M/s Om Sat Sanatan Geeta Bhawan Trust, Barnala V. CIT (E), Chandigarh

ITA 639/CHANDI/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5748 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 06-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 80G; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH (VIRTUAL COURT) .., ! '# .. , $ %& BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM ./ ITA NO. 639/CHD/2019 / ASSESSMENT YEAR : 2018-19 M/S OM SAT SANATAN GEETA BHAWAN TRUST, GEETA BHAWAN ROAD, BARNALA, PUNJAB-148101. THE COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH. ./ PAN NO: AAATO1170H / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI SUDHIR SEHGAL, ADV. # ! ' / REVENUE BY : SHRI SANDIP DAHIYA (CIT-DR) $ % ! &/ DATE OF HEARING : 11/02/2021 '()* ! &/ DATE OF PRONOUNCEMENT : 30/04/2021 %'/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 28/02/2019 OF LD. CIT(E), CHANDIGARH. THE ONLY GRIEVANCE OF THE A SSESSEE IN THIS APPEAL RELATES TO DENIAL OF APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS, THE ACT). 2. FACTS IN BRIEF ARE THAT THE ASSESSEE MOVED AN AP PLICATION IN FORM 10G ON 19/08/1918 FOR GRANT OF APPROVAL U/S 80G OF THE ACT . THE ASSESSEE TRUST WAS CREATED ON 19/10/1964 AND IS REGISTERED U/S 12AA OF THE ACT SINCE 01/03/1976. THE LD. CIT(E) AFTER RECEIVING APPLICATION FROM THE ASSESSEE, RAISED CERTAIN QUERIES/CLARIFICATIONS WHICH ARE MENTIONED IN PARA 2 OF THE IMPUGNED ORDER. FOR THE COST OF REPETITION, THE SAME ARE NOT REPRODUCED HEREIN. THE LD. CIT(E) OBSERVED THAT NO REPLY WAS FURNISHED BY THE ASSESSE E, THEREFORE, ANOTHER 2 ITA 639/CHD/2019 M/S OM SAT SANATAN GEETA BHAWAN TRUST VS CIT(E) OPPORTUNITY WAS GIVEN. IN RESPONSE TO WHICH, THE AS SESSEE FURNISHED SUBMISSIONS ON 08/02/2019. THE LD. CIT(E) AGAIN RAISED ADDITION AL QUERIES VIDE LETTER DATED 09/02/2019. IN RESPONSE, THE ASSESSEE FURNISHED REP LY, HOWEVER, THE LD. CIT(E) CONSIDERED THE FOLLOWING AIMS AND OBJECTIVES OF THE ASSESSEE AS RELIGIOUS IN NATURE: 1. TO CONSTRUCT AND PRIMARILY ESTABLISH GEETA BHAWAN WITH IN THE PRESCINTS OF MANDI BARNALA, TO PROVIDE FOR THE ACCOMMODATION OF LEAR NED SADHUS, SAINTS AND PREISTS, FOR THE PROPAGATION AND DISSEMINATION OF DHA RMIK SHIKSHA. HE ALSO RELIED ON THE JUDGEMENT OF HON'BLE APEX COU RT IN THE CASE OF UPPER GANGES SUGAR MILLS LTD. REPORTED IN 227 ITR 578 (SC ) WHEREIN IT WAS HELD THAT EVEN IF ONE OBJECT IS WHOLLY OR SUBSTANTIALLY RELIG IOUS IN NATURE, THE INSTITUTION IS NOT ELIGIBLE FOR APPROVAL UNDER SECTION 80G OF THE ACT. RELIANCE WAS ALSO PLACED ON THE JUDGMENT OF THE HON'BLE MADRAS HIGH COURT IN TH E CASE OF EAST INDIA INDUSTRIES (MADRAS) PVT. LTD. REPORTED IN (1997) 65 ITR 611. ACCORDINGLY, THE APPLICATION MOVED BY THE ASSESSEE FOR GRANT OF APPR OVAL U/S 80G OF THE ACT WAS REJECTED. 3. BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST WAS ESTABLISHED ON 19/10/1964 AND GRANTED REGISTRATION U/S 12AA OF THE ACT ON 01/03/1976 AND THAT THE ASSESSEE IS FILING REGULARL Y ITS RETURNS OF INCOME YEAR AFTER YEAR BASED ON THE AUDITED BALANCE SHEET AND INCOME & EXPENDITURE ACCOUNT. COPIES OF THE SAME ARE PLACED AT PAGE NOS. 14 TO 40 OF THE ASSESSEES PAPER BOOK. IT WAS FURTHER STATED THAT THE LD. CIT(E) DEN IED THE APPROVAL U/S 80G OF THE ACT BY HOLDING THAT THE OBJECTS OF THE ASSESSEE TRU ST WERE RELIGIOUS IN NATURE BUT HE IGNORED THIS VITAL FACT THAT THE OBJECTS DID NOT PERTAIN TO ANY PARTICULAR RELIGION BUT TO THE SAINTS, PRIESTS AND OTHER WISEM EN OF ALL THE RELIGIONS AND THE ASSESSEE TRUST PROVIDES FREE ACCOMMODATION TO THOS E PERSONS, SO THAT, THEY CAN 3 ITA 639/CHD/2019 M/S OM SAT SANATAN GEETA BHAWAN TRUST VS CIT(E) IMPART THEIR KNOWLEDGE FOR THE WELFARE OF THE GENER AL PUBLIC WITHOUT CAST AND CREED AND WITHOUT ANY INCLINATION TO ANY SPECIFIC R ELIGION. RELIANCE WAS PLACED ON THE JUDGEMENT OF CHANDIGARH BENCH OF ITAT IN THE CASE OF MAHARAJA AGGARSAIN CHARITABLE TRUST VS CIT REPORTED IN 87 TA XMANN.COM 153. COPY OF THE SAID ORDER WAS FURNISHED WHICH IS PLACED ON THE REC ORD. RELIANCE WAS ALSO PLACED ON THE FOLLOWING CASE LAWS: (I) UMAID CHARITABLE TRUST VS UNION OF INDIA (2008) 171 TAXMANN 94 (RAJ HC) (II) SHIV MANDIR DEVASTHAN PANCH COMMITTEE SANSTHAN VS CIT 27 TAXMANN.COM 100 (NAGPUR TRIB) (III) KUKA MARTYRS MEMORIAL TRUST VS CIT (2013) 35 TAXMANN.COM 516 (CHD.- TRIB). AS REGARD THE RELIANCE PLACED BY THE LD. CIT(E) IN THE CASE OF UPPER GANGES SUGAR MILLS LTD. (SUPRA), IT WAS STATED THAT THE IS SUE IN THE SAID CASE WAS RELATING TO THE GIVING OF DONATIONS TO THE INSTITUTION WHOSE ONE OF THE OBJECTS WAS WHOLLY OR SUBSTANTIALLY FOR RELIGIOUS PURPOSE WHILE IN ASS ESSEES CASE, THERE WAS NO SUCH OBJECT, THEREFORE, THE DECISION RELIED BY THE LD. C IT(E) IS DISTINGUISHABLE ON FACTS. 5. IN HIS RIVAL SUBMISSIONS, THE LD. CIT-DR STRONGL Y SUPPORTED THE ORDER PASSED BY THE LD. CIT(E) AND MADE A REFERENCE TO PARA 4 OF THE IMPUGNED ORDER WHEREIN AIMS AND OBJECTIVES OF THE ASSESSEE TRUST A S MENTIONED IN MEMORANDUM OF ASSOCIATION ARE REPRODUCED AND STATED THAT THE OBJECTIVES OF THE ASSESSEE TRUST WAS RELIGIOUS IN NATURE, THEREFO RE, THE LD. CIT(E) RIGHTLY DENIED THE APPROVAL U/S 80G OF THE ACT TO THE ASSESSEE. IT WAS ALSO STATED THAT THE CASES RELIED UPON BY THE LD. COUNSEL FOR THE ASSESS EE ARE DISTINGUISHABLE ON FACTS. 