Maheshwari Mandir Trust , Faridabad v. CIT(E), Chandigarh

ITA 1841/DEL/2018 | misc
Pronouncement Date: 29-11-2019 | Result: Allowed

Appeal Details

RSA Number 184120114 RSA 2018
Assessee PAN AAFTM0463L
Bench Delhi
Appeal Number ITA 1841/DEL/2018
Duration Of Justice 1 year(s) 8 month(s) 13 day(s)
Appellant Maheshwari Mandir Trust , Faridabad
Respondent CIT(E), Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 29-11-2019
Assessment Year misc
Appeal Filed On 16-03-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER AND SHRI R.K. PANDA ACCOUNTANT MEMBER ITA NO.1841 & 1842/DEL/2018 ASSESSMENT YEAR: -- MAHESHWARI MANDIR TRUST C/O KC SINGHAL ADVOCATE A-2/8 SECTOR-11 FARIDABAD. PAN: AAFTM0463L VS CIT(E) CHANDIGARH. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AMIT GUPTA ADVOCATE REVENUE BY : MS PRAMITA M. BISWAS CIT DR DATE OF HEARING : 28.11.2019 DATE OF PRONOUNCEMENT : 29.11.2019 ORDER PER R.K. PANDA AM: THE ABOVE TWO APPEALS FILED BY THE ASSESSEE ARE DIR ECTED AGAINST THE SEPARATE ORDERS DATED 23 RD FEBRUARY 2018 OF THE CIT(E) DENYING APPROVAL U/S 80G AND REGISTRATION U/S 12AA OF THE IT ACT 1961. 2. FOR THE SAKE OF CONVENIENCE THESE WERE HEARD TO GETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. ITA NO.1841 & 1842/DEL/2018 2 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESS EE TRUST FILED AN APPLICATION IN FORM NO.10A ON 25 TH AUGUST 2017 SEEKING REGISTRATION U/S 12AA OF THE IT ACT 1961 AND AN APPLICATION UNDER FORM NO.10G FOR GRANT ING APPROVAL U/S 80G ON 25 TH AUGUST 2017. IN ORDER TO EXAMINE THE OBJECTS OF T HE TRUST AND TO VERIFY THE GENUINENESS OF THE ACTIVITIES THE LD.CIT(E) ISSUED A NOTICE ASKING THE ASSESSEE TO FURNISH VARIOUS DOCUMENTS/DETAILS AS PER PARA 4 OF THE ORDER. THE ASSESSEE WAS ASKED TO SUBMIT ALL THE DETAILS BY 30 TH JANUARY 2018 BUT ON THE SAID DATE THERE WAS NO COMPLIANCE FOR WHICH THE MATTER WAS FIXED FO R 9 TH FEBRUARY 2018. THE ASSESSEE FILED A REPLY DATED 12 TH JANUARY 2018 THROUGH E-MAIL. HOWEVER THERE WAS NO PROPER COMPLIANCE TO THE LETTER ISSUED BY THE CI T(E). HE THEREFORE PROCEEDED TO DECIDE THE ISSUE ON THE BASIS OF THE TRUST DEED FILED ALONG WITH THE APPLICATION AND NOTED THAT THE STATUS OF THE ASSESSEE TRUST IS OF A PRIVATE RELIGIOUS TRUST AND NOT A PUBLIC TRUST. SO HE PRESUMED THAT THE BENEF ICIARIES OF THE PARENT TRUST WOULD BE SPECIFIC NARROW GROUP AND THE APPLICANT TRUST WO ULD NOT INURE TO THE GENERAL PUBLIC AT LARGE. HE FURTHER NOTED FROM CLAUSE 7 OF THE OBJECT CLAUSE THAT A NUMBER OF TEMPLES HAVE ALREADY BEEN CONSTRUCTED FROM DONAT IONS COLLECTED FROM PEOPLE WHICH IS EARLIER THAN THE FORMATION OF THE APPLICAN T TRUST. MOREOVER THESE CONSTRUCTIONS HAVE NEITHER BEEN SCRUTINIZED BY THE DEPARTMENT NOR REVEALED BY THE APPLICANT TRUST IN ITS BALANCE SHEET. HE THEREFOR E REFUSED TO GRANT REGISTRATION U/S 12AA OF THE IT ACT. SINCE THE REGISTRATION WAS DEN IED U/S 12AA THE LD.CIT (E) ALSO REJECTED THE REQUEST FOR GRANT OF APPROVAL U/S 80G OF THE ACT. ITA NO.1841 & 1842/DEL/2018 3 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(E) THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL RAISING THE FOLLOWING GROUNDS:- ITA NO.1841/DEL/2018 1. THAT ON THE FACTS AND IN LAW THE LD.CIT(EXEMP TIONS) WAS NOT JUSTIFIED IN REJECTING THE REGISTRATION APPLICATION U/S 80G OF THE IT ACT 1961. 