DB INCOME TAX APPEAL NO.61/2014 IN HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR JUDGMENT D.B. INCOME TAX APPEAL NO.61/2014 COMMISSIONER OF INCOME TAX, JAIPUR-II, JAIPUR Vs. MANDIR SHREE GANESH JI, MOTI DOONGRI, JAIPUR DATE:02.12.2014 HON'BLE ACTING CHIEF JUSTICE MR. SUNIL AMBWANI HON'BLE MR.JUSTICE J.K. RANKA Mr. Nikhil Simlote on behalf of Mr. R.B. Mathur, for appellant. Mr. Kamlakar Sharma, Senior Counsel assisted by Mr. Ashish Sharma, for respondent. ***** REPORTABLE 1. This D.B. Income Tax Appeal under Section 260A of Income Tax Act, has been preferred by Commissioner of Income Tax, Jaipur-II, Jaipur, against order passed by Income Tax Appellate Tribunal, Jaipur Bench, Jaipur, dated 24.01.2014, on following substantial question of law:- i) Whether in facts and circumstances of case Tribunal has erred in law in holding assessee trust as public and charitable trust in allowing benefits of exemption u/s. 11/12 of IT Act, 1961 despite fact that assessee trust is controlled by two families and entire income and benefits are passed over to said families. ii) Whether, in facts and circumstances of case Tribunal was justified in law in allowing benefit just because some charitable trust despite all activities done and controlled by trustees who are family members and all benefits are accrued (Downloaded on 13/05/2020 at 04:04:26 PM) {2} DB INCOME TAX APPEAL NO.61/2014 to said family trust. iii) Whether, in facts and circumstances of case Tribunal was justified in law in holding that assessee trust is entitled for benefit of exemption u/s. 11/12 contrary to provisions of section 13(1) (a) of IT Act, 1961. iv) Whether, in facts and circumstances of case Tribunal was justified in law in confirming deletion of addition of Rs.7206002/- on account of donation given for charitable activities despite of fact that assessee is not entitled for any exemption/ deduction. v) Whether, in facts and circumstances of case Tribunal was justified in law in treating construction expenses of Rs.566627/- as revenue expenditure. 2. We have gone through orders passed by Assessing Officer, Appellate Authority, and Income Tax Appellate Tribunal. All authorities have recorded concurrent findings of fact that respondent-Trust stands registered under Section 12A of Act, vide order dated 25.03.1976, which is still valid. objects of trust are charitable in nature. respondent-Trust is also registered under Devasthan Vibhag (State Government), which is controlled by State Government. Rajasthan Public Charitable Trust, 1959, gives controlling power to Devesthan Commissioner. Even expenditure and funds received, and its disbursement, are controlled by State Government through Commissioner, Devasthan Vibhag. 3. Tribunal found that trust is subjected to periodical inspections. last inspection was made on 21.04.2011 by Assistant Commissioner, Devasthan Vibhag. amount of Rs.72,06,002/- (Downloaded on 13/05/2020 at 04:04:26 PM) {3} DB INCOME TAX APPEAL NO.61/2014 has been spent on charitable activities in assessment year in question, for which receipts in respect of expenses incurred, account books copies, newspaper clipping, carrying news of activities conducted by trust, are available on record. trustees are filing their individual tax returns and paying substantial tax on their income. Two trustees, namely Shri Kailash Narayan and Shri Puran Chand Sharma, have also filed their income tax returns. Income Tax Tribunal further held that expenditure on construction and repairs of generator, CCTV, note counting machine and wheel chairs, was clearly established on record. 4. It is submitted by learned counsel appearing for Department that charitable trust is defined under Section 2(15) of Income Tax Act. As per Section 13(1), nothing contained in section 11 or section 12 shall operate so as to exclude from total income of previous year of person in receipt thereof, whereas Section 13(1)(a), provides that any part of income from property held under trust for private religious purposes, which does not inure for benefit of public. It is submitted that amount of Rs.72,06,002/-, was not spent for benefit of public, and thus, it would not fall within meaning of charitable trust. 5. It is not denied that certificate under Section 12A, is still valid. details of expenses incurred on charitable activities, were filed along with returns. We have gone through these details, which include expenditure of major part of donation on religious and other (Downloaded on 13/05/2020 at 04:04:26 PM) {4} DB INCOME TAX APPEAL NO.61/2014 charitable purposes on 27 items. amount spent on free food distributed in Rain Baseras in evening at Rs.17,75,289.53, Prasad distribution on various functions, donation provided to SMS Hospital for maintenance of Polytroma ward at Rs.4,13,819/-, and other activities, clearly fall within meaning of charitable purposes under Section 2(15) of Act. 6. In our view, findings recorded by Income Tax Authorities that so long registration under Section 12A of Act is valid and income is found to have been spent for charitable purposes, such income has to be excluded from total income of previous year, does not raise any substantial question of law for consideration in this appeal. 7. Income Tax Appeal is dismissed. (J.K. RANKA),J. (SUNIL AMBWANI),ACTING C.J. /KKC/ Certificate: All corrections made in judgment/order have been incorporated in judgment/order being emailed. KAMLESH KUMAR P.A. (Downloaded on 13/05/2020 at 04:04:26 PM) Powered by TCPDF (www.tcpdf.org) Commissioner of Income-tax, Jaipur-II, Jaipur v. Mandir Shree Ganesh Ji