Gaytri Parivar Trust Bhoranj , Hamirpur V. CIT(Exemption), Chandigarh

ITA 71/CHANDI/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6073 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 19-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12; 80G; 12A; 201

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ A ” , C H A N D I G A R H BEFO RE SHRI N .K . SAI NI , VI CE PRESI DE NT & SHRI SUDHANSHU SRI V AST AVA, JUDI CI AL M EM BER आयकर अपील सं./ ITA No. 71/C H D / 2 0 2 0 नधा रण वष / Assessment Year : 2 0 1 9 - 2 0 Gayatri Parivar Trust Bhoranj Village Thara, PO Muundkhar, Tehsil Bhoranj, Hamirpur H.P. - 176044 बनाम The CIT (Exemptions), Chandigarh थायी लेखा सं./PAN NO: AACTG2238A अपीलाथ /Appellant यथ /Respondent Hearing though video Conferencing नधा रती क ओर से/Assessee by : Sh. Sudhir Sehgal, Advocate राज व क ओर से/ Revenue by : Sh. Vivek Nangia, CIT DR स ु नवाई क तार%ख/Date of Hearing : 28.12.2021 उदघोषणा क तार%ख/Date of Pronouncement : 25.03.2022 आदेश/Order P er S u d h an sh u S ri va s ta va , J u d i c i a l M e mb e r : T hi s a p pe al is pr e f er re d b y t h e as s e s s ee ag a i ns t t he o r de r d a te d 15 . 1 1. 2 01 9 p as s e d by t h e Ld . Co m mi s s i on e r o f Inc o m e Ta x (E x e mp t i o ns ) , Ch a nd i g a r h [ h e re i n a ft e r re f er re d t o as ‘C I T( E ) ’ ], w h er e i n vi d e i m p u gn e d or d er t h e L d. CI T ( E) h as re je c t e d t h e as s e s s ee ’s a pp l i ca ti on f or re gi s tr at i o n u / s 8 0G ( 5 )(v i) o f t he In c o m e Ta x A c t , 1 9 61 (h e r e i n a ft er ca l l e d ' t he A ct ') . ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 2 2. T he fo ll ow i n g gr o un ds ha v e b e e n r a i s e d b y t he a ss e s s ee i n t h is a pp e a l : - 1. T h a t t h e W o r t h y C I T ( E x e m p t i o n s ) , C h a n d i g a r h h a s e r r e d i n n o t g r a n t i n g a p p r o v a l a s m a n d a t e d b y s e c t i o n 8 0 G ( 5 ) ( v i ) o f I n c o m e T a x A c t , 1 9 6 1 . 2 . T h a t t h e a p p r o v a l u / s 8 0 G ( 5 ) ( v i ) o f I n c o m e T a x A c t , 1 9 6 1 h a s b e e n d e c l i n e d a g a i n s t t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e . 3 . T h a t t h e W o r t h y C I T ( E x e m p t i o n s ) h a s g r o s s l y e r r e d i n n o t g r a n t i n g t h e a p p r o v a l u / 8 0 G ( 5 ) ( v i ) o f t h e I n c o m e T a x A c t 1 9 6 1 v i d e o r d e r , d a t e d 1 5 . 1 1 . 2 0 1 9 a n d , t h u s , t h e g e n u i n e n e s s o f t r u s t a n d i t s a c t i v i t i e s s t a n d s e s t a b l i s h e d a n d , t h e r e f o r e , t h e r e f u s a l i n g r a n t i n g a p p r o v a l u / s 8 0 G ( 5 ) ( v i ) i s a g a i n s t t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e . 4 . T h a t t h e c a s e o f t h e a s s e s s e e i s c o v e r e d b y t h e j u d g m e n t o f J u r i s d i c t i o n a l B e n c h o f t h e I T A T , C h a n d i g a r h B e n c h i n t h e c a s e o f S a b t e r a F o u n d a t i o n , i n I T A N o . 