Gowda Saraswath Mahila Vrinda, Bangalore V. DIT, Bangalore

ITA 820/BANG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8693 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-12-2015
• Assessment Year: misc
• Appeal Filed On: 19-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BINOD KUMAR SINGH CITIIIDR
• Assessee Lawyers: R CHANDRASHEKAR
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.820/BANG/2014 ASSESSMENT YEAR : N.A. GOWDA SARASWATH MAHILA VRINDA, NO.8, ASHWINI, 8 TH MAIN, R.M.V. EXTENSION, BANGALORE 560 080. PAN: AAATG 9767E VS. THE DIRECTOR OF INCOME TAX (EXEMPTION), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI R. CHANDRASHEKAR, ADVOCATE RESPONDENT BY : SHRI BINOD KUMAR SINGH, CIT-III(DR) DATE OF HEARING : 29.12.2015 DATE OF PRONOUNCEMENT : 20.01.2016 O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE APPELLANT TRUST DI RECTED AGAINST THE ORDER OF THE LD. DIRECTOR OF INCOME TAX (EXEMPTION) [DIT(E)], BANGALORE DATED 29.5.2015 PASSED U/S. 12AA(1)(B)(II) OF THE I NCOME-TAX ACT, 1961 ['THE ACT']. 2. THE APPELLANT TRUST HAS RAISED THE FOLLOWING GRO UNDS OF APPEAL:- ITA NO.820/BANG/2014 PAGE 2 OF 6 1. ORDER OF THE LEARNED DIT(E) IN REFUSING REGIST RATION TO THE APPELLANT U/S.12A.A OF THE I.T. ACT IS OPPOSED TO L AW AND FACTS. 2. THE LEARNED DIT(E) ERRED IN HOLDING THAT SINCE THE BENEFIT IS RESTRICTED TO ONE PARTICULAR COMMUNITY AND THUS IT WILL NOT FALL WITHIN THE PURVIEW OF GENERAL PUBLIC UTILITY AS D EFINED U/S.2(15) OF THE ACT. 3. THE LEARNED DIT(E) ERRED IN GIVING A NARROW DEF INITION TO THE WORD GENERAL PUBLIC UTILITY IN THE APPELLANT S CASE AND WHICH IS OPPOSED TO LAW. 4. THE LEARNED DIT(E) FAILED TO APPRECIATE THAT TH E BENEFIT IS NOT PROVIDED TO PARTICULAR COMMUNITY PERSON BUT IS PROVIDED TO A POOR PERSON WHO FALLS UNDER THAT COMMUNITY. THE LEA RNED DIT(E) ERRED IN HOLDING THE INSTITUTION IS CREATED FOR THE BENEFIT OF GBS COMMUNITY BUT IT IS CREATED TO HELP THE POOR PE OPLE OF THE COMMUNITY. 5. THE DECISION OF THE (THIS) HONBLE COURT IN THE CASE OF GANJAM NAGAPPA AND SON TRUST VS. DIT(E) 269 ITR 59 RELIED UPON BY THE LEARNED DIT(E) IS NOT APPLICABLE TO THE FACTS OF THE APPELLANTS CASE. 3. BRIEFLY THE FACTS ARE THAT HE APPELLANT TRUST WA S CREATED ON 17.12.1988 WITH THE FOLLOWING OBJECTS:- (A) TO ORGANIZE WOMEN AND CHILDREN OF GOWDA SARASW ATH COMMUNITY IN BANGALORE IN PARTICULAR AND IN THE WHO LE OF INDIA IN GENERAL FOR CONSTRUCTIVE PURPOSES OF DEVELOPMENT OF THE COMMUNITY IN THE FIELDS OF EDUCATION, RELIGION, CUL TURE AND KONKANI LANGUAGE AND THE WELFARE OF WOMEN AND CHILD REN OF THE COMMUNITY, PERSONALITY DEVELOPMENT, FAMILY DEVELOPM ENT, ECONOMIC UPLIFTMENT AND CULTURAL FULFILLMENT; (B) TO ENCOURAGE AND PROMOTE FRIENDLY RELATIONSHIP AND CO- OPERATION AMONG GOWDA SARASWATHS OF ALL DENOMINATIO NS, MUTTS ETC.; ITA NO.820/BANG/2014 PAGE 3 OF 6 (C) TO PROMOTE AND ACHIEVE A HEALTHY GROWTH OF; AND REJUVENATE THE CULTURE OF THE COMMUNITY IN BOTH THE RELIGIOUS AND SOCIAL FIELDS; TO REVIVE AND DEVELOP THE FOLK ARTS MUSIC A ND POETRY OF THE COMMUNITY; (D) TO ORGANISE ACTIVITIES AND TRAINING PROGRAMMES, CONFERENCES TO DEVELOP AND STRENGTHEN WOMAN AND CHILD, POWER AN D COHESIVE FAMILY BONDS; (E) TO ORGANIZE LECTURES, CONFERENCES AND TRAINING CAMPS IN THE FIELD OF HEALTH AND HYGIENE, CHILD DEVELOPMENT, EDU CATION. AND OTHER FIELDS; (F) TO ORGANISE PROGRAMMES OF COUNSELLING IN PREMAR ITAL. POST- MARITAL, FAMILY, EMOTIONAL, YOUTH AND STUDENT COUNS ELLING (G) TO ENLIGHTEN AND ORGANISE WOMEN TO ERADICATE TH E MENACE OF DOWRY. MARRIAGE, ALCHOHOLISM, SMOKING ABUSE ETC., E TC.; (H) TO BRING ABOUT RELIGIOUS DISCIPLINE AMONG WOMEN AND CHILDREN. TO ENLIGHTEN ON THE MEANING AND SIGNIFICA NCE OF HINDU CUSTOMS AND TRADITIONS; (I) TO ORGANISE TRAINING PROGRAMMES IN MUSIC, DANCE , DRAMA, BHAJANS, PUJA-VIDHI, GEETHA RECITATION, HARI-KATHA DEBATE, QUIZ PROGRAMMES, SPORTS, PHYSICAL FITNESS, SELF-DEFENCE, HOUSEKEEPING, COOKING, GARDENING, HOME MANAGEMENT ETC; (J) TO PROMOTE EDUCATIONAL INSTITUTIONS, WOMENS HO STELS AND MEDICAL CLINICS; (K) TRAINING WOMEN AND CHILDREN IN SOCIAL WORK BY O RGANISING CAMPS IN VILLAGES TO RENDER MEDICAL, SURGICAL, HEAL TH EDUCATION, SPORTS AND OTHER SERVICES; (1) TO PRINT AND PUBLISH LITERARY WORKS JOURNALS AN D PERIODICALS KONKANI AND CULTURAL ACTIVITIES AS PRODUCING AUDIO AND VIDEO CASSETTES (M) TO ESTABLISH RESEARCH ORGANISATIONS; (N) AND GENERALLY TO TRY TO DO ALL THAT MAY BE NECE SSARY FOR THE FURTHERENCE AND REALISATION OF THESE OBJECTS AND PR OTECT AND ITA NO.820/BANG/2014 PAGE 4 OF 6 PRESERVE THE RIGHTS AND INTEREST OF THE MEMBERS OF THE ASSOCIATION. 4. THE APPELLANT TRUST WAS DULY REGISTERED WITH REG ISTRAR OF SOCIETIES , BANGALORE ON 17.12.1988 AND FILED APPLICATION IN FO RM 10A FOR REGISTRATION U/S 12A OF THE ACT BEFORE THE DIT(E) ON 19.12.2013. THE LD. DIT(E) AFTER CALLING FOR CERTAIN DETAILS FROM THE APPELLANT TRUS T HAD HELD THAT THE TRUST WAS CREATED WHOLLY FOR THE OBJECTION OF BENEFIT OF A PA RTICULAR CASTE PEOPLE I.E., GOWDA SARASWATH COMMUNITY AND THEREFORE HELD THAT T HE OBJECTS OF THE TRUST ARE HIT BY PROVISIONS OF SECTION 13(1)(B) OF THE ACT. THE LD. DIT(E) ALSO GAVE A CATEGORICAL FINDING THAT THE GOWDA SARA SWATH COMMUNITY IS NOT A BACKWARD COMMUNITY AND THEREFORE DENIED THE EXEMP TION U/S. 12A OF THE ACT. HE ALSO PLACED RELIANCE ON THE DECISION OF TH E HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GANJAM NAGAPPA AND SON TRUST V. DIT(E), 269 ITR 59 WHEREIN IT WAS HELD THAT GRANT OF EXEMPTION IS NOT AN AUTOMATIC ONE, IT IS SUBJECT TO SATISFACTION OF AUTHORITY WITH REG ARD TO CHARITABLE CHARACTER. 5. BEING AGGRIEVED, BY THE APPELLANT TRUST IS BEFOR E US IN THE PRESENT APPEAL. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THOUGH TRUST WAS CREATED FOR THE BENEFIT OF GOWDA SARASWATH COMMUNIT Y, SINCE IT IS A BACKWARD COMMUNITY IT IS COVERED BY THE EXCEPTIONS CARVED OUT IN THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. THEREFO RE, HE CONTENDED THAT THE LD. DIT(E) WAS NOT JUSTIFIED IN DENYING REGISTRATIO N U/S. 12A OF THE ACT. ITA NO.820/BANG/2014 PAGE 5 OF 6 7. ON THE OTHER HAND, THE LD. CIT(DR) SUPPORTED THE ORDERS OF THE DIT(E) DENYING REGISTRATION U/S. 12A OF THE ACT. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD. IT IS AN UNDISPUTED FACT THAT THE APPELLAN TS TRUST WAS CREATED FOR THE BENEFIT OF GOWDA SARASWATH COMMUNITY. THE LD. DIT( E) HAD GIVEN A CATEGORICAL FINDING THAT IT IS NOT A BACKWARD COMMU NITY. THE APPELLANT RUST HAD NOT FILED ANY EVIDENCE CONTROVERTING THIS FINDI NG. THEREFORE, THIS FINDING REMAINS UNCONTROVERTED. THEREFORE THE CONTENTION O F THE APPLICANT TRUST THAT IT IS FOR THE BENEFIT OF BACKWARD COMMUNITY CA NNOT BE ACCEPTED AND NO RELIEF CAN BE GRANTED BASED ON MERE BALD ASSERTIONS WITHOUT EVIDENCE. HENCE, WE HOLD THAT THE ORDER PASSED BY THE LD. DIT (E) DENYING REGISTRATION U/S. 12A OF THE ACT IS VALID IN LAW. 9. IN THE RESULT, THE APPEAL OF THE APPELLANT TRUST IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF JANUARY, 2016. SD/- SD/- (ASHA VIJAYARAGHAVAN ) ( INTURI RAMA RAO ) JUDICIAL MEMBER ACCOUNTANT M EMBER BANGALORE, DATED, THE 20 TH JANUARY, 2016. /D S/ ITA NO.820/BANG/2014 PAGE 6 OF 6 COPY TO: 1. APPELLANT 2. RESPONDENTS 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.