLKGU DJUK] I;KZOJ.K LAJ{K.K D JUK] BU MN~NS;KSA DH IWFRZ DS FY;S VU; FDLH IZDKJ DH LGK;D O LG;KSXH XFRFOF/K; KSA DKS LAPKFYR DJUK ,OE~ BLDS FY, LGK;D ,OE~ LG;KSXH LALFKKVKSA DK XBU FODKL ,OE~ LFKKIU DJUKA MIJKSDR MN~NS;KSA DH IWFRZ ESA FDLH DK DKSBZ FUTH YKHK FUFGR UGHA GKSXKA U;KL }KJK IZNKU DH TKUS OKYH LSOK,WA FCUK FDLH IZDKJ DS TKFR] IZNSK O /KKFEZD HKSNHKKO DS LELR TURK DKS MIYC/K DH TK;SXHA 5. FURTHER OUR REFERENCE WAS DRAWN TO LETTER ADDRES SED TO ITO (HQS) (EXEMPTIONS) DATED 10.02.2015 WHEREIN AT PARA 17, T HE ASSESSEE HAS SUBMITTED AS UNDER:- THE MAIN OBJECTS OF TRUST ARE FOR EDUCATION, MEDIC AL AND HEALTH, WATER CONSERVATION, WORK FOR UPLIFTMENT OF POOR AND SOCIA L WEAKER SECTIONS, ENVIRONMENT PROTECTION WHICH ARE COVERED U/S 2(15) OF INCOME TAX ACT, 1961. 6. IN LIGHT OF ABOVE, THE LD TRUSTEE OF ASSESSEE TR UST SUBMITTED THAT THE LD. CIT(E) WAS NOT JUSTIFYING IN GRANTING THE APPROVAL U/S 12AA(1)(B) OF THE ACT IN A RESTRICTIVE MANNER AS GENERAL PUBLIC UTILITY BY IGNORING THE OBJECTS OF THE TRUST DEED. FROM PERUSAL OF THE ORDER OF THE LD. CI T(E) AS WELL AS FROM PERUSAL OF OBJECTS CLAUSE OF THE TRUST DEED, WE DO NOT FIND ANYTHING ON RECORD TO SUGGEST THAT THE ACTIVITY OF THE APPLICANT ARE REST RICTED TO ACTIVITIES IN THE NATURE OF GENERAL PUBLIC UTILITY. WE ACCORDINGLY SET-ASIDE THE MATTER TO THE FILE OF THE LD CIT(E) TO MODIFY THE APPROVAL ALREAD Y GRANTED U/S 12AA(1)(B) OF THE ACT TO CARRY OUT ACTIVITIES AS PER THE OBJECTS AS SPECIFIED IN THE TRUST DEED INSTEAD OF ACTIVITIES AS GENERAL PUBLIC UTILITY W HICH IS NOT BORNE OUT OF STATED OBJECTS OF THE ASSESSEE TRUST. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 629/JP/15 VEDANT VALLEY EDUCATION FOUNDATION VS.CIT(E), JAIPUR 4 ORDER PRONOUNCED IN THE OPEN COURT ON 31/07/2017. SD/- SD/- DQY HKKJR FOE FLAG ;KNO (KUL BHARAT) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 31/07/2017 VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT - VEDANT VALLEY EDUCATION FOUNDATION F-2, PLOT NO. 97, OFFICERS CAMPUS, SIRSI ROAD, JAIP UR. 2. IZR;FKHZ@ THE RESPONDENT- THE CIT(E), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, 6. XKMZ QKBZY@ GUARD FILE (ITA NO.629/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR.