Gurudwara Sahib Parbhandhan Committee Vs CIT (Exemptions) (ITAT Amritsar)
The assessee appealed against the order dated 18.09.2019 passed by the Commissioner of Income Tax (Exemptions), Chandigarh, rejecting its application for registration under Section 12AA of the Income-tax Act, 1961 for Assessment Year 2019-20. The assessee contended that the Commissioner had incorrectly observed that the Memorandum of Association (MOA) had not been furnished and had wrongly concluded that the trust’s aims and objects were restrictive. According to the assessee, its objects included the welfare of the citizens of Balluana irrespective of caste, creed or religion, development and maintenance of the Gurudwara Sahib for religious and charitable purposes, and establishment of schools, reading rooms, dispensaries and other charitable activities. It also submitted that substantial expenditure had been incurred on construction and renovation of the Gurudwara building and relied on CIT v. Guryani Brij Balabh Kaur Trust (1980) 125 ITR 381 (P&H) in support of its claim for registration.
The assessee had electronically filed Form No. 10A on 19.03.2019 seeking registration under Section 12AA. The Principal Commissioner observed that the society was an existing entity registered under the Societies Registration Act, 1860 and that its stated objects included welfare of the citizens of Balluana, maintenance and expansion of the Gurudwara Sahib, and charging maintenance charges for use of society property. During the proceedings, further queries were raised seeking a certified copy of the Memorandum of Association, an explanation regarding withdrawals from the bank account in the name of Sadhu Singh, and the lease agreement relating to lease income.
