M/S OM SAT SANATAN GEETA BHAWAN TRUST,BARNALA vs CIT (E), CHANDIGARH

आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM

आयकर अपील सं./ ITA No. 639/Chd/2019 "नधा"रण वष" / Assessment Year : 2018-19

M/s Om Sat Sanatan Geeta Bhawan बनाम The Commissioner of Income Tax Trust, (Exemption), Geeta Bhawan Road, Barnala, Chandigarh. Punjab-148101. "थायी लेखा सं./PAN NO: AAATO1170H अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee by : Shri Sudhir Sehgal, Adv. राज"व क" ओर से/ Revenue by : Shri Sandip Dahiya (CIT-DR) सुनवाई क" तार"ख/Date of Hearing : 11/02/2021 उदघोषणा क" तार"ख/Date of Pronouncement : 30/04/2021 आदेश/Order PER N.K. SAINI, VICE PRESIDENT

This is an appeal by the Assessee against the order dated 28/02/2019 of Ld. CIT(E), Chandigarh. The only grievance of the assessee in this appeal relates to denial of approval U/s 80G(5)(vi) of the Income Tax Act, 1961 (hereinafter referred to as, the Act).

Facts in brief are that the assessee moved an application in Form 10G on 19/08/1918 for grant of approval U/s 80G of the Act. The assessee Trust was created on 19/10/1964 and is registered U/s 12AA of the Act since 01/03/1976. The ld. CIT(E) after receiving application from the assessee, raised certain queries/clarifications which are mentioned in para 2 of the impugned order. For the cost of repetition, the same are not reproduced herein. The ld. CIT(E) observed that no reply was furnished by the assessee, therefore, another

2 ITA 639/Chd/2019 M/s Om Sat Sanatan Geeta Bhawan Trust Vs CIT(E) opportunity was given. In response to which, the assessee furnished submissions on 08/02/2019. The ld. CIT(E) again raised additional queries vide letter dated 09/02/2019. In response, the assessee furnished reply, however, the ld. CIT(E) considered the following aims and objectives of the assessee as religious in nature:

“1. To construct and primarily establish Geeta Bhawan with in the prescints of Mandi Barnala, to provide for the accommodation of learned Sadhus, Saints and Preists, for the propagation and dissemination of Dharmik Shiksha.” He also relied on the judgement of Hon'ble Apex Court in the case of Upper Ganges Sugar Mills Ltd. reported in 227 ITR 578 (SC) wherein it was held that even if one object is wholly or substantially religious in nature, the institution is not eligible for approval under Section 80G of the Act. Reliance was also placed on the judgment of the Hon'ble Madras High Court in the case of East India Industries (Madras) Pvt. Ltd. reported in (1997) 65 ITR 611. Accordingly, the application moved by the assessee for grant of approval U/s 80G of the Act was rejected.

Being aggrieved, the assessee is in appeal.

The ld. Counsel for the assessee submitted that the assessee Trust was established on 19/10/1964 and granted registration U/s 12AA of the Act on 01/03/1976 and that the assessee is filing regularly its returns of income year after year based on the audited balance sheet and income & expenditure account. Copies of the same are placed at page Nos. 14 to 40 of the assessee’s paper book. It was further stated that the ld. CIT(E) denied the approval U/s 80G of the Act by holding that the objects of the assessee Trust were religious in nature but he ignored this vital fact that the objects did not pertain to any particular religion but to the Saints, Priests and other wisemen of all the religions and the assessee Trust provides free accommodation to those persons, so that, they can

3 ITA 639/Chd/2019 M/s Om Sat Sanatan Geeta Bhawan Trust Vs CIT(E) impart their knowledge for the welfare of the general public without cast and creed and without any inclination to any specific religion. Reliance was placed on the judgement of Chandigarh Bench of ITAT in the case of Maharaja Aggarsain Charitable Trust Vs CIT reported in 87 taxmann.com 153. Copy of the said order was furnished which is placed on the record. Reliance was also placed on the following case laws:

(i) (iii) Kuka Martyrs Memorial Trust Vs CIT (2013) 35 taxmann.com 516 (Chd.- Trib).

As regard the reliance placed by the ld. CIT(E) in the case of Upper Ganges Sugar Mills Ltd. (supra), it was stated that the issue in the said case was relating to the giving of donations to the institution whose one of the objects was wholly or substantially for religious purpose while in assessee’s case, there was no such object, therefore, the decision relied by the ld. CIT(E) is distinguishable on facts.

In his rival submissions, the ld. CIT-DR strongly supported the order passed by the ld. CIT(E) and made a reference to para 4 of the impugned order wherein aims and objectives of the assessee Trust as mentioned in memorandum of association are reproduced and stated that the objectives of the assessee Trust was religious in nature, therefore, the ld. CIT(E) rightly denied the approval U/s 80G of the Act to the assessee. It was also stated that the cases relied upon by the ld. Counsel for the assessee are distinguishable on facts.

4 ITA 639/Chd/2019 M/s Om Sat Sanatan Geeta Bhawan Trust Vs CIT(E)

We have considered the rival submissions and perused the material available on record. In the present case, it is an admitted fact that the ld. CIT(E) denied the approval U/s 80G of the Act to the assessee only on this basis that the aims and objectives in the memorandum of association of the assessee mentioned at serial No. 1 were religious in nature. The said objective reads as under:

“1. To construct and primarily establish Geeta Bhawan with in the prescints of Mandi Barnala, to provide for the accommodation to learned Sadhus, Saints and Preists, for the propagation and dissemination of Dharmik Shiksha.” From the aforesaid objective of the assessee Trust, it is clear that the assessee Trust established Geeta Bhawan to provide accommodation to Sadhus, Saints and Priests for the propagation and dissemination of Dharmik Shiksha. From the aforesaid object, it is very much clear that the accommodation was provided to those persons who were propagating and disseminating Dharmik Shiksha in the society as a whole and not to a particular community or religion. Moreover, the said persons are also not related to a particular religion or community of the society. Therefore, it cannot be said that the objects of the assessee were religious in nature. Moreover, the assessee had been granted registration U/s 12AA of the Act since 01/03/1976, only after considering this fact that the objects of the assessee Trust were charitable in nature. In the present case, it is not brought on record that the said registration granted to the assessee was set aside, therefore, if there is no change in the objects of the assessee Trust which were considered to be charitable while granting registration U/s 12AA of the Act then it cannot be said that the same objects were not charitable in nature while granting approval U/s 80G of the Act. We, therefore, by considering the facts of the present case, as discussed hereinabove, are of the view that the ld. CIT(E) was not justified in rejecting the application of the assessee moved for grant of 5 ITA 639/Chd/2019 M/s Om Sat Sanatan Geeta Bhawan Trust Vs CIT(E) approval U/s 80G of the Act. Accordingly, we direct the ld. CIT(E) to grant approval to the assessee U/s 80G of the Act.

In the result, the appeal of the assessee is allowed.

(Order pronounced in the open Court on 30/04/2021) आर.एल. नेगी एन.के.सैनी, (R.L. NEGI) (N.K. SAINI) "या"यक सद"य/ Judicial Member उपा"य" / VICE PRESIDENT

Date: 30/04/2021

आदेश क" ""त"ल"प अ"े"षत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

""यथ"/ The Respondent 3. आयकर आयु"त/ CIT 4. आयकर आयु"त (अपील)/ The CIT(A)

"वभागीय ""त"न"ध, आयकर अपील"य आ"धकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File

M/S OM SAT SANATAN GEETA BHAWAN TRUST,BARNALA vs. CIT (E), CHANDIGARH