JAS KARAN AMRAV DEVI BOTHRA CHARITABLE TRUST,BIKANER vs. CIT (EXEMPTION), JAIPUR

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ITA 320/JODH/2018Status: DisposedITAT Jodhpur09 August 2023AY 2018-195 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(Exemption)'s order, finding that the disputed clauses in the trust deed were not merely incidental to the main charitable objects and were contrary to the facts presented. The Tribunal relied on a Supreme Court decision regarding similar issues.

What were the facts?

The assessee trust applied for registration under Section 12AA. The CIT(Exemption) rejected the application, finding that certain objects in the trust deed, such as designing/manufacturing equipment and providing hotel accommodation, were not purely charitable and could be commercial in nature.

What were the issues?

Whether the objects of the trust, including commercial activities, are in the nature of charitable activities as defined under Section 2(15) and if they disqualify the trust from registration under Section 12AA.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 2(15)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “DB” BENCH, JODHPUR

Before: SHRI PAVAN KUMAR GADALE & SHRI DR. DIPAK P. RIPOTE

For Respondent: Smt. Alka Rajvanshi jain
Hearing: 08.08.2023Pronounced: 09.08.2023

(A.Y: 2018-19) Jas Karan Amrav Devi Vs. CIT (Exemptions), Bothra charitable Trust Kailash Heights,3 rdFlr, C/o. Surana and Co., Lalkothi,Tonk Road, 13/14, Industrial Area, Jaipur-302015. Rani Bazar, Bikaner. Rajasthan. Rajasthan. PAN/GIR No. : AABTJ4574F Appellant .. Respondent Assessee by : None Revenue by : Smt. Alka Rajvanshi jain, CIT-DR Date of Hearing 08.08.2023 Date of Pronouncement 09.08.2023 आदेश / O R D E R

PER PAVAN KUMAR GADALE JM:

1.

The assessee has filed the appeal challenging the order of the Commissioner of Income Tax (Exemption), Jaipur rejecting the registration application u/s 12AA(1)(b) of the Act.

2.

The brief facts of the case are that the assessee has filed an application for seeking registration u/s Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 2 - 12AA of the Act in Form No.10A. In the course of hearing proceedings, the CIT(E) has called for the certain documents, explanations and to produce the original deed/MOA for verification and the assessee has filed the written submissions. The CIT (E) has called for the additional information by letter dated 24.04.2018 to file activities of the trust and the clarifications on objects referred at Para 2 of the order as under:

2. The details / information /documents filed by the applicant alongwith application are examined. On perusal of trust deed, it is found that apart from other objects the following objects are shown in the objects of the trust. Objection No. IV- To design, manufacture, export, import, buy, sell, install, maintain and improve all kinds of equipments and instruments for hospitals, dispensaries, clinics and laboratories and health clubs. Objection No. V – To undertake to provide suitable hotel accommodation, dharamshala or serai primarily for patients, their friends, relatives and attendants and to undertake all or any other business activities incidental thereto.

3.

Subsequently a show cause notice was issued on 24.04.2018 to furnish the clarifications with respect to the objects referred above are not in the nature of charitable activities and the applicable provisions

Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 3 - U/sec2915) of the Act. Whereas the CIT(E) found that the assessee is emphasizing of commercial activites does not exceed 20% and therefore it is charitable dealt at Para 5 of the CIT(E) order. Further the CIT(E) observed that the application u/s 12AA of the Act cannot contain non charitable objects and does not satisfy the provisions U/sec2(15) of the Act and rejected the application and passed the order u/s 12AA(1)(b) of the Act dated 25.05.2018. Aggrieved by the order, the assessee has filed an appeal before the Hon’ble Tribunal.

4.

At the time of hearing none appeared on behalf of the assessee. The Ld. DR supported the order of the CIT(E) and prayed for dismissal of assessee appeal.

5.

We have heard the Ld.DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for registration under section 12AA of the Act, whereas the CIT(E) in course of hearing proceedings has called for certain clarifications and additional information to verify the genuineness of the activities of the trust and as per clause IV & VIII of the trust deed, they are non

Jas karan Amrav Devi botra Charitable Trust, Bikaner. - 4 - charitable clauses. The contentions raised by the assessee in the submissions that these clauses are only for attaining the main object clause I & II. But on perusal of the registered trust deed dated 4-04-2011, at page 2 at recital 3 , were the main objects of the trust are mentioned from clause I to xviii, which include disputed clauses emphasized by the CIT(E) and the submissions of the assessee are contrary to the facts and we relay on the decision of the Honble Supreme Court in M/s Ananda social and educational trust VsCIT (SC) 114 Taxman.com 093. We find the CIT(A) has considered the facts, circumstances, submissions, and provisions of Act and rejected the application. Accordingly, we do not find any infirmity in the order of the CIT(A) and uphold the same and dismiss the grounds of appeal of the assessee.

6.

In the result, the appeal filed by the assesse is dismissed.

Order pronounced in the open court on 09.08.2023

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