M/s Sri Hanuman Mandir Satsang Mandal Trust, Patiala V. CIT, Patiala

ITA 787/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90099 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-04-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 10-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR AMA RVEER SINGH
• Assessee Lawyers: ASHOK KUMAR GOEL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 787/CHD/2014 (ORDER UNDER SECTION 12AA) M/S SHRI HANUMAN MANDIR VS THE CIT, SATSANG MANDAL TRUST, PATIALA. NEAR BIR DASONDHI RAM APAHAJ ASHRAM, RAJPURA ROAD, PATIALA. PAN: AANTS7584C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK KUMAR G OEL RESPONDENT BY : DR. AMARVEER SINGH DATE OF HEARING : 15.04.2015 DATE OF PRONOUNCEMENT : 15.04.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX, PATIALA DATED 28.07.201 4 UNDER SECTION 12AA OF THE INCOME TAX ACT REJECTING THE AP PLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE FILED APPLICATION FOR REGISTRATION UNDER SECTION 12AA IN PRESCRIBED FORM WHICH WAS ACCOMPANIED BY TRUST DEED AND LIST O F AUTHORS. THE AIMS AND OBJECTS OF THE ASSESSMENT TRUST AS PER THE DEED ARE REPRODUCED IN THE IMPUGNED ORDER WHICH PROVIDE THAT ASSESSEE TO OPEN FREE DISPENSARIES & LABORATORIES, AID TO THE DISEASED AND DISABLED PERSONS AND TO PROVIDE FREE 2 MEDICINES/FOOD, ESTABLISH EDUCATIONAL INSTITUTIONS ETC. AND TO RUN BHANDARAS/LANGARS WITH THE HELP OF DEVOTEES AND TO ARRANGE FREE EYE CAMPS AND IT IS ALSO PROVIDED TO ISSUE FRE E KITCHEN UTENSILS AND BEDDINGS ETC. TO CELEBRATE FESTIVALS O F THE GREAT SOULS AND DEITIES. IT WAS ALSO PROVIDED TO ARRANGE BHAGWAT GEETA/RAMAYAN ETC. FOR UPLIFTMENT OF THE SOCIETY AN D TO UPGRADE TEMPLE BUILDING AND SURROUNDINGS. THE LD. COMMISSI ONER OF INCOME TAX OBSERVED THAT THE TRUST DEED PROVIDES TH AT SWAMI MADHAVNAND GIRI, CHELA SWAMI PHUL GIRI HAD CONSTRUC TED SHRI HANUMAN MANDIR ON PATIALA RAJPURA HIGHWAY AND VIDE HIS WILL DATED 30.01.1983 HAD SETTLED THE TRUST FOR THE SAI D SHRI HANUMAN MANDIR IN THE NAME OF SHRI HANUMAN MANDIR S ATSANG MANDAL. SEVEN TRUSTEES HAD BEEN NAMED IN THE SAID WILL OUT OF WHICH, THREE HAD EXPIRED AND TWO HAD SINCE RESIGNED BUT NEW TRUSTEES HAD TAKEN THEIR PLACE. THE PREVIOUS RECOR DS ARE NOT AVAILABLE. THE TRUSTEES HAVE RETAINED PROPERTIES O F SHRI HANUMAN MANDIR. IT IS FURTHER MENTIONED IN THE TRU ST DEED THAT THERE WAS NO REGULAR TRUST OF THE SAID PROPERT IES AND THEREFORE, IT WAS EXPEDIENT TO REDUCE THE AIMS AND OBJECTS OF THE TRUST AS WELL AS RULES AND REGULATIONS OF THE TRUST THROUGH THE PRESENT TRUST DEED. IT WAS FURTHER MENTIONED THAT A SUM OF RS. 40,800/- HAVE BEEN SET ASIDE FOR SETTLING THE TRUST . IT WAS ALSO FOUND THAT THE TRUST RECEIVED RECEIPTS FROM GOLAK, COLLECTION/ DONATION AND RENTAL INCOME ETC. AND IT WAS INCURRIN G EXPENDITURE ON BHANDARAS, GENERAL REPAIRS, MAINTENA NCE, POSHAK, PUJA FUNCTION, SALARY ETC. THERE WAS A SUR PLUS OVER EXPENDITURE AND IMMOVABLE PROPERTY OF THE MANDIR WA S NOT INCLUDED IN THE ASSETS OF THE TRUST. THE ASSESSEE WAS ASKED TO 3 EXPLAIN HOW THE TEMPLE PROPERTY BECOME PROPERTY OF THE TRUST. THE ASSESSEE PRODUCED WILL AS MENTIONED ABOVE AND I T WAS EXPLAINED THAT TEMPLE PROPERTY BELONG TO BHAGWAN HA NUMAN JI, THEREFORE, IT IS NOT PART OF THE BALANCE SHEET. IT WAS SUBMITTED THAT SINCE RIGHT TO MANAGE THE PROPERTY OF THE MAND IR WAS WITH THE TRUST AND THE INCOME WAS CONTROLLED BY THE TRUS T, THEREFORE, PROPERTY BELONG TO THE TRUST. HOWEVER, NO OWNERSHI P DOCUMENT OF IMMOVABLE PROPERTY IS AVAILABLE. 3. THE ENQUIRIES THROUGH ASSESSING OFFICER WERE ALS O GOT CONDUCTED REGARDING OWNERSHIP OF THE PROPERTY AND A FFAIRS OF THE TRUST. IT WAS STATED THAT THE OWNERSHIP OF THE IMM OVABLE PROPERTY OF SHRI HANUMAN MANDIR WAS IN THE NAME OF SHRI PARSHOTAM HARIDWARI AND THAT THE PROPERTY AT HARIDW AR WAS IN THE NAME OF SWAMI MADHWA NAND GIRI JI AND SWAMI KAN TA NAND GIRI JI. THE WITNESS EXPLAINED THAT WILL IS GENUIN E. THE ASSESSEE WAS, THEREFORE, ASKED TO EXPLAIN OWNERSHIP OF THE PROPERTY. THE ASSESSEE WAS ALSO DIRECTED THAT THE AIMS AND OBJECTS OF THE TRUST DEED DID NOT INCLUDE MANAGING EITHER THE TEMPLE AT PATIALA OR PROPERTY AT HARIDWAR. IT WAS SUBMITTED THAT THOUGH THE PROPERTY MAY BE IN THE NAME OF SHRI PARS HOTAM HARIDWARI BUT HE MIGHT HAVE DONATED THE PROPERTY TO THE TEMPLE AND ALL THE CONSTRUCTION IN THE TEMPLE AND IDOLS WE RE INSTALLED BY THE SPIRITUAL PREACHERS AND DEVOTEES OF BHAGWAN HANUMAN JI. THEREFORE, PROPERTY BELONG TO BHAGWAN HANUMAN JI. 4. THE LD. COMMISSIONER OF INCOME TAX FOUND THAT WI LL WAS GENUINE. HOWEVER, SINCE THE IMMOVABLE PROPERTY NOT SHOWN IN THE BALANCE SHEET OF THE ASSESSEE, THEREFORE, IT WA S FOUND THAT THE PROPERTY DID NOT BELONG TO THE TRUST AS NO OWNE RSHIP 4 DOCUMENTS OF THE PROPERTY ARE AVAILABLE AND THAT TH E AMOUNTS HAVE NOT BEEN SPENT FOR ACHIEVING THE AIMS AND OBJE CTS. THEREFORE, SINCE THE OWNERSHIP OF THE PROPERTY UNDE R TRUST WAS NOT CLEAR AND APPEARS TO BE WITHOUT AUTHORITY, IT W AS FOUND THAT ASSESSEE IS CARRYING ON ITS ACTIVITIES NOT MANDATED BY ITS AIMS AND OBJECTS AND ACCORDINGLY, REGISTRATION APPLICATI ON WAS DISMISSED. 5. WE HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PA RTIES AND PERUSED THE MATERIAL ON RECORD. COPY OF THE WILL I S FILED IN THE PAPER BOOK ALONGWITH TRANSLATED COPY. LD. COMMISSI ONER OF INCOME TAX ACCEPTED THE CONTENTION OF ASSESSEE ABOU T GENUINENESS OF THE WILL IN QUESTION. IN THE WILL U NDER REFERENCE, THE EXECUTANT HAS MENTIONED THAT HE HAS APPOINTED S EVEN TRUSTEES OF HIS TRUST AND THAT SHRI HANUMAN MANDIR, RAJPURA ROAD HAS BEEN CONSTRUCTED BY THE SPIRITUAL PREACHER S WITH THEIR HARD WORK OF THIRTY YEARS. IT IS ALSO STATED IN TH E WILL THAT ANOTHER PROPERTY IN HARIDWAR, DISTRICT SAHRANPUR WA S ALSO CONSTRUCTED BY SPIRITUAL PREACHERS FOR WHICH THE EX ECUTANT HAS DOCUMENTS AND CERTAIN SAVINGS. THEREFORE, IN ORDER TO RUN THESE PROPERTIES IN PROPER WAY, WILL WAS EXECUTED. ON GO ING THROUGH THE TRANSLATED COPY OF THE WILL, WE FIND THAT THOUG H THE WILL MAY NOT BE PROPERLY WORDED BUT THE INTENTION OF THE TES TATOR IS CLEAR THAT HE WANTED TO SETTLE THE PROPERTY OF SHRI HANUM AN MANDIR AS WELL AS PROPERTY AT HARIDWAR THROUGH THE TRUSTEES S O THAT PROPERTIES AND ITS INCOME MAY BE PROPERLY UTILIZED BY THE TRUSTEES. SEVEN TRUSTEES ARE