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Income Tax Appellate Tribunal, JODHPUR BENCH :DB
Before: SHRI SAKTIJIT DEY, VICE- & SHRI GIRISH AGRAWAL
O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: These two appeals filed by the assessee are against the order of learned Commissioner of Income-tax(Exemption), Jaipur - Order Nos.
ITBA/EXM/F/EXM45/2022-23/1051764933(1) dated 31.03.2023 passed under Section 12AB(1)(b)(ii) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), and Order Nos.
ITBA/EXM/F/EXM45/2022-23/10517645937(1) dated 31.03.2023 passed under Section 80G(5) of the Act.
Sole issue involved in the two appeals is in respect of rejection of applications made by the assessee for registration under Section 12AB and 80G of the Act, by the learned Commissioner of Income- Tax(Exemption).
Brief facts as culled out from record are that assessee is a society incorporated on 27.01.1956 which was registered with Registrar of Societies on 27.01.1956 vide Registration No.36/55-56(1). According to the assessee, it is also registered with Commissioner, Devsthan Vibhag, Government of Rajasthan vide Registration No. 16/76 dated 21.01.1978.
Deed of Society was amended to incorporate broader activities as permissible in law. Assessee made its application for seeking registration under Section 12AB and 80G on 21.09.2022. Learned Commissioner of Income-Tax(E)) rejected the said applications by holding that assessee society is not registered under the Rajasthan Public Trust Act, 1959 which is a basic condition as per Section 12AB(1)(b)(i) clause (B) of the Act. In this respect, learned Commissioner of Income-Tax(E) noted that assessee has also not furnished original Trust Deed/MOA, bills and vouchers of expenses incurred. Further, he observed that assessee does not own land and building but is only a caretaker for which bills and vouchers for repairs of building were not furnished. In respect of use of bus for charitable activities also, no evidences were furnished. Aggrieved, assessee is in appeal before the Tribunal.
Before us, learned counsel for the assessee submitted that assessee is duly registered under the Rajasthan Public Trust Act, 1959 vide Registration No.60/76 dated 21.01.1978. In this respect, Bench raised a query before the learned counsel as to whether this certificate was before the learned Commissioner of Income-Tax(E) which was answered in the negative. Accordingly, Bench directed the learned counsel to furnish the said registration certificate which was placed on record by the learned counsel in the course of hearing on 14.09.2023.
4.1 On the genuineness of activities, learned Commissioner of Income- Tax(E) has called for various details and documents. From the submissions made by the assessee, he noted that assessee has not furnished the original Trust Deed/MOA. In respect of photographs of charitable activities undertaken by the assessee furnished before the learned Commissioner of Income-Tax(E), he observed that these photographs do not contain banner of the assessee to demonstrate that the activities were in fact undertaken by the assessee itself.
4.2 Learned counsel further submitted that preservation of monuments or places or objects of autistics or historic interest is included in the definition of charitable purposes under Section 2(15) of the Act.
Assessee had undertaken to develop the site of temple of Bhagwan Mahavir which is an ancient historic monument of national importance and learned Commissioner of Income-Tax(E) has wrongly interpreted the monuments as land and building. In respect of claim of submission of vouchers for expenses, learned counsel submitted that books of accounts are audited and report in Form 10AB is placed on record. Thus, learned Commissioner of Income-Tax(E) is wrong in rejecting the applications on this basis.
Per contra, learned CIT DR submitted that assessee has furnished the registration certificate under Rajasthan Public Trust at 1959 now before the Hon’ble Bench which needs to be verified. He further submitted that assessee did not file the amended Trust Deed/MOA also.
He placed reliance on the order of learned Commissioner of Income- Tax(E).
We have heard the rival contention and perused the material on record. We take note of the provisions contained in section 12B(1)(b)(i) of the Act in Clause (B) which requires compliance of any other law for the time being in force for the purpose of achieving the objectives of the Trust. Assessee in the present case is registered under the Rajasthan Public Trust Act, 1959 for which registration certificate is submitted before us by the learned counsel as stated above. We also take note of the discrepancies noted by the learned Commissioner of Income-Tax(E) which according to the learned counsel for the assessee are under wrong
5 & 118/Jodh/2023 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth Shetra Commite, Bhilwara- AY: 2023-24 notion, more particularly, in respect of land and building as well as use of bus for charitable purposes.
Considering the facts and circumstances of the case and the submissions made before us, as stated above, in the interest of justice and fair play, we find it proper to remit the matter back to the file of the learned Commissioner of Income-Tax(E) for de novo consideration of the applications made by the assessee for registration under Section 12AB and 80G of the Act by considering all the material placed on record.
Needless to say, assessee be given reasonable opportunity of being heard to substantiate its claim by making any further submission for the registration. Accordingly, ground taken by the assessee is allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for 8. statistical purposes.
Order is pronounced in the open court on 20.09.2023.