Sri Sampath Vinayagar Temple Trust,, Visakhapatnam v. The ITO, (Exemptions),, Visakhapatnam

ITA 511/VIZ/2016 | 2012-2013
Pronouncement Date: 29-11-2017 | Result: Dismissed

Appeal Details

RSA Number 51125314 RSA 2016
Assessee PAN AABTS1377B
Bench Visakhapatnam
Appeal Number ITA 511/VIZ/2016
Duration Of Justice 11 month(s) 1 day(s)
Appellant Sri Sampath Vinayagar Temple Trust,, Visakhapatnam
Respondent The ITO, (Exemptions),, Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 29-11-2017
Assessment Year 2012-2013
Appeal Filed On 28-12-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM . . . BEFORE SHRI V. DURGA RAO JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH ACCOUNTANT MEMBER . / I . T .A.NO. 96 - 98 /VIZ/ 201 5 ( / A . Y S : 2008 - 09 2010 - 11& 2011 - 12 RESPECTIVELY) SRI SAMPATHVINAYAGAR TEMPLE TRUST D.NO.10 - 1 - 33 CBM COMPOUND VISAKHAPATNAM [PAN : A ABTS1377B ] THE ITO WARD - 3(2) VISAKHAPATNAM ( / APPELLANT) ( / RESPONDENT) ./ I.T.A.NO. 510 511 /VIZ/201 6 ( / A . Y S : 2009 - 10 & 2012 - 13 RESPECTIVELY) SRI SAMPATHVINAYAGAR TEMPLE TRUST D.NO.10 - 1 - 33 CBM COMPOUND VISAKHAPATNAM [PAN : A ABTS1377B ] THE ITO (EXEMPTIONS) VISAKHAPATNAM ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI C.V.S.MURTHY AR / REVENUE BY : SMT. MADHUVANI DR S HRI M.N.MURTHY NAIK DR / DATE OF HEARING : 22 . 11 .2017 / DATE OF PRONOUNCEMENT : . 1 1 .2017 2 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM / O R D E R P ER BENCH 1 . TH E S E APPEAL S ARE FILED BY THE ASSESSEE AGAINST THE ORDER S OF THE COMMISSIONER OF INCOME TAX (APPEALS - 1) [CIT( A )] VISAKHAPATNAM FOR THE A.YS 2008 - 09 2010 - 11 & 2011 - 12 DATED 28 . 01 . 2015 AND FOR THE A.YS 2009 - 10 2012 - 13 DATED 21 . 10 . 2016. SINCE THE IDENTICAL ISSUES ARE INVOLVED ALL THE APPEALS ARE CLUBBED HEARD TOGETHER AND DISPOSED IN COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE DE NIAL OF EXEMPTION U/S 11 12 AND 10(23BBA) OF I.T.ACT. 3 . THE FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST WAS REGISTERED ON 19.09.1975 VIDE REGISTERED DEED NO.4633/1975. THE ASSESSMENT FOR THE ASSESSMENT YEAR 2010 - 11 WAS COMPLETED U/S.143(3) ON 15.03.2013 I N THE STATUS OF AOP DENYING EXEMPTION CLAIMED U/S.11 A ND 12 OF THE ACT 1961 ON THE GROUND THAT THE ASSESSE E TRUST WAS UNABLE TO PRODUCE THE COPY OF REGISTRATION U/S.12A A GRANTED BY THE COMMISSIONER OF INCOME - TAX. FOR THE ASSESSMENT YEAR 2011 - 12 THE ASSESSEE FILED RETURN OF INCOME ON 29.09.2011 DECLARING NI L INCOME AFTER CLAIMING EXEMPTION U/S.11 OF THE INCOME - TAX ACT. 3 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM WHEN THE ASSESSING OFFICER (AO) NOTICED THAT THERE WAS NO REGISTRATION GRANTED U/S 12A A AND THE EXEMPTION U/S 11 IS NOT AVAILABLE THE ASSESSEE CLAIMED THE EXEMPTION U/S 10(23BBA) OF THE INCOME - TAX ACT . THE AO AFTER EXAMINING THE DETAILS REJECTED A SSESSEE'S CLAIM FOR EXEMPTION U/S.11 AND S ECTION 10(23BBA) AND DETERMINED THE TOTAL INCOME AT RS.73 60 758/ - . 3.1. THE ISSUE OF CLAIM FOR EXEMPTION U/S.11 WAS EXAMINED IN DETAIL FOR ASSESSMENT YEAR 2010 - 11. THE AO HAS DISCUSSED THE BACKGROUND OF THE ASSESSEE TRUST IN THE IMPUGNED ORDER FOR ASSESSMENT YEAR 2010 - 11 AS UNDER : ONE T.S . SE LVA GANESAN S /O SRI SH A NUMUGA MUDA LI AR AND SRI T . S.RAJE S WAR A N S /O SHRI SHANUMUGA MUDAL I AR HAVE EXECUTED A PRIVATE TRUST DEED VIDE REGISTERED DEED NO.4633/1975 ON 19.09.1975 WITH A DESIRE OF ENDOWING THE FAMILY TEMPLE OF SAMPATH VI NAYAGAR' FOR THE PURPOSES OF MAINTAINING AND CONDUCTING THE DAILY PUJ A ACCORDING TO HI NDU SAVITA AGAMA OF DEITY SA M PATH VINAYAGAR AS A PRIVATE FAMILY TEMPLE. FOR THIS PURPOSE THE FOUNDER TRUSTEES HAVE D EVOLVED 39 SQ . YDS OF LAND IN T.S .NO1035 I N B L OCK NO.46 WAITA I R WARD VISAKHAPATNAM TOGETHER WITH TEMPLE WHICH IS A PART OF THE BUILDING B E ARING D OOR NO.10 - 1 - 12. THE OBJECTS OF THE TRUST ARE : (I) TO CONDUCT DAILY PUJA; 4 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM (II ) TO PERMIT WORSHIP TO BE CARRIED OUT IN THE TEMPLE BY THE FAMILY M EMBERS OF THE FOUNDER TRUSTEES THEIR RELATIVES AND DESCENDANTS AND ( I II) TO CONDUCT FESTIVALS ON VINAYAKA CHATHURTHL AND AUSPICIOUS DAYS AND TO DO ALL OTHER THINGS NECESSARY AND CONDUCTIVE FOR ATTAINMENT OF THE ABOVE OBJECTS. 3. 2 . AS PER THE PROCEEDINGS OF THE COMMISSIONER OF ENDOWMENTS HYDERABAD IN D .DIS .NO:G4/67740/95 DTD.28.12 . 1995 AN EXECUTIVE OFFICER WAS APPOINTED TO SRI SARNPATH VINYAGAR TEMPLE I N THE INTEREST OF PUBLIC SERVICE AND FOR BETTER MANAGEMENT OF THE INSTITUTION WITH A DIRECTION TO TAKE COMPLETE CHARGE OF RECORDS ACCOUNTS MO V ABLE AND IMMOVABLE PROPERTIES FROM THE EXECUTIVE AUTHORITIES AND IN TURN THE ENDOWMENTS DEPARTMENT IS COLLECTING AUDIT FEE ONLY FROM THIS TRUST . THE FOUNDER TRUSTEE HAS CHALLENGED THE PROCEEDINGS OF ENDOWMENT DEPARTMENT FOR APPOINTING TRUSTEE U / S . 15 OF ANDHRA PRADESH CHARITABLE AND HINDU RELIGIOUS INSTIT UTES AND ENTITLEMENT ACT 1987 BEFORE ANDHRA PRADESH HIGH COURT . A SUPPLEMENTARY DEED WAS EXECUTED ON 16 . 03.1996 ( I .E. AFTER THE MANAGEMENT WAS TAKEN OVER BY THE ENDOWMENTS DEPARTMENT) BY THE FOUNDER MEMBERS OF THE TRUST V IDE REGISTERED DOCUMENT NO.46 / 1996 WHEREIN IT WAS S TATED THAT 5 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM CONSIDERABLE FUNDS HAVE ACCUMU LAT ED TO THE TRUST BY CONTRIBUTIONS AND THE EXPANSION OF THE TEMPLE STRUCTURE HAS TO BE MADE BY USING THE FUNDS WITHIN THE LIMI TED PRECINCTS OF THE TEMPLE WHI CH IS NOT VERY LARGE HENCE THEY ARE REVIEWED THE AVAILABILITY AND UTILITY OF FUNDS AND HAVE DECIDED TO EXPAND AND EXTEND THE OBJECTS OF THE FAMILY TRUST IN ADDITION TO THE ORIGINAL OBJECTS AS UNDER. CLAUSE 3. I N VIEW OF DEMISE OF SRI S .G.SAM B A NDAN WHO WAS APPOINTED AS TRUSTEE OF THE TRUST BY THE DEED OF TRUST DATED 19.09.1975 THE FOUNDERS SHA LL BE THE TRUSTEES OF THE SAID TRUST AND THEY MAY CO - OPT ANY OTHER PERSON/S AS TRUSTEE/S IN ADDITION TO THEMSELVES. (4) THE FUNDS OF THE TRUST SHALL ALSO BE UTI LIZ ED FOR PUTTING OF SCHOOLS OR EDUCATING THE POOR AND NEEDY AND ALSO TO PUT UP ANY OTHER CONSTRUCTION F O R PRAYER MEDITATION HA L L LECTURE HALL ON SPIRITUAL OR RELIGIOUS AND SOCIAL MATTERS COMMUNITY CENTERS AND FOR TH E PURPOSE TO COLLECT DONATIONS FROM ANY IND IVIDUALS TRUSTS SOCIETIES FIRMS COMPANIES ETC.. ( 5) THE TRUST SHALL DO ANY OTHER PUBLIC AND CHARITABLE UNDERTAKING SUCH AS (A) MAKE DONATIONS TO POOR STUDENTS FOR PAYMENT OF FEES PURCHASE OF BOOKS NOTE BOOKS UNIFORMS ETC. AND FOR EDUCATING THE 6 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM POOR AND NE EDY FOR THEIR UP L I FTMENT AND ALSO TO OFFER DONATIONS TO SUCH PUBLIC CHARITABLE TRUSTS TEMPLES ETC. FOR POOR FEEDING AND ALSO TO OFFER DONATIONS TO SUCH PUBLIC CHARITABLE TRUSTS WITH SIMILAR OBJECTS. (B) TO ARRANGE FOR POOR FEEDING AND FOR MAKING DONATIO NS TO ANY OTHER TRUSTS TEMPLES ETC. FOR POOR FEEDING AND ALSO TO OFFER DONATIONS TO SUCH PUBLIC CHARITABLE TRUSTS WITH SIMILAR OBJECTS. (C) LIKEWISE TO ALLOT FUNDS FOR TAKING CARE OF DESTITUTE AND ORPHANS AND ALSO INVALID AND IN CAPACITATED PERSONS AND TO BUILD ORPHANAGE AND ALSO TO TAKE CARE OF OLD AGE PEOPLE AND FOR THE PURPOSE ALSO TO PROVIDE SHELTER BUILD NURSING HOMES HOSPITALS ETC TO CATER THE NEEDY AND ALSO TO OFFER DONATIONS TO SUCH PUBLIC CHARITABLE TRUSTS WITH SIMILAR OBJECTS. (6) THE FU N DS OF THE TRUST WHETHER RECEIVED AS DONATIONS FROM THE PUB LI C OR WHICH MAY BE ACCUMULATED FROM YEAR TO YEAR AFTER SUPPLYING THE FUNDS FOR PURPOSE OF THE TRUST SHALL BE INVESTED STRICTLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 11(5) R.W. SE CTIO N 13(1)(D) OF THE INCOME - TAX ACT 1961; 7 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM (7) THERE SHALL BE NO DISCRIMINATION BASED ON CASTE CREED SEX OR COLOUR AND ALL PEOPLE SHALL BE ENTITLED TO PARTICIPATE I N AND BENEFIT FROM THE ACTIVITIES OF THE TRUST (8) THE TRUST SHALL NOT CARRY ON ANY ACTIVI TY WITH THE INTENTION OF MAKING PROFIT. (9) THE TRUST SHALL NOT CARRY ON ANY ACTIVITY OUTSIDE INDIA. (10) THE TRUSTEES SHALL NOT BE ENTITLED TO ANY BENEFIT BY WAY OF PROFIT INTEREST DIVIDEND ETC. EXCEPT BY REIMBURSEMENT OF THE ACTUAL EXPENSES INCURR ED BY THEM IN CONNECTION WITH THE ACTIVITIES O F THE TRUST (11) NO ALTERATIONS AMENDMENTS DELETIONS OF ADDITIONS TO THE MEMORANDUM OF ASSOCIATION OR RULES SHALL BE MADE WITHOUT PRIOR APPROVAL OF THE COMMISSIONER OF INCOME - TAX. (12) IN THE EVENT OF DIS SOLUTION THE ASSETS REMAINING SHALL BE TRANSFERRED TO ANY OTHER INSTITUTION WITH SIMILAR OBJECTS AND AIMS AND WHICH HAVE BEEN RECOGNIZED BY THE INCOME - TAX AUTHORITIES AS REGISTERED U / S.12A A OF THE INCOME - TAX ACT 1961. 2 . 2 . DURING THE SCRUTINY PROCEEDINGS THE ASSESSEE HAD EXPLAINED THAT THE COMMISSIONER OF INCOME - TAX HA D GRANTED 8 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM RE GISTRA TION U/S 12 A A VIDE PROCEEDINGS IN HQRS . NO . 111 / 34/95 - 96 DT D. 23.08.95 AND SUCH RECOGNITION WAS NOT CANCELLED BY THE CIT. IT WAS ALSO PLEADED BEFORE THE AO THAT THE TEMPLES INCOME IS EXEMPT U / S.10(23B B A) OF THE INCOME - TAX ACT AS THE TRUST IS REGISTERED AND THE TEMPLE IS BEING MANAGED BY THE A.P.ENDOWMENTS DEPARTMEN T. THE ASSESSEE ALSO RELIED ON THE DECISION IN THE CASE OF SRI JAGANNATH TEMPLE MANAGING COMMITTEE VS. CIT REPORTED IN 299 ITR. THE AO CALLED UPON THE ASSESSE E S TO PRODUCE THE COPY OF REGISTRATION GRANTED BY THE CIT VISAKHAPATNAM U/S.12A A . IN SPITE OF SEVERAL OPPORTUNITIES THE ASSESSEE FAILED TO PRODUCE THE REGISTRATION CERTIFICATE U/S.12A A . THE PROCEEDING REFERRED BY THE ASSESSEE IN HQRS.NO.111/34/95 - 96 DATED 23.08.95 WAS THE LETTER SEEKING CLARIFICATION ON APPLICATION MADE BY THE ASSESSEE TRUST FOR R EGISTRATION U/S 12A A BUT NOT THE REGISTRATION GRANTED BY THE CIT. THEREFORE IN THE ABSENCE OF REGISTRATION THE AO REJECTED THE CLAIM FOR EXEMPTION OF INCOME U/S 11 OF THE ACT . WITH REGARD TO CLAIM OF EXEMPTION U/S 10(23 BB A) IT WAS OBSERVED THAT THE ASSESS EE TRUST HAS NOT MADE SUCH CLAIM IN ANY OF THE EARLIER YEARS FROM THE TIME THE MANAGEMENT WAS TAKEN OVER BY THE ENDOWMENTS DEPARTMENT. THE AO ALSO OBSERVED THAT THE PROVISIONS OF SECTION 10(23 BB A) ARE NOT APPLICABLE TO THE ASSESSEE S CASE AS IT IS NOT A BODY OR 9 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM AUTHORITY ESTABLISHED UNDER ANY ACT AND THAT THE IMPUGNED ASSESSMENT RELATED TO THE INCOME OF THE TRUST WHICH IS NOT EXEMPT. THE AO ALSO NOTED THAT THE EXECUTIVE OFFICER APPOINTED BY THE ENDOWMENTS DEPARTMENT IS ONLY ACTING IN THE CAPACITY OF REP RESENTATIVE OF ENDOWMENTS DEPARTMENT AND THE FOUNDER TRUSTEE HAS CHALLENGED THE PROCEEDINGS OF THE ENDOWMEN T S DEPARTMENT BEFORE HONOURABLE AND H RA PRADESH HIGH COURT WHICH WAS SAID TO BE PENDING. THE AO CONSIDERED THE C B DT CIRCULAR NO.258 DTD . 14 . 0 6.1970 AND ALSO THE DECISION IN THE CASE OF M/S JA G ANNATH TEMPLE MANAGING CO MMITTEE VS. CIT (299 ITR 56) AND HELD THAT IT IS DISTINGUISHABLE ON FACTS AND NOT APPLICABLE TO THE FACTS OF THE ASSESSEE'S CASE. AFTER CONSIDERING THE CBDT CIRCULAR AND THE DECISION REL IED UPON BY THE ASSESSEE THE AO R EJECTED TH E CLAIM OF EXEMPTION U/S. 11 AND 10(23B 8A). THE AO AFTER VERIFYING THE ACCOUNT OF RECEIPT S & PAYMEN T S ACCOUNT DETERMINED THE TOTAL INCOME AS FO L LOWS FOR THE A.YS.2008 - 09 TO 2012 - 13 AS UNDER: ASSESSMENT YEAR 2008 - 09: TOTAL REC EI PTS AS PER RECEIPTS RS L 17 14 097/ - A ND PAYMENTS ACCOUNT LESS PAYMENTS RS . 70 6 8 459/ - ----------------- TOTAL TAXABLE INCOME RS. 46 45 638 OR RS . 46 4 5 64 0/ - ASSESSMENT YEAR 2009 - 10: TOTAL REC EI PTS AS PER RECEIPTS RS L 48 68 469 / - AND PAYMENTS ACCOUNT 10 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM LESS PAYMENTS RS . 1 10 07 895/ - ----------------- TOTAL TAXABLE INCOME RS. 38 60 574 OR RS . 38 60 570 TAX THEREON RS. 11 58 171/ - EDUCATION CESS @ 3% RS. 34 745/ - ---------------------- RS.11 92 916/ - ADD : INTEREST U/S 234 B FOR 72M RS.8 58 888/ - --------------------- TOTAL TAX PAYABLE RS.20 51 804 OR RS.20 51 800 ASSESSMENT YEAR 2010 - 11 TOTAL RECEIPTS AS PER RECEIPTS AND PAYMENTS ACCOUNT OTHER THAN AGRL. INCOME R S.1 42 49 223/ - EXPEND I T U RE INC L UDING DEPRECIATION RS.1 02 8 1 343/ - TAXABLE INCOME RS . 39 67 88 0/ - AGRICULTURE INCOME RS. 19 500/ - ------------------------- ASSESSMENT YEAR 2011 - 12 TOTAL RECEIPTS AS PER RECEIPTS AND PAYMENTS ACCOUNT EXCLUDING AGRL.INCOME RS.2 07 26 908/ - LESS : PAYMENTS RS.1 33 66 150/ - ------------------------- TAXABLE INCOME RS.73 60 758/ - OR RS.73 60 760/ - AGRICULTURE INCOME RS.7 000/ - 11 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM ASSESSMENT YEAR 2012 - 13: TOTAL REC EI PTS AS PER RECEIPTS RS 2 21 43 407/ - A ND PAYMENTS ACCOUNT EXCLUDING AGRL. INCOME LESS PAYMENTS RS . 85 74 862/ - LESS :DISALLOWANCE OF EXPENDITURE UNDER SANITATION RS. 6 08 462/ - RS.79 66 400/ - TOTAL TAXABLE INCOME RS.1 41 77 007 / - OR RS .1 41 77 010 / - AGRICULTURAL INCOME RS. 21 300 / - TOTAL TAXABLE INCOME RS.1 41 77 290 / - AGRICULTURAL INCOME RS. 21 300 / - TAX THEREON RS.43 80 783/ - LESS : TDS RS. 2 28 051/ - PAYABLE RS.41 52 732/ - ADD : INTEREST U/S 234 B RS.14 94 972/ - ------------------ TOTAL DEMAND PAYABLE RS.56 47 704 / - O R RS.56 47 700 / - THE AO DENIED THE EXEMPTION U/S 11 12 AND 10(23BBA) FOR ALL THE A.YS.2008 - 09 TO 2012 - 13 AND RECOMPUTED THE INCOME AS ABOVE. 4. AGGRIEVED BY THE ORDER OF THE AO THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) DISMISSED THE APP EAL OF THE ASSESSEE 12 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM UP HOLDING THE STATUS OF THE ASSESSEE AS AOP DETERMINED BY THE AO AND THE DE NIAL OF EXEMPTION U/S 11 AND 12 WAS CONFIRMED. 5. AGGRIEVED BY THE ORDER OF THE CIT(A) THE ASSESSEE FILED APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HE ARING THE LD.AR ARGUED THAT THE ASSESSEE HAS FILED THE NECESSARY DOCUMENTS/ PAPERS FOR GRANTING THE REGISTRATION U/S 12A A AND FURNISHED ALL THE DETAILS REQUIRED B Y THE CIT THEREAFTER THERE WAS NO COMMUNICATION FROM THE CIT HENCE IT WAS UNDERSTOOD THAT THE ASSESSEE WAS GRANTED REGISTRATION U/S 12A A OF THE ACT . T HERE WAS NO REJECTION LETTER OR COMMUNICATIO N FROM THE OFFICE OF THE LD.CIT REGARDING REGISTRATION THUS THE LD.AR ARGUED THAT ONCE THE APPLICATION IS SUBMITTED AND THE CLARIFICATIONS ARE GIVEN IT IS DEEMED THAT THE REGISTRATION IS GRANTED TO THE TRUST AND THERE IS NO REASON TO D ENY THE EXEMPTION U/S 11 AND 12 OF I.T.ACT. THE LD.AR FURTHER ARGUED THAT THE ASSESSEE HAS SATISFIED ALL THE CONDITIONS FOR GRANT OF REGISTRATION U/S 12A HENCE REQUES TED TO GRANT THE REGISTRATION AND ALLOW EXEMPTION U/S 11 AND 12 OF THE I.T.ACT. 5.1 . THE SECOND PROPOSITION SUBMITTED BY THE ASSESSEE IS THAT THE TRUST IS TAKEN OVER BY THE ENDOWMENT S DEPARTMENT AND REQUESTED 13 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM EXEMPTION U/S 10(23BBA) OF THE ACT . 5.2 . THE THIRD PROPOSITION MADE BY THE LD.AR IS THAT EVEN IF THE STATUS OF THE ASSESSEE TRUST IS DETERMINED AS AOP THE CORPUS COLLECTIONS OF THE TRUST CANNOT BE TREATED AS INCOME. IN THIS CASE THE ASSESSEE SUB MITTED THAT THERE WAS SEPARATE H UNDI FOR COLLECTIONS OF THE CORPUS OF THE TRUST AND THE COLLECTIONS ARE RECEIVED FOR THE CORPUS. T HE COLLECTIONS SPECIFICALLY MEANT FOR CORPUS OF THE TRUST CANNOT BE COME PART OF THE ASSESSEE S INCOME . THE LD.AR FU RTHER SUBMITTED THAT SPECIFIC DISPLAY OF HUNDI REPRESENT THE CORPUS COLLECTIONS OF THE ASSESSES TRUST AND RESOLUTION TO THAT EFFECT WAS PASSED AS EARLY AS IN 1995 AND THE CORPUS IS TO BE EXCLUDED EVEN IF THE ASSESSEE TRUST IS REQUIRED TO BE ASSESSED AS A OP FOR NOT GRANTING REGISTRATION. 5.3. THE LD.AR SUBMITTED A PAPER BOOK AND TAKEN OUR ATTENTION TO THE PAGE NOS. 9 TO 13 OF THE PAPER BOOK AND ARGUED THAT FOR THE ASSESSMENT YEAR 2006 - 07 THE AO AL LOWED EXEMPTION CLAIMED U/S 11 THUS F OLLOWING THE ORD ER OF THE A O FOR THE ASSESSMENT YEA2006 - 07 THE ASSESSEE IS REQUIRED TO BE ASSESSED AS TRUST ENTIT LED FOR EXEMPTION U/S 11 AND 12 . 6. ON T HE OTHER HAND LD.DR ARGUED WITH REGARD TO FIRST PROPOSITION OF 14 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM DEEMED REGISTRATION THAT THE ASSESSEES APPLICATION FOR GRANT OF REGISTRATION WAS PENDING WITH CIT FOR WANT OF CLARIFICATION AND IT IS EVIDENT FROM THE PAPER BOOK PAGE NOS. 10 AND 11 THAT THE LD.CIT(A) HAS SOUGHT FOR CLARIFICATIONS WHICH WAS NOT SUBMITTED BY THE ASSESSEE . THOUGH ASSESSEE REFERRED PAGE NO .12 OF PAPER BOOK WHICH IS DA TED 03.10.1996 ADDRESSED TO THE ACIT CIRCLE - 2 VISAKHAPATNAM IT WAS WITH REGARD TO DROPPING THE PROCEEDINGS INITIATED BY THE AO TO TREAT THE TRUST AS PRIVATE RELIGIOUS TRUST BUT THERE WAS NO EVIDENCE TO ESTABLISH THAT THE SAID LETTER WAS SUBMITTED BEFORE THE INCOME TAX AUTHORITIES. THEREAFTER THERE WAS NO FOLLOW UP FROM THE ASSESSEE THUS THE ASSESSEE STOPPED PURSUING THE REGISTRATION. THE ASS ESSEE FAILED TO PRODUCE THE PROOF OF GRANTING THE REGISTRATION THOUGH CLAIMED TO HAVE BEEN GRANTED REGISTRATION U/S 12A A OF THE ACT. IN THE ABSENCE OF ASSESSEES FAILURE TO ESTABLISH THAT THE CLARIFICATION SOUGHT BY THE DEPARTMENT WA S FURNISHED IT IS INFERRED THAT REGISTRATION WAS NOT GRANTED FOR WANT OF INFORMATION . THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2006 - 07 IS MADE AVAILABLE IN THE PAPER BOOK DOES NOT SHOW ANY INDICATION OF THE ASSESSEE HAVING GRANTED THE EXEMPTION U/S 11 OR GRANTING REGISTRATION U/S 12A A OF THE I.T.ACT. IT IS ALSO OBLIGATION ON THE PAR T OF THE ASSESSEE TO FURNISH THE INFORMATION AND TO MAKE THE FOLLOW UP WITH THE AUTHORITIES CONCERNED TO ASCERTAIN THE STATUS OF THE APPLICATION MADE FOR 15 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM REGISTRATION U/S 12A A OF I.T.ACT. IN THIS CASE THE ASSESSEE HAS NEITHER PRODUCED THE PROOF OF HAVING REGISTRATION NOR FURNISHED ANY EVIDENCE TO SHOW THAT THE ASSESSEE HAS COMPLIED WITH THE CLARIFICATIONS SOUGHT BY THE DEPARTMENT FOR GRANTING OF REGISTRATION. THEREFORE THE LD.DR ARGUED THAT THE ASSESSEE TRUST WAS NOT GRANTED THE REGISTRATION FOR ITS FAI LURE TO SUBMIT THE DETAILS AND THE AO HAS RIGHTLY DENIED THE EXEMPTION CLAIME D BY THE ASSESSEE U/S 11 AND 12 OF I.T.ACT. 6.1. WITH REGARD TO THE SECOND PROPOSITION OF GRANTING EXEMPTION U/S 10(23BBA) THE LD. DR ARGUED THAT EXEMPTION U/S 10(23BBA) IS ALL OWED TO THE BODY OR LOCAL AUTHORITY ESTABLISHED CONSTITUTED APPOINTED UNDER CENTRAL / STATE PROVINCIAL ACT. THE ASSESSEE TRUST IS NOT ESTABLISHED BY ANY CENTRAL / STATE PROVINCIAL ACT THEREFORE THE ASSESSEE IS NOT ENTITLED FOR THE EXEMPTION U/S 10(23B BA) WHICH IS RIGHTLY DENIED BY THE AO AND CONFIRMED BY THE LD.CIT(A) AND THERE WAS NO ERROR . 6.2. WITH REGARD TO THE THIRD PROPOSITION OF CORPUS HUNDI COLLECTIONS THE LD.DR SUBMITTED THAT ALL THE VOLUNTARY COLLECTIONS INCLUDING THE CORPUS DONATIONS ARE TAXABLE U/S 2(24)(IIA) OF THE I.T.ACT IF THE ASSESSEE DOES NOT ENJOY THE REGISTRATION U/S 12A A . ONLY TIED UP GRANTS FOR SPECIFIC PURPOSE DONATIONS DO NOT COME UNDER THE PURVIEW OF THE TAXABLE INCOME AS PER THE 16 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM JUDICIAL PRECEDENTS. IN THE CASE OF THE ASSESSEE THE HUNDI COLLECTIONS ARE VOLUNTARY CONTRIBUTIONS IT IS MEANT FOR CORPUS FUND AS PER THE RESOLUTION PASSED BY THE ASSESSEE AS OBSERVED BY THE LD.CIT(A) IN HIS ORDER THE ASSESSEE HAS ACCOUNTED IN THE REVENUE ACCOUNT IN THE INCOME AND EXPENDITU RE AND HENCE THE SAME CANNOT BE EXCLUDED FROM THE TAXABLE INCOME. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD. THE LD. CIT(A) HAS DISCUSSED ALL THE THREE ISSUES RAISED BY THE ASSESSEE IN HIS ORDER IN DETAIL IN PARA NO.4.1 TO 8.2 WHICH IS EXTRACTED AS UNDER : 4.1. I HAVE CONSIDERED THE SUBMISSIONS AND DETAILS FILED. IT IS QUITE EVIDENT THAT THE ASSESSEE HAS NOT OBTAINED NECESSARY REGISTRATION U/S.12A O F THE ACT FOR THE PURPOSE OF CLAIMI NG EXEMPTION OF ITS INCOME U/S. 11 OF THE INCOME - TAX ACT. TH E PLEA THAT IT HAS FURNISHED ALL THE CLARIFICATIONS REQUESTED BY THE CIT IN REGARD TO ITS APPLICATION FOR REGISTRATION AND AS THEREAFTER NO FURTHER INFORMATION WAS SOUGHT IT WAS UNDER BONA FIDE BELIEF THAT IT HAD OBTAINED REGIS TRATION U/S.12A AND HAS QUOTED SUCH REFERENCE NUMBER AS THE SANCTION FOR REGISTRATION IS UNTENABLE. SUCH PLEA WAS NOT SUPPORTED BY ANY DOCUMENTATION. THE FURTHER CONTENTION THAT THE ASSESSE TRUST - SHALL BE DEEMED TO HAVE BEEN GRANTED REGISTRATION IS ALSO UNACCEPTABLE AS IT IS INCOMPREHENSIBLE AS TO HOW THE ASSESSEE - COULD ASSUME THAT IT HAS BEEN GRANTED REGISTRATION AND QUOTE THE REFERENCE NUMBER AS THE REGISTRATION NUMBER MERELY B ECAUSE NO QUERY HAD BEEN RAISED BY THE DEPARTMENT. BESIDES MERELY BECAUSE THE DEPARTMENT 17 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM HAD ACCEPTED THE ASSESSEE'S CLAIM OF REGISTRATION IN THE EARLIER YEARS BASED ON ITS REPRESENTATION AND WITHOUT VERIFICATION DOES NOT OF ITSELF VEST THE ASSESSEE OF T HE STATUS OF A CHARITABLE TRUST. THE CASE LAWS RELIED ON BY THE ASSESSEE ARE DISTINGUISHABLE ON FACTS AND LAW THEREFORE I AM OF THE VIEW THAT THE AO IS JUST IFIED IN DENYING EXEMPTION U/S 11 & 12 OF THE INCOME - TAX ACT FOR THE SUBJECT YEARS FOR WANT OF REGI STRATION V/S.12A OF THE ACT 4.2. FROM THE PERUSAL OF THE SUBMISSIONS MADE IT IS EVIDENT THAT THE ASSESSEE IS A PRIVATE CHARITABLE TRUST WHOSE AFFAIRS ARE PARTLY MANAGED BY THE ANDHRA PRADESH ENDOWMENT DEPARTMENT.THE ASSESSEE COULD NOT FURNISH ANY INFORM ATION AS TO ITS STATUS IN REGARD TO THE MANAGEMENT OF THE AFFAIRS BY THE ENDOWMENTS DEPARTMENT NOR COULD CLARIFY ABOUT THE OUTCOME OF ITS CHALLENGE BEFORE THE HONOURABLE ANDHRA PRADESH HIGH COURT. IN THIS FACTUAL MATRIX I FIND THAT THE ASSESSEE HAS NOT S ATISFIED ANY OF THE CONDITIONS PRESCRIBED IN SECTION 10(23BBA) OF THE ACT AND THEREFORE IT IS HELD THAT THE AO IS JUSTIFIED IN DENYING CLAIM FOR EXEMPTION OF INCOME U/S.10(2388A) OF THE ACT AND IN ASSESSING THE ASSESSEE - TRUST IN THE STATUS OF AQP. 4.3. THE AUTHORIZED REPRESENTATIVE ALSO CONTENDED THAT THE HUNDI COLLECTION REPRESENT CORPUS DONATIONS AND THEREFORE IT SHOULD BE EXCLUDED WHILE DETERMINING THE TAXABLE INCOME IF ANY; AND THAT WITH REFERENCE TO THE BALANCE RECEIPTS THE EXPENDITURE MAY BE ALLOW ED. IN THIS REGARD THE AUTHORIZED REPRESENTATIVE FLIED A COPY OF THE RESOLUTION OF THE TRUST DTDI2.01.1976 AND AS PER WHICH THE HUNDI COLLECTIONS SHALL NOT BE UTILIZED FOR DAY TO DAY MANAGEMENT OF THE TRUST AND SHALL BE UTILIZED FOR DEVELOPMENT PURPOSE AN D SHALL FORM PART OF CORPUS OF THE TRUST AND THE INCOME ARISING OUT OF THE CORPUS ONLY SHALL BE UTILIZED FOR TEMPLE MAINTENANCE/MANAGEMENT. 5. THUS THE ISSUE TO BE RESOLVED IS WHETHER THE DONATIONS CLAIMED TO BE CORPUS DONATIONS SHOULD BE EXCLUDED FOR TH E PURPOSE OF TAXATION. FROM THE PERUSAL OF THE FINANCIAL STATEMENTS IT IS EVIDENT THAT THE ASSESSEE HAS BEEN COLLECTING SUBSTANTIAL HUNDI COLLECTIONS EVERY YEAR. FOR THE YEAR ENDED31.03.2008 IT WAS RS.79 48 904/ - FOR THE YEAR ENDED 31.03.2010 IT WAS RS.1 0 1 97 521/ - AND FOR THE YEAR ENDED 31.03.2011 IT WAS RS.1 20 60 486/ - . THESE AMOUNTS WERE 18 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM SHOWN IN THE RECEIPT & PAYMENT ACCOUNT AS HUNDI INCOME. THE AUTHORIZED REPRESENTATIVE'S CONTENTION IS THAT THESE REPRESENT CORPUS DONATION IN VIEW OF THE RESOLUTION PA SSED BY THE TRUST AND IT WAS ALSO REPRESENTED THAT THESE AMOUNTS ARE DIRECTLY SHOWN IN THE BALANCE SHEET AND NOT REFLECTED IN INCOME & EXPENDITURE ACCOUNT. IN THIS REGARD THE AUTHORIZED REPRESENTATIVE RELIED ON THE DECISION OF THE HONOURABLE IT AT CHANDIGARH BENCH IN THE CASE OF SR I MAHADEVI T I RATH SARA DA MA SEVA SANGAM VS. ITO 133 TT ] 57. 6. AT THE OUTSET I FIND THAT THE ASSESSEE HAS NOT ADDUCED ANY EVIDENCE TO SHOW THAT THE IMPUGNED HUNDI COLLECTIONS ARE MADE WITH A SPECIFIC DIRECTION BY THE DONOR S THAT IT WAS CONTRIBUTED FOR A SPECIFIC PURPOSE OR TOWARDS THE CORPUS OF THE TRUST. THE AUTHORIZED REPRESENTATIVE HAS RELIED ON THE RESOLUTION PASSED BY THE TRUST REFERRED ABOVE IN SUPPORT OF SUCH CONTENTION. A RESOLUTION PASSED BY A TRUST IS A DECISION T AKEN BY THE TRUST MANAGEMENT AS TO HOW THEY PROPOSE TO APPLY AND UTILIZE THE CONTRIBUTIONS/DONATIONS OR INC OME RECEIVED BY THE TRUST AND IN WHAT MANNER THE OBJECTIVES OF THE TRUST ARE SOUGHT TO BE ACHIEVED. A. TRUST RESOLUTION CANNOT IN ANY MANNER ALTER OR CHANGE THE CHARACTERISTICS OF A RECEIPT OR CONTRIBUTION. THE ABOVE REFERRED RESOLUTION SAID TO BE PASSED BY THE TRUST CANNOT CHANGE THE CHARACTERISTICS OF THE IMPUGNED RECEIPTS WHICH ARE MERELY VOLUNTARY CONTRIBUTIONS MADE BY THE PUBLIC AT LARGE WITHOUT ANY DIRECTION WHATSOEVER. TO CONSTITUTE CORPUS DONATION THE DIRECTION OF THE DONOR THAT THE CONTRIBUTION WAS MADE BY HIM TOWARDS CORPUS IS AN IMPORTANT PRE - REQUISITE WHICH WAS NOT FULFILLED IN THE ASSESSEE'S CASE. THE INTENTION OF THE DONEE OR THE TREAT MENT ACCORDED TO THE CONTRIBUTION BY THE RECIPIENT IS OF NO RELEVANCE AS THE PRE - REQUISITE CONDITION IS NOT FULFILLED IN THE ASSESSEE'S CASE THE IMPUGNED HUNDI COLLECTIONS WOULD NOT TAKE THE CHARACTER OF 'CORPUS DONATION'. THEREFORE THE CONTENTION OF THE AUTHORIZED REPRESENTATIVE THAT THESE RECEIPTS BY WAY OF HUNDI COLLECTION REPRESENT CORPUS DONATION HAS NO MERIT. 7. THE AUTHORIZED REPRESENTATIVE ALSO RELIED ON THE DECISION OF HONURABLE ITAT CHANDIGARH BENCH IN THE CASE OF SRIMAHADEVI TIRATH SARADA MA S EVA SARIGAM VS. ITO 133 U] (CBDB) U.O. PAGE 57 IN THAT CASE THE FACTS ARE VERY MUCH DIFFERENT WHEREIN THE TRUST HAS KEPT SEPARATE BOXES FOR COLLECTION OF DONATIONS MEANT OF 19 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM 'CONSTRUCTION OF BUILDING' AND OTHER GENERAL PURPOSES. IN SUCH FACTUAL SCENARIO THE HONOURABLE TRIBUNAL HELD THAT THE ASSESSEE'S CONTENTION THAT AMOUNT COLLECTED AS DONATION WITH SPECIFIC DIRECTION FOR SPENDING ON BUILDING CONSTRUCTION CANNOT BE REJECTED. THE HONOURABLE TRIBUNAL OBSERVED THAT THERE IS NO METHOD OR MODE PRESCRIBED BY L AW FOR GIVING SUCH DIRECTIONS AND HENCE THE SAME MAY BE GATHERED FROM THE FACTS AND CIRCUMSTANCES OF THE CASE. BESIDES IN THAT CASE THE TRUST HAD VALID REGISTRATION U/S.12A OF THE ACT. BUT IN THE ASSESSEE'S CASE THE FACTUAL SITUATION IS TOTALLY DIFFERENT . THERE IS NO MATERIAL ON RECORD NOR ANY EVIDENCE ADDUCED BY THE ASSESSEE TO SHOW THAT THE IMPUGNED HUNDI CONTRIBUTION WERE MADE WITH A SPECIFIC DIRECTION. HENCE THE CLAIM OF THE ASSESSEE IS LIABLE TO BE REJECTED. 