SRIJAN SANSTHAN, BHARATPUR v. CIT, Alwar

ITA 138/JPR/2010 | misc
Pronouncement Date: 22-07-2011 | Result: Allowed

Appeal Details

RSA Number 13823114 RSA 2010
Bench Jaipur
Appeal Number ITA 138/JPR/2010
Duration Of Justice 1 year(s) 5 month(s) 11 day(s)
Appellant SRIJAN SANSTHAN, BHARATPUR
Respondent CIT, Alwar
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 22-07-2011
Assessment Year misc
Appeal Filed On 11-02-2010
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.138/ JP/2010 UNDER SECTION 80G(5) OF I.T. ACT M/S. SRIJAN SANSTHAN VS. THE CIT 1 KRISHNA NAGAR BHARATPUR ALWAR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI J.N. GOYAL AND SHRI RAJEEV G OYAL DEPARTMENT BY : SHRI SUNIL MATHUR ORDER PER N.L. KALRA AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORD ER OF THE LD. CIT ALWAR DATED 04-02-2010 PASSED U/S 80G(5)OF THE ACT. 2.1 THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE A RE AS UNDER:- 1. THE LD. CIT HAS ERRED IN FURTHER PROBING THE O BJECTS OF THE APPELLANT TRUST WHICH HAS ALREADY BEEN GRANTED REGI STRATION U/S 12A 2. THE LD. CIT DISTORTED THE FACTS AND LAW AS TO GR ANT OF APPROVAL TO THE APPELLANT U/S 80G. 3. THE LD. CIT DID NOT AFFORD ANY OTY8 TO THE INST ITUTION TO EXPLAIN ITS CASE. 4. THE LD. CIT INSTEAD OF EXAMINING THE CASE U/S 2( 15) MISDIRECTED HIMSELF INTO COVERING IT U/S 10(23C)(II IAD). 2 2.2 THE LD. CIT ALWAR HAS MENTIONED IN HIS ORDER T HAT THE TRUST IS ONLY RUNNING A COACHING INSTITUTE FOR DIFFERENT EXAMINAT IONS. SUCH COACHING CANNOT BE CONSIDERED AS EDUCATION IN THE NATURE OF CHARITABLE PURPOSE. RELIANCE HAS BEEN PLACED ON THE DECISION OF HON'BLE PATNA HON'BLE HIGH COURT IN THE CASE OF BIHAR INSTITUTE OF MINING & MI NE SURVEYING VS. CIT (1994) 208 ITR 608 IN WHICH IT HAS BEEN HELD THAT COACHING INSTITUTE CANNOT BE SAID TO BE AN INSTITUTION WHERE NORMAL SCHOOLING IS DONE. 2.3 THE OBJECT OF THE TRUST IS TO EDUCATE PHYSICALL Y HANDICAPPED PEOPLE BELONGING TO OBC (OTHER BACKWARD CLASSES) AND MINOR ITY COMMUNITY FOR GETTING EMPLOYMENT. OUT OF THE LIST OF STUDENTS BEL ONGING TO MINORITY COMMUNITY MAJORITY BELONGS TO MUSLIM RELIGION. THE LD. CIT WAS OF THE OPINION THAT COACHING IS BEING PROVIDED BY THE INST ITUTE ONLY TO THE MINORITY COMMUNITY. THIS IS CONTRAVENTION TO SECTION 80G(5)( III) OF THE ACT AND THE APPLICATION OF THE TRUST FOR SEEKING EXEMPTION U/ S 80G(5)(VI) WAS REJECTED. 2.4 BEFORE US THE LD. AR HAS FILED THE WRITTEN SUB MISSION CONTAINING FOUR PAGES. THE REGISTRATION U/S 12A STANDS ALREADY GRAN TED AND THEREFORE THE LD. CIT SHOULD NOT HAVE REFUSED TO GRANT APPROVAL U/S 8 0G(5) OF THE ACT ON THE GROUND THAT THE OBJECT OF THE TRUST IS NOT CHARITAB LE. THE OBJECT CLAUSE OF THE INSTITUTION DOES NOT MENTION OF MUSLIM COMMUNITY. T HE HON'BLE ALLAHABAD 3 HIGH COURT IN THE CASE OF CITY MONTESSORI SCHOOL VS . UNION OF INDIA 315 ITR 48 HELD THAT THE OBJECT OF PROVIDING GUIDELINES TO GET ADMISSION IN PROFESSIONAL INSTITUTIONS IS AN EDUCATIONAL ACTIVIT Y AND IS COVERED UNDER CHARITABLE PURPOSES. THE HON'BLE ALLAHABAD HIGH COU RT IN THE CASE OF OXFORD ACADEMY FOR CAREER DEVELOPMENT VS. CCIT 315 ITR 382 HELD THAT THE TRUST PREPARING STUDENTS FOR PROVIDING COACHING TO GET ADMISSION IN PROFESSIONAL INSTITUTION IS ENGAGED IN CHARITABLE A CTIVITIES AND THE CHARITABLE ACTIVITIES IS COVERED IN THE FORM OF EDUCATIONAL AC TIVITY. 2.5 ON THE OTHER HAND THE LD. DR STATED THAT THE T RUST PROVIDES COACHING TO THE STUDENTS OF MINORITY COMMUNITY. HENCE THE APPR OVAL U/S 80G(5) CANNOT BE GRANTED IN VIEW OF SECTION 80G(5)(III) OF THE AC T. 2.6 WE HAVE HEARD BOTH THE PARTIES. IT IS TRUE THAT THE APPROVAL U/S 80G(5) CANNOT BE GIVEN IN CASE THE INSTITUTION OR FUND IS FOR THE BENEFIT OF ANY PARTICULAR RELIGION COMMUNITY OR CASTE. IN THE INS TANT CASE THIS TRUST IS NOT FOR THE BENEFIT OF ANY PARTICULAR COMMUNITY. IT IS PROVIDING COACHING TO THE STUDENTS OF MINORITY COMMUNITY AND THE FUNDS ARE BE ING PROVIDED BY THE GOVT.. THE TRUST NEEDS FUNDS FOR OTHER CHARITABLE A CTIVITIES. AS PER THE CONTENTIONS OF THE LD. AR DURING THE COURSE OF PROC EEDINGS BEFORE US THE TRUST HAS ALREADY BEEN PROVIDED REGISTRATION U/S 12 A OF THE ACT. THEREFORE 4 THE ASSESSEE IS ENTITLED FOR APPROVAL U/S 80G (5) O F THE ACT. THE LD. CIT(A) IS THEREFORE DIRECTED TO GRANT APPROVAL U/S 80G(5) OF THE ACT. 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22-07 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 22 /07/2011 *MISHRA COPY FORWARDED TO :- 1. M/S.SRIJAN SANSTHAN BHARATPUR 2. THE LD. CIT ALWAR 3. THE LD. CIT BY ORDER 4. THE LD.DR 5. THE GUARD FILE (ITA NO. 138/JP /10) A.R ITAT JAIPUR 5 6