Dawat-E-Islami Society,, Ahmedabad v. The Directo of Income tax(Exemp.), Ahmedabad

ITA 1250/AHD/2010 | misc
Pronouncement Date: 13-08-2010 | Result: Allowed

Appeal Details

RSA Number 125020514 RSA 2010
Assessee PAN AABTD2306F
Bench Ahmedabad
Appeal Number ITA 1250/AHD/2010
Duration Of Justice 3 month(s) 22 day(s)
Appellant Dawat-E-Islami Society,, Ahmedabad
Respondent The Directo of Income tax(Exemp.), Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 13-08-2010
Date Of Final Hearing 06-08-2010
Next Hearing Date 06-08-2010
Assessment Year misc
Appeal Filed On 21-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH BEFORE SHRI G.D. AGARWAL VICE-PRESIDENT (AZ) AND SHRI MAHAVIR SINGH JUDICIAL MEMBER ITA NO.1250/AHD/2010 DAWAT-E-ISLAMI SOCIETY -VS- DIRECTOR OF INCOME TAX PIRJALIL MASJID RAIKHAD MILL (EXEMPTION) 2 ND FLOOR VASANT ROAD AHMEDABAD NATURE VIEW BLDG. ASHRAM ROAD PAN NO.AABTD2306F AHMEDABAD (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K. MADHUSUDAN SR-DR ASSESSEE BY: NONE O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF DIRECTOR OF INCOME- TAX (EXEMPTION) AHMEDABAD IN APPEAL NO. DIT(E)/12A A/257/2009-10 DATED 19-02- 2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF DIRECTOR OF INCOME TAX (EXEMPTION) IN REFUSING REGISTRATION U/S .12AA OF THE INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT). FOR TH IS ASSESSEE HAS RAISED FOLLOWING GROUNDS:- 1. THE LEARNED DIRECTOR OF INCOME TAX HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SE CTION 12AA. 2. THE LEARNED DIRECTOR OF INCOME TAX HAD ERRED IN APPLYING THE SECTION 13(1)(B) OF THE INCOME TAX ACT 1961 WHILE PASSING THE ORDER UNDER SECTION 12AA OF THE INCOME TAX. WITHOUT APPRECIATING THE FA CT THAT THE APPELLANT TRUST BEING RELIGIOUS CUM CHARITY TRUST THE PROVISION OF SECTION 13(1)(B) IS INAPPLICABLE. ITA NO.1250/AHD/2010 DAWAT-E-ISLAMI SOCIETY. V. DIT(E) ABD PAGE 2 3. THE LEARNED DIRECTOR IS ERRED IN LAWS AND ON FAC TS INS APPLYING THE SECTION 13(1)(B) OF THE INCOME TAX ACT 1961 WHILE PASSING THE ORDER UNDER SECTION 12AA OF THE INCOME TAX. 4. ON THE FACTS HE HAD ERRED IN APPLYING THE DECIS ION OF APEX COURT IN THE CASE OF PALGHAT SHAADI MAHAL TRUST TO THE FACTS OF THE APPELLANT. 3. THE BRIEF FACTS LEADING TO THE ABOVE ISSUE ARE T HAT THE ASSESSEE DAWAT-E- ISLAMI SOCIETY FILED FORM NO.10A FOR REGISTRATION U /S.12AA OF THE ACT ON 20-08-2009. THE DIT(E) DURING THE COURSE OF EXAMINATION OF THE OBJECTS OF THE SOCIETY NOTED THAT THE BENEFITS WERE INTENDED FOR SUNNI MUSLIM COMMUNI TY AND HENCE APPLICANT WAS ASKED VIDE THIS OFFICE LETTER DATED 01-02-2010 TO O FFER THEIR EXPLANATION ON APPLICABILITY OF SECTION 13(1)(B) OF THE ACT AND IN RESPONSE TO THE NOTICE THE TRUST VIDE THEIR LETTER DATED 12-02-2010 STATED THEIR MAIN OBJ ECTS/PURPOSES AS UNDER:- (1) TO MAKE THE PROVISION FOR RELIGIOUS EDUCATION A MONG SUNNI MUSLIM AND ACTIVITIES RELATING TO SOCIAL ECONOMIC UPLIFTMENT OF SUNNI MUSLIMS. (2) TO PROMOTE RELIGIOUS EDUCATION AND ANY SIMILAR ACTIVITIES IN SUNNI MUSLIMS. (3) TO ESTABLISH MADRASHA SCHOOLS COLLEGES AND OR UNIVERSITIES TO GIVE RELIGIOUS EDUCATION TO SUNNI MUSLIM. ACCORDING TO DIT(E) THE ASSESSEE-SOCIETY CLAIMED THAT SECTION 13(1)(B) IS APPLICABLE IN THE CASE OF CHARITABLE PURPOSE ONLY A ND NOT FOR TRUSTS CREATED FOR RELIGIOUS PURPOSES OR FOR BOTH RELIGIOUS AND OTHER CHARITABLE PURPOSES. THEY ALSO RELIED ON THE DECISION OF THE MADHYA PRADESH HIGH C OURT IN THE CASE OF CIT V. DAWOODI BOHRA JAMAT (2009) 317 ITR 342 (MP) 4. THE DIT(E) AFTER EXAMINING THE REPLY OF THE ASSE SSEE NOTED FROM THE OBJECTS OF THE ASSESSEE-SOCIETY THAT THE DECISION OF THE H ONBLE APEX COURT IN THE CASE OF CIT V. PALGHAT SHAADI MAHAL TRUST (2002) 254 ITR 212 (SC) IS SQUARELY APPLICABLE TO THIS CASE WHEREIN IT WAS HELD THAT:- WHERE BENEFIT UNDER TRUST WAS AVAILABLE ONLY TO MU SLIMS AND NOT COVERED BY EXPLANATION 2 TO SECTION 13 OF THE I.T. ACT 1961 THE TRUST IS NOT EXEMPT FROM TAX. ACCORDINGLY HE HELD THAT THE ASSESSEE IS NOT ELIGI BLE FOR REGISTRATION U/S 12AA OF THE ACT AND FOR THIS HE HELD AS UNDER:- 3. THE DECISION OF THE HONBLE MADHYA PRADESH HIGH COURT AND THE DECISION OF THE GUJARAT HIGH COURT REFERRED TO THEREIN CANNO T HOLD THE FIELD IN VIEW OF ITA NO.1250/AHD/2010 DAWAT-E-ISLAMI SOCIETY. V. DIT(E) ABD PAGE 3 THE BINDING DECISION OF THE APEX COURT RENDERED IN THE CASE OF PALGHAT SHAADI MAHAL TRUST WHICH WAS ESTABLISHED FOR BOTH RELIGIOU S AND OTHER CHARITABLE ACTIVITIES. IN AS MUCH AS THE ABOVE DECISION OF THE APEX COURT HAS NOT BEEN DISCUSSED IN THE HONBLE MADHYA PRADESH HIGH COURT S DECISION RELIED ON BY THE APPELLANT I AM TO FOLLOW THE BINDING DECISION OF THE HONBLE SUPREME COURT. IN THAT VIEW OF THE MATTER THE APPELLANT TR UST HAVING BEEN ESTABLISHED TO PROVIDE THE RELIGIOUS BENEFITS AND OTHER CHARITI ES ONLY TO SUNNI MUSLIM THEY ARE HIT BY SECTION 13(1)(B) R.W.S. 11 OF THE I.T. A CT. ACCORDINGLY BENEFITS OF SECTION 11 AND 12 R.W.S. 12AA CANNOT BE GRANTED AND THE APPLICATION FOR REGISTRATION U/S.12AA IS HEREBY REJECTED. AGGRIEVED ASSESSEE CAME IN APPEAL BEFORE US. 5. AFTER HEARING LD-SR-DR WE FIND THAT DIT(E) HAS RELIED ON THE DECISION IN THE CASE OF PALGHAT SHAADI MAHAL TRUST (SUPRA) OF HONBLE APEX COURT BUT WE FIND THAT THE ISSUE BEFORE HONBLE APEX COURT WAS REGARDING E XEMPTION U/S.11 R.W.S 13(1)(B) AND NOT THE REGISTRATION OF TRUST U/S.12AA OF THE A CT. AS THE DIT(E) HAS NOT DECIDED THE ISSUE OF REGISTRATION U/S.12AA OF THE ACT REGAR DING GENUINENESS OF TRUST THE ISSUE IS SET ASIDE TO THE FILE OF DIT(E) TO DECIDE THE SA ME AFRESH AFTER PROVIDING REASONABLE OPPORTUNITY OF ASSESSEE. ASSESSEES APPEAL IS ALLOW ED FOR STATISTICAL PURPOSES. 6. IN THE RESULT ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED ON THIS DAY OF 13 TH AUG 2010 SD/- SD/- ( G.D.AGARWAL ) ( MAHAVIR SINGH ) (VICE PRESIDENT) (JUDICIAL MEMBER) AHMEDABAD DATED : 13/08/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE DIT(E) AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD