MANDIR SHREE RADHA KRISHANMAHARAJ PUBLIC TRUST, BHARATPUR V. CIT, Alwar

ITA 776/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5327 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 20-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D S KOTHARI CIT DR DHK
• Assessee Lawyers: VINAY KUMAR GOYAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice
• Section: 80G; 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR B ENCHES, JAIPUR JH FOE FLAG ;KNO] YS[KK LNL;] YS[KK LNL; ,OA JH YF YR DQEKJ] U;KF;D LNL; DS LE{K BEFORE: SHRI VIKRAM SINGH YADAV, AM & SHRI LALIET K UMAR, JM VK;DJ VIHY LA-@ ITA NO.776/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : - SECTION 80G(5) OF THE I.T. ACT MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VILLAGE: KHOHARI, TEHSIL: DEEG, DISTT. BHARATPUR CUKE VS. THE CIT ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AADTM 0962 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO.777/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : - SECTION 80G(5)(VI) OF THE I.T. ACT SHREE SANT SUNDERDAS SEVA SANSTHAN VILLAGE: TUHIYA, DISTT. BHARATPUR CUKE VS. THE CIT ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAKTS 8155 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VINAY KUMAR GOYAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY: SHRI D.S. KOTHARI, CIT -DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15-03-2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 31-03-2016. VKNS'K@ ORDER PER LALIET KUMAR, J.M. BOTH THESE APPEALS HAVE BEEN FILED BY THE ABOVE AS SESSEE TRUSTS AGAINST SEPARATE ORDERS OF THE LD. CIT, ALWAR DATED 24-09-2 014 WHEREIN THE SOLITARY 2 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , GRIEVANCE OF THE RESPECTIVE ASSESSEE TRUST IS THAT THE LD. CIT HAS DENIED THE EXEMPTION U/S 80G(5) OF THE I.T. ACT, 1961. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE T RUST, NAMELY MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST, FILED AN APPLI CATION ON 27-03-2014 IN FORM NO. 10G FOR EXEMPTION U/S 80G(5) OF THE ACT FOR WH ICH THE JURISDICTIONAL ACIT, CIRCLE- BHARATPUR MADE ENQUIRY FROM THE ASSESSEE TR UST ABOUT THE OBJECTS OF THE TRUST, EXPENSES OF THE TRUST ETC. WHO GAVE THE REPO RT TO JCIT, RANGE-BHARATPUR RECOMMENDING THE CASE OF THE ASSESSEE TRUST FOR EXE MPTION U/S 80G.(5)(VI) OF THE I.T. ACT. BASED ON THE RECOMMENDATION FROM THE ACIT , THE ASSESSEE TRUST WAS DIRECTED TO SUBMIT THE DETAILS AS TO ACTIVITIES OF THE TRUST, BOOKS OF ACCOUNT OF THE TRUST, DOCUMENTARY EVIDENCES OF THE EXPENSES INCURR ED BY THE TRUST FOR PUBLIC INTEREST BUT THE DESIRED INFORMATION AS TO RUNNING OF THE TRUST IN PUBLIC INTEREST WAS NOT SUBMITTED BY THE ASSESSEE TRUST AND BY ITS AUTH ORIZED REPRESENTATIVE BEFORE THE LD. CIT ALTHOUGH THE LD. AR OF THE ASSESSEE WAS ALS O DIRECTED TO REMAIN PRESENT ON 23-09-2014 AT 3.30 PM IN THE OFFICE OF THE LD. CIT TO YET HE DID NOT ATTEND THE OFFICE OF THE LD. CIT WITH PROPER INFORMATION. THE LD. CIT ALSO OBSERVED THAT THE ASSESSEE TRUST IS REGISTERED U/S 12AA OF THE I.T. A CT SINCE 23-09-2014. THE LD. CIT HAD NO ALTERNATIVE EXCEPT TO PROCEED THE MATTER EX- PARTE BASED ON THE MATERIALS AVAILABLE ON RECORD RELATING TO THE ASSESSEE TRUST. THE LD. CIT MAINLY OBSERVED AS UNDER: 3 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , (I) THE TRUST /INSTITUTION IS ESTABLISHED FOR A PAR TICULAR RELIGIOUS COMMUNITY WHICH IS NOT IN ACCORDANCE WITH SECTION 8 0G(5)(III) OF THE ACT WHEREAS THE TRUST / INSTITUTION IS ESTABLISHED FOR THE WELFARE OF THE GENERAL WELFARE OF ALL THE GROUPS OF THE SOCIETY WH ICH INCLUDES SCHEDULED CAST, BACKWARD CLASSES, SCHEDULED TRIBES, WOMEN AND CHILDREN ALSO. (II) THE TRUST / INSTITUTION HAS INCURRED THE EXPEN SES MORE THAN 5% IN ASSESSMENT YEAR 2010-11 TO 2012-13 TOWARDS RELIGIOU S FUNCTIONS IN MANDIR AND HAS NOT INCURRED THE SAME IN PUBLIC INT EREST. (III) THE MAIN OBJECT OF THE TRUST IS TO MAKE MAIN DEVELOPMENT OF THE TEMPLE I.E. SHREE RADHA KRISHAN MAHARAJ AND SHRI L ALJI MAHARAJ WHICH INDICATE THE PERFORMANCE OF THE OBJECT OF THE PARTICULAR RELIGIOUS SOCIETY AND THE TRUST DOES NOT COMPLY WITH PROVISIO N OF SECTION 80G(5)(III) OF THE ACT. THE EXPENSES INCURRED IN TH E LAST THREE ASSESSMENT YEARS 2011-12 TO 2013-114 BY THE TRUST I S ON AGRICULTURE, CAR ON RENT, SALARY, WAGES, TELEPHONE AND MISC. EXP ENSES WHICH ARE MAINLY FOR A WELFARE OF PARTICULAR SOCIETY AND NOT FOR CHARITABLE PURPOSES. 4 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , IN VIEW OF THESE FACTS AND CIRCUMSTANCES OF THE CAS E, LD. CIT REFUSED TO GRANT EXEMPTION TO THE ASSESSEE TRUST U/S 80G(5) OF THE A CT. 2.2 AGGRIEVED, THE ASSESSEE TRUST IS BEFORE US AND THE LD. AR OF THE ASSESSEE PRAYED THAT HE WAS NOT PROVIDED PROPER OPPORTUNITY OF BEING HEARD AND THE LD. CIT PASSED THE EX-PARTE ORDER WHILE AS THE LD. AR OF TH E ASSESSEE PRAYED FOR ADJOURNMENT APPLICATION SEEKING TIME UPTO 26-09-201 4. THE LD. AR OF THE ASSESSEE TRUST ALSO PRAYED THAT LD. CIT ERRED IN REJECTING T HE APPLICATION FILED BY THE ASSESSEE TRUST FOR CLAIMING EXEMPTION U/S 80G OF THE ACT BY IGNORING THE FACT THAT THE TRUST DEED OF ASSESSEE TRUST HAD NO CLAUSE TO RESTRICT TH E BENEFIT OF TRUST TO A PARTICULAR COMMUNITY OR RELIGIOUS PURPOSE. THE OBJECTS OF THE TRUST WERE NOT PROPERLY CONSIDERED AND NO ACTUAL EXPENSES WERE MADE FOR ANY PARTICULAR COMMUNITY OR PERSON AND THE EXPENSES SHOWN IN AUDIT REPORT WERE INCIDENTAL AND NECESSARY FOR ACHIEVING THE OBJECTS AS MENTIONED IN THE TRUST DEE D. THUS IN VIEW OF THE SUBMISSIONS, THE TRUST MAY KINDLY BE GRANTED EXEMPT ION U/S 80G OF THE ACT. 2.3 THE LD. DR RELIED ON THE ORDER OF THE LD. CIT. 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM RECORD THAT THE ASSESSEE TR UST / INSTITUTION IS ESTABLISHED FOR A PARTICULAR RELIGIOUS COMMUNITY AND IT DOES NOT CO VER ALL THE SECTIONS OF THE SOCIETY TO PROVIDE THEM GENERAL WELFARE. THE TRUST / INSTITUTION HAS INCURRED THE EXPENSES MORE THAN 5% IN ASSESSMENT YEAR 2010-11 TO 2012-13 TOWARDS RELIGIOUS 5 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , FUNCTIONS IN MANDIR AND HAS NOT INCURRED THE SAME IN PUBLIC INTEREST. IT IS ALSO OBSERVED THAT THE MAIN OBJECT OF THE TRUST IS TO MA KE MAIN DEVELOPMENT OF THE TEMPLE I.E. SHREE RADHA KRISHAN MAHARAJ AND SHRI L ALJI MAHARAJ WHICH INDICATE THE PERFORMANCE OF THE OBJECT OF THE PARTICULAR REL IGIOUS SOCIETY AND THE TRUST DOES NOT COMPLY WITH PROVISIONS OF SECTION 80G(5)(III) OF THE ACT. THE EXPENSES INCURRED IN THE LAST THREE ASSESSMENT YEARS 2011-12 TO 2013-114 BY THE TRUST IS ON AGRICULTURE, CAR ON RENT, SALARY, WAGES, TELEPHONE AND MISC. EXPENSES WHICH ARE MAINLY FOR A WELFARE OF PARTICULAR SOCIETY AND NOT FOR CHARITABLE PURPOSES. IN VIEW OF THE ABOVE DELIBERATIONS, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT FOR NOT ALLOWING EXEMPTION U/S 80G(5) OF THE ACT. THUS THE APPEAL OF THE ASSESSEE TRUST IS DISMISSED. 