Jai Jhule Lal Charitable Trust, Agra V. CIT-I, Agra

ITA 63/AGR/2010

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0348 (ITAT-AGRA)
• Duration Of Justice: 9 year(s) 2 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-11-2011
• Assessment Year: misc
• Appeal Filed On: 15-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: P N AGARWAL
• Keywords: Charitable institution
• Section: 12AA; 205; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO.63/AGR/2010 JAI JHULE LAL CHARITABLE TRUST, VS. COMMISSIONER OF INCOME TAX-I 46, JAIPUR HOUSE, AGRA. AGRA. (PAN: AABTJ 1880 A). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.N. AGARWAL, ADVOCATE RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 25.11.2011 DATE OF PRONOUNCEMENT : 26.12.2011 ORDER PER BENCH : THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST T HE IMPUGNED ORDER DATED 23.02.2010 PASSED BY THE LD. CIT-I, AGRA ON THE FOL LOWING GROUNDS OF APPEAL :- 1) THAT THE LEARNED COMMISSIONER OF INCOME TAX-I, AGRA HAS ERRED ON FACTS AND IN LAW IN REFUSING/REJECTING THE GRANT OF EXEMPTION U/S 12AA OF THE INCOME TAX ACT, 1961. 2) THAT THE ORDER PASSED U/S 12AA OF THE INCOME TAX ACT, 1961 DATED 23.02.2010 REFUSING/REJECTING THE EXEMPTION U /S 12AA IS BASED ON THE FACT THAT NO CHARITABLE ACTIVITY HAS BEEN C ARRIED OUT BY THE ASSESSEE SOCIETY IGNORING THE FACT THAT IT IS NEWL Y CREATED TRUST, CREATED N 20.07.2009 AND HAS FINALLY PURCHASED THE PROPERTY NO.85, ITA NO.63/AGR/2010 2 ALOKE NAGAR, LOHAMANDI, AGRA, ONLY ON 27.01.2010 I. E. JUS FEW DAYS PRIOR TO THE ORDER OF THE LEARNED COMMISSIONER OF I NCOME TAX. 3) THAT THE MONEY SPENT IN ACQUIRING THE ASSET TO C ARRY OUT THE OBJECTS OF THE TRUST AMOUNTS TO APPLICATION OF FUND S FOR CHARITABLE PURPOSES. 4) THAT IN ANY VIEW OF THE CASE, THE ORDER U/S 12AA OF THE INCOME TAX ACT, 1961 DATED 23.02.2010 IS BAD IN LAW AND TH E ASSESSEE TRUST MAY PLEASE BE GRANTED EXEMPTION U/S 12 AA OF THE IN COME TAX ACT, 1961. 2. THE ASSESSEE SOCIETY HAS MOVED AN APPLICATION DA TED 24.08.2009 IN FORM NO.10A FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). KEEPING IN VIEW OF THE PR ESCRIBED PROCEDURE UNDER SECTION 12AA OF THE ACT, THE LD. CIT-I, AGRA ISSUED A LETTE R DATED 30.12.2009 TO THE ASSESSEE FIXING THE DATE FOR HEARING ON 08.01.2010 TO EXAMINE THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE SOCIETY. THE LD. AU THORISED REPRESENTATIVE OF THE ASSESSEE APPEARED AND FURNISHED WRITTEN SUBMISSION. THE LD. CIT-I, AGRA PERUSED THE PROFIT & LOSS ACCOUNT FOR THE PERIOD 01.04.2009 TO 31.12.2009 AND NOTICED THAT