Shree Shirdi Sai Baba Samaj Seva Sansthan, Ahmedabad v. The Director of I.T.(Exemption), Ahmedabad

IN THE INCOME_TAX APPELLATE TRIBUNAL C BENCH AH MEDABAD BEFORE SHRI MUKUL SHRAWAT JM AND SHRI A.N.PAHUJA AM ITA NO. 206/AHD/2010 (ASSESSMENT YEAR : N.A.) SHREE SHIRDI SAI BABA SAMAJ SEVA SANSTHAN SAI DHAM SAI ADHYATMIC KENDRA NEW HIGH COURT S.G.HIGHWAY SOLA AHMEDABAD [PAN:AABTS0769F] VS DIRECTOR OF INCOME-TAX(EXEMPTIONS) 2 ND FLOOR VASANT NATURE VIEW BUILDING ASHRAM ROAD AHMEDABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.N.SOPARKAR AR. REVENUE BY : SHRI M.C.PANDIT .D.R . ( )/ ORDER AN PAHUJA: THIS IS AN APPEAL BY THE ASSESSEE-TRUST AGAINST A N ORDER DATED 23.11.2009 OF THE LD. DIT(EXEMPTIONS) AHMEDBAD RAI SING THE FOLLOWING GROUNDS: 1. THE LEARNED DIRECTOR OF INCOME-TAX(EXEMPTION) HAS ERRED IN REJECTING THE APPLICATION OF THE APPELLANT FOR RENEWAL OF EXE MPTION U/S 80G(5) ON THE GROUND THAT THE EXPENSES ON RELIGIOUS PURPOSES ARE MORE THAN 5% SPECIFIED IN SECTION 80G(5) OVERLOOKING THE FACT TH AT THE APPELLANT TRUST IS A NON-SECULAR TRUST AND EXPENSES TERMED AS TEMPL E POOJA EXPENSES ARE NOT OF RELIGIOUS NATURE AT ALL . THE APPELLANT RESERVES RIGHT TO ADD ALETER MODIFY OR DROP ANY OF THE GROUNDS OF APPEAL . 2. THE ONLY ISSUE IN THIS APPEAL IS REGARDING APPR OVAL U/S 80 G(5)(VI) OF THE INCOME-TAX ACT 1961[HEREINAFTER REFERRED TO AS THE ACT]. AS PER THE IMPUGNED ORDER ON RECEIPT OF APPLICATION FOR RENEWAL OF EXEMPTION U/S 80G(5) ON 12.3.2009 THE LD. CIT ISSUED A QUERY LETTER ON 28.8.2009 SEEKING DE TAILS OF CHARITABLE ACTIVITIES CARRIED OUT BY THE SANSTHAN DURING THE PRECEDING T HREE YEARS. IN THE ABSENCE OF ANY RESPONSE ANOTHER LETTER WAS ISSUED ON 5.10.2009 SEEKING DETAILS OF RELIGIOUS EXPENSES. IN RESPONSE THE APPLICANT TRUST FILED W RITTEN SUBMISSIONS ON 3.11.2009 GIVING INTER ALIA DETAILS OF TEMPLE POOJA EXPENSE S IN THE FY 2006-07 2007-08 & 2008-09. THE LD. CIT TREATED THESE EXPENSES AS REL IGIOUS EXPENSES AND BEING MORE THAN 5% OF THE LIMIT SPECIFIED IN SEC. 80G(5B) OF T HE ACT REJECTED THE APPLICATION FOR RENEWAL OF EXEMPTION. ITA NO.1336/AHD/2009 2 3. THE APPLICANT TRUST IS NOW IN APPEAL AGAINST THE AFORESAID FINDINGS OF THE LD. CIT. THE LD. A.R. ON BEHALF OF THE ASSESSEE PLEADED THAT THE LD. CIT HAS NOT AFFORDED SUFFICIENT OPPORTUNITY BEFORE TREATING THE TEMPLE POOJA EXPENSES AS RELIGIOUS EXPENSES AND THEREBY REJECTING THEIR APPLICATION. ON THE OTHER HAND THE LD. DR RELIED UPON THE ORDER OF THE LD. CIT. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE FACTS OF THE CASE. AS PLEADED BY THE LD. AR THE TRUST HAD EARLIER BEEN APPROVED FOR THE PURPOSE OF SEC. 80G(5)(VI) OF THE ACT AND NOW ONLY FURTHER APPROVA L HAD BEEN SOUGHT. THOUGH THE LD. AR VEHEMENTLY ARGUED BEFORE US THAT SUFFICIENT OPPO RTUNITY HAD NOT BEEN ALLOWED NO REASONS HAVE BEEN ADDUCED AS TO WHY THE APPLICANT-T RUST DID NOT RESPOND TO THE QUERY LETTER DATED 28.8.2009 ISSUED BY THE OFFICE O F THE CIT. IN ANY CASE THE LD. CIT AFTER RECEIPT OF SUBMISSIONS DATED 3.11.2009 REJECT ED THE APPLICATION VIDE HIS ORDER DATED 23.11.2009 WITHOUT AFFORDING ANY OPPORTUNITY TO THE APPLICANT TO EXPLAIN AS TO WHETHER OR NOT TEMPLE POOJA EXPENSES WERE RELIGIOUS IN NATURE. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTE REST OF SUBSTANTIAL JUSTICE WE RESTORE THE MATTER TO THE FILE OF THE LD. CIT WITH THE DIRECTIONS TO ALLOW ANOTHER OPPORTUNITY TO THE APPLICANT TRUST IN ORDER TO EXP LAIN THEIR CASE WITH REGARD TO TEMPLE POOJA EXPENSES AND THEREAFTER CONSIDER THE APPLICA TION FOR APPROVAL IN ACCORDANCE WITH LAW EXPEDITIOUSLY. THE APPLICANT TRUST IS ALS O DIRECTED TO APPROACH THE LD. CIT ALONG WITH THE RELEVANT DETAILS SO AS TO ENABLE HIM TO ACCORD THE APPROVAL AT THE EARLIEST. 5. NO ADDITIONAL GROUND HAVING BEEN RAISED IN TERMS OF THE RESIDUARY GROUND ACCORDINGLY THIS GROUND IS DISMISSED. 6. IN THE RESULT APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 29THAPRIL 2010. SD/- SD/- (MUKUL SHRAWAT) JUDICIAL MEMBER (A.N.PAHUJA) ACCOUNTANT MEMBER PLACE : AHMEDABAD DATE : 29-04-2010 COPY OF THE ORDER FORWARDED TO: ITA NO.1336/AHD/2009 3 1) : ASSESSEE 2) : DIT(EXEMPTIONS) AHMEDABAD 3) : DR C BENCH ITAT. BY ORDER DR ITAT AHMEDABAD