Bhai Mansa Singh Ji Welfare Society (Regd.), Jagadhari V. CIT, Panchkula

ITA 990/CHANDI/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5378 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-01-2014
• Assessment Year: misc
• Appeal Filed On: 17-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.990 /CHD/2013 (UNDER SECTION 12AA) BHAI MANSA SINGH JI VS. THE C.I.T., WELFARE SOCIETY (REGD.), PANCHKULA. BURJA GATE, JAGADHARI PAN: AABTB8920F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SMT.JYOTI KUMARI, DR DATE OF HEARING : 21.01.2014 DATE OF PRONOUNCEMENT : 23.01.2014 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX, PANCHKULA DATED 19.08.2 013 PASSED UNDER SECTION 12AA(1)(B) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ER RED IN LAW AS WELL AS ON FACTS IN REJECTING REGISTRATION UNDER SECTION 12AA OF THE ACT WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRE D IN OBSERVING THAT THE ASSESSEE SOCIETY HAS NOT CARRIED OUT ANY ACTIVITY A S PER THE OBJECTS WHICH IS UNFOUNDED, WITHOUT ANY BASIS AND AS SUCH THE ORDER IS ARBITRARY AND UNJUSTIFIED. 2 3. THAT THE REGISTRATION HAS BEEN REFUSED ONLY ON T HE BASIS OF SUSPICION, CONJECTURES AND SURMISES WHICH IS NOT PERMITTED UND ER THE LAW AND AS SUCH THE ORDER REFUSING REGISTRATION IS ILLEGAL, ARBITRARY A ND UNJUSTIFIED. 4. THAT THE LD. COMMISSIONER OF INCOME TAX HAS FURT HER ERRED IN HOLDING THAT THE OBJECT OF THE TRUST IS AGAINST THE SPIRIT OF SECTIO N I3(L)(B) OF THE ACT WHICH IS UNFOUNDED, WITHOUT ANY BASIS AND AS SUCH THE ORDER IS ARBITRARY AND UNJUSTIFIED. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS REJECT ION OF REGISTRATION UNDER SECTION 12AA OF THE ACT BY THE COMMISSIONER O F INCOME TAX, PANCHKULA. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY WAS CREATED ON 4.5.2011 AND IT WAS REGISTERED WITH THE SUB REGI STRAR, YAMUNA NAGAR ON 4.5.2011. THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION OF THE SOCIETY UNDER SECTION 12A OF THE ACT ON 25.4.2013. THE COMMISSIONER OF INCOME TAX CONSIDERED THE NOTE ON ACTIVITIES FIL ED BY THE ASSESSEE AND IT WAS NOTICED BY THE COMMISSIONER OF INCOME TAX TH AT THERE WAS NO MAJOR ACTIVITIES OF THE TRUST SO FAR AND ONLY A SUM OF RS.1500/- WAS SPENT ON MEDICAL CAMP. THE COMMISSIONER OF INCOME TAX FU RTHER NOTED THAT THE SOCIETY HAS BEEN FORMED TO SPONSOR SCHEMES FOR THE BENEFIT OF A SPECIFIC (SECT) BIRADARI OF BHAI MANSA SINGH JI AS PER POINT (IV) OF AIMS AND OBJECTS (SUPRA), WHICH IS AGAINST THE SPIRIT OF SECTION 13(1)(B) OF THE I.T. ACT 1961 . THUS THE REGISTRATION UNDER SECTION 12A OF THE A CT WAS REJECTED BY THE COMMISSIONER OF INCOME TAX. 5. THE ASSESSEE IS IN APPEAL AGAINST THE SAID REJEC TION OF REGISTRATION UNDER SECTION 12A OF THE ACT. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT THAT THE OBJECTS OF THE TRUST WERE AMENDED AND THE AMENDED OBJECTS WERE FILED BEFORE THE COMMISSIONER OF INCOME TAX WH ICH HAVE NOT BEEN CONSIDERED BY THE COMMISSIONER OF INCOME TAX. FUR THER IT WAS POINTED 3 OUT BY THE LEARNED A.R. FOR THE ASSESSEE THAT A REF ERENCE WAS MADE BY THE COMMISSIONER OF INCOME TAX TO THE NOTE ON ACTIVITIE S FILED BY THE ASSESSEE BUT THE COMMISSIONER OF INCOME TAX HAD FAI LED TO CONSIDER THE SAID ACTIVITIES UNDERTAKEN BY THE SOCIETY AND ALSO THE PROPOSED ACTIVITIES TO BE UNDERTAKEN BY THE SOCIETY. 6. THE LEARNED D.R. FOR THE REVENUE VEHEMENTLY OPPO SED THE SUBMISSIONS MADE BY THE ASSESSEE AND POINTED OUT TH AT THE ASSESSEE HAD FAILED TO FURNISH REQUISITE INFORMATION BEFORE THE COMMISSIONER OF INCOME TAX AND ALSO NO CHARITABLE ACTIVITY HAD BEEN CARRIED ON BY THE ASSESSEE SOCIETY. FURTHER AS THE TRUST WAS FORMED TO SPONSOR SCHEMES FOR PARTICULAR SOCIETY, THE ASSESSEE HAD VIOLATED THE P ROVISIONS OF THE ACT AND WAS NOT ENTITLED TO REGISTRATION UNDER SECTION 12A OF THE ACT. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE SOCIETY BEFORE US WAS CREATED ON 4.5.2011. THE AIMS AND OBJECTS OF THE ASSESSEE SOCIETY ARE PLACED AT PAGES 2 TO 8 OF THE PAPER BOOK. ORIGINALLY, THE AIMS AND OBJECTS OF THE ASSE SSEE SOCIETY ARE AS UNDER: (I) TO RUN THE GURUDWARA AND OTHER ESTABLISHMENT IN THE NAME AND MEMORY OF BHAI MANSA SINGH JI LOCATED AT BUNA CHOWK JAGADHRI. (II) TO RUN AND ESTABLISH WELFARE AND CHARITABLE S OCIETY FOR THE PURPOSE TO HELP AND TO PROVED FINANCIAL ASSISTANCE IN THE NAME OF B HAI MANSA SINGH JI. (III) THE SOCIETY WILL PROVIDE FACILITIES LIKE MED ICAL, FINANCIAL, RESIDENTIAL AND INFRASTRUCTURE FOR THE BENEFIT AND FOR THE BETTERME NT OF LIFE OF POOR AND TO THE BIRADARI OF BHAI MANSA SINGH JI. (IV) THE SOCIETY SHALL SPONSOR ANY SCHEMES FOR THE BENEFIT FOR BIRADARI OF BHAI MANSA SINGH JI LOCATED AT VARIOUS PLACES IN INDIA A ND ABROAD. (V) THE SOCIETY SHALL ACCEPT DONATIONS, GRANTS, GI FTS AND OTHER OFFERING IN THE SHAPE OF MOVEABLE AND/OR IMMOVEABLE PROPERTIES FOR THE ATTAINMENT OF ITS AIMS AND OBJECTS. (VI). THE SOCIETY SHALL PURCHASE/ACQUIRE LAND AND/ OR BUILDING IN ITS NAME OF THE SOCIETY FOR THE FULFILLMENT OF ITS AIMS AND OBJECTS . 4 8. THE ASSESSEE CLAIMED THAT BY RESOLUTION DATED 22 .5.2011 AS SPER THE MEETING OF THE ASSESSEE SOCIETY, THERE WAS AMENDMEN T IN THE AIMS AND OBJECTS AND THE AMENDED AIMS AND OBJECTS WERE AS UN DER: I. PARA 4 AIMS AND OBJECTS SERIAL 3 AND 4: SERIAL 3 AMENDED TO READ TO RUN THE SOCIETY FOR B ENEFIT OF GENERAL PUBLIC AT LARGE IRRESPECTIVE OF CAST AND CR EED ON THE LINES OF SECULAR TEACHINGS OF BHAI MANSA SINGH JI. SERIAL 4 AMENDED TO READ, TO RUN THE SOCIETY FOR BENEFIT OF POOR & GENERAL PUBLIC AT LARGE TO PROVIDE MEDICAL A ID, EDUCATION INSTITUTIONS, SCHOLARSHIPS, SPORTS, BLOOD DONATION CAMPS, OTHER FACILITIES & ACTIVITIES ON THE TEACHINGS OF BHAI MA NSA SINGH JI. 9. THE COPY OF THE RESOLUTION AMENDING THE AIMS AND OBJECTS IS PLACED AT PAGE 9 OF THE PAPER BOOK. THE LEARNED A.R. FOR THE ASSESSEE FURTHER DREW OUR ATTENTION TO THE REPLY FILED BEFORE THE CO MMISSIONER OF INCOME TAX PLACED AT PAGES 15 AND 16 OF THE PAPER BOOK, IN WHICH REFERENCE WAS MADE TO THE AMENDMENTS IN THE AIMS AND OBJECTS OF T HE SOCIETY IN THE MEETING HELD ON 22.5.2011. THE COMMISSIONER OF IN COME TAX WHILE PASSING THE ORDER UNDER SECTION 12AA OF THE ACT HAD FAILED TO CONSIDER THE AMENDED AIMS AND OBJECTS OF THE SOCIETY AND HAD ALSO FAILED TO CONSIDER THE NOTE ON ACTIVITIES FILED BY THE ASSESS EE IN RESPECT OF THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE SOCIETY AND T HE PROPOSED ACTIVITIES TO BE UNDERTAKEN BY THE ASSESSEE SOCIETY. WE ARE O F THE VIEW THAT THE COMMISSIONER OF INCOME TAX WITHOUT CONSIDERING THE EVIDENCE IN TOTO HAS ARBITRARILY REJECTED THE APPLICATION FILED BY T HE ASSESSEE UNDER SECTION 12AA OF THE ACT. IN THE INTEREST OF JUSTI CE, WE ARE OF THE VIEW THAT THE MATTER NEEDS TO BE RESTORED BACK TO THE CO MMISSIONER OF INCOME TAX TO DECIDE THE SAME DE-NOVO AFTER TAKING INTO CO NSIDERATION THE FACTS AND CIRCUMSTANCES IN TOTALITY BOTH IN RESPECT OF TH E AIMS AND OBJECTS OF THE ASSESSEE SOCIETY AND ALSO THE ACTIVITIES WHICH HAVE BEEN CARRIED ON BY THE ASSESSEE SOCIETY AND AFTER CONSIDERING THE S AME NECESSARY ORDER MAY BE PASSED BY THE COMMISSIONER OF INCOME TAX IN ACCORDANCE WITH 5 LAW. AT THIS JUNCTURE, WE ARE NOT COMMENTING UPON THE FACT THAT WHETHER THE ASSESSEE SOCIETY IS ENGAGED IN CHARITABLE ACTIV ITIES OR NOT. THE SAID ASPECT WILL BE VERIFIED BY THE COMMISSIONER OF INCO ME TAX IN LINE WITH THE PROVISIONS OF SECTION 12A OF THE ACT AND THEN T HE ISSUE BE DECIDED IN ACCORDANCE WITH LAW. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF JANUARY, 2014. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 RD JANUARY, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH