Shri R.P.Modi Parivar Dharmarth Trust, Agra v. The C.I.T., Range-1, Agra

ITA 344/AGR/2010 | misc
Pronouncement Date: 17-09-2010 | Result: Allowed

Appeal Details

RSA Number 34420314 RSA 2010
Assessee PAN AAITS4125Q
Bench Agra
Appeal Number ITA 344/AGR/2010
Duration Of Justice 1 month(s) 14 day(s)
Appellant Shri R.P.Modi Parivar Dharmarth Trust, Agra
Respondent The C.I.T., Range-1, Agra
Appeal Type Income Tax Appeal
Pronouncement Date 17-09-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 17-09-2010
Date Of Final Hearing 15-09-2010
Next Hearing Date 15-09-2010
Assessment Year misc
Appeal Filed On 03-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH : AGRA BEFORE SHRI R.K. GUPTA J. M. AND SHRI P.K. BANSAL A.M. PAN NO. AAITS4125Q I.T.A.NO . 344/AGR/2010 A. Y. - SHRI R.P.MODI PARIVAR DHARMARTH TRUST COMMISSIONER OF INCOME- TAX 21 INNER CITY RING ROAD VIJAY NAGAR AGRA VS. RANGE 1 SANJAY PLACE AGRA APPELLANT RESPONDENT APPELLANT BY : SHRI R.K. AGARWAL ADV. RESPONDENT BY : NONE (ADJOURNMENT APPLICATION REJECTED ) O R D E R PER R.K.GUPTA J.M. THIS IS AN APPEAL BY THE ASSESSEE TRUST AGAINST TH E REJECTION APPLICATION UNDER SECTION 80G(5) OF THE INCOME-TAX ACT 1961. 2. THE LD. CIT OBSERVED THAT NO CHARITABLE ACTIVITY HA S BEEN CARRIED OUT BY THE ASSESSEE TRUST. IN THE INCOME AND EXPEND ITURE ACCOUNT FOR THE FINANCIAL YEAR 2009-10 THE ASSESSEE TRUST HAS CLAI MED TO HAVE INCURRED EXPENSES OF RS. 864/- ON CHARITABLE ACTIVITIES BUT NO PROOF OF IT HAS BEEN FURNISHED. AS SUCH IT IS CLEAR THAT NO CHARITABLE A CTIVITY HAS BEEN CARRIED ON BY THE ASSESSEE. THE LD. CIT FURTHER OBSERVED TH AT OBJECTS MENTIONED - 2 - 2 ON PAGE 1 OF THE TRUST DEED RELATING TO CONSTRUCTIO N AND MAINTENANCE OF TEMPLES AND SANKIRTAN BHAWAN AND PERFORMANCE OF REL IGIOUS ACTIVITIES ARE RELIGIOUS IN NATURE AND FOR THE BENEFIT OF HINDU CO MMUNITY. ACCORDINGLY THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION UNDER SE CTION 80G AS THE CONDITIONS ARE NOT SATISFIED. NOW THE ASSESSEE TRUS T IS IN APPEAL HERE BEFORE THE TRIBUNAL. 3. THE LD.COUNSEL FOR THE ASSESSEE STATED THAT THE LD. CIT HAS IGNORED THE VITAL FACT THAT NO EXPENDITURE HAS BEEN INCURRED ON RELIGIOUS ACTIVITIES. NOWHERE IN THE ACT IT IS PROVIDED THAT RELIGIOUS ACTIVITIES CANNOT BE DONE. WHAT IS PROVIDED I.E. THAT EXPENSES INCURRED ON RELIGIOUS ACTIVITIES ARE NOT EXCEEDED 5 % OF THE TOTAL INCOME OF THE YEAR. SINCE THE INCOME HAS NOT STARTED YET THEREFORE THERE IS NO QUESTION OF INCURRING ANY EXPENDITURE ON RELIGIOUS ACTIVITIES. IT WAS FURTHER SUBMITTED THAT OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE AND THEREFORE THE ASSESSEE IS ENTITLED FOR EXEMPTION UNDER SECTION 80G. IT WAS ALSO SUBMITTED THAT DURING THE ASSESSMENT PROCEEDINGS. IF IT IS FOUND THAT THE ASS ESSEE HAS NOT SATISFIED THE CONDITIONS FOR GRANTING EXEMPTION UNDER SECTION 80G THEN THE AMOUNT OF DONATION RECEIVED BY THE ASSESSEE CAN BE CONSIDE RED IN VIEW OF THE PROVISIONS OF SECTION 68. THEREFORE THE LD. CIT WA S NOT JUSTIFIED AT ALL IN NOT GRANTING EXEMPTION TO THE ASSESSEE. THE ATTENTI ON OF THE BENCH WAS DRAWN ON VARIOUS DETAILS AND COPY OF TRUST DEED PLA CED ON RECORD. - 3 - 3 4. NONE APPEARED ON BEHALF OF THE DEPARTMENT . THE LD. CIT DR HAS FILED AN APPLICATION OF ADJOURNMENT IN A ROUTIN E MANNER. LD. CIT DR IS SEEKING ADJOURNMENT EVERY DAY IN EACH CASE THAT TOO WITHOUT APPEARING IN PERSON. LAST MONTH ALSO IN SIMILAR MANNER ADJOU RNMENTS WERE SOUGHT. THIS IS A SMALL ISSUE AND BENCH FUNCTIONS ONLY FOR A WEEK IN A MONTH. THEREFORE THE APPLICATION OF THE DEPARTMENT WAS R EJECTED. 5. THE APPEAL IS DISPOSED OF AFTER CONSIDERING THE SUB MISSIONS AND PERUSING THE MATERIAL ON RECORD. 6. AFTER CONSIDERING THE SUBMISSIONS AND MATERIAL ON R ECORD WE FIND THAT THE ASSESSEE DESERVES TO SUCCEED IN ITS A PPEAL. THE ASSESSEE HAS FORMED A TRUST AND TRUST DEED IS PLACED ON RECORD. AS PER TRUST DEED ACTIVITIES ARE CHARITABLE IN NATURE. NO EXPENDITURE HAS BEEN INCURRED ON RELIGIOUS ACTIVITIES. THEREFORE ADVERSE INFERENCE DRAWN BY THE LD. CIT IN OUR CONSIDERED VIEW WAS NOT JUSTIFIED. IN VIEW OF THESE FACTS AND CIRCUMSTANCES WE DIRECT THE LD. CIT TO GRANT THE E XEMPTION TO THE ASSESSEE. IF BY ANY REASON IT IS FOUND DURING THE ASSESSMENT PROCEEDINGS THAT THE ASSESSEE DOES NOT SATISFY THE CONDITION FO R GRANTING EXEMPTION UNDER SECTION 80G THEN DONATION RECEIVED BY THE AS SESSEE CAN BE EXAMINED IN THE LIGHT OF PROVISIONS OF SECTION 68 O F THE ACT. THEREFORE WE HOLD THAT THE ASSESSEE IS ENTITLED FOR EXEMPTION UNDER SECTION 80G. WE ORDER ACCORDINGLY. - 4 - 4 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWE D. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER 2010. SD/- SD/- ( P.K. BANSAL ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AGRA DATED : 17 TH SEPTEMBER 2010. CPU* 1516 COPY FORWARDED TO :- THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) CONCERNED. THE D.R ITAT AGRA. GUARD FILE BY ORDER AR I.T.A.T. AGRA.