1 8 2 / C h d / 2 0 1 9 , U / S 8 0 G ( 5 ) ( v i ) , w h e r e u n d e r s i m i l a r f a c t s a n d c i r c u m s t a n c e s , t h e a p p r o v a l u / s 8 0 G ( 5 ) ( v i ) h a s b e e n g r a n t e d . 5 . T h a t t h e a p p e l l a n t c r a v e s l e a v e t o a d d o r a m e n d t h e g r o u n d s o f a p p e a l b e f o r e t h e a p p e a l i s f i n a l l y h e a r d o r d i s p o s e d o f f . 3. 0 T he b ri e f f ac t s o f t h e ca s e a r e th at t he a s s es se e is a T ru s t re g i s t e r ed u/ s 12 A A o f t he A c t vi de or d er d a t e d 2 9.0 6 . 2016 a n d has be e n, u n d is p ut ed ly , c a r r yi ng o ut c h a r i t ab le a c t i viti e s s i nc e 2 5. 11 . 2 01 4. T he as s e s s e e t r us t ap pl ie d for re gi s tr a t i on u/ s 80G o f t he A c t on 16 . 0 5. 2 01 9 v id e ap pl i c a t i on i n F o r m 1 0G w h ic h w as re je c te d b y th e L d . CI T(E ). A s pe r r ec o r d, i t i s s ee n t ha t t he a s s es s ee ha d f i le d a n a pp l i ca ti on f o r ap p rov al u / s 80 G e a r l i e r v i de dat e d 1 0. 1 2. 2 01 5, w h i c h w as r ej e c t e d v i d e ord er dat e d 29 . 0 6. 201 6 o n t he g r ou nd t ha t t h e ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 3 a pp l i ca t i on w a s p r e - ma t ur e a s th e as s e s s ee h ad n o t ye t b e e n g r a n t e d re g i s t r a ti on u / s 12 A o f t he A c t . T he a s s e s se e a ga in f i l e d a n a p p l i c a t i o n fo r a pp r o va l u / s 8 0 G o f t h e A c t on 4 . 0 1. 20 1 8, w h i c h w a s a l s o re j ec t e d vi d e o rd e r da te d 2 8. 07 . 2 0 18 on t h e gr o un d t ha t t he t r us t w a s o v er t l y re l ig io us . The a s s es s e e i s no w i n a ppe a l a g a i n s t t hi s th i r d or de r o f re j ec t io n o f a pp l i c a t io n vi de o rde r da t e d 1 5. 11. 2 0 19. 4. 0 T he L d . A ut ho r is e d R ep r e se n t a ti ve ( A R) d r e w our a t t e n t i o n t o t he ob j e c t c l a us e i n t h e T ru st D ee d an d s ub m it t ed t ha t t h e a s s e s s ee Tru s t w as co mm i t t ed to i nd uc e s pi r i t o f mor al i ty i n a l l hu ma n bei ng s by w a y o f e d u c a t i o n a n d a w ar en es s an d he lp o th er s i n i mp r ovi ng t h e w a y o f l iv in g a n d e l i m in at i ng ma te r i a li s t i c a s pe c ts . It w as s u bmi t t e d t h a t t he t rus t e mp ha si s e d f o c us o n c ha r a c t er b ui l di ng, i nc ulc a t i ng p os i ti vi t y a n d ha p pi ne s s w i th ou t a ny di s c ri m i n at i o n o n t he ba s i s of ca s t e o r c r e e d. I t w as f ur t h e r s u b m i tt e d th at th e m ai n fo cus o f th e t rus t i s o n s e v e n s e g me nt s o f l i fe v iz , me di ta t io n, e du c a t io n , h ea l th, s e l f -d e p e n de n c e , e nv i r on me nt , w o me n e mp ow e r m e nt a n d dr u g –a dd i t io n fr e e s o ci e ty . 4. 1 T he L d . A R s ub mi t t e d t ha t , a l t ho u g h, t he L d. CIT( E) ha s re j ec t e d t he a s s es s e e’ s a pp l i ca t i o n f or a p pr o v al u / s 80 G (5 )( vi ) o f t he A c t by ob s er v i n g t h a t th e ob j e c ts o f t h e Tr us t a re o f re l ig i o us n at ur e, he has i gn o r ed t he ve ry c r uc i a l fa c t t ha t t h e as s e s s e e t r us t is re gi s te re d u /s 12 A A o f t h e A ct . I t w a s s ub mi t t e d t ha t p e r ha ps t he L d. CI T (E ) h as c ons i de re d o n l y t w o ou t o f 2 2 o b je c ts li s t e d i n t he T ru st D e e d a n d ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 4 re a ch e d t h i s k i n d o f e r ro ne o us fi n di ng . It w as s ub mi t t e d t h at ev en a ba r e re a di ng o f t h e o bj e c ts w oul d m a ke it v e ry ob v i o us th a t t h e Tr us t f oc us es on g r ow t h o f t h e h u m an b ei n g a nd n o t o nl y o n p r o po si t i on o f G a ya t r i M ah a m a n tr a. It w a s s u b mi t te d t h a t t h e G a ya t ri M a ha ma n t r a i s o nl y us e d a s a me di u m fo r a c hi e vi ng ob je c ts o f t he t ru st i. e . i n f us i n g mor a l i ty a n d go od me n t a l i t y a nd , t he re fo r e, i t c ou l d no t b e s ai d t ha t t h e ob j ec t s o f t h e t rus t w e re ov e r t l y re l i g i o us . I t w as s ub m it t e d t ha t i t i s un d is p u t e d t ha t G ay at ri M ah a ma n t r a is no w c ha n t e d b y p eo pl e fr o m a ll w al ks o f l i fe a nd fr o m a l l ov e r w o rl d an d no t ne c e s s ar i l y on l y by H in d us . 4. 2 T he Ld . A R a ls o s ub m it t e d t ha t t h e L d. C IT ( E ) ha s a ls o obs e r v e d t ha t t he a s s es s e e’ s ea r l i er a p p l i c a ti on s (o n tw o o cc as i o n s ) fo r a pp r o va l us 80G w er e re je c te d a nd t he a s s es s e e ha d n ot fi l ed a ny ap pe a l a ga in s t t he s a me a n d, th e r e f or e , t he p r e se nt app li c a t i o n w as li a bl e t o b e re j ec t ed . It w as s ub m it t ed t ha t i t i s le ft t o t h e op t io n o f t he a s s es s e e w he th er i t c ho os es t o a p p l y fo r f re s h re g is t r a t io n or t o fi l e an a p pe a l a ga in st t he r ej e ct i o n o f th e ap p l i c a ti o n b y t h e s ame au t h o ri ty e a r l ie r a n d t he sa m e c an n ot be gr ou n d for r e j e ct i o n o f th e a ppl i c a ti on a ga i n. 4. 3 It w a s a ls o ar gue d t ha t s i n ce t he a s s e s s e e en jo y s re gi s tr at i on u /s 12 A A o f th e A c t , t he a pp ro va l u/ s 8 0 G o f th e A ct c an not b e de ni e d be c aus e , un d is p ut e dl y, t he a s s es s e e is c a r ry i ng on c h a ri t ab l e a c t i vi ti e s. It w a s a l s o s u b mi t t e d t h a t w hi l e r e j e c t i ng t h e a s ses s e e’ s a pp l i c a ti on , n o a dv e rs e i n fe re nc e h as bee n d ra w n b y t he Ld . CI T ( E ) w i t h re ga rd t o th e a s s es s e e’ s c ha r i t a b l e ac t iv it i es . ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 5 4. 4 It w as a ls o s u b mi t te d t hat t he a s s es s e e t ru s t wor k s u n de r t he gu i d a nc e o f t h e m a in t r us t n a me l y ‘ V e d M a t a G a ya tr i Tr us t ’ , S ha n t i K unj , H a ri dw ar , w h ic h ha s s a m e obj ec t s a n d t he a ct ivi ti e s o f t h e a s s es s e e’ s t ru s t a n d t h e s ai d t r us t i s dul y a pp ro ve d u / s 80G o f t h e A c t a nd, th er e fo re , t h e re i s no re as on t o de n y re g i s tr at i on u/ s 8 0G t o t h e a s s es s e e t r us t i n th is c a s e. T he Ld . A R re li e d o n a p l e t h ora o f j ud i c i a l pr e c e d e n ts i n s u pp o rt o f hi s c on te nt i o n th at t h e a sse s s e e t rus t , o n th e fa c ts o f th e c as e , wa s el i g i b l e fo r re g i s t ra ti on u /s 80 G o f t h e A c t. 5. 0 P e r co n t r a , t he L d . CIT D R re i t e r a t e d t he o bs e rv a t i o n o f t he Ld . CI T(E ) t h at t he a s s es s e e ’s a pp l i ca t i o n fo r a p pr ov al u / s 80 G o f t h e A c t ha d b e en re fu se d o n e a r l i e r t w o oc ca s io ns b u t t he as s es se e t rus t ha d no t pr e f e r re d a ny ap p e a l b e f o re th e a pp ro p ri a te F o ru m ag a i ns t s uch r e j e c t i on a nd, t he re for e, go i n g by th e p r i n ci pl e s of re s j u di c a ta , t he ap pl ic at i on o f th e a s s es s e e h ad be e n r i g ht l y r ej e ct e d. T h e L d. CI T D R al s o s ub m i tt e d t ha t i t i s s et t l ed l aw t h a t e ve n i f on e ob je c t i ve i s o f n on- c ha ri ta bl e n a t u re , t he ap p ro v a l c a n b e de n i e d. H e a ls o m ad e a re fe r e n c e t o t he t w o ea r l i er o rd e rs o f re j e ct i o n i n t h i s r egar d an d s u b m it t ed t ha t i n t hos e t w o or d er s , t h e Ld . C IT (E ) h a s a l s o d o ubt e d th e c h a ri t a b le n at u r e o f t h e o bj ec t s . T he L d. C IT D R, w h il e ve h e me n t l y s upp o rt in g t he or d e rs o f th e L d. CI T( E ) , s t ro n gl y a r gue d t ha t th e a s s e ss ee ap p l i c a ti on fo r a pp r o va l u /s 8 0G ( 5 ) (v i ) o f t h e A c t ha d be en ri gh t l y r e j e c te d. T h e L d . CI T D R al s o re l i e d on n u me r ou s j u d i c i al p re ce de n t s in s u ppo r t o f h is ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 6 c on t e n t i o n t ha t t h e a s s es s e e ’s a p pl i c a t io n fo r a p prov a l h a d b e e n r i gh t l y re j ec t ed . 6. 0 We ha v e h e a r d t he ri va l s ub m is s i on s a nd ha v e a ls o pe r us e d t h e m at er ia l on re co rd. In t h e pr e s e nt c a se , i t i s a n ad mi t t ed f a c t t h a t t he Ld . CI T(E ) d e n i ed t h e gra nt o f a pp r o va l u / s 8 0G o f t he A c t o n tw o g ro un ds – 1) t ha t so me o f t h e o b j e c ts o f t he as s e s s ee t rust w e re o ve r t l y re li gi ous i n n a t u r e; a n d 2 ) t h e a s s es s e e di d n o t pr e fe r a n y ap pea l a ga i ns t t he tw o e ar li e r or de rs r ej e c t i n g t h e gr a n t o f a p pr ov a l . We h a ve p e ru s ed t h e ob j e c t s cl a u s e o f t h e M e mo r a n du m o f t h e T r us t an d t he s a i d o b j e c t c la us e e n u me ra t e s as m an y as 2 2 o bj ec t s a nd a pl ai n r e a di ng o f t h e s e ob j e c t s w o ul d n ot a nyw he r e i n d i c a t e t ha t t h e ob j e cts a r e o f re li gi ous na t ur e , a s h as be en a l le ge d b y t h e L d. CI T ( E ) i n t he i mp u g ne d o r de r. I t i s a l s o a fac t o n re c or d t ha t t h e a s s es s e e t ru st con t in ue s t o e n j o y be ne fi t o f r eg is t r a t i o n u / s 1 2A A o f th e A c t a n d t he D e pa r tme n t h as no t i ni t ia t e d a ny ac t i o n t o ca n c el th e s ai d r e gi s tr a t i on. T h us , fo r al l p r a c t i c a l pu r pos e s , t h e a s s es s e e t rus t c o nt in ue s t o e n j o y t h e b en e fi t o f r e g i s t ra t i on u/ s 12A A o f t h e A c t , as i ts a ct i v i t i e s a re c h a ri tabl e i n na tu r e . N o do ub t ha s be e n r a i s ed a b out t h e c ha ri t a b l e obj e c t s o f t he as s e s s e e t r u s t. A pe r u sa l o f t he i m p ug n ed or de r o f t h e L d. CI T ( E ) fur t h er s h ow s t h a t e ve n t h e Ld. C IT (E ) h a s n ot do u bt e d t he c h a r i t a b l e n a t ur e o f t h e o bj ec ts o f t h e a s s es s e e tr us t. A l s o t he re is n o a v e r me n t or a l l e ga ti on th a t t h e a s s es s e e tr us t d oe s not f ul fi ll t he c o n di t io ns a s re q ui re d u /s 8 0G ( 5) ( vi ) o f th e A ct . T he r e f o re , w e ar e o f t h e c on s i de re d opi ni on, t ha t t h e Ld . ITA No. 71-Chd-2020 Gayatri Parivar Trust Bhoranj, Hamirpur 7 CI T(E ) w a s no t c or r e c t i n r e j ec t i n g t h e a ss e s s e e’ s a p pl i c at i o n f or a pp r o va l. F ur th er , th e L d. C IT (E ) ’s o bs er va ti on th a t t h e a s s es s e e di d no t pr e f er a ny a p p e al a g ai ns t th e e ar li e r o rd er s r ej e ct i n g t h e a pp r o va l a ls o d o e s n ot ho l d g oo d as t h e ch oi c e is l e ft o pe n to th e a s s es s e e w he th er t o fi l e a n a p pe al a ga i ns t t he re je c ti on o f ap p li c a t i on or t o fi l e a fr es h ap pl ic a ti on . T he c as e l aw s , a s ha v e b e e n r el i ed u po n b y t h e L d. CI T D R , a re a l so o f n o a i d to t he D e p a rt me nt i n, as mu c h as , t hes e ca s e l aw s a re o n a n e n t i r e l y d i ff e re n t f o o t i n g a n d a r e no t r e l e v a n t in t h e pr es e nt s e t o f f ac t s . A c co rdi ng ly , l o o ki n g i nt o the fa ct s o f t h e c a s e , w e a re o f t h e c on s i d er ed op i ni on t h a t t h e L d. C IT ( E) wa s p at e nt l y w r on g i n re j ec t in g t he a s s e s s ee ’s a p pl i ca t i o n f or a p p ro va l u/ s 8 0 G ( 5)( vi ) o f th e A ct a n d w e d i r e c t t he L d. C I T ( E ) t o g ra n t a pp r o va l t o t h e as s e s s ee t r u s t u/ s 80G o f t h e A ct . 7. 0 In th e fi n a l r es u lt , t h e a p pe al o f t he a s se s s e e s t an ds al l ow e d . O rde r p ro no un c e d o n 25. 03 . 2 02 2 . Sd/- Sd/- ( N. K. SAINI) (SUDHANSHU SRIVASTAVA) Vice President Judicial Member Dated : 25.03.2022 “आर.के .” आदेशक त,ल-पअ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु /त/ CIT 4. आयकरआय ु /त (अपील)/ The CIT(A) 5. -वभागीय त न2ध, आयकरअपील%यआ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar