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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 05/11/2024 Date of Order – 18/11/2024
O R D E R PER V. DURGA RAO, J.M.
This appeal has been filed by the assessee challenging the impugned order dated 06/12/2023, passed by the learned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(E)”].
2 Shree Gururaghavendra Swamy Bhajan Mandal ./2024 Assessee’s Appeal
In its appeal, the assessee has raised following grounds:
– “1. On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in rejecting the application of the assessee for registration of the Trust under Section 12. A of the Act.
2. On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in ignoring the claimed purpose as Religious cum Charitable trust while rejecting the application of the assessee.
3. On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in concluding that assessee has not made any expenditure on charitable activities and all expenditure is incurred on religious objects which is contrary to facts and also against the true significance and purpose of various activities undertaken by the Trust.
4. On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in concluding that activities undertaken by the trust are religious in nature ignoring the judicial precedents and the facts as apparent from records 5. On the facts and circumstances of the case and the law, The learned CIT (E) erred in refusing registration a. When trust is registered with Competent Charity Commissioner who has registered the Trust after recognizing objects of the trust and is the expert authority to decide about the purposes and status of trust b. when while granting registration the authorities has only to examine objects of the Trust, genuineness of activities of trust and compliances to any other law in force and nature of activities prior to seeking registration under Income-tax Act can only be examined on above three touch stones and nothing else. c. when the Apex Court in Anand Society Civil Appl. No 4702/2014 and other judicial pronouncements by different courts has laid down the principles for compass of what authorities are required to consider while dealing with registration, which does not include to assess what a trust has actually done earlier and also not required to examine the application of income. d. when the Supreme Court in Ramchandra Shukla V Shree Mahadeoji AIR 1970 SC 458 has held that there is no line of demarcation in the Hindu System between religion and charity and Bombay HC in CGT VHH Sir Shahai (1965) 58 ITR 140 (Bom.) held that charitable purposes also include religious purposes. and thus charitable activities are in essence religious purposes activity under the Indian philosophy and way of life.
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6. Assessee reserve rights to amend drop, or add any other ground with due permission of the Hon Members. Prayer :: It is requested that order of the Learned Commissioner (Exemption) be set aside and quashed and necessary orders be passed granting registration to the Trust or any other orders/relief as deemed fit by this Hon'ble Tribunal.”
Facts in Brief:– The assessee is a trust registered with Charity Commissioner as a Charitable Trust since the year 1975, which follows Shree Gururaghvendra Swamy Mutt Mantralayam, Adoni (AP). The trust is basically engaged in mission to spread the teaching of Dwaitwad. The followers of GuruRaghvendra established mutts in various cities who were followers of Dwait Philosophy. The objectives of the Trust are as follows:–
(i) To celebrate the Madhanavami and the Aradhana of Sri Raghavendra Swami every year; (ii) To celebrate any other Aradhana Or celebrations with the approval of General Body from time to time; (iii) To hold Bhajans, Lectures, or religious discourses pertaining to Philosophy in general and TATVAVADA or DWAITHA Philosophy in particular; (iv) To make all efforts to establish a Vrundavan of Sri Guru Raghavendra Swami at Nagpur as early as possible; and (v) To have Social Cultural and educational activities from time to time.
The learned CIT(E), after considering the objectives, came to the conclusion that the activities of the assessee trust is only religious and not eligible for registration under section 12AB of the Act and rejected the same. The assessee being aggrieved is in appeal before the Tribunal.
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The learned Authorised Representative appearing for the assessee submitted that there are two activities viz. (i) distribution of price to students who secured maximum marks which relates to carrying an educational activities and submitted that this object may be considered as a charitable exemption and may be granted; and (ii) international yoga training which also comes under charity and hence the assessee is entitled to registration under section 12A(1)(ac) of the Act.
6. The learned Departmental Representative supported the order passed by the learned CIT(E).
We have heard the rival arguments, perused the material available on record and gone through the orders of the authorities below. The assessee is a trust registered with Charity Commissioner as a Charitable Trust since the year 1975, which applied for registration under section 12A(1)(ac) of the Act. The assessee trust, in its application, has mentioned that the nature and activities of the trust is religious / charitable. Insofar as object of the assessee trust is concerned, it is religious, relief to the poor people, education and medical relief, etc. After considering the submissions of the assessee and on perusal of the record available before us, we prima–facie come to a conclusion that the assessee is carrying on activities towards parting education as well as giving training of yoga and hence is eligible for grant of registration under section 12A(1)(ac) of the Act. To that apart, the assessee has filed application in Form no.10AB, for the first time and, therefore, the learned CIT(E) ought to have been granted registration under section 12AB of 5 Shree Gururaghavendra Swamy Bhajan Mandal the Act to the assessee by considering the objectives of the assessee trust. The learned CIT(E) doubting the activities rejected the registration which is not permissible as per law. In view of the above, we set aside the impugned order passed by the learned CIT(E) and direct the learned CIT(E) to accept the application in form no.10AB and thereafter grant registration under section 12A(1)(ac) of the Act. Accordingly, the grounds raised by the assessee are allowed.
In the result, appeal filed by the assessee is allowed.
./2024 Assessee’s Appeal
In its appeal, the assessee has raised following grounds:–
“1. On the facts and circumstances of the case and the law the learned CIT(Exemption) erred in rejecting the application of assessee for approval under S 80G of the Act and further erred in cancelling the provisional approval. 2 On the facts and circumstances of the case and the law the learned CIT(Exemption) erred in holding that objects of trust deed indicates that trust is engaged in religious activities centered around RaghvendraSwamy. 3 On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in in concluding that there is complete lack of allocation towards demonstrable charitable activities and significant portion of expenditure is incurred on religious activities 4 On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in holding that assessee has failed to prove the genuineness of charitable activities. 5 On the facts and circumstances of the case and the law, the learned CIT(Exemption) erred in holding that as application of assessee has been rejected for registration under S 12 A on 5-12- 2023 when effectively the order of rejection is digitally signed on 6- 12-2023 at 12.36 PM and order of rejection of approval under 80G is digitally signed on 5-12-2023 at 12.33PM.
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The assessee requests to add, delete, amend the grounds with due process of law. Prayer:: It is requested that order of the Learned Commissioner (Exemption) be set aside and quashed and necessary orders be passed granting registration to the Trust or any other orders/relief as deemed fit by this Hon'ble Tribunal.”
Since we have set aside the impugned order passed by the learned CIT(E) rejecting the registration under section 12A(1)(ac) of the Act and directed the learned CIT(E) to grant registration under section 12A(1)(ac) of the Act, consequently, we direct the learned CIT(E) to accept the application of the assessee for grant of approval under section 80G of the Act and thereafter grant approval under section 80G of the Act in accordance with law. Thus, all the grounds raised by the assessee are allowed.
In the result, appeal filed by the assessee is allowed.
To sum up, both the appeals filed by the assessee are allowed. Order pronounced in the open Court on 18/11/2024