M/s Shree Durga Mata Mandir, Chandigarh V. CIT (Exemption), Chandigarh

ITA 914/CHANDI/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1290 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 09-07-2018
• Assessment Year: misc
• Appeal Filed On: 02-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 914/CHD/2017 U/S 12AA (1)(B)(II) SHREE DURGA MATA MANDIR, VS. THE CIT (EXEMPTIONS), VILLAGE PIPLIWALA TOWN, CHANDIGARH MANIMAJRA CHANDIGARH PAN NO. AAPAS0577G (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SUDHIR SEHGAL, ADVOCA TE RESPONDENT BY : S/SH. ASHISH GUPTA, CIT DR DATE OF HEARING : 09.07.2018 DATE OF PRONOUNCEMENT : 07.09.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSE SSEE AGAINST THE ORDER DATED 30.3.2017 OF THE COMMISSIONER OF IN COME TAX (EXEMPTIONS), CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(E)] AGITATING THE ACTION OF CIT(E) IN REJECTING THE APP LICATION OF THE ASSESSEE SOCIETY FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY IS IN OPERATION SINCE 9.2.1983, WHICH IS ENGAGED IN MAN AGEMENT OF SHREE DURGA MATA MANDIR. THE AIMS AND OBJECTS OF THE SOC IETY INTER ALIA ARE AS UNDER:- ITA NO. 914/CHD/2017- SHREE DURGA MATA MANDIR, CHANDIGARH 2 A) TO TAKE STEPS TO ACQUIRE LAND FOR CONSTRUCTION OF A TEMPLE B) TO CELEBRATE IMPORTANT RELIGIOUS FESTIVALS AND H OLD FUNCTIONS TO HONOUR THE MEMORY OF GREAT MEN OF THOU GHT AND ACTION; C) TO ARRANGE PUBLIC DISCLOSURE ON SUBJECTS CONNECT ED WITH ANCIENT INDIAN HERITAGE; D) TO MAINTAIN COMMUNAL HARMONY BY EXTENDING ACTIVE COOPERATION TO THE PEOPLE OF VARIOUS FAITHS IN ACCO RDANCE WITH THE GREAT SPRIRTUAL HERITAGE OF INDIA AND HER SECULAR STRUCTURE AND ALSO TO PROMOTE BETTER UNDERSTANDING AMONG THE PEOPLE OF VARIOUS BELIEFS; E) THE SABHA IS STRICTLY NOT-POLITICAL . 3. THE ASSESSEE SOCIETY APPLIED FOR REGISTRATION U/ S 12A OF THE ACT. HOWEVER, THE SAME WAS REJECTED BY THE LD. CIT (E) OBSERVING THAT THE ASSESSEE SOCIETY HAD SOUGHT REGISTRATION F ROM THE BACK DATE I.E. FROM THE PAST 34 YEARS. THE LD. CIT(E) HAS FU RTHER OBSERVED THAT THE ASSESSEE SOCIETY HAD FILED RETURN OF INCOME FOR THE LAST THREE ASSESSMENT YEARS I.E. 2014-15, 2015-016 & 20 16-17. THESE WERE FILED BETWEEN THE PERIOD FROM SEPTEMBER TO NOVEMBER 2016 TO CLAIM EXEMPTION FROM TAXATION FOR THE AFORESAID YEARS. HE FURTHER OBSERVED THAT THE ASSESSEE COULD NOT VERIFY WITH RELIABLE EV IDENCES THE VALUE OF THE PLOT WHICH THE ASSESSEE SOCIETY RECEIVED AS A G IFT FROM SMT. LABH KAUR DAUGHTER OF SHRI RAJINDER SINGH. FURTHER, THER E WAS NO DISSOLUTION CLAUSE IN THE MEMORANDUM OF ASSOCIATION . FURTHER, THAT THERE WAS SOME MALFEASANCE WITHIN THE SOCIETY AS TH E PRESIDENT OF THE SOCIETY HAD BEEN REMOVED AND REPLACED. FURTHER, TH AT ASSESSEE SOCIETY HAD ACCUMULATED A CORPUS FUND OF RS. 1,25,1 9,852/- AND ASSETS OF RS. 1,26,30,865/- AND THAT THE SOCIETY HA D USED MEAGER ITA NO. 914/CHD/2017- SHREE DURGA MATA MANDIR, CHANDIGARH 3 FUNDS TO ACHIEVE THE AIMS AND OBJECTS OF CHARITABLE AND RELIGIOUS NATURE. HE, THEREFORE, DENIED THE REGISTRATION TO T HE ASSESSEE SOCIETY. 4. BEING AGGRIEVED BY THE ABOVE ORDER OF THE LD. CI T(E), THE ASSESSEE SOCIETY HAS COME IN APPEAL BEFORE US. 5. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND ALSO HAVE GONE THROUGH THE RECORDS. IN OUR VIEW, THE RE GISTRATION TO THE ASSESSEE SOCIETY HAS BEEN WRONGLY DENIED BY THE LD. CIT (E). THERE IS NO SPECIFIC FINDING OR THE OBSERVATION OF THE LD . CIT(E) IN THE ORDER THAT THE ASSESSEE SOCIETY IS NOT WORKING TOW ARDS ACHIEVING ITS AIMS AND OBJECTIVES. THE ASSESSEE SOCIETY IS A REL IGIOUS BODY AND IS ENGAGED IN THE MAINTENANCE OF SHREE DURGA MATA MAND IR AT MANIMAJRA. SUCH TYPE OF RELIGIOUS MANDIRS ARE NO T PRIVATE PROPERTY OF ANY INDIVIDUAL OR ANY SOCIETY, HENCE, THE PROPE RTY OF SUCH ENTITIES CANNOT BE TAKEN OVER OR DISTRIBUTED AMONG THE MEMBE RS OF THE SOCIETY. SO FAR AS THE ABSENCE OF DISSOLUTION CLAUS E, IT WAS BROUGHT IN THE KNOWLEDGE OF THE CIT(E) THAT THE ASSESSEE SOCI ETY SUBSEQUENTLY PASSED A RESOLUTION WHEREBY A DISSOLUTION CLAUSE HA VE BEEN ADDED TO THE MEMORANDUM OF ASSOCIATION OF THE SOCIETY. SO FA R AS THE ACCUMULATION OF CORPUS FUNDS ETC. IS CONCERNED, IT WAS EXPLAINED TO THE LD. CIT(E) THAT CORPUS FUND HAS BEEN MADE OUT OF THE DONATIONS RECEIVED FROM THE MEMBERS AND THE DEVOTEES OF SHREE DURGA MATA MANDIR FOR MAINTENANCE OF MANDIR AND PURCHASE OF NE W PROPERTY AND THAT THE SAID RECEIPTS WERE DULY ACCOUNTED FOR AND THAT THE INSTITUTION WAS ESTABLISHED WHOLLY FOR RELIGIOUS PURPOSES. IT H AS BEEN FURTHER EXPLAINED THAT THE CORPUS FUND HAS BEEN FURTHER AP PLIED FOR BUILDING ITA NO. 914/CHD/2017- SHREE DURGA MATA MANDIR, CHANDIGARH 4 OF NEW HALL / RELIGIOUS ACTIVITIES AND FUNCTIONS, S TAFF SALARY AND LANGAR ACTIVITIES (FREE FOOD). THAT THE CORPUS FUND OF RS. 1,31,23,853/- AS ON MARCH 31, 2017 HAS BEEN DULY U TILIZED FOR TEMPLE PREMISES, FURNISHING & FITTINGS AND ON UTEN SILS. 6. IT IS EVIDENT THAT THE ASSESSEE SOCIETY IS ENGAG ED IN MAINTENANCE OF MANDIR. THERE IS NO ALLEGATION THAT THE CORPUS FUND OR THE SURPLUS ACCUMULATED FUNDS ARE BEING USED FOR THE PU RPOSE OTHER THAN THE AIMS AND OBJECTS OF THE ASSESSEE SOCIETY. THE C ORPUS AS WELL AS ACCUMULATED SURPLUS AS IS CLAIMED IS BEING USED FOR MAINTENANCE AND DEVELOPMENT OF SHREE DURGA MATA MANDIR WHICH IS A R ELIGIOUS PLACE VISITED BY THE DEVOTEES AND OPEN TO ALL. 7. IN VIEW OF THIS, WE DO NOT FIND ANY JUSTIFICATIO N ON THE PART OF THE LD. CIT(E) FOR REJECTING THE APPLICATION OF TH E ASSESSEE SOCIETY FOR REGISTRATION U/S 12A OF THE ACT. THE LD. CIT( E), THEREFORE, IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE SOCI ETY FROM THE DATE OF APPLICATION I.E. FROM 16.9.2016 ONWARDS. THE APPEAL OF THE ASSESSEE SOCIETY IS ACCORDINGLY TREATED AS ALLOWED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 07.09.2018 SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07.09.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(E) ITA NO. 914/CHD/2017- SHREE DURGA MATA MANDIR, CHANDIGARH 5 THE DR