M/s Sanatan DharamParcharak Sabha (Read), Ludhiana V. Commssioner of Income Tax (Exemptions), Chandigarh

ITA 851/CHANDI/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0012 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 23-05-2019
• Assessment Year: 2016-2017
• Appeal Filed On: 13-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BEFORE AND S HRI S.S.GODARA M/S SANATAN DHARAM PARCHARAK SABHA (REGD) SDP COLLEGE FORTS WOMEN BEHIND CHAND CINEMA, FORT ROAD, NR. POWER HOUSE, DARESI ROAD, LUDHIANA T AN /PAN : AADTS 5721 K (APP ELL ANT) / APPELLANT BY: RESPONDENT BY: DATE OF HEARING: DATE OF PRONOUNCEMENT: PER S.S. GODARA, JUDICIAL THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSIO NER OF INCOME- TAX (EXEMPTIONS), CHANDIGARHS ORDER DATED31.05.201 6 PASSED IN CASE NO. CIT(E)/CHD/12AA/2016 12 AA OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. ITS FORM 10A APPLICATION SEEKING REGISTRATION ALONG WITH MEMORANDUM OF ASSOCIATION , B IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH B BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE-PRESIDENT HRI S.S.GODARA , JUDICIALMEMBER ITA NO. 851/CHD/2016 ASSESSMENT YEAR: DHARAM PARCHARAK SABHA (REGD) SDP COLLEGE FORTS WOMEN BEHIND CHAND CINEMA, FORT ROAD, NR. POWER HOUSE, DARESI ROAD, LUDHIANA V. COMMISSIONER OF INCOME TAX (EX), CHANDIGARH C.R. BUILDING, 5 TH FLOOR, SECDTOR- 17E, CHANDIGARH-16017 AADTS 5721 K (RESPONDENT) SHRI ASHWANI KUMAR, CA & SHRI ADITYA KUMAR CA SHRI G.S. PHANI KISHARE, CIT - DR DATE OF 23 0 5 201 9 DATE OF 24 0 5 201 9 / O R D E R S.S. GODARA, JUDICIAL MEMBER: THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSIO NER OF TAX (EXEMPTIONS), CHANDIGARHS ORDER DATED31.05.201 6 PASSED CIT(E)/CHD/12AA/2016 - 17/1218, INVOLVING PROCEEDINGS U/S AA OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. THE ASSESSEES PAPER BOOK COMPRISING OF ITS FORM 10A APPLICATION SEEKING REGISTRATION ALONG WITH MEMORANDUM OF ASSOCIATION AND OBJECTS, COPY OF LETTER DATED IN THE INCOME TAX APPELLATE TRIBUNAL COMMISSIONER OF INCOME TAX (EX), CHANDIGARH C.R. BUILDING, 17E, DR THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSIO NER OF TAX (EXEMPTIONS), CHANDIGARHS ORDER DATED31.05.201 6 PASSED 17/1218, INVOLVING PROCEEDINGS U/S THE ASSESSEES PAPER BOOK COMPRISING OF ITS FORM 10A APPLICATION SEEKING REGISTRATION ALONG WITH AND OBJECTS, COPY OF LETTER DATED ITA NO.851/CHD/122016 PAGE 2 OF 3 02.02.2016, 19.02.2016, 06.05.2016 AND 23.05.2016 F IELD BEFORE THE CIT(EX) ALONGWITH COPY OF ANNUAL ACCOUNTS FOR T HE YEAR ENDING ON MARCH, 31 ST , 2013 TO MARCH, 31 ST 2015; STAND PERUSED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT ASS ESSEES SOLE SUBSTANTIVE