Shri Ramdevji Maharaj Prathna Mandir, JAMNAGAR V. The Commr. Of Income Tax, JAMNAGAR

ITA 640/RJT/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8571 (ITAT-RAJKOT)
• Duration Of Justice: 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 07-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: J C RANPURA
• Keywords: Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBULAL, RAJKOT BENCH: RAJKOT , !' # $ , # % BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER &./ I.T.A. NO.640/RJT/2014 ( FINANCIAL YEAR : 2013-14) SHRI RAMDEVJI MAHARAJ PRATHNA MANDIR POST: NAVA RANUJA VIA : KALAWAD (SHITLA) DIST:JAMNAGAR / VS. THE COMMISSIONER OF INCOME TAX JAMNAGAR #) !' & ./ * & ./ PAN/GIR NO. : AAATS 9742 F ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . ! / APPELLANT BY : SHRI J.C. RANPURA, C.A. ,-)+ / . ! / RESPONDENT BY : SHRI M.L. MEENA, CIT-DR 0 / ' / DATE OF HEARING 03/12/2014 12 / ' / DATE OF PRONOUNCEMENT 05/12/2014 !3 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX-JAMNAGAR (CIT IN SHORT) DATED 15/10/2014. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1.0 THE GROUNDS OF APPEAL MENTIONED HEREUNDER ARE WITHOUT PREJUDICE TO ONE ANOTHER. 2.0 THE LEARNED COMMISSIONER OF INCOME TAX, JAMNAGAR [HEREINAFTER REFERRED TO AS THE CIT] ERRED ON FACTS AS ALSO IN LAW IN REJECT ING THE APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT ON THE ALLEGED GROUND THAT APPELLANT TRUST HAS FAILED TO PRODUCE COPY OF THE AMENDMENT REPORT(FERFAR REPORT) ISSUED BY ASSISTANT CHARITY COMMISSIONER, JAMNAGAR ACCEPTING THE AMENDMENT IN TRUST DEED ITA NO.640/RJT/2014 SHRI RAMDEVJI MAHARAJ PRATHNA MANDIR VS. CIT-JAMNAGAR - 2 - CONTAINING CLAUSE REGARDING PROVISIONS IN THE EVENT OF ITS DISSOLUTION TO THE EFFECT THAT UPON THE DISSOLUTION, ANY PROPERTY/ASSETS REMAINS AFTER SATISFACTION OF ITS DEBTS AND LIABILITIES, THE SAME SHALL BE TRANSFERRED TO THE TRUST HAVING SI MILAR OBJECTS. 2.1. THAT ON FACTS AS ALSO IN LAW THE LD.CIT FAILED TO APPRECIATE THAT DISSOLUTION CLAUSE WAS ALREADY THEREIN THE TRUST DEED AT CLAUSE 9(1) WHICH MAKES IT CLEAR THAT DUE TO UNAVOIDABLE CIRCUMSTANCES AT ANY TIME IF THE CIRCUMSTANCES ARISE TO DISSOLVE THE TRUST, THEN FIRS T OF ALL, ALL THE LIABILITIES OF THE TRUST SHALL BE MET WITH AN THEREAFTER REMAINING SURPLUS OF THE FUND SHALL BE DISTRIBUTED/DISPOSED OF FOR CHARITABLE PURPOSES IN ACCORDANCE WITH THE DECISION TAKEN BY THE TRUST. EVEN OTHERWISE A TRUST WHEN REGISTERED UNDER THE BOMBAY PUBLIC TRUST ACT, THE PROVISIONS OF THE SAID ACT ARE APPLICABLE TO THE TRUST IN THE EVENT OF DISSOLUTION. THE LD.CIT BE DIRECTED TO GRANT REGISTRATION. 3.0 THE LD.CIT HAS REJECTED THE APPELLANTS APPLICATION FOR REGISTRATION IS IN TOTAL DISREGARDS OF APPELLANTS SUBMISSION AND APPELLANTS RELIANCE ON JUDICIAL PRONOUNCEMENTS OF HONBLE ITAT, RAJKOT, AHMEDABAD AND DELHI WHEREIN IT HAS BEEN HELD THAT WHEN TRUST IS REGISTERED UNDER BOMBAY PUBLIC TRUST AS A CHARITABLE TRUST, IN THE EVENT OF FAILURE OF THE TRUST THE NET ASSETS/INCOME WOULD OBVIOUS LY BE TAKEN OVER BY THE CHARITY COMMISSIONER AND THE REJECTION WAS DIRECTED TO BE GRANTED. 4.0 HOUR HONOURSAPPELLANT CRAVES LEAVE TO ADD, TO AMEND, ALTER, OR WITHDRAW ANY OR MORE GROUNDS OF APPEAL ON OR BEFORE THE HEARING OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE-TRUS T MADE AN APPLICATION FOR REGISTRATION U/S.12A(A) OF THE ACT, WHICH WAS R EJECTED BY THE LD.CIT VIDE HIS ORDER DATED 15/10/2014 ON THE GROUND THAT THE ASSESSEE-TRUST FAILED TO SUBMIT THE COPY OF AMENDMENT REPORT(FER FAR REPORT) ISSUED BY THE CHARITY COMMISSIONER. 3. DURING THE COURSE OF HEARING, THE LD.COUNSEL F OR THE ASSESSEE SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF COORDINATE ITA NO.640/RJT/2014 SHRI RAMDEVJI MAHARAJ PRATHNA MANDIR VS. CIT-JAMNAGAR - 3 - BENCH (ITAT BENCH B AHMEDABAD) IN ITA NOS.337 & 3 38/AHD/2013 RENDERED IN THE CASE OF SHREE CHARGAM DASHA PORWAD MAHAMANDAL, AHMEDABAD VS. DIT (EXEMPTION)-AHMEDABAD, DATED 08/ 05/2013. 4. ON THE CONTRARY, LD.CIT-DR SUPPORTED THE ORDER O F THE LD.CIT. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI AL AVAILABLE ON RECORD AND GONE THROUGH DECISION OF COORDINATE BENC H RENDERED IN THE CASE OF SHREE CHARGAM DASHA PORWAD MAHAMANDAL, AHME DABAD VS. DIT (EXEMPTION)-AHMEDABAD, DATED 08/05/2013(SUPRA). WE FIND THAT THE TRIBUNAL IN ITA NOS.337 & 338/AHD/2013 IN THE C ASE OF SHREE CHARGAM DASHA PORWAD MAHAMANDAL, AHMEDABAD VS. DIT (EXEMPTION)-AHMEDABAD, VIDE PARA-3, HAS HELD AS UN DER:- 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREF ULLY AND PERUSED THE ORDERS OF THE DIT(EXEMPTIONS) AS WELL A S THE DECISION OF THE ITAT DELHI IN THE CASE OF SHRI SAI SAMARPAN TRUST CO.VS. CIT REPORTED AT (2009) 27 SOT 423 (DELHI). WE FIND THAT THE ONLY REASON ADVANCED FOR REFUSING THE REGISTRATION U/S.1 2AA AND 80G(5) OF THE ACT BY THE DIT(EXEMPTIONS) IS THAT TH ERE IS NO DISSOLUTION CLAUSE IN THE TRUST-DEED AND TRUST DOES NOT HAVE ANY CLAUSE THAT THE TRUST WILL NOT BE DISSOLVED AND IT IS A PERPETUAL TRUST. THIS ISSUE OF REFUSING REGISTRATION IN THE ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST-DEED IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF COORDINATE BENCH OF D ELHI TRIBUNAL IN THE CASE OF SHRI SAI SAMARPAN TRUST CO.(SUPRA), WHEREIN IN PARAGRAPH NO.8 HELD THAT WHEN THE ASSESSEE-TRUST IS REGISTERED WITH THE SUB-REGISTRAR AS A CHARITABLE TRUST, IN TH E EVEN OF FAILURE OF THE TRUST THE NET ASSETS/INCOME WOULD OBVIOUSLY BE TAKEN OVER BY THE CHARITY COMMISSIONER AND THE REJECTION OF REGIS TRATION ON THIS GROUND WAS HELD NOT ON A SOUND FOOTING AND THE ORDE RS OF THE DIT (EXEMPTIONS) WERE REVERSED. WE FIND THAT THE CASE OF THE ASSESSEE IS ON MORE SOUND FOOTING SINCE IT HAS ALREADY APPLI ED TO THE CHARITY COMMISSIONER FOR AMENDMENT OF THE TRUST-DEE D VIDE APPLICATION SUBMITTED ON 26/02/2013, WHEREBY INSERT ING THE DISSOLUTION CLAUSE PROVIDING THAT THE TRUST SHALL B E IRREVOCABLE AND ITA NO.640/RJT/2014 SHRI RAMDEVJI MAHARAJ PRATHNA MANDIR VS. CIT-JAMNAGAR - 4 - IN THE MOST UNLIKELY SITUATION, IF TRUST PRACTICALL Y STOPS FUNCTIONING, IT CAN ONLY BE MERGED/AMALGAMATED WITH OTHER ONE OR MORE PUBLIC CHARITABLE TRUSTS OR BODIES HAVING SIMILAR OBJECTS SUBJECT TO THE APPROVAL OF THE OFFICE OF THE PUBLIC CHARITY COMMIS SIONER, ETC. NO OTHER MATERIAL HAS BEEN PRODUCED ON BEHALF OF TH E REVENUE BEFORE US TO SUGGEST THAT THE AIMS AND OBJECTS OF T HE TRUST ARE NOT CHARITABLE IN NATURE. IN THESE FACTS OF THE CASE, WE HOLD THAT THERE IS NO JUSTIFICATION FOR REFUSING THE REGISTRATION U /S.12AA AND 80G(5) OF THE ACT TO THE ASSESSEE, WHICH IS ACCORDI NGLY ALLOWED TO THE ASSESSEE AND THE ORDERS OF THE DIT(EXEMPTIONS) IN BOTH THE CASES ARE REVERSED AND WE DIRECT THE DIT(EXEMPTIONS ) TO GRANT THE REGISTRATION U/S.12AA & 80G(5) OF THE ACT TO THE AS SESSEE IN BOTH THE CASES AND THE GROUND(S) IN BOTH THE APPEALS ARE HEREBY ALLOWED. 5.1. IN THE INSTANT CASE, SINCE THE FACTS ARE IDENT ICAL TO THE FACTS OF THE CASE OF SHREE CHARGAM DASHA PORWAD(SUPRA) AND THE R EVENUE HAS NOT POINTED OUT ANY CONTRARY MATERIAL, THEREFORE THE OR DER OF THE LD.CIT IS HEREBY SET ASIDE. THE LD.CIT IS DIRECTED TO GRANT REGISTRATION AS PRAYED BY THE ASSESSEE-TRUST. THUS, ALL THE GROUNDS RAISED IN ASSESSEES APPEAL ARE ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 05 TH DAY OF DECEMBER, 2014 AT RAJKOT. SD/- SD/- ( ) ( $ ) !' # # ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT; DATED 05 / 12 /2014 .. , .../ T.C. NAIR, SR. PS ITA NO.640/RJT/2014 SHRI RAMDEVJI MAHARAJ PRATHNA MANDIR VS. CIT-JAMNAGAR - 5 - / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. &6& 7 / CIT-JAMNAGAR 4. 7 ( ) / THE CIT(A)CONCERNED 5. 9$ : , , , /DR,ITAT, RAJKOT 6. : EF G 0 / GUARD FILE. / BY ORDER, - 9 , //TRUE COPY// / !' ( DY./ASSTT.REGISTRAR) '# $%&, / ITAT, RAJKOT 1. DATE OF DICTATION .. 03.12.2014(DICTATION-PAD 3 -PAGES COPIED) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 4.12.14 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BAC K TO THE SR.P.S./P.S.5.12.14 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.12.14 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK.. . 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER