PR. COMMISSIONER OF INCOME TAX, JAIPUR vs. JINVAYNE PARMARTH SAHITYA PRAKASHAN

ITA/47/2017HC RajasthanRJHC01039683201710 January 20183 pages
AI SummaryDismissed

What were the facts?

The assessee, Jinvayne Parmarth Sahitya Prakashan, applied for registration under Section 80G(5)(vi) of the Income Tax Act, 1961, on June 2, 2016. The Commissioner of Income Tax (CIT) rejected the application on November 17, 2016, citing that no activities had commenced as per the assessee's objects, and therefore, exemption under Section 80G(5)(vi) could not be granted. The assessee appealed to the Income Tax Appellate Tribunal (ITAT), which set aside the CIT's order and allowed the application. The Revenue (Commissioner of Income Tax-Exemption, Jaipur) has filed this appeal under Section 260-A of the Act challenging the ITAT's order.

What did the High Court hold?

The High Court held that no substantial question of law arises in the appeal. The Court noted that the assessee had specifically submitted before the CIT that the Trust had published a monthly magazine, "Jinvaynam," and had also given donations to "Gaushala/s" and needy persons, with receipts annexed to the reply. The Court found it unfortunate that the CIT did not consider this aspect and rejected the prayer solely on the ground that no significant activity had been started. The ITAT had minutely considered the assessee's reply and held the CIT's finding to be perverse, as charitable activities were indeed carried out. Therefore, the High Court saw no reason to interfere with the ITAT's order. The appeal filed by the Revenue was dismissed.

What were the issues?

1. Whether the ITAT was justified in allowing approval under Section 80G(5) of the Income Tax Act, 1961, notwithstanding that the applicant has not commenced any charitable activity as per its objects? (Question of law) Assessee's contentions: The assessee argued that it had commenced charitable activities by publishing a monthly magazine called "Jinvaynam" and by giving donations to "Gaushala/s" and needy persons. Receipts for these activities were annexed with the reply filed before the CIT. The ITAT considered this reply and found the CIT's rejection to be perverse. Revenue's contentions: The Revenue contended that the ITAT failed to examine the matter in its entirety and correct perspective. It argued that the ITAT did not appreciate that due importance must be given to the activities carried out at the time of granting exemption, as per the provisions of the Income Tax Act and Rules. The Revenue prayed that a substantial question of law arises in this appeal.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 80G(5)(vi),Section 80G(5)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 47 / 2017 1. Commissioner of Income Tax-Exemption, Jaipur. 2. Jinvayne Parmarth Sahitya Prakashan, 37, Jhuroan Ka Bas, Pali Marwar (Rajasthan). ----Appellants Versus Jinvayane Parmarth Sahitya Prakashan, 37, Jhunroan Ka Bas, Pali Marwar (Raj.) ----Respondents _____________________________________________________ For Appellant(s) : Mr. K.K. Bissa. _____________________________________________________ HON'BLE MR. JUSTICE GOPAL KRISHAN VYAS HON'BLE MR. JUSTICE VINIT KUMAR MATHUR

J U D G M E N T Date of Judgment:

10/01/2018 BY THE COURT:

In this income tax appeal filed under Section 260-A of the Income Tax Act, 1961 (Act of 1961), the judgment dated 19th of May, 2017 passed by Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur in I.T.A. No.410/Jodh/2016, is under challenge.

As per facts of the case, respondent- Assessee applied for registration under Section 80G (5) (vi) of the Act of 1961 on 02.06.2016, however, said application was rejected by the Department vide order dated 17.11.2016 on the gr

The order continues below.

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