RAMESHCHANDRA CHIMANLAL SHAH JAIN DERASAR, MUMBAI V. DIT (E), MUMBAI

ITA 7578/MUM/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0331 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 24-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R P MEENA LD
• Keywords: Onus to prove
• Section: 12A; 11

Judgement Text

ITA NO.7578/MUM/2012 RAMESHCHANDRA CHIMANLAL SHAH JAIN IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI , , BEFORE SHRI JOGINDER SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 7578/MUM/2012 ( / ASSESSMENT YEAR: 2011-12) RAMESHCHANDRA CHIMANLAL SHAH JAIN 253/3C NADIADWALA COLONY, NO.2 S.V. ROAD ANDHERI (W) MUMBAI 400 064. / VS. DIRECTOR OF INCOME TAX(EXEMPTION) PIRAMAL CAMBERS 6 TH FLOOR PAREL MUMBAI 400 012. ./ ./ PAN/GIR NO. AADTS-4765-P ( ' /APPELLANT ) : ( #$ ' / RESPONDENT ) ' / APPELLANT BY : NONE #$ ' / RESPONDENT BY : R.P.MEENA, LD. CIT(DR) / DATE OF HEARING : 15/06/2017 / DATE OF PRONOUNCEMENT : 15 /06/2017 2 ITA NO.7578/MUM/2012 RAMESHCHANDRA CHIMANLAL SHAH JAIN ASSESSMENT YEAR 2011-12 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THE CAPTIONED APPEAL, THE ASSESSEE IS AGGRIEV ED BY REJECTION OF APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT FOR APPROVAL OF ASSESSEE TRUST [TRUST] BY DIRECTOR OF INCOME TAX (E XEMPTION) [DIT(E)] ORDER DATED 30/10/2012. NONE HAS APPEARED ON BEHALF OF ASSESSEE DESPITE BEING DULY INFORMED. SINCE, THE APPEAL IS LONG PEND ING, WE PROCEED TO DISPOSE-OFF THE SAME AFTER HEARING LD. DR AND ON TH E BASIS OF MATERIAL AVAILABLE ON RECORD. 2. BRIEFLY STATED, THE ASSESSEE TRUST, CREATED BY TRUST DEED DATED 21/08/2002, FILED FORM NO. 10A ALONG WITH PRESCRIBE D DOCUMENTS FOR REGISTRATION U/S 12A(A) OF THE INCOME TAX ACT, 1961 ON 24/04/2012. THE TRUST IS REGISTERED WITH CHARITY COMMISSIONER, GREA TER BOMBAY. THE LD. DIT(E), UPON PERUSAL OF TRUST DEED / FINANCIAL STAT EMENTS OBSERVED THAT IT RECEIVED DONATIONS OF RS.1,32,225/- AND REFLECTED P AYMENT OF RS.34,800/- TOWARDS PAYMENT TO PRIEST, SWEEPER, PUJA EXPENSES WHEREAS NO TEMPLE WAS ACQUIRED / CONSTRUCTED BY IT FOR THE SAID PURPOSES. IN REPLY, IT WAS SUBMITTED THAT IT WAS A SMALL TEMPLE IN THE PREMISES OWNED BY THE TRUSTEES. HOWEVER, NOT CONVINCED, THE APPLICATION WAS REJECTED BY MAKI NG THE FOLLOWING OBSERVATIONS AGAINST WHICH THE PRESENT APPEAL HAS B EEN PREFERRED:- 4.THE SUBMISSION OF THE APPLICANT TRUST HAS BEEN C ONSIDERED BUT IT IS NOT ACCEPTABLE. NOR IS THE EXISTENCE OF TEMPLE, RUNNING OF PATHSHALA ETC, BORN E OUT FROM THE AUDITED ACCOUNTS OF THE 3 ITA NO.7578/MUM/2012 RAMESHCHANDRA CHIMANLAL SHAH JAIN ASSESSMENT YEAR 2011-12 APPLICANT TRUST. WHAT THE APPLICANT TRUST WANTS IS EXEMPTION IN RESPECT OF RELIGIOUS DONATIONS FROM A TEMPLE (PROPERTY) WHICH IS HELD NOT BY THE T RUST BUT BY THE TRUSTEE IN HIS INDIVIDUAL CAPACITY. IT IS A MATTER OF RECORD THAT NO PROPERTY IS HELD BY THE APPLICANT TRUST FOR RELIGIOUS PURPOSES. SECTION 11(1) OF THE ACT CONFERS AN EXEMP TION ON INCOME DERIVED FROM PROPERTY ONLY WHERE THE PROPERTY ITSELF IS HELD UNDER A TRUST. IT IS IMPORTANT TO POINT OUT THAT HON'BLE MADHYA PRADESH HIGH COURT IN THE CASE OF SHRI DHAKAD SAMAJ DHARMASHALA BHAWAN TRUST V. CIT 302 ITR 321 (MP) HAS HELD THAT SINCE SECTION 11 OF THE I.T. ACT, 1 961 PROVIDES FOR EXEMPTION TO THE TRUST REGISTERED UNDER THE ACT, IT IS PRIMARILY THE PURPOSE OF SECTION 11 THAT WILL DOMINATE OR PREVAIL OVER OTHER CONSIDERATIONS WHILE PROCESSING APPLICATIONS IN THE COURSE OF REGISTRATION PROCEEDING U/S. I 2AA OF THE ACT. UNDER THE CIRCUMS TANCES, IT IS TOO PREMATURE TO REGISTER THE APPLICANT TRUST AT THIS POINT IN TIME. ACCORDINGLY, ITS APPLICATION FOR GRANT OF REGISTRATION IS REJECTED . 3. THE LD. DR PLACED RELIANCE ON THE FINDINGS OF LO WER AUTHORITY AND CONTENDED THAT REGISTRATION HAS RIGHTLY BEEN REJECT ED AS THERE IS NO PROPERTY HELD UNDER THE TRUST IN TERMS OF SECTION 11 AND THE PROPERTY STOOD IN PRIVATE NAME. 4. WE FIND THAT THE ONUS TO PROVE THAT THE PROPERTY WAS HELD UNDER THE TRUST WAS ON THE APPLICANT, WHICH IT HAS FAILED TO DO SO. THEREFORE, WE ARE INCLINED TO CONCUR WITH THE VIEWS OF THE LD. DIT(E) . 5. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE, 2017 SD/- SD/- (JOGINDER SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 15.06.2017 SR.PS:- THIRUMALESH 4 ITA NO.7578/MUM/2012 RAMESHCHANDRA CHIMANLAL SHAH JAIN ASSESSMENT YEAR 2011-12 / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #$ ' / THE RESPONDENT 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. #'. , . , / DR, ITAT, MUMBAI 6. /0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI