UDASIN ASHRAM AKHARA NIRWANSAR TRUST, AMRITSAR V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

ITA 688/ASR/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 4266 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 17-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEET SING H
• Keywords: Earning of tax free income; Wrong claim
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 688/Asr/2019 Assessment Year: 2018-19 Udasin Ashram Akhara Nirwansar Trust, 1/S Sultanwind Gate, Amritsar, Punjab [PAN: AAAAU 1932E] Vs. Commissioner of Income Tax, Exemptions, Chandigarh (Appellant) (Respondent) Appellant by : Sh. Ashwani Kalia, CA Respondent by: Sh. Sanjeet Singh, CIT DR Date of Hearing: 24.02.2022 Date of Pronouncement: 20.04.2022 ORDER Per Anikesh Banerjee, JM: The instant appeal was filed by the assessee against the order of Commissioner of Income Tax (Exemptions), Chandigarh [in brevity the CIT(E)] bearing order number ITBA/EXM/S/EXM1/2019-20/1018310384(1). The date of order is 25/09/2019 under section 12AA of the Income Tax Act, 1961 (in brevity the Act). 2. Brief fact is that assessee is a charitable trust established on dated 13/08/2007 vide registration number 117 of 2007 – 08. The main object of the trust is to take care for development and safety of Udasin ashram, Akhra, to develop and ITA No. 688/Asr/2019 Udasin Ashram Akhara Nirwansar Trust v.CIT 2 to take care the Mandir of baba Shri Chander Jee Maharaj, running of langar & helping extended irrespective of caste, colour, creed, race or religion. The aims and objects are to have in the knowledge of the public to achieve the goal of Baba Shri Chander Jee Maharaj, to help the poor persons from the income of the ashram and also to help India at the time of uneven tragedy. The ld CIT(E) rejected the application in the following grounds as per page-5 point-9 of the impugned order, which are reproduced as under:- “In the absence of dissolution clause, non-production of land documents in English translation, wrong claim of exempt income and owning of luxury cars, there is no way the genuineness of activities the society can be corroborated with the stated aims and objects which in turn proves the charitable activities of the society. Accordingly the application was rejected.” 3. Aggrieved the assessee filed appeal before us. 4. The assessee filed application for registration of the trust under section 12AA of the Act. The Act only permits the CIT(E) to check the genuinity of the trust and satisfying himself about the objects of the society or institution with the genuineness of its activities. The learned counsel mentioned that non supplying of land documents in English translation cannot be the reason for rejection of application. He also mentioned that the dissolution clause will be inserted in amended provision of the trust deed. But the ld. CIT(E) did not allow reasonable opportunity for submission of assessee’s argument. 5. On the other hand the learned DR pointed out the reason of rejection of application made by the assessee before the revenue. The learned DR mentioned that the absence of dissolution clause is the primary reason for rejection of application for registration. ITA No. 688/Asr/2019 Udasin Ashram Akhara Nirwansar Trust v.CIT 3 6. We heard the arguments of both the parties and considered the available records. The charitable trust is running its activities from the year 2007. The learned CIT(E) did not point out about the genuinity of the trust and the activities related to main object of the trust. Mere, absence of dissolution clause, owning of luxury car and non-submission of English translation of deed cannot be the reason for rejecting the application of registration U/s 12AA of the Act. The assessee should get the reasonable opportunity for arguing it’s own matter. Here, the matter is setting aside to the learned CIT(E) for further consideration of the application of registration under section 12AA of the Act by taking view as per the provision of the act. 7. Accordingly the ground of the apples of the assessee allowed for statistical purpose. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 20.04.2022 Sd/- Sd/- (Dr. M. L. Meena) (Anikesh Banerjee) Accountant Member Judicial Member Date: 20.04.2022 *GP/Sr. PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(A), (4) The CIT concerned (5) The Sr. DR, I.T.A.T (6) The Guard File ITA No. 688/Asr/2019 Udasin Ashram Akhara Nirwansar Trust v.CIT 4 True Copy By Order