4 ITA 639/CHD/2019 M/S OM SAT SANATAN GEETA BHAWAN TRUST VS CIT(E) 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(E) DENIED THE APPROVAL U/S 80G OF THE ACT TO THE ASSES SEE ONLY ON THIS BASIS THAT THE AIMS AND OBJECTIVES IN THE MEMORANDUM OF ASSOCI ATION OF THE ASSESSEE MENTIONED AT SERIAL NO. 1 WERE RELIGIOUS IN NATURE. THE SAID OBJECTIVE READS AS UNDER: 1. TO CONSTRUCT AND PRIMARILY ESTABLISH GEETA BHAWAN WITH IN THE PRESCINTS OF MANDI BARNALA, TO PROVIDE FOR THE ACCOMMODATION TO LEA RNED SADHUS, SAINTS AND PREISTS, FOR THE PROPAGATION AND DISSEMINATION OF DHA RMIK SHIKSHA. FROM THE AFORESAID OBJECTIVE OF THE ASSESSEE TRUST, IT IS CLEAR THAT THE ASSESSEE TRUST ESTABLISHED GEETA BHAWAN TO PROVIDE ACCOMMODA TION TO SADHUS, SAINTS AND PRIESTS FOR THE PROPAGATION AND DISSEMINATION O F DHARMIK SHIKSHA. FROM THE AFORESAID OBJECT, IT IS VERY MUCH CLEAR THAT THE AC COMMODATION WAS PROVIDED TO THOSE PERSONS WHO WERE PROPAGATING AND DISSEMINATIN G DHARMIK SHIKSHA IN THE SOCIETY AS A WHOLE AND NOT TO A PARTICULAR COMMUNIT Y OR RELIGION. MOREOVER, THE SAID PERSONS ARE ALSO NOT RELATED TO A PARTICULAR R ELIGION OR COMMUNITY OF THE SOCIETY. THEREFORE, IT CANNOT BE SAID THAT THE OBJE CTS OF THE ASSESSEE WERE RELIGIOUS IN NATURE. MOREOVER, THE ASSESSEE HAD BEE N GRANTED REGISTRATION U/S 12AA OF THE ACT SINCE 01/03/1976, ONLY AFTER CONSID ERING THIS FACT THAT THE OBJECTS OF THE ASSESSEE TRUST WERE CHARITABLE IN NA TURE. IN THE PRESENT CASE, IT IS NOT BROUGHT ON RECORD THAT THE SAID REGISTRATION GR ANTED TO THE ASSESSEE WAS SET ASIDE, THEREFORE, IF THERE IS NO CHANGE IN THE OBJE CTS OF THE ASSESSEE TRUST WHICH WERE CONSIDERED TO BE CHARITABLE WHILE GRANTING REG ISTRATION U/S 12AA OF THE ACT THEN IT CANNOT BE SAID THAT THE SAME OBJECTS WERE N OT CHARITABLE IN NATURE WHILE GRANTING APPROVAL U/S 80G OF THE ACT. WE, THEREFORE , BY CONSIDERING THE FACTS OF THE PRESENT CASE, AS DISCUSSED HEREINABOVE, ARE OF THE VIEW THAT THE LD. CIT(E) WAS NOT JUSTIFIED IN REJECTING THE APPLICATION OF T HE ASSESSEE MOVED FOR GRANT OF 5 ITA 639/CHD/2019 M/S OM SAT SANATAN GEETA BHAWAN TRUST VS CIT(E) APPROVAL U/S 80G OF THE ACT. ACCORDINGLY, WE DIRECT THE LD. CIT(E) TO GRANT APPROVAL TO THE ASSESSEE U/S 80G OF THE ACT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 30/04/2021) SD/- SD/- .. .., (R.L. NEGI) (N.K. SAINI ) $ %&/ JUDICIAL MEMBER ! / VICE PRESIDENT DATE: 30/04/2021 (+ ! ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ / / CIT 4. $ / ()/ THE CIT(A) 5. -23 4, & 4, 67839/ DR, ITAT, CHANDIGARH 6. 38 :%/ GUARD FILE