3.0 NOW WE TAKE UP THE APPEAL OF M/S. SHREE SANT SU NDERDAS SEVA SANSTHAN, BHARATPUR IN ITA NO. 777/JP/2014 WHEREIN SIMILAR GR IEVANCE OF THE ASSESSEE TRUST IS THAT THE LD. CIT HAS NOT ALLOWED EXEMPTION U/S 8 0G(5) OF THE ACT. 3.1 BRIEF FACTS IN THIS CASE IS THAT THE LD. CIT H AS DECIDED THE APPEAL EX-PARTE WITHOUT PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TRUST AND THE LD. CIT ALSO RELIED ON EARLIER TRUST DEED WHICH WAS LA TER ON CHANGED DURING THE ORDER PASSED BY THE LD. CIT ON 30-07-2013. IN THE AMENDED TRUST DEED, THE AIMS AND OBJECTS ARE GENERAL IN NATURE WHICH WAS PROVIDED TO THE LD. CIT. HOWEVER, IN THE SUBSEQUENT TRUST DEED, CERTAIN AIMS AND OBJECTS HAV E BEEN REVISED AND NEW 6 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , RESOLUTION HAS BEEN PASSED ON 25-07-2013 WITH ALTER ED AIMS AND OBJECTS AND THE SAME WAS SUPPLIED TO THE LD. CIT. THE LD. CIT BASED HIS FINDINGS ON EARLIER TRUST DEED DATED 25-05-2010 INSTEAD OF NEW REVISED TRUST DEED DATED 25-07-2013 AND THUS DISMISSED THE APPEAL OF THE ASSESSEE TRUST.. 3.2 DURING THE COURSE OF HEARING, THE LD. AR OF THE ASSESSEE PRAYED THAT THE MATTER HAS BEEN DECIDED BY THE LD. CIT EX-PARTE WIT HOUT PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND ALSO THE LD. CIT DID NOT CONSIDER THE NEW REVISED TRUST DEED DATED 25-07-2013. THUS THE MATTER MAY KI NDLY BE RESTORED BACK TO THE FILE OF THE LD. CIT TO DECIDE THE ISSUE AFRESH BY P ROVIDING THE REASONABLE OPPORTUNITY OF BEING HEARD ALONGWITH NECESSARY DOCU MENTS RELATING TO TRUST. 3.3 ON THE OTHER HAND, THE LD. DR VEHEMENTLY OPPOSE D THE SUBMISSIONS OF THE LD. AR AND ALSO RELIED ON THE ORDER OF THE LD. CIT TO T HIS EFFECT. 3.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN THE ARGUMENTS OF THE LD. A R THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT TO DECIDE THE ISSUE IN QUESTION AFRESH BY PROVIDING REASONABLY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TRUST. THEREFORE, IT WILL BE IN THE INTEREST OF NATURAL JUSTICE THAT THE ASSESSEE TRUST SHOULD BE PROVIDED AN OPPORTUNITY TO CONTEST ITS CASE BEFORE THE LOWER AU THORITIES FOR THE PURPOSE OF GRANTING EXEMPTION U/S 80G(5) OF THE ACT IN VIEW OF THE NEW REVISED TRUST DEED. THE LD. CIT IS DIRECTED TO EXAMINE THE RECORDS OF T HE ASSESSEE TRUST WITH NEW 7 ITA NO. 776/JP/2014 MANDIR SHREE RADHA KRISHAN MAHARAJ PUBLIC TRUST VS. CIT, ALWAR , REVISED TRUST DEED AND DECIDE THE ISSUE AFRESH BY P ROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THUS THE APPEAL OF THE ASSESSEE TRUST NAMELY SHREE SANT SUNDERDASS SEVA SANSTHAN IS ALLOWED FOR STATIS TICAL PURPOSES. 4.0. IN THE RESULT, THE APPEAL OF THE ABOVE ASSESSE E TRUSTS IN ITA NO. 776/JP/2014 IS DISMISSED AND ITA NO. 777/JP/2014 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 /03/ 2016. SD/- SD/- FOE FLAG ;KNO YFYR DQEKJ ( VIKRAM SINGH YADAV ) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 31 /03/2016 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-(I) MANDIR SHREE RADHA KRISHAN MAHARA J PUBLIC TRUST, BHARATPUR (2) SHREE SANT SUNDERDAS SEVA SANS THAN, BHARATPUR . 2. VK;DJ VK;QDR@ CIT 3. VK;DJ VK;QDR @ THE CIT 4. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 5. XKMZ QKBZY@ GUARD FILE (ITA NO. 776 & 777/JP/2014) VKNS'KKUQLKJ@ BY ORDER, ASSISTANT REGISTRAR