Madan Gupta Charitable Trust, JODHPUR v. AO, MOUNT ABU

ITA 331/JODH/2012 | 2005-2006
Pronouncement Date: 31-10-2013 | Result: Partly Allowed

Appeal Details

RSA Number 33123314 RSA 2012
Bench Jodhpur
Appeal Number ITA 331/JODH/2012
Duration Of Justice 1 year(s) 2 month(s) 1 day(s)
Appellant Madan Gupta Charitable Trust, JODHPUR
Respondent AO, MOUNT ABU
Appeal Type Income Tax Appeal
Pronouncement Date 31-10-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 31-10-2013
Date Of Final Hearing 30-10-2013
Next Hearing Date 30-10-2013
Assessment Year 2005-2006
Appeal Filed On 30-08-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR BEFORE SHRI HARI OM MARATHA JUDICIAL MEMBER AND SHRI N.K.SAINI ACCOUNTANT MEMBER ITA NOS. 331/JU/2012 A.Y: 2005-06 MADAN GUPTA CHARITABLE TRUST VS. THE ASSESSING O FFICER NEAR BANAS PUMP ABU ROAD MOUNT ABU DISTT. SIROHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJENDRA JAIN DEPARTMENT BY : SHRI DEEPAK SEHGAL - DR DATE OF HEARING : 30.10.2013 DATE OF PRONOUNCEMENT : 31.10.2013 ORDER PER HARI OM MARATHA J.M. THIS APPEAL FILED BY THE ASSESSEE-TRUST IS DIRECTED AGAINST THE ORDER OF THE CIT(A) JODHPUR DATED 26. 07.2012 FOR A.Y 1999-2000. 2 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS A CHARITABLE INSTITUTION CREATED ON 16. 11.2004. THIS TRUST HOWEVER IS NOT REGISTERED U/S 12AA OF THE INCOME-TAX ACT 1961 [HEREINAFTER REFERRED TO AS 'T HE ACT' FOR SHORT]. SURVEY U/S 133A OF THE ACT WAS CONDUCT ED ON 22.2.2010 IN WHICH WAS FOUND THAT DURING THE SURVEY PROCEEDINGS THE TRUST HAD RECEIVED A SUM OF RS. 11 94 200/- DURING THE F.Y. 2004-05. THIS DONATION WAS SUBJECTED TO A DIRECTION THAT THIS FOUND SHALL BE U TILIZED FOR CONSTRUCTION OF COLLEGE BUILDING AND WILL FORM PART OF A CORPUS FUND OF THE TRUST. THE A.O. WAS OF THE VIEW THAT THIS AMOUNT HAS TO BE TAXED IN THE HANDS OF THE ASS ESSEE- TRUST ON THE REASONING THAT IT IS NOT REGISTERED U/ S 12AA OF THE ACT. CONSEQUENTLY NOTICE U/S 148 WAS ISSUED O N 25.3.2010 TO THE ASSESSEE TRUST. THE DUE DATE FOR FILING OF THE RETURN WAS 29.4.2010 BUT IN COMPLIANCE OF THIS NOTICE THE ASSESSEE FILED ITS RETURN ON 31.8.2010. HOWEVE R ORIGINAL DATE OF FILING OF RETURN WAS 31.7.2005 AS THE CORPUS DONATION WAS RECEIVED IN THE F.Y. 2004-05. 3 2.1 WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE ENTIRE MATERIAL ON RECORD. TH E CASE OF THE ASSESSEE-TRUST IS THAT IT IS AN EDUCATIONAL INSTITUTION WITHIN THE MEANING OF SECTION 10(23C)(IIID) OF THE ACT AND ITS INCOME BEING BELOW RS. 1 CRORE THIS AMOUNT CAN NOT BE TAXED AS THE ASSESSEE WAS NOT OBLIGED TO FILE ROI. THE TRUST ALSO OBJECTED TO THE ISSUANCE OF NOTICE U/S 1 48. HOWEVER THE A.O. PASSED AN ORDER U/S 143(3) OF THE ACT ON 24.12.2010 BY TAXING THIS AMOUNT IN THE HANDS OF THE TRUST IN A.Y. 2005-06. AGGRIEVED THE ASSESSEE FIL ED APPEAL AND THE LD. CIT(A) HAS ALSO CONFIRMED THIS ADDITION . NOW THE ASSESSEE IS FURTHER AGGRIEVED. 2.1 BEFORE US SIMILAR ARGUMENTS WERE ADVANCED ON B EHALF OF BOTH THE PARTIES AS WELL DONE BEFORE THE AUTHORI TIES BELOW. WE HAVE GONE THROUGH THE AVAILABLE RECORDS BEFORE US INCLUDING THE PAPER BOOK FILED BY THE LD. A.R. IN SO FAR AS THE AFOREMENTIONED FACTS ARE CONCERNED THERE IS NO DISPUTE WITHIN THE PARTIES. THE ASSESSEE IS A CHAR ITABLE INSTITUTION CREATED ON 16.11.2004. THE FACT THAT T HE 4 AMOUNT RECEIVED DURING THE F.Y. 2004-05 WAS UTILIZE D IN THE CONSTRUCTION OF COLLEGE BUILDING HAS NOT BEEN D ENIED BY THE REVENUE. THE ASSESSEE HAS TREATED THIS SUM OF RS. 11 94 200 AS CORPUS FUND. WE HAVE FOUND IT AS A LE GAL FACT THAT FOR GETTING EXEMPTION U/S 10(23C)(IIID) OF THE ACT THE REGISTRATION OF THE TRUST U/S 12AA OF THE ACT I S NOT A SINE QUA NON. WITHOUT BEING REGISTERED UNDER THE A CT U/S 12AA OF THE ACT IS INDEPENDENTLY ELIGIBLE FOR THE B ENEFIT OF SECTION 10(23C)(IIID) OF THE ACT IF THE INCOME OF T HE TRUST IS BELOW RS. 1 CRORE. AXIOMATICALLY RECEIPT OF TH E YEAR IS ONLY RS. 11 94 200/- WHICH IS MUCH LESS THAN RS. 1 CRORE. THEREFORE THE BENEFIT OF SECTION 10(23C)(IIID) OF THE ACT CANNOT BE DENIED TO THE ASSESSEE. THEREFORE THE P REMISE THAT THIS INCOME IS TAXABLE IN THE HANDS OF THE ASS ESSEE IN A.Y. 2005-06 ONLY BECAUSE IT IS NOT REGISTERED U/S 12AA DOES NOT HOLD WATER. THE OTHER REASON THAT THE ASS ESSEE HAD NOT STARTED EDUCATIONAL ACTIVITIES DURING THAT YEAR IS ALSO NOT OF ANY MOMENT. THE CARRYING ON OF CONSTRU CTION BUILDING FOR EDUCATIONAL ACTIVITIES DOES AMOUNT TO FURTHERANCE OF EDUCATION ONLY. WHEN THE ASSESSEE I S NOT 5 OBLIGED TO FILE ROI WHEN ENTIRE RECEIPT IS EXEMPT F ROM TAXATION IN OUR CONSIDERED OPINION IT WOULD NOT B E FATAL IF THE ASSESSEE HAD NOT FILED RETURN OF INCOME [ROI ] AT THE STATED TIME. WHATEVER EXEMPTION OR DEDUCTION IS AVAILABLE TO THE ASSESSEE AS PER LAW CANNOT BE DENI ED TO THE ASSESSEE ON PEDANTIC REASONS UNLESS IT IS SPECI FICALLY MADE A PRE-CONDITION FOR AVAILING SUCH AN EXEMPTION OR DEDUCTION. THERE IS NO DISPUTE BETWEEN THE PARTIES THAT SMT CHANDRAWAL GUPTA MAHILA SIKSHAN PRASHIKSHAN MAHAVIDYALAY IS NOT A EDUCATIONAL INSTITUTION RUN B Y THE APPELLANT TRUST. BALANCE SHEET FILED BY THE ASSESS EE DURING THE ASSESSMENT PROCEEDINGS CLEARLY EXHIBIT T HAT THE FUND HAS BEEN TREATED AS CORPUS FUND AND UTILIZED F OR THAT PURPOSE ONLY. THE BALANCE SHEET HAS NOT BE DISPROV ED AS INCORRECT. IT DOES NOT MATTER AS TO WHEN THE BALAN CE SHEET WAS FILED. WHEN IT IS FOUND FOR A FACT THAT AN INSTITUTION RUNS EDUCATIONAL INSTITUTION SOLELY FOR EDUCATIONAL/CHARITABLE PURPOSES AND NOT FOR PROFIT THE ASSESSEE IS ENTITLED FOR BENEFIT OF SECTION 10(23C) (IIID) OF THE ACT. THE DECISION RENDERED BY THE HON'BLE CALC UTTA 6 HIGH COURT IN THE CASE OF ACIT VS. DOON FOUNDATION REPORTED IN 154 ITR 208 [CAL] [COPY FILED AT PAGE 1 1 OF THE PB] IS RELEVANT AND SUPPORTS THE CLAIM OF THE ASSES SEE. WE MAY ALSO MENTION THAT SECTION 10(22) HAS BEEN SUBST ITUTED LATER ON BY SECTION 10(23C)(IIID) OF THE ACT. THE OTHER DECISION RENDERED BY THE INDORE APPELLATE TRIBUNAL IN THE CASE OF CIT VS. VATSALYA SENIOR SECONDARY SCHOOL [2 010] 130 TTJ [IND] [UO] 27 WHICH IS ALSO ON THE SAME LIN ES ALSO BY IMPLICATION SUPPORTS THE CASE OF THE ASSESSEE. RESULTANTLY THIS AMOUNT CANOE BE ADDED IN THE HAND S OF THE APPELLANT TRUST. WE MAY MENTION THAT THE LD. A .R. DID NOT PRESS THE LEGAL ISSUE RAISED AT GROUND NO. 1 W HICH STANDS DISMISSED AS NOT PRESSED. 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 31 ST OCTOBER 2013. SD/- SD/- (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 ST OCTOBER 2013 7 VL/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT BY ORDER 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR ITAT JODHPUR