NO CHARITABLE ACTIVITY HAS BEEN CARRIED OUT BY THE ASSESSEE SOCIETY. THE LD. CIT-I, AGRA HAS ALSO NOTICED THAT THE ASSESSEE HAS NOT INC URRED ANY EXPENSES ON ANY CHARITABLE ACTIVITIES AND SHE REJECTED THE APPLICAT ION DATED 24.08.2009 FILED BY THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SECTION 12 AA OF THE ACT VIDE IMPUGNED ORDER DAD 23.02.2010. AGGRIEVED BY THE IMPUGNED OR DER, THE ASSESSEE FILED THE PRESENT APPEAL. ITA NO.63/AGR/2010 3 3. SHRI P.N. AGARWAL, ADVOCATE, THE LD. COUNSEL FOR THE ASSESSEE APPEARED FOR THE ASSESSEE AND ARGUED THAT THE LD. CIT-I, AGRA HA S WRONGLY REJECTED THE APPLICATION FOR GRANT OF REGISTRATION OF THE ASSESS EE WITHOUT ANY BASIS AND CONTRARY TO THE LAW AND FACTS ON THE FILE. HE FURTHER STATE D THAT THE LD. CIT-I, AGRA HAS REJECTED THE APPLICATION OF THE ASSESSEE MERELY ON THE GROUND THAT THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES IGNORING THE FACTS THAT IT IS NEWLY CREATED TRUST, CREATED ON 20.07.2009 AND HAS PURCHA SED THE PROPERTY ON 27.01.2010 JUST FEW DAYS PRIOR TO THE IMPUGNED ORDER. HE ALSO ARGUED THAT THE MONEY SPENT IN ACQUIRING THE ASSET TO CARRY OUT THE OBJECT OF THE TRUST AMOUNTS TO APPLICATION OF FUNDS FOR CHARITABLE PURPOSES. HE ALSO PLACED A HI NDI - ENGLISH VERSION OF TRUST DEED WRITTEN ON 20.07.2009 AS WELL AS TWO PAPER BOO KS CONTAINING PAGE NOS.1 TO 205 IN WHICH THE LD. COUNSEL FOR THE ASSESSEE HAS A TTACHED VARIOUS DECISIONS OF HONBLE SUPREME COURT OF INDIA AS WELL AS HONBLE H IGH COURT AND THE TRIBUNALS TO SUPPORT THE CASE OF THE ASSESSEE FOR GRANT OF RE GISTRATION. HE HAS ALSO PRODUCED VARIOUS PHOTOGRAPHS SHOWING THE CHARITABLE ACTIVITI ES OF THE TRUST FROM THE DATE OF ITS INCEPTION. FINALLY, HE REQUESTED THAT KEEPING IN VIEW OF THE DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE TRUST ALONGWITH VAR IOUS DECISIONS ON THE ISSUE IN DISPUTE, REGISTRATION TO THE ASSESSEE TRUST MAY BE GRANTED. ITA NO.63/AGR/2010 4 4. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE IMPUGNED ORDER AND STATED THAT THE ASSESSEE HAS NOT FILED ANY DOCUMENT ARY EVIDENCE BEFORE THE LD. CIT- I, AGRA AND HAS NOT ESTABLISHED ITS CASE FOR GRANT OF REGISTRATION AS REQUESTED BY THE ASSESSEE. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE IN THE SHAPE OF TWO PAPER BOOKS CONTAINING PAGE NOS.1 TO 205 IN WHI CH THE ASSESSEE SOCIETY HAS ATTACHED VARIOUS DOCUMENTARY EVIDENCES ESTABLISHING THAT THE ASSESSEE TRUST IS DOING VARIOUS CHARITABLE ACTIVITIES SINCE THE INCEP TION OF THE TRUST. WE HAVE ALSO GONE THROUGH VARIOUS DECISIONS RENDERED BY THE HON BLE SUPREME COURT OF INDIA AS WELL AS HONBLE HIGH COURTS AND THE TRIBUNAL ON THE ISSUE IN DISPUTE, SUPPLIED BY THE LD. COUNSEL FOR THE ASSESSEE WITH THE PAPER BOO KS. WE HAVE ALSO THOROUGHLY GONE THROUGH THE CONTENTS OF THE ENGLISH VERSION OF THE TRUST DEED WRITTEN ON 20.07.2009. FOR THE SAKE OF CONVENIENCE, THE OBJEC T OF THE TRUST WHICH THE ASSESSEE HAS MENTIONED IN PAGE NOS.4 TO 7 AT PARAGR APH NO.17 ARE REPRODUCED AS UNDER :- 17. THAT THE ABOVE TRUST OBJECTIVES ARE LISTED AS FOLLOWS :- LIST OF OBJECTIVES: ITA NO.63/AGR/2010 5 1. ESTABLISHMENT OF RELIGIOUS INSTITUTION, DHARMSHA LAS, THEIR REPAIR, RENOVATION, MAINTENANCE AND MANAGEMENTS ETC . 2. SERVE HUMANITY WITHOUT ANY CASTE, DISCRIMINATION OR DIFFERENTIATION TO ESTABLISH UNITY, PEACE AND LOVE AMONG HUMAN BEINGS AND DEVELOP FEELINGS OF SELFLESS HUMANITY AMONG THE PEOPLE. 3. FOR NATION PROGRESS, ORGANIZING MEETINGS, CULTU RAL PROGRAMMES, SATSANGS ETC. FROM TIME TO TIME AND EST ABLISHMENT AND COMPLETE MANAGEMENT OF RELIGIOUS CLINIC, GAUSHALA, ASHRAMS, SCHOOLS ETC. 4. WORKING FOR THE WELFARE OF POOR, ORPHANED, HANDI CAPPED CHILDREN AND HOMELESS WOMEN AND SENIOR CITIZENS AND ORGANIZING THE FACILITIES OF EDUCATIONAL INSTITUTIONS, SCHOOLS, CO LLEGES, LIBRARIES AND HOSTELS AND ARRANGING FOR FREE EDUCATION AND SCHOLA RSHIPS FOR POOR CHILDREN. 5. SERVING SAINTS AND PROVIDING FOOD AND CLOTHES ET C. TO THE POORS FOR FREE AND HELPING IN THE MARRIAGE OF POOR GIRLS ETC. 6. WORK RELATED TO PUBLIC WELFARE LIKE ARRANGING DR INKING WATER OUTLETS AT DIFFERENT PLACES, ARRANGING NIGHT SHELTE RS IN WINTER SEASON ETC., WHICH ARE FOR THE WELFARE OF THE SOCIETY, ORG ANIZING SUCH WORKS ON FREE OF COST BASIS. 7. ABORTION IS UNFORGIVABLE CRIME, PUBLISHING THIS AND FINDING SOLUTION AND HELPING IN STOPPING ABORTIONS. 8. SERVING, PROTECTING, EDUCATING, FINDING JOBS ETC . FOR ORPHANS AND HELPLESS CHILDREN. 9. PREVENTING THE USE OF ALCOHOLS AND ALCOHOLIC PRO DUCTS ETC. WHICH ARE HARMFUL TO HUMAN HEALTH, CREATING AWARENE SS THROUGH GENERAL AWARENESS THROUGH GENERAL PROGRAMMES, CREAT ING AWARENESS ABOUT HARMFUL EFFECTS OF NON-VEGETARIANISM AND PROM OTING VEGETARIANISM. ITA NO.63/AGR/2010 6 10. ARRANGING FOOD ETC. FOR THE CATTLE IN GAUSHALA, SERVING COWS, PROVIDING SERVICE, PROTECTION AND MEDICAL AID AND D EVELOPING KINDNESS FOR ANIMAL AND BIRDS. 11. WORKING TOWARDS THE PROTECTION AND PROGRESS OF HUMAN BEINGS, ANIMALS AND BIRDS, LIVING THINGS ETC. 12. ESTABLISHING A STRONG AND ORGANIZED GROUP AND M AINTAINING A FRIENDLY ENVIRONMENT AMONG THEM, AND BRING TO NOTIC E OF AUTHORITIES THE PROBLEMS OF THE SOCIETY THROUGH VARIOUS METHODS AND ARRANGING FOR SOLUTIONS OF THEIR PROBLEMS AND PROTECTING THEM FROM EXPLOITATION ETC. AND WORK TOWARDS THEIR WELFARE. 13. ARRANGING AND MANAGING SOCIAL, MORAL, EDUCATION AL AND CULTURAL PROGRAMME FOR THE BETTERMENT OF THE BACKWA RD CLASSES OF THE SOCIETY. 14. UNITING THE YOUTH FOR PARTICIPATING IN PATRIOTI C, PUBLIC WELFARE, EDUCATIONAL DEVELOPMENT, SMALL SAVINGS, FAMILY WELF ARE ETC. PLANS OF GOVERNMENTAL AND SEMI-GOVERNMENTAL PLANS OF THE SOC IETAL AND NATIONAL DEVELOPMENT OF SOCIETY. 15. FOR THE PROGRESS OF THE WOMEN OF THE SOCIETY, C REATING AWARENESS ABOUT THE SOCIETY AND EDUCATION AND EDUCA TING FEMALES AND HELPING IN THE MARRIAGE OF POOR GIRLS AND PRINTING THE NAMES OF ELIGIBLE BACHELORS AND SPINSTERS IN A WEDDING MAGAZ INE AND ORGANIZING COLLECTIVE MARRIAGES AND FOR THE SUCCESS OF THIS PROGRAMME, CREATE A GROUP OF ACTIVE WOMEN AND GIVEN HEM PROPER SUPPORT AND HELP. 16. ORGANIZE CULTURAL PROGRAMMES, AWARENESS CAMPS, CAMPS FOR EYE-CARE, FREE OF COST MEDICAL CHECK-UPS DEBATE MEE TINGS, RELIEF SHELTERS, PUBLIC AWARENESS CAMPS, ART EXHIBITIONS, ADULT EDUCATION, INFORMAL EDUCATION, AWARDING DESERVING STUDENTS AND FREE OF COST ORGANIZING PROGRAMMES FOR AWARDING SCHOLAR STUDENTS AND PROHIBIT ALCOHOL IN THE SOCIETY FROM TIME TO TIME. 17. FOR ABOLISHING WRONG CUSTOMS OF THE SOCIETY LIK E, DOWRY SYSTEMS, DEATH FEAST, CHILD MARRIAGE, CHILD LABOUR, WOMEN EXPLOITATION ETC., WRONG DEEDS AND DESTROYING THE ENVIRONMENT. ITA NO.63/AGR/2010 7 18. HELPING IN THE ACTS OF THOSE GREAT PEOPLE WHO H AVE GUIDED THE SOCIETY, ARRANGING CELEBRATIONS IN REMEMBRANCE OF T HEIR GREAT ACTS, BUILDING STATUES, OIL PAINTING AND PUBLICIZING THEI R HISTORY, CONSTRUCTING AND MANAGING BUILDING IN THEIR MEMORY AND HIGHLIGHTING THEIR LIVES AND WORKS. 19. FOR THE DEVELOPMENT OF THE SOCIETY, INSPIRING F OR PRIVATE BOOK WRITINGS AND EDITING AND FREE OF COST PRINTING AND DISTRIBUTION OF BOOKS, LETTERS, AND MAGAZINES RELATED TO PREACHING OF GREAT PEOPLE. 20. GIVING AND RECEIVING FULL SUPPORT OF UPCOMING Y OUTH. 21. HELPING THE GENERAL PUBLIC IN CASE OF NATIONAL CALAMITIES ACCORDING TO OUR STRENGTH AND CAPACITY. 22. ORGANIZING PROGRAMMES FOR SERVING THE NATION, C REATING AWARENESS AMONG THE PEOPLE AND PARTICIPATE AND ASK GENERAL PUBLIC TO PARTICIPATE IN SUCH PROGRAMMES. 