2. THAT CONSIDERING THE OBJECTS OF THE TRUST THE A PPLICATION U/S 80G OUGHT TO HAVE ALLOWED BY HIM. THE APPELLANT CRAVES TO ADD OR AMEND THE GROUND OF APPEALS IF REQUIRED AND NECESSARY. IT IS THEREFORE PRAYED THAT THE IMPUGNED ORDERS OF CIT(E) BE QUASHED AND THE NECESSARY DIRECTION BE ISSUED TO ALLOW NECESSARY RE LIEF AS THE HON'BLE TRIBUNAL MAY DEEM FIT. ITA NO.1842/DEL/2018 1. THAT ON THE FACTS AND IN LAW THE LD.CIT(E) WA S NOT JUSTIFIED IN REJECTING THE REGISTRATION APPLICATION U/S 12AA OF THE IT ACT 1961. 2. THAT THE LD.CIT(E) ERRED IN HOLDING THAT (A) THAT THE APPELLANT IS A PRIVATE RELIGIOUS TRUST AND NOT A PUBLIC TRUST; (B) THAT BENEFICIARIES ARE SPECIFIC NARROW GROUP OF IND IVIDUALS; (C) THAT THERE IS NO EVIDENCE OF ANY OBLIGATION VIS--V IS THE EXISTING MANDIRS AND CHAUPAL; (D) THAT THE TRUST CANNOT ENURE TO GENERAL PUBLIC AND G ENUINENESS OF ACTIVITIES IS NOT ESTABLISHED. 3. THAT THE CIT(E) OUGHT TO HAVE ALLOWED THE REGISTRAT ION CONSIDERING THE OBJECTS OF THE TRUST. THE APPELLANT CRAVES TO ADD OR AMEND THE GROUND OF APPEALS IF REQUIRED AND NECESSARY. IT IS THEREFORE PRAYED THAT THE IMPUGNED ORDERS OF CIT(E) BE QUASHED AND THE NECESSARY DIRECTION BE ISSUED TO ALLOW NECESSARY RE LIEF AS THE HON'BLE TRIBUNAL MAY DEEM FIT. ITA NO.1841 & 1842/DEL/2018 4 5. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES AND PERUSED THE RECORD. IT IS AN ADMITTED FACT THAT DESPITE OP PORTUNITIES GRANTED BY THE CIT(E) THE ASSESSEE DID NOT FILE THE REQUISITE DETAILS FOR WHICH THE LD.CIT(E) REFUSED TO GRANT REGISTRATION U/S 12AA AND ALSO REJECTED THE R EQUEST FOR GRANT OF APPROVAL U/S 80G OF THE ACT. IT IS THE SUBMISSION OF THE LD. CO UNSEL THAT GIVEN AN OPPORTUNITY THE ASSESSEE SHALL FURNISH ALL THE REQUISITE DETAIL S TO THE SATISFACTION OF THE CIT (E). CONSIDERING THE TOTALITY OF THE FACTS AND IN THE IN TEREST OF JUSTICE WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(E) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO PROVIDE THE REQUISIT E DETAILS AND SUBSTANTIATE ITS CLAIM FOR REGISTRATION U/S 12AA OF THE ACT AND SINC E THIS IS A PREREQUISITE FOR GRANT OF APPROVAL U/S 80G OF THE IT ACT THE SAME IS ALSO RESTORED TO THE FILE OF THE CIT(E) FOR DECIDING THE ISSUE AFRESH. 6. IN THE RESULT BOTH THE APPEALS FILED BY T HE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 9.11.2019. SD/- SD/- (H.S. SIDHU) (R.K. PANDA) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED:29 TH NOVEMBER 2019 DK ITA NO.1841 & 1842/DEL/2018 5 COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR ITAT NEW DELHI