SARASWATI VIDHYA BHAWAN SAMITI, Sikar V. CIT-III, Jaipur

ITA 71/JPR/2011

• Counselvise Citation: 7123114 RSA 2011
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 31-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G G MUNDRA
• Section: 12AA

Judgement Text

1 ITA 71-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 71/JP/2011 M/S. SARASWATI VIDHYA BHAWAN SAMITI, VS. COMMISSIO NER OF INCOME-TAX-III, NEEM KA THANA. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.G. MUNDRA RESPONDENT BY : SHRI SUNIL MATHUR ORDER DATE OF ORDER : 22/07/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE TRUST AGAINST THE OR DER OF LD. CIT WHO REFUSED TO GRANT REGISTRATION UNDER SECTION 12AA OF THE IT ACT . 2. THE ASSESSEE FILED APPLICATION IN FORM NO. 10A O N 12.5.2010 FOR GRANT OF REGISTRATION UNDER SECTION 12A. THE ASSESSEE TRUST WAS ISSUED REGISTRATION CERTIFICATE BY THE REGISTRAR OF SOCIETIES ON 13.5.1985. ON RECEIPT OF APPLICATION, THE LD. CIT DIRECTED THE AO NEEM KA THANA TO EXAMINE THE CASE AND SEND HIS R EPORT. THE AO SUBMITTED THAT SHRI K.P. SINGH, SECRETARY OF THE SAMITI HAD ADMITTED T HAT THE INCOME OF THE INCOME OF THE INSTITUTION BELONGS TO HIM. THE LAND TO THE INSTIT UTION IS NOT TRANSFERRED BY REGISTERED SALE DEED AND PAYMENT OF RS. 5500/- MONTHLY SALARY TO WI FE OF SHRI K.P. SINGH IS PAID AND SHRI K.P. SINGH PURCHASED THE PROPERTY IN HIS INDIV IDUAL NAME. THE ABOVE REPORTS WERE SENT BY THE AO IN VIEW OF THE ASSESSMENT PASSED FOR ASSESSMENT YEAR 2005-06 AND 06-07. THE LD. CIT AFTER TAKING INTO CONSIDERATION THE RE PORT OF THE AO, HELD THAT SOCIETY IS NOT 2 DOING ANY CHARITABLE ACTIVITY AS THE ACTIVITIES OF THE SOCIETY AND THE PROMOTER/FAMILY MEMBERS ARE MIXED UP. THEREFORE, THOUGH THERE IS A SEPARATE LEGAL STATUS OF THE SOCIETY BUT ABOVE FACTS SHOW THAT THE ACTIVITIES OF THE SOC IETY ARE NOT DIFFERENT THAN THE FAMILY MEMBERS OF THE PROMOTERS. ACCORDINGLY, HE REJECTED THE APPLICATION FOR GRANTING REGISTRATION UNDER SECTION 12A. 3. NOW THE ASSESSEE TRUST IS IN APPEAL BEFORE THE T RIBUNAL. 4. AFTER CONSIDERING THE WRITTEN SUBMISSIONS AND TH E EXPLANATION OF THE LD. A/R AND TAKING INTO CONSIDERATION THE ORDER OF LD. CIT ON W HICH RELIANCE HAS BEEN PLACED BY LD. CIT D/R, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN ITS APPEAL. IT IS NOTICED THAT THE REPORT SENT BY AO WAS BASED ON THE FINDING GIVEN IN THE ASSESSMENT ORDER COMPLETED FOR ASSESSMENT YEAR 2005-06 AND 06-07. THE AO WHILE SE NDING HIS REPORT HAS NOT CONSIDERED THE ORDERS OF THE APPELLATE AUTHORITY I.E. LD. CIT (A) AND THE INCOME-TAX APPELLATE TRIBUNAL. AGAINST FINDING OF THE AO FOR A.Y. 2004- 05 AND 06-07 THE ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A) WHO ALLOWED THE APPEALS I N FAVOUR OF THE ASSESSEE TRUST. ON SECOND APPEAL BY THE DEPARTMENT, THE APPEAL OF THE DEPARTMENT WAS DISMISSED. WHILE DISMISSING THE APPEAL OF THE DEPARTMENT, THE TRIBUN AL HAS GIVEN A CATEGORICAL FINDING THAT NO FUNDS HAVE BEEN USED BY THE MEMBERS. LAND IN QU ESTION HAS BEEN TRANSFERRED IN THE NAME OF SOCIETY. SOCIETY IS DOING THE ACTIVITIES AS PER ITS OBJECTS. IT IS FURTHER NOTICED THAT EVEN LD. CIT WHILE REJECTING THE APPLICATION HAS NO T TAKEN INTO CONSIDERATION ALL THESE DETAILS FILED BEFORE HIM ALSO AS THE LD. CIT REJECT ED THE APPLICATION BASED ON THE BASIS OF REPORT SENT BY THE AO. OBJECTS OF THE SOCIETY ARE VERY CLEAR. THEY ARE INDULGING IN CHARITABLE ACTIVITIES. LAND IN QUESTION STANDS IN THE NAME OF THE SOCIETY. THE OBJECTS OF THE SOCIETY ARE CHARITABLE IN NATURE. THEREFORE, IN OUR CONSIDERED VIEW THERE WAS NO BASIS 3 FOR REJECTING THE APPLICATION FILED ON FORM NO. 10A SEEKING REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY WE DIRECT THE LD. CIT TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT. 5. IN THE RESULT APPEAL OF THE ASSESSEE TRUST IS AL LOWED. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22. 7.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- M/S. SARASWATI VIDHYA BHAWAN SAMITI, NEEM KA THANA. THE CIT-III, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 71/JP/2011) BY ORDER, AR ITAT JAIPUR.