The Commissioner of Income-tax (Exemptions), Chandigarh v. Shree Durga Mata Mandir
[Citation -2020-LL-0302-73]

Citation 2020-LL-0302-73
Appellant Name The Commissioner of Income-tax (Exemptions), Chandigarh
Respondent Name Shree Durga Mata Mandir
Court HIGH COURT OF PUNJAB & HARYANA
Relevant Act Income-tax
Date of Order 02/03/2020
Judgment View Judgment
Keyword Tags application for registration • rejection of application • charitable activities • accumulated surplus • donations received • dissolution clause • cogent reason • corpus fund • refusal of registration • charitable purpose
Bot Summary: To that extent, the MoA of the society is impinged by a lack of dissolution clause Whether on the facts and circumstances of the case, the order of the Hon'ble ITAT is correct in ignoring the fact that a small portion of the receipt has been shown to be spent on charitable activities which regrettably cannot be corroborated with that of the aims and objects of the society in absence of any evidence on records as no other proof have been submitted for the charitable activities conducted by the society Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is right in ignoring the fact that such a large amount of corpus fund and accumulated assets remained unexplained and the corpus funds have received without written instructions. In our view, the registration to the assessee society has been wrongly denied by the Ld. CIT(E). There is no specific finding or the observation of the Ld. CIT(E) in the order that the assessee society is not working towards achieving its aims and objectives. The assessee society is a religious body and is engaged in the maintenance of Shree Durga Mata Mandir at Manimajra. Such 4 of 6 Downloaded on - 11-03-2020 16:24:36 ITA No. 153 of 2019 5 type of religious Mandirs are not private property of any individual or any society the property of such entities cannot be taken over or distributed among the members of the society. So far as the absence of dissolution clause, it was brought in the knowledge of the CIT(E) that the assessee society subsequently passed a resolution whereby a Dissolution clause have been added to the Memorandum of Association of the society. There is no allegation that the Corpus fund or the surplus accumulated funds are being used for the purpose other than the aims and objects of the assessee society.


ITA No. 153 of 2019 [1] IN HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 153 of 2019 Date of decision: 2.3.2020 Commissioner of Income Tax (Exemptions), Chandigarh Appellant v. M/s. Shree Durga Mata Mandir Respondent CORAM: HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE AVNEESH JHINGAN Present: Mr. Denesh Goyal, Senior Standing Counsel for appellant. AVNEESH JHINGAN, J. revenue is in appeal under Section 260A of Income Tax Act, 1961 (for short, 'the Act') against order dated 7.9.2018 passed by Income Tax Appellate Tribunal, Chandigarh (for short, 'the Tribunal') claiming following substantial questions of law: (i) Whether on facts and circumstances of case ITAT is correct in directing registration to be accorded instead of reverting it back for re-examination in light of judgement of Hon'ble Allahabad High Court in appeal No. 112 of 2013 in case of CIT, Meerut Vs. M/s A. R. Trust, Meerut, wherein it was held that Tribunal could have ordered for setting aside order of Registering Authority refusing registration but it could not have directed for registration straight away in as much as 1 of 6 Downloaded on - 11-03-2020 16:24:35 ITA No. 153 of 2019 [2] there has to be satisfaction recorded by Registering Authority which was lacking? (ii) Whether on facts and circumstances of cased and in law, Hon'ble ITAT is correct in ignoring fact that assessee society had sought registration u/s 12AA after 34 years of its operation whereas no cogent reason for application not having been made for last 34 years was submitted to this office? (iii) Whether on facts and circumstances of case, order of Hon'ble ITAT is correct in holding that CIT(E) has not made any specific finding or observation in his order that assessee society is not working towards achieving its aims and objectives whereas in CIT(E)'s order, there are clearly findings that most of objects seemingly are generic in nature and don't get covered by various limbs of charitable purposes envisaged in section 2(15) of Act? (iv) Whether on facts and circumstances of case, Hon'ble ITAT is correct in merely holding that dissolution clause has been added and disregarding view of CIT(E) that not only same has been incorporated after application was made but also resolution has not been accepted and registered by office of Registrar of firms and Societies as part of registered document under Registration Act 1860. Mere passing of resolution to effect doesn't make paper 2 of 6 Downloaded on - 11-03-2020 16:24:36 ITA No. 153 of 2019 [3] legally tenable and admissible in proceedings. To that extent, MoA of society is impinged by lack of dissolution