8. BESIDES IT IS RELEVANT TO NOTE THAT SE C.2(24) (II A) WAS INSERTED BY THE FINANCE ACT 1972 W.E.F. 01 04.1973 WHICH READ AS UNDER (24)(IIA) VOLUNTARY C O N TRIBUTION S RECEIVED BY A TRUST CR EATED WHOLLY OR PARTLY FOR CHARITABLE OR RELIGIOUS PURPOSES OR BY AN INSTITUTION ESTABLISHED WHOLLY OR PARTLY FOR SUCH PURPOSES NOT BEING CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE CORPUS OF THE TRUST OR I NSTITUTION' EXPLANATION : FOR THE PURPOSES OF THIS SUB - CLAUSE TRUST' INCLUDES ANY OTHERLEGAL OBLIGATION. THUS IN 1972 THE DEFINITION OF 'INCOME' IN SECTION 2(24) OF THE INCOME - TAX ACT HAS BEEN AMENDED TO SPECIFICALLY PROVIDE THAT VOLUNTARY CONTRIBUTIONS RECEIVED BY A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION REGARDLESS OF WHETHER SUCH TRUST OR INSTITUTI ON HAS BEEN CREATED OR ESTABLISHED WHOLLY OR PARTLY FOR CHARITABLE RELIGIOUS PURPOSES WILL BE REGARDED AS INCOME FOR PURPOSES OF THE INCOME - TAX ACT. CONTRIBUTIONS RECEIVED WITH A SPECIFIC DIRECTION THAT THEY WILL FORM PART OF THE CORPUS OF THE TRUST OR IN STITUTION WILL HOWEVER NOT BE TREATED AS INCOME. FOR THIS PURPOSE THE TERM 'TRUST' WILL INCLUDE ANY OTHER LEGAL OBLIGATION. 8.1. THE DIRECT TAX LAWS (AMENDMENT) ACT 1987 W.E.F. APRIL 1 1989 INSERTED CLAUSE (D) IN SUB - SECTION (1) OF SECTION 11 TO PR OVIDE 20 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM THAT THE INCOME IN THE FORM OF VOLUNTARY CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY FORM A PART OF THE CORPUS OF THE TRUST OR THE INSTITUTION SHALL BE EXCLUDED FROM THE TOTAL INCOME OF THE TRUST OR THE INSTITUTION THE EXPRESSION 'NOT BEI NG CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE CORPUS OF THE TRUST OR INSTITUTION' WAS DELETED FROM THE DEFINITION OF INCOME WITH EFFECT FROM 01.04.1989 BY THE DIRECT TAX LAWS (AMENDMENT) ACT 1987. THE EFFECT OF THESE AME NDMENTS IS THAT ANY VOLUNTARY CONTRIBUTION RECEIVED BY A TRUST WOULD FORM PART OF ITS INCOME EVEN IFIT IS CONTRIBUTION MADE TOWARDS CORPUS WITH EFFECT FROM 01.04.1989. HOWEVER DONATION MADE WITH A SPECIFIC DIRECTION TO THE CORPUS WILL BE EXEMPT FROM TAX IN VIEW OF PROVISIONS CONTAINED IN SEC.11(1)(D) AND SEC.12 AND WHEN THE CONDITIONS STIPULATED THEREIN ARE SATISFIED. HOWEVER IN THOSE CASES WHERE THE TRUSTS OR THE INSTITUTIONS LOSE THE EXEMPTION UNDER SECTION 11 EITHER BY NOT COMPLYING WITH THE CONDITIONS LAID DOWN IN SECTION 12A OR BY FALLING WITHIN THE MISCHIEF OF SECTION 13 THE CORPUS DONATIONS WILL BE INCLUDED IN THEIR INCOME AND TAXED. THUS EVERY VOLUNTARY CONTRIBUTION RECEIVED BY A TRUST INCLUDING CORPUS DONATION WOULD CONSTITUTE 'INCOME' AS PER THE DEFINITION OF INCOME U/S.2(24)(I A) OF THE ACT. 8.2 IN VIEW OF THE ABOVE FACTUAL AND LEGAL POSITION I DO NOT FIND MERIT IN THE AUTHORIZED REPRESENTATIVE'S ARGUMENT AND ACCORDINGLY THE PLEAS RAISED IN THIS REGARD ARE REJECTED. THE TOTAL INCOME OF THE ASSESSEE DETERMINED BY THE AO FOR THE SUBJECT ASSESSMENT YEARS IN THE STATUS OF AOP IS UPHELD. 7.1. FROM THE PERUSAL OF THE ORDER OF THE LD.CIT(A) AND THE PAPER BOOK FILED BY THE ASSESSEE IT IS EVIDENT THAT THE ASSESSEE WAS ASKED SOME CLARIFICAT IONS VIDE LETTER HQRS.NO.111/34/95 - 96 DATED 23.08.199 5 AND DIRECTED THE ASSESSEE TO CONTACT THE ACIT CIRCLE - 2 AND FURNISH THE NECESSARY INFORMATION. THOUGH THE ASSESSEE STATED TO HAVE FURNISHED THE 21 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM DETAILS AS PER ENCLOSED LETTER IN THE PAPER BOOK DATED 03.10.1996 THERE IS NO EVIDENCE PLACED ON RECORD HAVING FURNISHED THE CITED LETTER ALONG WITH CLARIFICATION S SOUGHT BY THE LD.CIT(A) FOR GRANT OF REGISTRATI ON. THE CORRESPONDENCE PERTAINED TO 03.10.1996 AND SUBSEQUENTLY THERE WAS NO FOLLOW UP OR CORRESP ONDENCE WITH THE OFFICE OF THE CIT FOR GRANT OF REGISTRATION. THE ASSESSEE HAS SLEPT OVER THE ISSUE WITHOUT MAKING ANY FOLLOW UP. ONCE THE APPLICATION IS FILED FOR G RANT OF REGISTRATION IT IS OBLIGATORY ON THE PART OF THE ASSESSEE TO FURNISH THE INFO RMATION CALLED FOR AND PERUSE THE CASE FOR GRANTING THE REGISTRATION. THOUGH THE ASSESSE IS FILING THE RETURN OF INCOME YEAR AFTER YEAR IT HAS NEVER VERIFIED WHETHER THE REGISTRATION WAS GRANTED OR NOT. AT THE TIME OF MAKING THE ASSESSMENT FOR ALLOWING EXE MPTION U/S 11 AND 12 THE ASSESSEE SHOULD FURNISH THE PROOF OF CERTIFICATE OF REGISTRATION BEING GRANTED BY THE LD. CIT. IN THE ABSENCE OF FURNISHING DETAILS SOUGHT BY THE CIT AND THEREAFTER NO CORRESPONDENCE WITH THE INCOME TAX AUTHORITIES DEMONSTRATE S THAT THE ASSESSEE HAS NOT SHOWN ANY INTEREST IN PURSUING THE REGISTRATION FURTHER HENCE WE ARE INCLINED TO BELIEVE THAT THE ASSESSEE HAS NOT SUBMITTED THE CLARIFICATIONS AND DID NOT PROSECUTE THE ASSESSEES CASE FOR GRANTING REGISTRATION U/S 12A A OF I. T.ACT. THE ASSESSEE FAILED TO ESTABLISH THAT THE REGISTRATION WAS GRANTED IN ITS CASE OR COMPLIED WITH THE REQUIREMENT FOR GRANTING THE 22 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM REGISTRATION. THE LD.AR REFERRED THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2006 - 07 WHEREIN THE AO HAS ALLOWED THE EX EMPTION WITHOUT VERIFYING THE STATUS OF REGISTRATION AND COMMITTED AN ERROR AND WE DO NOT INCLINE TO CONTINUE THE SAME MISTAKE. ACCORDINGLY WE UPHOLD THE ORDER OF THE LD.CIT(A) AND DISMISS THE APPEAL OF THE ASSESSEE ON THIS GROUND. 7.2. THE NEXT ISSUE I S WITH REGARD TO THE GRANTING OF EXEMPTION U/S 10(23BBA) OF I.T.ACT. THE ASSESSEE STATED THAT THE TEMPLE TRUST WAS TAKEN OVER BY THE ENDOWMENT S DEPARTMENT AND REQUESTED FOR GRANTING EXEMPTION U/S 10(23BBA) B UT THE ASSESSEE DID NOT PLACE ANY EVIDENCE TO S HOW THAT THE TEMPLE TRUST WAS CONSTITUTED BY ANY OF THE CENTRAL /STATE PRO VINCIAL ACT AS REQUIRED UNDER SECTION 10(23BBA) OF THE ACT. THEREFORE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD.CIT(A) AND THE SAME IS UPHELD. 7.3. THE THIRD PROPOSITION O F THE ASSESSEE WAS THAT THE CORPUS FUNDS REQUIRED TO BE EXCLUDED EVEN IF THE ASSESSEE TRUST IS TREATED AS AO P FROM THE PUR VIEW OF THE INCOME . THIS ISSUE HAS BEEN DISCUSSED IN DETAIL BY THE LD. CIT (A) IN HIS ORDER. THE ASSESSEE HAS NOT PLACED ANY EVIDENCE TO SHOW THAT THE H UNDI COLLECTIONS WERE MEANT FOR CORPUS TRUST AND ARE TIED UP GRANTS WHICH WE RE RECEIVED FOR THE SPECIFIC PURPOSE. MERE RESOLUTION OF THE 23 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM TRUST AND PLACING HUNDI IS NOT SUFFICIENT TO HOLD THAT THE DONATIONS ARE RECEIVED FOR THE CORPUS. TH ERE MUST BE AN EVIDENCE FROM THE DONOR TO ESTABLISH THAT THE DONATIONS ARE RECEIVED FOR SPECIFIC CAPITAL PURPOSE. THE ASSESS E E HAS NOT PLACED ANY EVIDENCE OF DIRECTIONS OF THE DONORS FOR ITS UTILISATION. THE RESOLUTION PASSED BY THE TRUST IS FOR APPLICATION OF ITS RECEIPTS IN THE MANNER IN WHICH THE COLLECTION REQUIRED TO BE UTILIZED BUT NOT THE MANDATE OF DONORS AS RIGHTLY OBSERVED BY THE LD.CIT(A). FURTHER THE HUNDI COLLECTIONS ARE VOLUNTA RY CONTRIBUTIONS WHICH CANNOT BE E XCLUD ED FROM THE DEFINITION OF INCOME U/S 2 ( 2 4)(IIA) OF THE ACT . THE SPECIFIC PURPOSE DONATIONS ARE EXCLUDED BY THE AMENDMENT MADE IN THE FINANCE ACT 1987 W.E.F. 1.4.1989. THEREFORE ALL THE VOLUNTARY CONTRIBUTIONS RECE IVED BY THE ASSESSEE ARE TAXABLE WITHI N THE MEANING OF SECTION 2(24)( IIA) OF THE I.T.ACT IF THE REGISTRATION U/S 12A IS NOT AVAILABLE TO THE ASSESSE. THE COURTS HAVE HELD THAT THE SPECIFIC PURPOSE OR TIED UP GRANTS ARE EXCLUD I BLE BUT THE ASSESSEE HAS NOT P LACED ANY EVIDENCE TO SHOW THAT THE HUNDI COLLECTIONS ARE RECEIVED FOR SPECIFIC PURPOSE. IN ADDITION TO THE ABOVE AS HELD BY CIT (A) THE HUNDI COLLECTIONS ARE ALSO INCLUDED IN THE RECEIPTS AND PAYMENTS ACCOUNT. THE ASSESSEE HAS NOT PRODUCED THE BALANCE S HEET AND DEMONSTRATED THAT THE CORPUS FUNDS ARE TIED UP GRANTS AND RECEIVED FOR CAPITAL PURPOSE . THEREFORE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE 24 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM LD. CIT(A) AND THE SAME IS UPHELD. 8. GROUND N O. SIX IS RELATED TO CHARGING INTEREST U/S 234A 234B AND 234C WHICH IS MANDATORY THE LD.AR ALSO DID NOT MAKE ANY ARGUMENT. HENCE THIS GROUND IS DISMISSED. 9. IN THE RESULT APPEAL OF THE ASSESSEE FOR THE A.YS 2008 - 09 TO 2012 - 13 IN ITA NO S .96 TO 98 510 AND 51 1 ARE DISMISSED . THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH NOV 20 17 . SD/ - SD/ - ( . . ) ( . ) ( D.S. SUNDER SINGH ) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL M EMBER /VISAKHAPATNAM /DATED : 29 . 1 1 .2017 L. RAMA SPS 25 I.T.A.NO S .96 - 98/VIZ/2015 ITA NOS. 510 511/VIZ/2016 SRI SAMPATH VINAYAGAR TEMPLE TRUST VISAKHAPATNAM / COPY OF THE ORDER FORWARDED TO: - 1. THE A SSESSEE - SRI SAMPATHVINAYAGAR TEMPLE TRUST D.NO.10 - 1 - 33 CBM COMPOUND VISAKHAPATNAM 2 . THE RE VENUE THE ITO WARD - 3(2) VISAKHAPATNAM AND THE ITO (EXEMPTIONS) VISAKHAPATNAM 3 . THE COMMISSIONER OF INCOME TAX - 1 VISAKHAPATNAM 4. THE COMMISSIONER OF INCOME TAX - 1 2(I/C) VISAKHAPATNAM & RAJAHMUNDRY 5 . / DR ITAT VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM