CIT Vs Shree Durga Mata Mandir (Punjab And Haryana High Court)
The Punjab and Haryana High Court dismissed the Revenue’s appeal under Section 260A of the Income Tax Act, 1961 against the order dated 7 September 2018 passed by the Income Tax Appellate Tribunal, Chandigarh, which directed registration of M/s Shree Durga Mata Mandir. The respondent-society had been operating since February 1983 with objects including acquiring land for construction of a temple, celebrating religious festivals, promoting awareness of ancient Indian heritage, maintaining communal harmony and promoting understanding among people of different beliefs. The society applied for registration under Section 12A on 16 September 2016. The Commissioner of Income Tax (Exemptions) rejected the application on 30 March 2017, mainly citing the fact that registration was sought nearly 34 years after the society commenced operations, absence of a dissolution clause in the Memorandum of Association, and the existence of a substantial corpus compared with the amount utilised.
The Tribunal allowed the society’s appeal on 7 September 2018. It observed that the CIT(E) had not specifically found that the society was not pursuing its aims and objectives. The Tribunal noted that the society was a religious body engaged in maintaining Shree Durga Mata Mandir at Manimajra. Regarding the dissolution clause, it recorded that the society had subsequently passed a resolution adding such a clause to its Memorandum of Association. Concerning the corpus fund, the Tribunal recorded the society’s explanation that the fund was generated from donations received from members and devotees for maintenance of the temple and purchase of new property. The society stated that the corpus was utilised for the temple premises, furnishing and fittings, utensils, building a new hall and religious activities and functions, staff salaries and langar activities. The Tribunal noted that the corpus fund stood at Rs. 1,31,23,853/- as on 31 March 2017 and that there was no allegation that the corpus or accumulated surplus was being used for purposes other than the society’s aims and objects.