clause? (v) Whether on facts and circumstances of case, order of Hon'ble ITAT is correct in ignoring fact that small portion of receipt has been shown to be spent on charitable activities which regrettably cannot be corroborated with that of aims and objects of society in absence of any evidence on records as no other proof have been submitted for charitable activities conducted by society? (vi) Whether on facts and circumstances of case and in law, Hon'ble ITAT is right in ignoring fact that such large amount of corpus fund and accumulated assets remained unexplained and corpus funds have received without written instructions. Moreover in absence of instructions amount doesn't get cover by provisions of section 11 and 12 of Act? (vii) Whether on facts and circumstances of case, order of Appellate Tribunal is contrary to evidence and material on record of case and therefore, perverse? brief facts are that respondent-society is in operation since February, 1983 having following aims and objects: (a) to take steps to acquire land for construction of temple (b) to celebrate important religious festivals and hold functions 3 of 6 Downloaded on - 11-03-2020 16:24:36 ITA No. 153 of 2019 [4] to honour memory of great men of thought and action; (c) to arrange public disclosure on subjects connected with ancient Indian heritage; (d) to maintain communal harmony by extending active cooperation to people of various faiths in accordance with great spiritual heritage of India and her secular structure and also to promote better understanding among people of various beliefs; (e) Sabha is strictly not political. Application for registration under Section 12A of Act was filed on 16.9.2016. Commissioner of Income Tax (Exemptions) rejected application vide order dated 30.3.2017 mainly on ground that registration was applied for almost after 34 years for coming into existence; there was no dissolution clause in Memorandum of Association and assessee-society had huge corpus as compared to amount used. Aggrieved of rejection of application, appeal was preferred. Tribunal allowed appeal on 7.9.2018. relevant portion of order of Tribunal is quoted below: 5. We have heard Ld. Representative of parties and also have gone through records. In our view, registration to assessee society has been wrongly denied by Ld. CIT(E). There is no specific finding or observation of Ld. CIT(E) in order that assessee society is not working towards achieving its aims and objectives. assessee society is religious body and is engaged in maintenance of Shree Durga Mata Mandir at Manimajra. Such 4 of 6 Downloaded on - 11-03-2020 16:24:36 ITA No. 153 of 2019 [5] type of religious Mandirs are not private property of any individual or any society, hence, property of such entities cannot be taken over or distributed among members of society. So far as absence of dissolution clause, it was brought in knowledge of CIT(E) that assessee society subsequently passed resolution whereby Dissolution clause have been added to Memorandum of Association of society. So far as accumulation of corpus funds etc. is concerned, it was explained to Ld. CIT(E) that corpus fund has been made out of donations received from members and devotees of Shree Durga Mata Mandir for maintenance of mandir and purchase of new property and that said receipts were duly accounted for and that institution was established wholly for religious purposes. It has been further explained that corpus fund has been further applied for building of new hall/religious activities and functions, staff salary and langar activities (free food). That corpus fund of Rs. 1,31,23,853/- as on March 31, 2017 has been duly utilized for temple premises, furnishing and fittings and on utensils. 6. It is evident that assessee society is engaged in maintenance of Mandir. There is no allegation that Corpus fund or surplus accumulated funds are being used for purpose other than aims and objects of assessee society. corpus as well as accumulated surplus as is claimed is being used for maintenance and development of Shree Durga 5 of 6 Downloaded on - 11-03-2020 16:24:36 ITA No. 153 of 2019 [6] Mata Mandir which is religious place visited by devotees and open to all. Learned counsel for appellant is not able to dispute that there is nothing on record to show that assessee was not working for achieving its aims and objects or that accumulated funds were used for purposes other than aims and objects. He has not been able to show that findings recorded by Tribunal quoted above are erroneous much less perverse. In such circumstances, no question of law much less substantial question of law arises. No interference is called for in order of Tribunal. appeal is dismissed. (AVNEESH JHINGAN) (AJAY TEWARI) JUDGE JUDGE 2.3.2020 mk Whether speaking/reasoned: Yes/No Whether reportable: Yes/No 6 of 6 Downloaded on - 11-03-2020 16:24:36 Commissioner of Income-tax (Exemptions), Chandigarh v. Shree Durga Mata Mandir
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