GRIEVANCE CANVASS IN THE INSTANT APPEAL SEEKS TO CHALLENGE THE CORRECTNESS OF THE CIT(EX)S FINDINGS DECLINING SEC. 12AA REGISTRATION FILED ON 17.11.2015. HE APPEARS TO HAVE REJECTED TH E ASSESSEES REGISTRATION PRAYER ON TWO COUNTS. HE FIRST OF ALL HOLDS THAT THE ASSESSEES BYE-LAWS / REGULATION DO NOT CONTAIN ANY DISSOLUTION BENEFICIARY AND UTILIZATION CLAUSE(S) WHEN IT BECOM ES DEFUNCT. HE IS OF THE VIEW THAT THE ASSESSEE HAS NOT INCORPORATED ANY STIPULATION IN ITS REGULATION SO AS TO ATTRACT SEC. 13(1)(C) OF THE AC T. HE THEREAFTER CONCLUDES THAT SINCE THE ASSESSEE RUNS TWO EDUCATIO NAL INSTITUTIONS NAMELY, M/S SDP COLLEGE FOR WOMEN AND RAMLAL BHASIN PUBLIC SCHOOL WHEREIN THE FORMER ONE RECEIVES GOVERNMENT GRANT-IN -AID IT HAS NOT MAINTAINED SEPARATE ACCOUNTS THEREBY INDICATING DIR ECTION OF FUNDS FROM THE FORMER TO THE LATTER INSTITUTE. HE HAS ACCORDIN GLY REFUSED SEC. 12AA REGISTRATION TO THE ASSESSEE. 3. THE ASSESSEES FIRST OF ALL SUBMITS DURING THE COUR SE OF HEARING THAT IT HAS AMENDED ITS MEMORANDUM / RULES VIDE AS ON 22.07.2018 AND THEREAFTER THE CIT(E)S FORMER OBJECTION STAND SATI SFIED (SUPRA). LEARNED COUNSEL FAILS TO DISPUTE THAT THE ASSESSEES MEMORA NDUMS AMENDMENT IS POST-FACTO THE CIT(E)S ORDER DATED 31.05.2016. MEANING THEREBY HE HAS NOT EXAMINED THE ASSESSEES AMENDED MEMORANDUM AS PER LAW. LEARNED COUNSELS NEXT ARGUMENT IS THAT THE ASSESSE E HAS NOT DULY BEEN MAINTAINING ITS ACCOUNTS PERTAINING TO THE TWO INST ITUTIONS (SUPRA) AS PER RULES LEAVING NO SCOPE DIVERSION OF FUNDS. REVENUE S CASE ON THE OTHER HAND IS THAT THE SAME NEEDS TO BE RE-EXAMINED AS TH E CIT(E) INSTANCE ALONGWITH ALL ADDITIONAL DOCUMENTS FILED AT THE ASS ESSEES BEHEST. WE ITA NO.851/CHD/122016 PAGE 3 OF 3 CONCLUDE IN THESE FACTS AND CIRCUMSTANCES THAT THE INSTANT ISSUE OF SEC. 12AA REGISTRATION NEEDS TO BE RE-EXAMINED BY THE CI T(E) AS PER LAW. WE ORDER ACCORDINGLY LEAVE IT OPEN FOR THE CIT(E) TO P ROCEED AFRESH WITH THE ASSESSEES REGISTRATION PLEA EXPEDITIOUSLY IN ACCOR DANCE WITH LAW. 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL P URPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 24/05/2019. SD/- SD/ - [ N.K.SAINI ] [ S.S.GODARA ] VICE PRESIDENT JUDICIAL MEMBER ! DATED:24/05/2019 *DKP ! ' / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S SANATAN DHARAMPARCHARAK SABHA (REGD) SDP COLLEGE FOR WOME N B/H CHAND CINEMA, FORT ROAD, NR. POWER HOUSE, DARESI R OAD, LUDHIANA 2. /RESPONDENT-CIT(EX),C.R. BUILDING, 5 TH FL, SECTOR-17E, CHANDIGARH-160017 3. &'&() * * + ! / CONCERNED CIT CHANDIGARH 4. * * +- ! / CIT (A) CHANDIGARH 5. /0 11(), * () , ! / DR, ITAT, CHANDIGARH 6. 4 56 / GUARD FILE. BY ORDER/ *78 , /TRUE COPY/ 9 &: * () , ;