RANTHAMBORE TIGER CONSERVATION, Sawai Madhopur V. CIT, Kota

ITA 641/JPR/2012

• Counselvise Citation: 64123114 RSA 2012
• Duration Of Justice: 2 year(s) 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 26-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROLLY AGARWAL
• Assessee Lawyers: DEEPAK GUPTA
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

1 ITA NO. 641 & 642/JP/12 RANTHAMBORE TIGER CONSERVATION FOUNDATION, SAWAI MA DHOPUR IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI R.P.TOLANI AND SHRI T.R.MEENA) ITA NO. 641 & 642/JP/2012 U/S 12AA(1)(B)(II) & 80G(5) PAN NO.AAAAR9889H RANTHAMBORE TIGER CONSERVATION VS. THE COMMISSIONE R OF INCOME FOUNDATION, SAWAI MADHOPUR. TAX, KOTA. (APPELLANT) (RESPONDENT) ASSESSEE BY : SH.VINOD GUPTA & DEEPAK GUPTA DEPARTMENT BY : SMT.ROLLY AGARWAL DATE OF HEARING : 06.01.2015 DATE OF PRONOUNCEMENT : 09.01.2015 O R D E R PER: T.R.MEENA,A.M. BOTH THE APPEALS ENIMATING FROM THE ORDER OF CIT, KOTA ORDER DATED 22.02.11 U/S 12AA & U/S 80G(5) OF IT ACT. THE EFFE CTIVE GROUNDS OF APPEALS ARE AS UNDER :- 2 ITA 641/JP/12 1. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE COM MISSIONER OF INCOME TAX KOTA HAS ERRED IN REJECTING APPLICATION M ADE UNDER SECTION 12AA(1) OF I.T. ACT 1961, FOR REGISTRATION OF TRUST ON THE GROUND OF BEING A GOVERNMENT TRUST & PURPOSE OF THE TRUST ARE NOT CHARITABLE. 2. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE CIT KOTA HAS ERRED BY REJECTING APPLICATION MADE BY THE APPELLANT FOR R EGISTRATION AS CHARITABLE TRUST ON THE GROUND OF NON PRODUCTION OF BOOKS OF ACCOUNTS AS IT WAS 1 ST YEAR OF REGISTRATION. HENCE THERE CANNOT BE BOOKS OF ACCOUNTS OF PREVIOUS YEAR. 3. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE CIT KOTA HAS ERRED BY REJECTING APPLICATION MADE BY THE APPELLANT FOR R EGISTRATION AS CHARITABLE TRUST ON THE GROUND OF ACTIVITIES OF THE APPELLANT. THE APPELLANTS MAIN AIM & OBJECTS ARE OBJECT TO FAC ILITATE & SUPPORT THE TIGER RESERVE MANAGEMENT FOR CONSERVATI ON OF TIGER & BIODIVERSITY & TO FACILITATE ECOLOGICAL, EC ONOMIC, SOCIAL & CULTURAL DEVELOPMENT IN & AROUND THE TIGER RESERV E & PROTECT THE NATURAL ENVIRONMENT. AS PER SECTION 2(15) OF THE I.T.ACT 1961, DEFINITI ON OF CHARITABLE READS AS UNDER: CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRONMENT (INCLU DING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTOR IC INTEREST, ] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL P UBLIC UTILITY: IN THE ABOVE DEFINITION PRESERVATION OF THE ENVIRONMENT IS EXPRESSLY INCLUDED AS A CHARITABLE ACTIVITY. 3 4. THE APPELLANT RESERVES THE RIGHT TO ADD, REDUCE, AMEND, WITHNDRAW OF ALL OR ANY GROUNDS OF APPEAL. ITA 642/JP/12 1. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE COM MISSIONER OF INCOME TAX KOTA HAS ERRED IN REJECTING APPLICATION M ADE UNDER SECTION 80G(5) OF I.T.ACT 1961, FOR GRANT OF EXEMPT ION U/S 80G(5) OF THE I.T.ACT, 1961. 2. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE CIT KOTA HAS ERRED BY REJECTING APPLICATION MADE BY THE APPELLANT FOR R EGISTRATION AS CHARITABLE TRUST ON THE GROUND OF NON PRODUCTION OF BOOKS OF ACCOUNTS AS IT WAS 1 ST YEAR OF REGISTRATION. HENCE THERE CANNOT BE BOOKS OF ACCOUNTS OF PREVIOUS YEAR. 3. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE CIT KOTA HAS ERRED BY REJECTING APPLICATION MADE BY THE APPELLANT FOR R EGISTRATION AS CHARITABLE TRUST ON THE GROUND OF ACTIVITIES OF THE APPELLANT. THE APPELLANTS MAIN AIM & OBJECTS ARE OBJECT TO FAC ILITATE & SUPPORT THE TIGER RESERVE MANAGEMENT FOR CONSERVATI ON OF TIGER & BIODIVERSITY & TO FACILITATE ECOLOGICAL, EC ONOMIC, SOCIAL & CULTURAL DEVELOPMENT IN & AROUND THE TIGER RESERV E & PROTECT THE NATURAL ENVIRONMENT. AS PER SECTION 2(15) OF THE I.T.ACT 1961, DEFINITI ON OF CHARITABLE READS AS UNDER: CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRONMENT (INCLU DING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTOR IC INTEREST, ] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL P UBLIC UTILITY: IN THE ABOVE DEFINITION PRESERVATION OF THE ENVIRONMENT IS EXPRESSLY INCLUDED AS A CHARITABLE ACTIVITY. 4 4. THE APPELLANT RESERVES THE RIGHT TO ADD, REDUCE, AMEND, WITHNDRAW OF ALL OR ANY GROUNDS OF APPEAL. 2. THE ASSESSEE APPLIED FOR REGISTRATION U/S 12AA ( 1) ON 24-09-2010. THE LD.CIT FORWARDED THE ASSESSEES APPLICATION TO AO T HE VERIFY THE ACTIVITY OF THE FOUNDATION. THE AO GAVE THE REASONABLE OPPORTUNITY BEING HEARD TO THE APPELLANT TO SUBMIT THE DETAILS OF ACTIVITY PERFORMED BY THE FOUNDATION. THE APPELLANT ONLY FIED COPY OF ARTICLE OF ASSOCIATION BEFORE THE LD.C IT & ON REPEATED DATE GIVEN BY THE A.O., THE APPELLANT DID NOT APPEAR BEFORE THE A O. THEREFORE LD.CIT HAS DECIDED THE APPLICATION FOR REGISTRATION ON THE BAS IS OF MATERIAL AVAILABLE ON RECORD. HE HELD THAT ASSESSEES ACTIVITY WAS IS NO T CHARITABLE PURPOSE AND NOT ENTITLE FOR REGISTRATION U/S 12AA OF THE ACT. 3. SIMILARLY, SAME FINDINGS HAS BEEN GIVEN BY THE L D.CIT NOT GRANTING OF EXEMPTION U/S 80G(5) OF THE ITACT. 4. BEING AGREED BY BOTH THE ORDER OF CIT THE ASSESS EE CARRIED THE MATTER BEFORE US. THE LD.A.R. SUBMITTED THAT THE COMMISSI ONER IS REQUIRED TO SATISFIED HIMSELF ABOUT THE OBJECT OF THE TRUST OR INSTITUTION AND THE GENUINENESS THE ACTIVITY BEFORE GIVING SUCH REGISTRATION THE ONLY R EQUIREMENT IS THAT THE OBJECT MUST BE CHARITABLE PURPOSE HAS DEFINED U/S 2(15) OF IT ACT, 1961 ALONGWITH 5 GENUINENESS OF ACTIVITY. THE LD.COUNSEL FOR THE AS SESSEE HAD DRAWN OUR ATTENTION ON AIMS AND