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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
Appellant by Shri S.N. Agrawal & Shri Pankaj Mogra, A.Rs Respondent by Shri S.B. Prasad, D.R. Date of Hearing: 21.01.2020 Date of Pronouncement: 23.01.2020 आदेश / O R D E R PER KUL BHARAT, J.M: These 3 appeals by different assessees are directed against order of the CIT (Exemption), Bhopal dated 23.1.2018 for the assessment year 2017-18. First we take up the appeal in ITA No.105/Ind/2018. In this appeal, the assessee has raised following grounds of appeal:
[ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore]
That on facts and in the circumstances of the case the Ld. CIT(Exemption) erred in rejecting the application filed by the assessee Trust for Registration u/s 12AA of the Income Tax Act without properly appreciating the facts of the case and submissions made before him.
The assessee reserve its right to add, alter, modify or amend the grounds of appeal
as and when required.
2. The only effective ground in this appeal is against rejection of application filed by the assessee Trust for registration u/s 12AA of the Income Tax Act, 1961 (hereinafter called as ‘the Act’). The brief facts are that the assessee Trust had applied for registration u/s 12AA of the Act in the prescribed form No.10A. Thereafter, the Ld. CIT (Exemption) issued a notice to the assessee Trust for hearing. In response thereto, no one appeared or filed any written submission. However, another opportunity was given. In response thereto, the authorised representative of the assessee Trust attended the proceedings and filed written submissions. However, the written submissions as filed by the assessee were not found acceptable by the Ld. CIT (Exemption). He therefore, rejected the application on 3
[ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore] the ground that Trust was not registered with the registrar of Trusts as per Public Trust Act of Madhya Pradesh. The Trust was found with main object to construct Upashraya building for the benefit of Jain saint and other objects.
Clause 23 of the bye laws is not proper. Aggrieved against this, the assessee is in present appeal before this Tribunal.
Ld. Counsel for the assessee submitted that the decision of the Ld. CIT (Exemption) is contrary to the law laid down by various courts. He took us through the objects of the assessee trust. Further, he relied upon the judgement of Hon'ble Punjab & Haryana High Court rendered in the case of CIT (Exemption) Vs. Shri Mahavir Jain Society, Ludhiana in of 2016. The reliance is also placed on the decision of the coordinate bench of this Tribunal rendered in the case of Shri Jain Shwetamber Murtipujak Sangh Vs. CIT-I in ITA No.1353/Pune/2014 dated 31.3.2015. Ld. Counsel relied on the judgement of [ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore] the Hon'ble Supreme Court rendered in the case of CIT Vs. Dawoodi Bohara Jamat (2014) 43 Taxmann.com 243. Ld. A.R. further reiterated the submissions as made in the written synopsis.
Per contra, Ld. D.R. opposed these submissions and supported the order of the Ld. CIT (Exemption).
We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. We find that the Ld. CIT (Exemption) has rejected the application of the assessee by observing as under:
[ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore]
Ld. Counsel for the assessee has placed reliance on the judgement of the Hon'ble Punjab & Haryana High Court rendered in the case of CIT (Exemption) Vs. Shri Mahavir Jain Society (supra). The Hon'ble Court affirmed the view of the Tribunal, wherein it has been held that if the assessee is both religious and charitable trust, it would be entitled for registration u/s 12AA of the Act. Therefore, considering the totality of the facts and the case laws as cited before us, we are of the view that the Ld. CIT ought to have considered the submissions made by the assessee in the light of the binding precedents. We therefore, set aside the order of the Ld. CIT and restore the issue of registration to his file for reconsideration of the same after considering the facts of the case laws as relied by the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Now we take up assessee’s appeal in for the A.Y. 2017-18.
The only effective ground in this appeal is also against rejection of application filed by the assessee Trust for [ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore] registration u/s 12AA of the Income Tax Act, 1961. The facts and circumstances in this appeal are similar to that of the appeal filed by the assessee in above and since the same has been adjudicated in para Nos.5 & 6 above, similar view is taken in this appeal also.
Therefore, the impugned order is set aside and application seeking registration is restored to the file of the Ld. CIT to decide afresh.
Now we take up assessee’s appeal in for the A.Y. 2017-18.
The only effective ground in this appeal is also against rejection of application filed by the assessee Trust for registration u/s 12AA of the Income Tax Act, 1961. The facts and circumstances in this appeal are similar to that of the appeal filed by the assessee in above and since the same has been adjudicated in para Nos.5 & 6 above, similar view is taken in this appeal also.
[ITA No.105, 109 & 110/Ind/2018] [Shri Swetamber Jain Tapagach Upashraya Trust, Indore] Therefore, the impugned order is set aside and application seeking registration is restored to the file of the Ld. CIT to decide afresh.
In the result, all the appeals filed by the assessees in 109 & 110/Ind/2018 for the A.Y. 2017-18 are allowed for statistical purposes.
Order was pronounced in the open court on 23 .01.2020.