6. KEEPING IN VIEW OF THE RATIO OF THE ORDER PASSED BY THE I.T.A.T., DELHI BENCH IN THE CASE OF ARYAN EDUCATIONAL SOCIETY VS. CIT RE PORTED IN 281 ITR (AT) 72 (DELHI), WHICH THE ASSESSEE HAS FILED AT PAGE NOS.2 4 TO 39 OF THE PAPER BOOK, WE FIND THAT THE CASE OF THE ASSESSEE IS ALSO COVERED BY THE SAID DECISION BECAUSE THE ASSESSEE TRUST IS FORMED ON 20.07.2009 AND THE ASSE SSEE TRUST HAD ENTERED INTO AN AGREEMENT TO PURCHASE THE IMMOVABLE PROPERTY TO BE USED FOR CONDUCTING CHARITABLE ACTIVITIES ON 02.09.2009 BY ADVANCING ` 9,25,000/- ON 02.09.2009 BESIDES INCURRING ` 5,05,100/- TOWARDS PURCHASE OF STAMPS FOR REGISTRAT ION AND ` 12,564/- TOWARDS OTHER EXPENSES AND FINALLY PURCHAS ED PROPERTY ON 27.01.2010 FOR ` 69,25,000/- BESIDES REGISTRATION EXPENSES OF ` 5,05,100/-. ACCORDING TO THE COPY ITA NO.63/AGR/2010 8 OF PURCHASE DEED WHICH THE ASSESSEE HAS ATTACHED AT PAGE NOS.58 TO 80 OF THE PAPER BOOK AND COPY OF AGREEMENT OF PROPERTY IS ALSO ATTA CHED AT PAGE NOS.81 TO 98 OF THE PAPER BOOK WHICH THE ASSESSEE HAD ALSO FILED BE FORE THE LD. CIT-I, AGRA AS PER CERTIFICATE GIVEN BY THE ASSESSEE. SECONDLY, THE A SSESSEE HAS ALSO INCURRED SOME EXPENSES ON BANK CHARGES, LEGAL EXPENSES, MEETING E XPENSES AND PRINTING & STATIONERY EXPENSES TOTALING TO ` 12,564/- WITHIN THE PERIOD 20.07.2009 TO 31.12.2009 (THE ASSESSEE TRUST IS FORMED ON 20.07.2 009). IT IS ALSO MATTER OF RECORD THAT UPTO 31.12.2009 THE ASSESSEE TRUST HAS RECEIVED DONATION TO THE TUNE OF ` 46,28,097/- WHICH HAS BEEN USED FOR PURCHASE OF PRO PERTY BY GIVING ADVANCE MONEY AND OTHER MISCELLANEOUS EXPENSES FOR REGISTRA TION OF THE TRUST PROPERTY. 7. KEEPING IN VIEW OF THE AFORESAID DISCUSSION, WE ARE OF THE CONSIDERED OPINION THAT THE MONEY SPENT IN ACQUIRING THE ASSET TO CARRY OUT THE OBJECT OF THE TRUST AMOUNTS TO APPLICATION OF FUNDS FOR CHARITABL E PURPOSES. THE LD. CIT-I, AGRA HAS NOT APPRECIATED THE EVIDENCES PRODUCED BY THE A SSESSEE AND WRONGLY REJECTED THE REQUEST OF THE ASSESSEE FOR REGISTRATION OF ITS TRUST WHICH IS CONTRARY TO THE RATIO OF THE DECISIONS OF HONBLE ALLAHABAD HIGH COURT IN THE CASES OF CIT VS. BRIHDARANYAK MANDAL TRUST, 319 ITR 363 AND FIFTH GE NERATION EDUCATION SOCIETY VS. CIT, 185 ITR 634 WHICH THE ASSESSEE HAS ATTACHE D IN ITS PAPER BOOK AT PAGE NOS.40 TO 47. THEREFORE, THE IMPUGNED ORDER DESERV ES TO BE CANCELLED. WE CANCEL ITA NO.63/AGR/2010 9 THE IMPUGNED ORDER DATED 23.02.2010 PASSED BY THE L D. CIT-I, AGRA FOR REFUSING THE REGISTRATION TO THE ASSESSEE AND DIRECT THE LD. CIT -I, AGRA TO GRANT REGISTRATION TO THE ASSESSEE SOCIETY. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 26.12.2011). SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 26 TH DECEMBER, 2011 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R., ITAT, AGRA BENCH, AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY