The Commissioner of Income-tax, Dhanbad v. Bhardwaj Sewa Trust
[Citation -2017-LL-0413-59]

Citation 2017-LL-0413-59
Appellant Name The Commissioner of Income-tax, Dhanbad
Respondent Name Bhardwaj Sewa Trust
Court HIGH COURT OF JHARKHAND AT RANCHI
Relevant Act Income-tax
Date of Order 13/04/2017
Judgment View Judgment
Keyword Tags grant of registration
Bot Summary: Substantial questions of law have been raised which are as under: Whether on the facts and in the circumstances of the case the learned ITAT was justified in law in quashing the order u/s 12AA(1)(ii) of the I.T. Act, 1961 passed by the CIT without going in depth the basis of rejection taken by CIT Whether on the facts and in the circumstances of the case the learned ITAT was correct in law in directing the CIT to grant registration u/s 12AA of the Act without verifying the independent existence of the Trust Whether on the facts and in the circumstances of the case the learned ITAT was correct in law in directing the CIT to grant 2. Having heard learned counsels for both sides and looking to the facts and circumstances of the case, combined and joint reasons given by Income Tax Appellate Tribunal in para 6 for half a dozen matters which are as under: 6. The aforesaid reasons have been given jointly for every matter by the Income Tax Appellate Tribunal, Circuit Bench, Ranchi including in ITA No.123/Ran/2010. Being aggrieved and dissatisfied by the order passed by the Commissioner of Income Tax dated 25th March, 2010, the respondent preferred appeal being I.T.A. No.123/Ran/2010 which has been allowed by the Income Tax Appellate Tribunal, Circuit Bench, Ranchi by an order dated 11th July, 2011, with the only reason given in para 6 as quoted herein above. Looking to the reasons given by Income Tax Appellate Tribunal, Circuit Bench, Ranchi in allowing the aforesaid I.T.A. No.123/Ran/2010, it appears that factually wrong aspects have been appreciated and wrongly this appeal has been allowed of the respondent. In view of these facts, we, hereby, quash and set aside the order passed by the Income Tax Appellate Tribunal, Circuit Bench, Ranchi in I.T.A. No.123/Ran/2010, judgment and order dated 11th July, 2011 and we hereby remand the matter to Income Tax Appellate Tribunal, Circuit 4. It is needles to say that Income Tax Appellate Tribunal, Circuit Bench, Ranchi will afford an opportunity of being heard to the respondent, who is appellant before the Income Tax Appellate Tribunal, in I.T.A. No.123/Ran/2010.


IN HIGH COURT OF JHARKHAND AT RANCHI Tax Appeal No. 14 of 2014 Commissioner of Income Tax, Ranchi Aaykar Bhawan, Luby Circular Road, P.O. & P.S. Dhanbad, District Dhanbad. Respondent/Appellant. Versus Bhardwaj Sewa Trust, village Bhamal, P.O. & P.S. Nirsa, District Dhanbad Appellant/Respondent. CORAM: HON BLE MR. JUSTICE D.N. PATEL HON BLE MR. JUSTICE S. CHANDRASHEKHAR For Appellant : Mr. Deepak Roshan, Advocate For Respondent : Mr. Sabyasachi, Advocate /Dated: 13th April, 2017 13 Oral order: Per D.N. Patel, J.: 1. This Tax Appeal has been preferred against judgment and order delivered by Income Tax Appellate Tribunal, Circuit Bench, Ranchi in I.T.A. No. 123/Ran/2010, whereby application preferred by respondent was allowed without assigning any reason and whatever factual aspects have been mentioned are absolutely false and wrong, as more than half dozen cases have been decided at time and facts of other cases have been mixed up with facts of present case and wrongly application has been allowed, as submitted by counsel for appellant. Substantial questions of law have been raised which are as under: (i) Whether on facts and in circumstances of case learned ITAT was justified in law in quashing order u/s 12AA(1) (b)(ii) of I.T. Act, 1961 passed by CIT without going in depth basis of rejection taken by CIT? (ii) Whether on facts and in circumstances of case learned ITAT was correct in law in directing CIT to grant registration u/s 12AA of Act without verifying independent existence of Trust ? (iii) Whether on facts and in circumstances of case learned ITAT was correct in law in directing CIT to grant 2. registration u/s 12AA of Act without appreciating fact that Settler reserves all rights with him which is totally against spirit of Charitable Trust? (iv) Whether on facts and in circumstances of case learned ITAT was correct in law in directing CIT to grant registration u/s 12AA of Act without appreciating fact that Trust failed to establish genuineness of its actual activities vis vis its stated objects which is essential condition to be fulfilled for grant of registration u/s 12AA of I.T. Act, 1961? (v) Whether on facts and in circumstances of case learned ITAT has committed gross error in law in directing CIT to grant registration u/s 12AA of Act without appreciating fact that Trust failed to produce Original Trust Deed, Resolution Register and Donation Register for verification which is essential condition to be proved that Trust is created for charitable purpose? (vi) Whether on facts and in circumstances of case ld. ITAT is correct in passing common order involving other Assessee(s) having difference issues? (vii) Whether on facts and in circumstances of case impugned order is perverse? 2. Having heard learned counsels for both sides and looking to facts and circumstances of case, combined and joint reasons given by Income Tax Appellate Tribunal in para 6 for half dozen matters which are as under: 6. On careful analysis of order(s) passed by ld. CIT(s) and rival submissions of all parties, it is found that assessee society(s) was/were given registration under section 12AA and renewal was granted under section 80G for earlier years, therefore, it cannot be said that material filed by assessee(s) is incorrect. In this background, we are of considered view that these are fit cases to renew registration of Trusts and impugned orders passed by ld. CIT are not in accordance with law. Hence, same are hereby set aside by directing CIT(s) to renew registration under section 80G and also grant of registration under section 12A/AA of I.T. Act, 1961 as prayed for 3. by assessee(s) in different application(s), by allowing appeals of assessee(s). 3. aforesaid reasons have been given jointly for every matter by Income Tax Appellate Tribunal, Circuit Bench, Ranchi including in ITA No.123/Ran/2010. 4. It appears that facts of present case have not been appreciated at all. This respondent Trust had preferred application for registration under Section 12A(1)(aa) of Income Tax Act, 1961 on 18th September, 2009. This application was dismissed and registration was refused by Commissioner of Income Tax by order dated 25th March, 2010, which is annexed as Annexure 1 to memo of this Appeal. 5. Being aggrieved and dissatisfied by order passed by Commissioner of Income Tax dated 25th March, 2010, respondent preferred appeal being I.T.A. No.123/Ran/2010 which has been allowed by Income Tax Appellate Tribunal, Circuit Bench, Ranchi by order dated 11th July, 2011, with only reason given in para 6 as quoted herein above. 6. Looking to reasons given by Income Tax Appellate Tribunal, Circuit Bench, Ranchi in allowing aforesaid I.T.A. No.123/Ran/2010, it appears that factually wrong aspects have been appreciated and wrongly this appeal has been allowed of respondent. It has been observed by Income Tax Appellate Tribunal that there was application for renewal of registration. It is factually wrong aspect of matter. Moreover, previously registration was granted under Section 12AA is also not fact of this case. 7. It ought to be kept in mind by Income Tax Appellate Tribuna l that whenever they decide more than one matter, all care should have been taken for factual aspects of each & every case, otherwise, this type of error is bound to occur. 8. In view of these facts, we, hereby, quash and set aside order passed by Income Tax Appellate Tribunal, Circuit Bench, Ranchi in I.T.A. No.123/Ran/2010, judgment and order dated 11th July, 2011 and we hereby remand matter to Income Tax Appellate Tribunal, Circuit 4. Bench, Ranchi for its afresh decision. I.T.A. No.123/Ran/2010 is revived to its original file. same will be decided on merit of case and on basis of evidences on record. Substantial questions of law raised in this appeal are accordingly answered which are necessary for remand of matter. 9. It is needles to say that Income Tax Appellate Tribunal, Circuit Bench, Ranchi will afford opportunity of being heard to respondent, who is appellant before Income Tax Appellate Tribunal, in I.T.A. No.123/Ran/2010. respondent will also be permitted to adduce evidence if so required. 10. This Tax Appeal is allowed and disposed of. (D.N. Patel, J.) ( S. Chandrashekhar J.) VK TheCommissionerofIncome-tax, Dhanbad v. BhardwajSewaTrust
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