Case Law Details
Jain Shwetamber Murtipujak Sukrat Fund Kaoda Committee Vs. CIT (ITAT Indore)
On perusal of the record we find that the assessee trust was incorporated in the year 1945 and even in the Permanent Account Number (PAN) allotted by the Income Tax Department the date of incorporation of the trust is 16.4.1945. The assessee has claimed that on 13.8.1973 it has filed Form No.10A under rule 17A of the I.T rules for application for registration of charitable or religious trusts u/s 12A(a) of the Act on 13.8.1973. Copy of the application is placed at page 3 of the paper book. It is also claimed that this application of the assessee was accepted by the Income Tax Department and registration certificate u/s 12A of the Act was granted. It is thus claimed that the assessee trust is a charitable trust running for the purpose of carrying out charitable activities as per the objects mentioned in Trust deed. Since the assessee could not place hand on the original copy of the registration certificate it applied for duplicate registration but surprisingly even at the Income Tax Department old records were not available so as to issue a duplicate copy of registration certificate dated 13.8.1973. Thereafter assessee was asked to file a fresh application for registration. Application dated 30.3.2018 was filed on Form 10A and the same was rejected by Ld. CIT (Exemption) on 28.9.2018. Against this order instant appeal was filed but in the meantime assessee again filed fresh application in Form 10A on 28.2.2019 submitting necessary documentary evidences but Ld. CIT (Exemption) granted the registration u/s 12AA of the Act with effect from Assessment Year 2019-20.
Now whether Ld. CIT (Exemption) should have granted registration certificate u/s 12AA of the Act w.e.f. 13.8.1973 or has rightly granted prospectively from 2019-20 needs to be examined.
We find that in the paper book running from page 1 to 123, in page 24 to 32 various assessment orders in the case of the assessee are placed. We find that for Assessment Year 1975-76 the assessment order u/s 143(3) of the Act was framed on 10.10.1977 and in the assessment order the Ld. A.O has accepted that the assessee is a charitable trust. For Assessment year 1974-75 dated 26.12.77 also shows that the department has accepted the assessee as a charitable trust and benefit u/s 11 has been allowed. Similar assessment orders have been framed for Assessment Year 1976-77 to Assessment Year 1983-84 u/s 143(3) of the Act and the department has consistently accepted that the assessee trust is a charitable trust. Along with the copy of assessment order referred above assessee has also filed copies of computation of income and audit report as and where applicable.
14. In our considered view all the documents are sufficient enough to prove that the claim of the assessee being registered u/s 12A of the Act is a charitable trust since 13.8.1973 has sufficient merit. Ld. Departmental Representative failed to rebut these facts. Therefore there remains no dispute to the fact that the assessee trust was enjoying the benefit u/s 12A of the Act as a charitable trust and other benefits available to the charitable trusts u/s 11 of the Act since it is running for charitable purpose. In these given facts and circumstances of the case, we are of the considered view that the assessee trust should be granted the registration u/s 12AA of the Act w.e.f. 13.8.1973 in place of the registration granted from assessment year 2019-20 onwards. Ld. CIT (Exemption) is directed to amend his order dated 20.8.2019 and issue a fresh order of registration certificate u/s 12AA of the Act effective from 13.8.1973 so that the assessee could claim the benefits of the provision of Section 11 & 12 of the Act as and where applicable for the preceding Assessment Years. Once Ld. CIT (Exemption) grants the registration certificate u/s 12AA of the Act w.e.f. 13.8.1973 the assessee shall have liberty to move application before Ld. A.O for rectification of the assessment orders for various Assessment Years in order to avail the benefit of Section 11 of the Act available for charitable trust registered u/s 12AA of the Act so that the Ld. A.O could decide accordingly for various assessment years wherein assessee have been denied the benefit of exemption u/s 11 of the Act.
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