SHREE MESHRI JAIN BHAVSAR CHARITABLE TRUST, MUMBAI V. DIT (IT) 12, MUMBAI

ITA 6951/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75449 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 16-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Assessee Lawyers: SANJIV M SHAH
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI , , ! '#$ , % & BEFORE SHRI VIJAY PAL RAO , JM AND SHRI N.K. BIL LAIYA, AM ./ I.T.A. NO.6951/MUM/2012 ( ' ' ' ' / ASSESSMENT YEAR : 2012-13 SHREE MESHRI JAIN BHAVSAR CHARITABLE TRUST, C/O KISHORBHAI K. BHAVSAR, 1301, D WING, PANCHSHEEL HEIGHTS, MAHAVIR NAGAR, KANDIVALI(W), MUMBAI-400 067 / VS. THE DIRECTOR OF INCOME-TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI-400 012 ( % ./ ) ./ PAN/GIR NO. : AAKTS 9545G ( (* / APPELLANT ) .. ( +,(* / RESPONDENT ) (* - / APPELLANT BY: SHRI SANJIV M. SHAH +,(* . - / RESPONDENT BY: SHRI GIRIJA DAYAL . /0% / DATE OF HEARING : 22.01.2014 12' . /0% / DATE OF PRONOUNCEMENT:29.01.2014 3 / O R D E R PER N.K. BILLAIYA, AM: WITH THIS APPEAL THE ASSESSEE HAS CHALLENGED THE CO RRECTNESS OF THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTION), MU MBAI DT.28.09.2012. ITA NO. 6951/M/2012 2 2. ALTHOUGH THE ASSESSEE HAS RAISED 4 GROUNDS OF AP PEAL, THE ENTIRE GRIEVANCE REVOLVES AROUND THE REJECTION OF THE APPL ICATION FOR REGISTRATION U/S. 12AA R.W. SEC. 12A OF THE I.T. ACT, 1961. 3. THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGU ED BEFORE US THAT THE DIT (EXEMPTION) HAS NOT APPRECIATED THE TRUST D EED PROPERLY. THE DIT(EXEM.) HAS ERRED IN BELIEVING THAT THE TRUST HA S BEEN CREATED FOR A PARTICULAR COMMUNITY I.E. BHAVSAR SAMAJ. THE LD. C OUNSEL FOR THE ASSESSEE PLACED THE COPY OF THE TRUST DEED BEFORE U S AND SUBMITTED THAT AT THE STAGE OF GRANTING REGISTRATION U/S. 12AA R.W. S 12A OF THE ACT, THE DIT (EXEM.) HAS TO SEE WHETHER THE OBJECTS OF THE TRUST ARE OF CHARITABLE IN NATURE OR NOT. IT IS THE SAY OF THE LD. COUNSE L THAT THE DIT (EXEM.) GROSSLY ERRED IN HOLDING THAT THE TRUST IS CREATED ONLY FOR BHAVSAR SAMAJ. 4. THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY REL IED UPON THE ORDER OF THE DIT (EXEMPTION). 5. WE HAVE CAREFULLY PERUSED THE ORDER OF THE DIT ( EXEMPTION). WE HAVE ALSO GONE THROUGH THE VARIOUS CLAUSES OF THE T RUST DEED FILED BEFORE US. THE TRUST IS REGISTERED WITH THE DY. CHARITY C OMMISSIONER GREATER MUMBAI REGION, MUMBAI. A PERUSAL OF THE SAID TRUST DEED SHOW THAT ORIGINALLY THE NAME OF THE TRUST WAS SHREE MESHRI J AIN BHAVSAR SAMAJ, THE SAME NAME WAS CHANGED WHEN IT WAS OBJECTED BY T HE DY. CHARITY COMMISSIONER TO SHREE MESHRI JAIN BHAVSAR CHARITABL E TRUST. IT APPEARS THAT THE DIT(EXEM) WAS CARRIED AWAY WITH THE NAME O F THE TRUST. WE FIND THAT THE OBJECTS OF THE TRUST ARE FOR THE RELI EF OF THE POOR OR POVERTY, EDUCATION, MEDICAL RELIEF AND OTHER CHARITABLE OBJE CTS. IT ALSO APPEARS THAT THE DIT DID NOT ALLOW REGISTRATION BECAUSE OF THE R EFERENCE TO SAMAJ. THE OBJECTS OF THE TRUST NOWHERE SUGGEST THAT THE TRUST IS RESTRICTED TO A PARTICULAR SAMAJ EXCEPT THAT THE NAME CONTAINS TH E SAME. WE AGREE ITA NO. 6951/M/2012 3 WITH THE LD. COUNSEL THAT AT THE TIME OF GRANTING R EGISTRATION ONLY THE OBJECTS OF THE TRUST HAS TO BE LOOKED INTO BECAUSE CLAUSE (III) OF SEC. 12AA CLEARLY PROVIDES THAT IF SUBSEQUENTLY THE COMM ISSIONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION AR E NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION, AS THE CASE MAY BE, HE SHALL PASS AN ORDER IN WRITI NG CANCELLING THE REGISTRATION FOR THAT TRUST OR INSTITUTION. CONSID ERING THE OBJECTS OF THE TRUST, IN THE LIGHT OF THE PROVISIONS OF SEC. 12AA R.W.SECTION 12A, WE DIRECT THE DIT(EXEMPTION) TO ALLOW REGISTRATION TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JANUARY, 2014 . 3 . 2' % 4 56 29.01.2014 2 . 7 SD/- SD/- (VIJAY PAL RAO ) (N.K. BILLAIYA) /JUDICIAL MEMBER % / ACCOUNTANT MEMBER MUMBAI; 5 DATED 29.01.2014 . . ./ RJ , SR. PS ITA NO. 6951/M/2012 4 3 3 3 3 . .. . +/ +/ +/ +/ 8 '/ 8 '/ 8 '/ 8 '/ / COPY OF THE ORDER FORWARDED TO : 1. (* / THE APPELLANT 2. +,(* / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- 4. 9 / CIT 5. :7 +/ , , / DR, ITAT, MUMBAI 6. 7; < / GUARD FILE. 3 3 3 3 / BY ORDER, ,/ +/ //TRUE COPY// = == = / > > > > (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI