Trustee, Shree Vasupujya Swami Jain, Dist. Valsad v. The CIT.,, Valsad

ITA 4470/AHD/2007 | misc
Pronouncement Date: 06-08-2010 | Result: Allowed

Appeal Details

RSA Number 447020514 RSA 2007
Assessee PAN AAETS6942F
Bench Ahmedabad
Appeal Number ITA 4470/AHD/2007
Duration Of Justice 2 year(s) 7 month(s) 18 day(s)
Appellant Trustee, Shree Vasupujya Swami Jain, Dist. Valsad
Respondent The CIT.,, Valsad
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 06-08-2010
Date Of Final Hearing 06-08-2010
Next Hearing Date 06-08-2010
Assessment Year misc
Appeal Filed On 19-12-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' BEFORE SHRI MUKUL SHRAWAT JM & SHRI A N PAHUJA AM ITA NO.4470/AHD/2007 SHREE VASUPUJYA SWAMI JAIN DERASAR TRUST DE 1 DOWN COLONY POST: ATUL 396020 DISTRICT: VALSAD [PAN: AAETS 6942 F] V/S COMMISSIONER OF INCOME- TAX VALSAD [APPELLANT] [RESPONDENT] ASSESSEE BY :- SHRI J P SHAH AR REVENUE BY:- SHRI SUDHANSHU S JHA DR O R D E R A N PAHUJA: THIS APPEAL BY THE ASSESSEE-TRUST AGAINST AN ORDER DATED 27-11-2007 OF THE LD. COMMISSIONER OF INCOME -TAX VALSAD RAISES THE FOLLOWING GROUNDS:- 1 THE LEARNED CIT HAS NOT GIVEN ADEQUATE OPPORTUNI TY OF HEARING TO THE ASSESSEE AND THEREFORE THE ORDER IS BAD IN LAW AB INITIO. 2 THE LEARNED CIT HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION OF THE ASSESSEE MADE U/S 12A OF THE INC OME-TAX ACT 1961 FOR REGISTRATION OF THE TRUST. 3 THE LEARNED CIT HAS ERRONEOUSLY APPLIED THE CONDI TION APPLICABLE FOR GRANTING THE CERTIFICATE U/S 80G OF THE ACT TO THE APPLICATION FOR REGISTRATION OF THE ASSESSEE TRUST U/S 12A. 4 THE LEARNED CIT HAS ERRED IN LAW AND ON FACTS IN REJECTING REGISTRATION U/S 12AA ON THE GROUND OF TRUST BEING FOR RELIGIOUS PURPOSE ONLY. RULE 17A APPLIES TO CHARITABLE OR RELIGIOUS TRUST AND TH EREFORE LEARNED CIT HAS WRONGLY REJECTED THE APPLICATION FO R REGISTRATION U/S 12AA. 2 UNDISPUTED FACTS IN BRIEF AS PER RELEVANT ORDE R ARE THAT THE ASSESSEE TRUST FILED AN APPLICATION ON 29-05-2007 F OR ITS REGISTRATION U/S 12AA OF THE INCOME-TAX ACT 1961 [ HEREINAFTER REFERRED TO AS THE ACT] . AFTER HAVING A REPORT FROM THE CONCERNED AO AND CONSIDERING THE REPLY OF THE ASSESSEE THE C IT REJECTED APPLICATION FOR REGISTRATION ON THE GROUND THAT THE OBJECTS AND ITA NO.4470/AHD/2007 2 ACTIVITIES OF THE TRUST WERE FOR A PARTICULAR COMMU NITY I.E JAIN SWETAMBER AND WERE NOT CHARITABLE IN NATURE 3. THE ASSESSEE TRUST IS NOW IN APPEAL BEFORE US AGAINST THE AFORESAID FINDINGS OF THE LD. CIT. AT THE OUTSET THE LD. AR ON BEHALF OF THE TRUST SUBMITTED THAT SECTION 12AA OF THE ACT DOES NOT PRECLUDE RE GISTRATION OF A TRUST HAVING RELIGIOUS OBJECTS OR ACTIVITIES . THE RELIGIOUS OB JECTS AND ACTIVITIES ARE INCLUDED IN THE DEFINITION OF CHARITABLE PURPOSE U/S 2(15) OF T HE ACT. SEC. 80G PLACES RESTRICTIONS ONLY ON APPROVAL OF THE INSTITUTION OR FUND IF THE SAID INSTITUTION OR FUND IS FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE. SINCE OBJECTS AND ACTIVITIES OF THE APPLICANT TRUST ARE RELIGIOUS IN NATURE THE TRUST IS ENTITLED TO REGISTRATION U/S 12AA OF THE ACT THE L D. AR ARGUED .HE ADDED THAT MATTER MAY BE RESTORED TO THE FILE OF THE LD. CIT FOR CONSIDERING REGISTRATION IN ACCORDANCE WITH LAW. ON THE OTHER HAND THE LD. DR DID NOT OPPOSE THESE SUBMISSIONS ON BEHALF OF THE TRUST. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE T HROUGH THE FACTS OF THE CASE. IN TERMS OF PROVISIONS OF SEC. 12AA OF THE ACT WHILE EXAMINING THE APPLICATION OF THE ASSESSEE FILED UNDER S. 12A OF THE ACT THE CIT HAS TO SATISFY HIMSELF REGARDING OBJECTS OF THE TRUST AND THE GENUINENESS OF ITS AC TIVITIES AFTER MAKING NECESSARY ENQUIRIES IF CONSIDERED NECESSARY. IN THE INSTAN T CASE THE LD. CIT DECLINED REGISTRATION ON THE GROUND THAT OBJECTS OF THE TRUS T ARE NOT CHARITABLE. THE LD. CIT HAS NOT SPECIFIED AS TO WHICH PARTICULAR OBJECT IS NOT CHARITABLE OR IS FOR A PARTICULAR COMMUNITY OR CASTE.. THE MAIN OBJECTS OF THE TRUST AS PLACED BEFORE US ON PAGE 4 OF THE PAPERBOOK ARE UNDISPUTEDLY RELIG IOUS IN NATURE. RELIGIOUS ACTIVITIES ARE ALSO CONSTRUED TO BE CHARITABLE ACTI VITIES AS PER THE DECISIONS IN CIT VS. RADHASWAMI SATSANG (1993 ) 201 ITR 493 ( ALL) AND HAZARAT PIRMAHOMED SHAH SAHEB ROZA COMMITTEE VS. CIT (1967) 63 ITR (SC ) 490 . . MOREOVER HONBLE SUPREME COURT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION V. CIT [1971] 82 ITR 704 HELD THAT FOR SERVING A CHAR ITABLE PURPOSE IT IS NOT NECESSARY THAT THE OBJECT SHOULD BE FOR THE BENEFIT OF THE WHOLE MANKIND OR ALL PERSONS IN A COUNTRY OR A STATE AND IT IS SUFFICIEN T IF THE INTENTION IS TO BENEFIT A ITA NO.4470/AHD/2007 3 SECTION OF THE PUBLIC AS DISTINGUISHED FROM A SPECI FIC INDIVIDUAL OR PERSON. IT WAS ALSO HELD THAT THE SECTION OF THE COMMUNITY SOUGHT TO BE BENEFITED MUST BE SUFFICIENTLY DEFINED AND IDENTIFIABLE BY SOME COMMO N QUALITY OF A PUBLIC OR IMPERSONAL NATURE. IN VIEW OF THE FOREGOING WE F IND MERIT IN THE UNDISPUTED CONTENTIONS OF THE LD. AR ON BEHALF OF THE TRUST A ND ACCORDINGLY RESTORE THE MATTER TO THE FILE OF THE LD. CIT WITH THE DIRECTIO NS TO RE-EXAMINE THE MATTER IN THE LIGHT OF VARIOUS OBJECTS OF THE TRUST STIPULATED I N THE TRUST DEED AND AFTER SATISFYING HIMSELF ABOUT THE GENUINENESS OF OBJECT S OF THE TRUST AND ITS ACTIVITIES PASS APPROPRIATE ORDERS IN ACCORDANCE WITH LAW AFTE R ALLOWING SUFFICIENT OPPORTUNITY TO THE ASSESSEE TRUST. WITH THESE DIREC TIONS GROUND NOS. 1 TO 4 IN THE APPEAL ARE DISPOSED OF. 5. NO ADDITIONAL GROUND HAVING BEEN RAISED IN TER MS OF THE RESIDUARY GROUND ACCORDINGLY THIS GROUND IS DISMISSED. 6. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT TODAY ON 6-08-2010 SD/- SD/- (MUKUL SHRAWAT) JUDICIAL MEMBER (A N PAHUJA) ACCOUNTANT MEMBER DATE : 6 -08-2010 COPY OF THE ORDER FORWARDED TO: 1. SHREE VASUPUJYA SWAMI JAIN DERASAR TRUST DE 1 DOWN COLONY POST: ATUL 396020 DISTRICT: VALSAD 2. THE ASSESSING OFFICER CONCERNED 3. CIT CONCERNED 4. DR BENCH-D ITAT AHMEDABAD 5. GUARD FILE BY ORDER D EPUTY REGISTRAR/ ASSISTANT REGISTRAR ITAT AHMEDABAD