OBJECT OF THE FOUNDATION AS PER MEMORAND UM AND ARTICLE ASSOCIATION AND ARGUED THAT THE FOUNDATION HAS COME INTO EXISTE NCE FOR PRESERVATION OF ENVIRONMENT WHICH INCLUDES FOR FOREST AND WILDLIFE. THE FOUNDATION HAS BEEN FORMED BY THE STATE GOVT. ONLY IN COMPLIANCE OF THE REQUIREMENT OF WILDLIFE (PROTECTION) AMENDMENT ACT, 2006. THE ASSESSEES L D.A.R. RELIED UIPON RECENT JUDGEMENT OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. VIJAYVARGIEYA VANI CHARITABLE TRUST (2014) 369 ITR 360 (RAJ.), DIRECTO R OF INCOME TAX VS. GURDEV CITY EDUCATIONAL TRUST (2011) 330 ITR 480 (KER.), FIFTH GENERATION EDUCATION SOCIETY VS. CIT (1990) 185 ITR 634 (ALL.), COMMISSIONER OF INCO ME TAX-I, LUCKNOW VS. ST. DON BOSCO EDUCATIONAL SOCIETY, ITA NO.24/LUCK/2004, DIR ECTOR OF INCOME TAX (EXEMPTION) VS. PANNA LALBHAI FOUNDATION, (2013) 35 TAXMANN.COM 104 (GUJARAT), TARA DEVI TRUST VS. CIT-II, ITA NO.2185/AHD/2013 & DIRECTOR OF INCOME TAX VS. FOUNDATION OF OPHTHALMIC & OPTOMETRY RESEARCH EDUCA TION CENTER, ITA NO. 1687/DEL/2010. SIMILARLY ARGUMENTS ARE TAKEN BY THE LD.A.R. FOR GR ANTING OF EXEMPTION U/S 80G(5). AT THE OUTSET LD.CIT D.R. VEHEMENTLY HAS SUPPORTED THE ORDER OF THE CIT & ARGUED THAT THE APPELLANT HAD NOT SATISFIED TO THE CIT FOR GENUINENESS OF ACTIVITY OF THE 6 FOUNDATION. THE APPELLANT WAS NON COOPERATIVE BEFOR E THE CIT. THEREFORE, HE RIGHTLY REJECTED THE ASSESSEES APPLICATIONS. 5. WE HAVE HEARD THE RIVAL SUBMISSION PERUSED THE M ATERIAL ON RECORD. IT APPEARS THAT THE APPELLANT HAS NOT SUBMITTED REQUIR ED DETALS/INFORMATION BEFORE THE AO AS WELL AS THE CIT. IT ONLY FURNISHED THE C OPY OF MEMORANDUM AND ARTICLE OF ASSOCIATION OF FOUNDATION BUT THE CIT CAN CALL F OR SUCH DOCUMENT OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THI NK NECESSARY IN ORDER TO SATISFIED HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITY OF TH E TRUST OR INSTITUTION. HE SHALL PASS AN ORDER IN WRITING EITHER REGISTRATION OR REF USAL OF REGISTRATION. WHICH HAS BEEN FOLLOWED BY THE CIT IN ABSENCE OF REQUIRED MAT ERIAL NOT SUBMITTED BY THE APPELLANT. WE THEREFORE DIRECT THE LD.CIT TO RECON SIDER THE ASSESSEE BOTH THE APPLICATIONS IN THE INTEREST OF JUSTICE BY CONSIDER ING THE CASE LAWS CITED BY THE APPELLANT. THE LD.AR OF THE ASSESSEE IS ALSO DIREC TED TO COOPERATE WITH CIT PROVIDING THE REQUIRED DETAIL. ACCODINGLY, WE SET A SIDE BOTH THE APPEALS. 6. IN THE RESULT, THE ASSESSEES APPEALS ARE ALLOWE D FOR STATISTICAL PURPOSES. SD/- SD/- (R.P.TOLANI) (T.R.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED : 09/01/2015 7 *BASANT* COPY FORWARDED TO :- 1. RANTHAMBORE TIGER CONSERVATION FOUNDATION, SAWAI MADHOPUR. 2. THE CIT, KOTA. 3. THE CIT 4. THE D/R 5. GUARD FILE (ITA NO.641 & 642/JP/2012) BY ORDE R AR ITAT JAIPUR