MENTIONED IN THE WILL AND IN THE TRUST DEED, SAME FACTS ARE MENTIONED THAT THE TESTA TOR HAS EXECUTED A WILL AND APPOINTED SEVEN PERSONS AND HAS SURVIVING 5 TRUSTEES IN ORDER TO MAINTAIN PROPERTY OF SHRI HANU MAN MANDIR AND OTHERS, HAVE EXECUTED THE TRUST DEED AND EXPLAI NED ITS AIMS AND OBJECTS AND MADE THE RULES AND REGULATIONS FOR MAINTAINING THE PROPERTY IN QUESTION. IN THE WILL, IT IS ALSO STATED THAT THE PROPERTY WAS GOT CONSTRUCTED WITH THE HARD WORK OF THE SPIRITUAL PREACHERS BEFORE THIRTY YEARS. THE WILL IS DATED 3 0.01.1983. THEREFORE, THE PROPERTIES IN REFERENCE ARE ACQUIRED VERY LONG BACK BY THE TESTATOR. IN THE CIVIL LAW, THE PROPE RTY HELD WITHOUT OBJECTION FROM THE OWNER OF THE PROPERTY FOR A LONG PERIOD, SAY MORE THAN 12 YEARS, WOULD BECOME PROPERTY OF THE PE RSONS WHO ARE IN POSSESSION OF THE PROPERTIES THROUGH ADVERSE POSSESSION. THE TRUSTEE WAS HAVING POSSESSION OF THE TEMPLE AND PROPERTY AT HARIDWAR LONG BACK WITHOUT OBJECTION FROM ANY PERSO N IN THE WORLD AND HAS EXPLAINED THAT HE HAS CONSTRUCTED THE PROPERTY THROUGH SPIRITUAL PREACHERS. THEREFORE, THERE MAY NOT BE ANY DOUBT FOR THE OWNERSHIP OF THE IMMOVABLE PROPERTY, EVEN IF NO OWNERSHIP DOCUMENT IS AVAILABLE WITH THE ASSESSEE T RUST. THE CRUX OF THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX WOULD SHOW THAT MERELY ON THE BASIS THAT THE DOCUMENTS OF OWNERSHIP OF PROPERTY UNDER TRUST ARE NOT AVAILABLE, THE LD. COMMISSIONER OF INCOME TAX REJECTED THE APPLICATION FOR REGISTRA TION OF THE TRUST. 6. SECTION 12AA OF THE INCOME TAX ACT PROVIDES THAT THE LD. CIT BEFORE GRANTING THE REGISTRATION OR REJECTING T HE APPLICATION FOR REGISTRATION MAY CALL FOR SUCH DOCUMENTS OR INFORMA TION IN ORDER TO SATISFY HIMSELF ABOUT THE OBJECTS AND THE GENUIN ENESS OF THE ACTIVITIES OF THE TRUST. THEREFORE, AT THE STAGE OF GRANT OF REGISTRATION, THE LD. COMMISSIONER OF INCOME TAX C OULD SATISFY 6 HIMSELF ABOUT THE OBJECTS OF THE TRUST AND THE GENU INENESS OF ITS ACTIVITIES. THE REASON GIVEN BY LD. COMMISSIONER O F INCOME TAX THAT OWNERSHIP OF THE PROPERTY IN QUESTION IS NOT A VAILABLE TO THE ASSESSEE MAY NOT BE A GROUND FOR REJECTION OF THE R EGISTRATION APPLICATION. THE AIMS AND OBJECTS GIVEN IN THE TRU ST DEED PRIMA-FACIE SHOW THAT ASSESSEE MAY BE CARRYING ON S OME CHARITABLE ACTIVITY OR BY MANAGING THE PROPERTY OF SHRI HANUMAN TEMPLE OR PROPERTY AT HARIDWAR ON WHICH LD. COMMISS IONER OF INCOME TAX HAS NOT GIVEN ANY DETAILED FINDINGS. TH EREFORE, THE MATTER REQUIRES RE-CONSIDERATION AT THE LEVEL OF LD . COMMISSIONER OF INCOME TAX. WE ACCORDINGLY, SET AS IDE THE IMPUGNED ORDER AND RESTORE THE MATTER IN ISSUE TO H IS FILE WITH DIRECTION TO RE-DECIDE APPLICATION UNDER SECTION 12 AA OF THE INCOME TAX ACT BY GIVING REASONABLE SUFFICIENT OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE. THE LD. COMMISSIONER OF INCOME TAX SHALL GIVE FINDINGS ON THE POINTS OF AIMS AND O BJECTS OF THE ASSESSEE TRUST AND THE GENUINENESS OF ITS ACTIVITIE S. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH APRIL,2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH APRIL, 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH