SHRI S S JAIN SABHA,FATEHABAD V. ACIT EXEMPTION, CHANDIGARH

ITA 442/CHANDI/2024

• Counselvise Citation: [2024] 139 COUNSELVISE.COM (IT) 8965 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 22-04-2024

Judgement Text

" \n \nआयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ \nIN THE INCOME TAX APPELLATE TRIBUNAL \nCHANDIGARH BENCH, ‘B’, CHANDIGARH \n \nBEFORE SHRI A.D. JAIN, VICE PRESIDENT & \nSHRI KRINWANT SAHAY, ACCOUNTANT MEMBER \n \nआयकर अपील सं./ ITA No. 442/CHD/2024 \n Ǔनधा[रण वष[ / Assessment Year : 2017-18 \n \nShri S.S. Jain Sabha, \nS.S.Jain Sabha Samadhi, \nTohana \nHaryana 125120 \nVs. \n बनाम \n \nThe ACIT \nExemption, \nChandigarh \nèथायी लेखा सं./PAN No: AACTS1019B \nअपीलाथȸ/ APPELLANT \n \nĤ×यथȸ/ REPSONDENT \n \n( PHYSICAL HEARING ) \n \n \n \n \n \nǓनधा[ǐरती कȧ ओर से/Assessee by : Shri Shaantanu Jain, Advocate and \n \n \n \n \n \nShri Gurjit Singh, CA \n \nराजèव कȧ ओर से/ Revenue by : Dr. Ranjit Kaur, Sr. DR \n \nसुनवाई कȧ तारȣख/Date of Hearing \n \n: \n25.09.2024 \nउदघोषणा कȧ तारȣख/Date of Pronouncement \n: \n 28.10.2024 \n \n \nआदेश/Order \n \nPer Krinwant Sahay, A.M.: \n \nThe appeal in this case has been filed by the Assessee against \nthe order dated 16.12.2019 of the ld. Commissioner of Income Tax \n(Appeals), National Faceless Appeal Centre (NFAC), Delhi. \n \n2. \nGrounds of appeal taken by the Assessee are as under: - \n \n\n442-Chd-2024 – \nShri S.S. Jain Sabha, Fatehabad \n \n \n2 \n \n1. \nBecause the action for initiation, continuation \nand conclusion of assessment proceedings u/s \n143(3) at an amount of Rs 1,30,39,590/- is \nbeing challenged on facts and law. \n \n2. \nBecause the action is being challenged on facts \nand \nlaw \nfor \nmaking \naddition \nof \nRs. \n1,30,39,590/- denying exemption u/s 11 and 12 \nwhen \nadmittedly \nthe \nassessee \ngot \nregistration~TJ7s 12AA on dt. 21.08.2000 and \nthere is no amendment to objects of society since \nthen. \n \n3. \nBecause the action is being challenged on facts \nand \nlaw \nfor \nmaking \naddition \nof \nRs. \n1,30,39,590/- denying exemption u/s 11 and 12 \nas assessee violated charitable activities u/s \n13(l)(a) whereas per assessee the main objects of \nassessee \nis \ncharitable \ni.e. \nrunning \nand \nmaintaining hospital. \n \n4. \nBecause the action is being challenged on facts \nand \nlaw \nfor \nmaking \naddition \nof \nRs. \n1,30,39,590/- denying exemption u/s 11 and 12 \nas assessee violated charitable activities u/s \n13(1)(a) whereas per assessee the object to \npublicize the Jainism is not a religious activity \nwhich violate section 13(l)(a). \n \n5. \nFor any consequential relief and/or legal claim \narising out of this appeal and for any addition, \ndeletion, amendment and modification in the \ngrounds of appeal before the disposal of the \nsame in the interest of substantial justice to the \nassessee to the Assessee. \n \n3. \nThe main ground of appeal is against the addition of Rs. \n1,30,39,590/- made by the Assessing Officer, its confirmation by the \n\n442-Chd-2024 – \nShri S.S. Jain Sabha, Fatehabad \n \n \n3 \n \nCIT(A) denying exemption u/s 11 & 12 of the Income Tax Act, 1961 (in \nshort 'the Act') when admittedly the Assessee got registration u/s \n12AA of the Act on 21.8.2000 and there was no amendment to the \nobjectives of the Assessee’s Sabha. \n \n3. \nBrief facts of the case as per the order of the CIT(A) are as under: \n \n1. \nDuring the proceedings before us, the Ld. Counsel of the \nAssessee emphasized on the fact that the main objective of \nS.S. Jain Sabha was to provide: \n1. \nMedical relief to poor and general public at large \n2. \nEstablish, manage and help Dispensaries, \n \nHospitals, Diagnostic \ncentres, clinics and such \n \nother institutions for treatment in any branch \n \nof medicine. \n \n3. \nArrange to abolish other social evil \n4. \nPublicize the Jain Religion \n5. \nExpand the religions, Mental and Physical education. \nAt present the SABHA is mainly engaged in \nmanaging, expanding and running the hospital in the \nname of Shri Faqir Chand Ji Maharaj Charitable \n(Jain Samadhi) Eye and General Hospital, Tohana. \nThe Hospital is having the facilities of Doctors \nConsultation \n(OPD), \nIndoor \nPatient \n(IPD), \nDiagnostics, \nChemist \n(Medicine \nstore), \nClinical \nLaboratories etc. and all such facilities are available \nto the society at low/subsidized rates. The SABHA \n\n442-Chd-2024 – \nShri S.S. Jain Sabha, Fatehabad \n \n \n4 \n \nalso from time to time organize free health medical \ncamps especially for Eye checkups and treatments \nincluding consultations and operations for poor, \nneedy and general public. Assessee filed return of \nIncome on dt. 06.10.2017 at Nil income and the \nsame was processed under section 143(1). Later on, \nthe case was selected for scrutiny through CASS. \nNotice under section 143(2) of the Act was issued on \ndt. \n11.08.2018 \nby \nthe \nIncome \nTax \nOfficer \n(Exemptions), Ward Rohtak. Later on, notices u/s \n142(1) were issued time to time which were complied \nby filing submissions through e-proceeding facility by \nassessee. AO denied benefit of exemption u/s 11 and \n12 and assessment of the assessee is completed in \nthe status of AOP. \n \n4. \nThe Counsel of the Assessee argued in detail that the Sabha is \nprimarily a charitable institution working in the filed of medical relief \nto the poor people without making any distinction on the basis of \ncaste and religion. The Counsel also argued that the findings given by \nthe lower authorities that the S.S. Jain Sabha (Sabha) was mainly \nengaged in propagating the Jain religion is not correct because it is \njust an offshoot of the purpose of the Sabha and that too for \nexpanding the religious, mental, and physical education. The Counsel \nemphasized that the Sabha is mainly engaged in managing \nexpenditure and running the hospital in the name of Shri Fakir \n\n442-Chd-2024 – \nShri S.S. Jain Sabha, Fatehabad \n \n \n5 \n \nChand Ji Maharaj Charitable Eye & General Hospital, Tohana. It was \nalso brought on record that the hospital is having the facilities of \ndoctors, consultation (OPD), Indoor patient (IPD), Diagnostics, \nChemist / Medical Store and Clinical labs etc. and it was categorically \nstated by the Counsel that while giving the medical treatment to poor \nand needy people, absolutely no distinction is being made on the basis \nof caste and creed religion etc. therefore, the findings given by the \nlower authorities that the Sabha was engaged in propagating the Jain \nreligion was not correct. \n \n5. \nThe ld. DR relied on the order of the CIT(A). \n \n7. \nWe have considered the findings given by the A.O. and the ld. \nCIT(A) and we have also considered the arguments made by the ld. \nCounsel for the Assessee in the proceedings before us. We find that \nthe Revenue could not bring anything on record to rebut the \narguments of the Counsel of the Assessee that the charitable hospital \nin the name of Shri Faquir Chand ji Maharaj Charitable Eye & \nGeneral Hospital was engaged in the work of providing medical \nconsultation and facilities to needy people without making any \ndistinction of caste or religion. Therefore, the findings given by the \nauthorities below cannot be accepted, which have not been proved \n\n442-Chd-2024 – \nShri S.S. Jain Sabha, Fatehabad \n \n \n6 \n \nbeyond doubt. Accordingly, Assessee’s appeal challenging the \naddition of Rs. 1,30,39,590/- denying exemption u/s 11 & 12 of the \nAct by the Assessing Officer and its sustenance / confirmation by the \nld. CIT(A) cannot be accepted. Accordingly, Assessee’s appeal on this \nissue stands allowed. \n \n8. \nIn the result, appeal is allowed. \n \n Order pronounced on 28.10.2024. \n \n \n \n \n \n \nSd/- \n \n \n \n \n \nSd/- \n ( A. D. JAIN ) \n \n \n \n ( KRINWANT SAHAY) \n \nVice President \n \n \n \n \nAccountant Member \n“आर.क\nे.” \n \nआदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : \n1. अपीलाथȸ/ The Appellant \n2. Ĥ×यथȸ/ The Respondent \n3. आयकर आयुÈत/ CIT \n4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, \nCHANDIGARH \n5. गाड[ फाईल/ Guard File \nआदेशानुसार/ By order, \nसहायक पंजीकार/ Assistant Registrar \n \n \n \n \n \n \n"