SMT RUKMANI DEVI CHHAPARWAL CHART., Jaipur v. CIT, Jaipur

ITA 118/JPR/2011 | misc
Pronouncement Date: 08-07-2011 | Result: Allowed

Appeal Details

RSA Number 11823114 RSA 2011
Bench Jaipur
Appeal Number ITA 118/JPR/2011
Duration Of Justice 4 month(s) 27 day(s)
Appellant SMT RUKMANI DEVI CHHAPARWAL CHART., Jaipur
Respondent CIT, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 08-07-2011
Assessment Year misc
Appeal Filed On 11-02-2011
Judgment Text
1 ITA 119(2)-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 119 & 118/JP/2011. SMT. RUKMANI DEVI CHHAPARWAL VS. COMMISSIONER OF INCOME-TAX CHARITABLE TRUST 201 GARDEN VIEW JAIPUR-II APARTMENTS C-39 TARUN MARG JAIPUR. TILAK NAGAR JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIL GOYAL RESPONDENT BY : SHRI SUBHASH CHANDRA ORDER DATE OF ORDER : 08/07/2011. PER R.K. GUPTA J.M. THESE ARE TWO APPEALS BY ASSESSEE AGAINST THE ORDE R OF LD. CIT UNDER SECTION 12AA AND 80G(5) OF THE I.T. ACT. 2. THE ASSESSEE FILED APPLICATION IN FORM NO. 10A F OR SEEKING REGISTRATION UNDER SECTION 12AA OF THE ACT ON 21.7.2010. THE TRUST WA S CREATED ON 21.6.2010. THE ASSESSEE WAS ALLOWED OPPORTUNITY FOR EXPLAINING ITS CASE. DETAILED SUBMISSIONS WERE FILED. HOWEVER LD. CIT WAS NOT SATISFIED AS IN HIS VIEW THE TRUST HAS BEEN CREATED ONLY ON 21.6.2010 AND HAD NOT CARRIED OUT ANY CHARITABLE AC TIVITY. BY FURTHER OBSERVING THAT APPELLANT TRUST HAS NOT BEEN ABLE TO BRING SUFFICIE NT EVIDENCE ON RECORD TO ESTABLISH THAT ANY ACTIVITIES OF THE TRUST/ASSOCIATION HAS BEEN TA KEN FOR CHARITABLE PURPOSE. THEREFORE HE REJECTED THE APPLICATION WITH A RIDER THAT AS AND W HEN ASSESSEE STARTS CHARITABLE ACTIVITY IT CAN FILE FRESH APPLICATION. 2 2.1. APPLICATION UNDER SECTION 80G(5) WAS ALSO REJE CTED SINCE APPLICATION IN FORM NO. 10A FOR SEEKING REGISTRATION UNDER SECTION 10AA WAS REJECTED. 3. NOW THE TRUST IS IN APPEAL HERE BEFORE THE TRIBU NAL AGAINST THE ORDER OF LD. CIT UNDER SECTION 12AA AND UNDER SECTION 80G(5). 4. DETAILED WRITTEN SUBMISSIONS HAVE BEEN FILED ALO NG WITH TRUST DEED AND COPY OF PAN CARD ISSUED TO THE TRUST BY THE DEPARTMENT. RE LIANCE HAS BEEN PLACED ON VARIOUS CASE LAWS MENTIONED IN THE WRITTEN NOTE. 5. ON THE OTHER HAND LD. CIT D/R HAS PLACED RELIAN CE ON THE ORDER OF LD. CIT. 6. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD WE ARE OF THE VIEW THAT ASSESSEE IS ENTITLED FOR GETTING REGI STRATION UNDER SECTION 12AA AS WELL AS UNDER SECTION 80G(5). ONLY ONE CHARITABLE ACTIVITY WAS DONE BY THE ASSESSEE AND EVIDENCE TO THIS EFFECT WAS FILED BEFORE LD. CIT WH ICH HAS NOT BEEN DOUBTED BY LD. CIT. HOWEVER IN HIS VIEW CHARITABLE ACTIVITIES HAVE NOT BEEN STARTED. THEREFORE HE REJECTED THE APPLICATION. IN OUR VIEW EVEN IF ONE ACTIVITY IS NOT DONE AND THE TRUST HAS BEEN CREATED AND REGISTERED UNDER THE SOCIETIES ACT THEN ON THE BASIS OF ITS OBJECTS THE REGISTRATION UNDER SECTION 12A IS TO BE GRANTED. A FTER GETTING REGISTRATION UNDER SECTION 12A DURING THE ASSESSMENT PROCEEDINGS IF IT IS FOU ND THAT ACTIVITIES OF THE TRUST ARE NOT GENUINE THEN THE REGISTRATION GRANTED CAN BE WITHDR AWN BY AFFORDING OPPORTUNITY TO THE ASSESSEE. IF ALL OTHER CONDITIONS ARE NOT SATISFIE D THEN EXEMPTION UNDER SECTION 11 MAY BE DENIED. HOWEVER WE ARE OF THE VIEW THAT THE APPLIC ATION FILED BY ASSESSEE SHOULD NOT HAVE BEEN REJECTED MERELY ON THE GROUND THAT CHARIT ABLE ACTIVITY HAS NOT BEEN STARTED. IT IS WELL KNOWN THAT ACTIVITY CAN ONLY BE STARTED WHEN T HE REGISTRATION UNDER SECTION 12AA IS 3 GRANTED. OTHERWISE PEOPLE WHO WANT TO EXTEND SUPPO RT TO THE CHARITABLE ACTIVITIES WILL NOT COME FORWARD WITH DONATIONS. 6.1. IN CASE OF SHRI SHYAM MANDIR COMMITTEE KHATUSH YAMJI VS. CIT 43 TAX WORLD 128 IT HAS BEEN HELD THAT CIT IS ONLY TO SATISFY H IMSELF ABOUT THE GENUINENESS OF THE TRUST AND ABOUT THE AIMS AND OBJECTS OF THE TRUST AT THE TIME OF GRANTING OF REGISTRATION. CIT IS NOT REQUIRED TO EXAMINE THE ASPECT OF INCOME OF THE TRUST AT THE TIME OF GRANTING THE REGISTRATION. 6.2. IN THE CASE OF JASODA DEVI CHARITABLE TRUST VS . CIT 43 TAX WORLD 175 THE TRIBUNAL HAS HELD THAT WHETHER CARRYING OUT OF CHAR ITABLE ACTIVITY BY THE TRUST IN THE YEAR OF ITS FORMATION ITSELF IS RELEVANT FOR ENTITLEMENT TO REGISTRATION UNDER SECTION 12AA OF THE ACT HAS HELD NO SINCE ITS OBJECTS ARE HELD TO BE OF CHARITABLE NATURE. 7. IN THE PRESENT CASE OBJECTS OF THE ASSESSEE ARE IN NATURE OF CHARITABLE THEREFORE IN OUR VIEW THE ASSESSEE SHOULD BE GRANTED REGISTRATIO N UNDER SECTION 12AA. ACCORDINGLY WE DIRECT THE LD. CIT TO GRANT REGISTRATION UNDER S ECTION 12AA AS WELL AS UNDER SECTION 80G. 8. IN THE RESULT APPEALS OF THE ASSESSEE ARE ALLOW ED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 08. 07.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR D/- 4 COPY FORWARDED TO :- SMT. RUKMANI DEVI CHHAPARWAL CHARITABLE TRUST JAIP UR. COMMISSIONER OF INCOME-TAX JAIPUR-II JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 119 (2)/JP/2011) BY ORDER AR ITAT JAIPUR.