Income Tax Officer, Ward 1(2), Jabalpur V. Shri Digamber Jain Mandir, Jabalpur

MA 5/JAB/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5844 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 02-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P D CHOUGALE
• Keywords: Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH , JABALPUR BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER M.A. NO.05/JAB/2017 [IN ITA NO. 02/JAB/2017] ASSESSMENT YEAR: INCOME TAX OFFICER WARD 1(2) JABALPUR V. S HRI DIGAMBAR JAIN MANDIR GARHA, JABALPUR T AN /PAN : AANTS0015L (APP LIC ANT) (RESPONDENT) APPLICANT BY: SHRI P. D. CHOUGALE, D.R. RESPONDENT BY: SHRI MANOJ JAIN, C.A. DATE OF HEARING: 05 04 2019 DATE OF PRONOUNCEMENT: 24 04 2019 O R D E R PER A. D. JAIN, V.P . : THIS MISCELLANEOUS APPLICATION IS PREFERRED ON BEHALF OF THE REVENUE AGAINST THE ORDER OF THE TRIBUNAL DATED 1 6/6/2016 IN ITA NO.02/JAB/2015 SEEKING RECTIFICATION IN THE ORDER OF THE TRIBUNAL ON THE GROUND THAT THE TRIBUNAL HAS ALLOWED THE APP EAL OF THE ASSESSEE IGNORING THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF KERALA VS. M.P. SHANTI VERMA JAIN, 231 ITR 787. 2 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAD MOVED AN APPLICATION BEFORE THE CIT - 1, JABALPUR FOR REGISTRATION U NDER SECTION 12AA OF THE ACT ON 15/4/2014 IN ACCORDANCE WITH RULE 17 OF THE INCOME TAX RULES. THE LD. CIT HAD REJECTED THE APPLICATION OF THE ASSESSEE OBSERVING THAT AFTER ANALYZING THE OBJECT S OF THE APPLICANT SOCIETY, IT WAS FOUND THAT THE OBJECT OF THE APPLICANT ASSESSEE IS MEANT FOR THE PARTICULAR COMMUNITY AND WHOLLY RELIGIOUS IN NATURE AND THEREFORE, HE M.A. NO.05/JAB/2017 PA GE 2 OF 3 TOOK THE VIEW THAT THE ASSESSEE IS PROPAGATING A PARTICULAR RELIGION AND DO NOT ENSURE TO THE BENEFIT OF GENERAL PUBLIC. THE TRIBUNAL VIDE ITS ORDER DATED 16/6/2016 HELD THAT THERE IS NO BAR IN SEEKING THE REGISTRATION UNDER SECTION 12A READ WITH RULE 17A OF THE INCOME TAX RULES BY THE TRUST CREATED FOR RELIGIOUS PURPOSES. ACCORDINGLY, THE TRIBUNAL SET ASIDE THE ORDER OF THE LD. CIT AND DIRECTED HIM TO GRANT REGISTRATION TO THE APPLICANT ASSESSEE UNDER SECTION 12AA OF THE ACT. 3 . BEFORE US, THE SUBMISSION OF THE LD. D.R. IS THAT THE TRIBUNAL WHILE DECIDING THE APPEAL OF THE ASSESSEE IN ITA NO.02/JAB/2015 IGNORED THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF KERALA VS. M.P. SHANTI VERMA JAIN (SUPRA). IT WAS FURTHER SUBMITTED THAT THE OBJECT OF THE APPLICANT TRUST IS TO PROPAGATE A PARTICULAR RELIGION AND TO RENDER SERVICE TO THE FOLLOWERS OF THAT RELIGION AND DOES NOT ENSURE BENEFIT TO GEN ERAL PUBLIC, THEREBY ATTRACTING THE PROVISIONS OF SECTION 13(1)(A) OF THE ACT. THEREFORE, THERE IS A MISTAKE APPARENT IN THE ORDER OF THE TRIBUNAL DATED 16/6/2016 , WHICH NEEDS RECTIFICATION. 4 . ON THE OTHER HAND, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT T HE DEPARTMENT HAD FILED AN APPEAL BEFORE THE HON'BLE HIGH COURT OF JABALPUR AGAINST THE ORDER DATED 16/6/2016 OF THE TRIBUNAL AND THE HON'BLE COURT VIDE ITS ORDER DATED 22/8/2017 IN ITA NO.129/2016 HAS DEFERRED ITS DECISION IN THIS CASE TILL THE DECISION O F THE HON'BLE SUPREME COURT IN A SIMILAR CASE OF REGISTRATION UNDER SECTION 12AA IN AN SLP FILED BY THE DEPARTMENT BEFORE THE HON'BLE SUPREME COURT. THE JUDGMENT OF THE HON'BLE HIGH COURT IS, AS FOLLOWS: - SHRI LAL SUBMITTED T HAT ON THE QUESTION OF AMBIT AND SCOPE OF ENQUIRY BY THE COMMISSIONER AT T HE TIME OF REGIST RATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 HAS GONE AGAINST THE REVENUE IN THE CASE OF COMMISSIONER OF (IN COME TAX (EXEMPTIONS), BHOPAL VS. SEWA DRISHIT SA M ITI IN I. T . A . NO.65/2015 D ECIDED O N 21. 09.2015. AGAINST THE SAID DECISION OF THIS COURT, THE M.A. NO.05/JAB/2017 PA GE 3 OF 3 REVENUE HAD PREFERRED SLP AND LEAVE HAS BEEN GRANTED BY THE SUPREME COURT A N D CASE HAS BEEN TAGGED WITH CIVIL APPEAL NO.5923/2012. HE SUBMITTED THAT CIVIL APPEAL NO.5923/2012 IS STILL PENDI NG BEFORE THE SUPREME COURT, THEREFORE, IN ALL PROPRIETY WE DEFER THE HEARING OF THIS CASE TO AWAIT TH E DECISION OF THE SUPREME COURT. 5 . IN VIEW OF THE ABOVE, WE FIND NO ERROR IN THE ORDER OF THE TRIBUNAL DIRECTING THE LD. CIT TO GRANT REGISTRATION TO THE APPLICANT TRUST. THE TRIBUNAL HAS TAKEN A CONSCIOUS VIEW IN THE LIGHT OF THE FACTS AVAILABLE ON RECORD, THEREFORE, THE VIEW OF THE TRIBUNAL CANNOT BE REVIEWED. SINCE NO ERROR APPARENT IS NOTICED, WE DECLINE TO INTERFERE WITH THE ORDER OF THE TRIBUNAL. TH EREFORE, WE FIND NO MERIT IN THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE, WHICH IS LIABLE TO BE DISMISSED. 6 . IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(4) OF THE ITAT RULES , 1963, BY PUTTING ON NOTICE BOARD ON 24/4/2019 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 24 /0 4 / 201 9 JJ: 2304 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR