TaxTMI 
TaxTMI 
2017 (12) TMI 1546
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....and vidc, vedantik and ancient Indian culture and philosophy. (ii) To establishe a Vishwa Gurukul University by opening instruction centers all over India, J&K and abroad for imparting instructins in all languages in theory and practice of "Yoga Sciences" which include the imparting instruction in the theory and practice of yogic sadhan, shat-karma Yogi sukshma Vigyan, Yogisthul vigyan, yogi pranayam etc for their tention and spiritural energy, cure of diseases, cure of mental & physical weakness, cure of obesity and other physical deformities of bodies. The assessee filed application in From No.10A for registration u/s 12A of the Act, however, the Ld. CIT(E) rejected the application of the assessee by holding as under: "5. On 14.07.2016 Sh. Saurav Mehta, CA & counsel of the assesses attended the proceedings. Filed written reply to queries raised vide letter dated 08.07.2016. In answer to a specific query regarding charitable activities being carried out by the society it has been stated vide response dated 14 July, 2016 that the applicant society is engaged in teaching and promotion of Yoga and has been organizing yoga camps at various places and, that the same is include....
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.... wide above referred letter dated 08.07.2016. In response to it the applicant in his written reply submitted that it has not purchased any land & building during the last three years. However, the applicant submitted a copy' of judgment of Hon'ble High Court of Jammu & Kashmir in the case of applicant on acquisition of land (measuring 328 kanal 05 maria) by J &K Government Going through the said order it is revealed that tire Hon'ble Court had decided tire appeal in favour of the applicant who had filed a writ petition against acquisition of land by the State Government on the ground that proper opportunity' had not been given. The case was decided in the month of November, 2000. No papers for the period there after have been adduced by the applicant to prove its ownership of land even after 16 years of judgment pronounced by tire Hon'ble Court, lire said property is also not reflected in the balance sheet filed by the applicant. No proof of other assets reflected in the balance sheet have been adduced either. In fact in an answer to a specific query the applicant's response dated 2016 clearly states that apart from ashram land "tire assessee does not own any ot....
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....upport in the Judgment of Hon'ble Allahabad High Court in the case of CIT, Agra vs. Radha Raman Niwas Trust in ITA No.202 placed in PB page 73 to 76. As regards the second objection that income tax return relating to Asst. Year: 2013-14 has not been filed, the Ld. AR invited our attention to (PB 20-25) where copies of balance sheet and income and expenditure for Asst. Year: 2013-14 was placed and it was submitted that no such query was raised by Ld. CIT(A) in the show cause notice as placed at (PB 34 to 36). The Ld. AR in this respect invited our attention to a recent judgment of Hon'ble Punjab & Haryana High Court in the case of CIT(E) vs. Shir Shirdi Sai Darbar Charitable Trust. The Ld. AR submitted that in this case, the Hon'ble Punjab and Haryana High Court has held that non filing of income tax return in earlier year can not lead to the conclusion that the activities are not genuine. As regards details regarding ownership of land, the Ld. AR invited our attention to (PB-121 to 132) where a copy of judgment of Hon'ble J&K High Court was placed and where the Hon'ble Court had held that the assessee was the owner of land. As regards the objection of Ld. CIT(E) that that ....
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....ivities being carried out and also filed copies of Yog Books being published by the Assessee namely 'Yog-in' , Yoig Vidya' & Jiwan Tatav Sadhna',. The Secretary of the Association explained that mandir is a part of Yogic activities and kitchen is run for preachers, students and on certain occasions for public at large. The Ld. AR also filed copies of orders in the case of Patanjali Yogpeeth decided by Hon'ble Delhi Benches of Tribunal for the proposition that even if there are certain irregularities in the books of accounts, the exemption cannot be denied. 8. The Ld. DR on the other hand, submitted that expenses incurred by assessee in the form of Bhandara Expenses were in fact expenses which had been incurred for organizing Bhandara in the form of Langar as Bhandara is generally organized for the public at large. He submitted that in the ledger account of kitchen expenses there are irregular amounts of expenditure which shows that on some special occasion huge kitchen expenses were booked which proves that there were not incurred for students or preachers. The Ld. DR in this respect filed a month wise detail of kitchen expenses for the three assessment years and submitted....
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....ties were in the initial stage of its existence and therefore, the genuineness of activities could not be verified as the assessee had not carried out any activity, whereas in the present case, the society is quite old as has been noted in the order of Ld. CIT(E) and therefore, in this case, the genuineness of activities had to be verified to arrive at the conclusion as to whether the assessee was eligible for registration u/s 12AA of the Act. 9. The Ld. AR in his rejoinder submitted that the photographs, letters of various institutions and books being published by society clearly shows that assessee was actually engaged in providing Yogic Training. The Ld. AR further filed a copy of assessment order passed by A.O. in the case of Assessee for Asst. Year 2015-16 and submitted that Assessing Officer did not find any discrepancy during Assessment Proceedings and Assessing Officer himself has held that Assessee was a charitable society and the objective of society are to develop social, physical, mental and spiritual condition and also to impart learning of Yogic. 10. We have heard the rival parties and have gone through the material placed on record. We find that it is an und....
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....vided no order shall be passed unless the applicant has been given a reasonable opportunity of being heard. The analysis of the above provisions relating to procedure for registration indicates that the Principal Commissioner or Commissioner of receipt of an application for registration of trust or institution u/s 12A of the Act will call for such documents or information as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and he is also required to satisfy himself about the objects of the trust or institution and if he is satisfied with the objects of the trust or institution and genuineness of the activities of the trust or institution he shall pass an order in writing registering the said trust or institution. As regards the satisfaction regarding objects of trust or institution, the Ld. CIT(E) had no objection. He had only objection with respect to genuineness of activities of the trust. On the basis of balance sheet and other information provided by assessee, the Ld. CIT(E) has held the activities of the society were not genuine as in his opinion there was no expenses attributable to the propagation of Yoga a....
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.... Aashram is one type of meditation and yoga The trust carries such meditation and yoga since its inception, more than last 50 years. Such types of meditaion accepted not only in India but are accepted in western country also as a great source for physical and mental health and spiritual attainment. When a large number of people feel that meditation is a great source for physical, mental and spiritual well being, it must be held that these activities are for the advancement of general pubic utility. Maintaining Samadhi of Guru is also charitable purpose in accordance with Section 2 (15) o the Act and Pooja of such Samadhi reminds people of ideology of Guru, in whose memory pooja is carried out. Organizing bhandara is an activity of providing foods to persons irrespective of any cost or religious Such bhandara activities are like day meal food scheme of the government. When the government is running such scheme, under those circumstances, it cannot be said that objects of the trust are not charitable. Running gaushala, Piaau and providing dana to birds is also charitable activities. The assessee discharged the burden in this regard by furnishing all necessary details of copy of trust....
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....ssee had filed a copy of judgment of Hon'ble High Court placed in (PB 121 to 132) where the Hon'ble J&K High Court clearly held that the assessee was the owner of the land the Hon'ble High Court of J&K in his findings has further held that assessee was imparting education in Yoga and spiritualism and which itself was a public purpose and therefore, the Hon'ble High Court had also held that assessee was imparting the education in Yoga. The order was passed by Hon'ble High Court on 10th Nov. 2000 and which was available with Ld. CIT(E) during the proceedings. The Hon'ble High Court has decided the issue of land in favour of the Assessee and has also held that Assessee was using this land for imparting education in Yoga. For the sake of completeness the relevant findings of the Hon'ble Court are reproduced below. "The next argument of Mr. Wazir, learned "counsel for the petitioners is that the acquisition of the land is colorful exercise of powers and malafide The Ashrarn and the land, subject-matter of the dispute is being used by the petitioner for imparting * education in Yoga and spiritualism which itself is a public purpose. The creation of facilities for pilgrims have not bee....
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....rovision of law places obligation upon tea the Collector to afford an opportunity of being heard to the objector as the violation of this mandatory provision records-the--subsequent acquisition proceedings Vitiated. The Supreme Court while dealing with such a proposition in Farid Ahmed Vs. Ahmedabad Municipality AIR 1976 SC 2085 has held as under: "The heart of Section 5A of the band Acquisition Act is the hearing of objections and under sub-section (2) of that section a personal hearing is mandatorilyy provided for. When therefore/Section 5A of the band Acquisition Act is applicable under Appendix I of the Bombay Act and there is nothing to show expressly or by necessary implication that the said section or any part of it is excluded under Section 284N or under any other provision in Chapter XVI as a whole the right to personal , hearing under the Bombay Act cannot vanish or be defeated." This court in Onkar Nath Vs. State, reported in 1983 KUT 122, relying upon AIR 1974 SC 1380 and following the mandate of the Judgment pronounced in Farid Ahmed Vs. Ahmedabad Municipality AIR 1976 SC 2095(Supra) has recorded in the course of the judgment as under ; "It is a well set....
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....of land in the balance sheet as is apparent from (PB- 20 to 25) where the copies of balance sheet for the three years are placed. The value of land was not declared as the Assessee had not incurred any cost to acquire it as the land was donated to the assessee. The Balance sheets clearly showed the value of buildings only on which assessee had claimed depreciation. The objection of Ld. DR that the balance sheet filed during the appellate proceedings and balance sheet in the Paper Book are different seems to be inadvertent mistake because there is no difference in any of the figures and assessee had claimed deprecation @ 10% which is applicable for building and the claim of deprecation on building on the entire W.D.V itself proves that the fixed Assets declared in the Balance Sheet reflected only investment towards Building The assessee being engaged in the imparting of teaching of Yoga is also quite apparent from the letter dated 14.07.2016 filed by assessee with Ld. CIT(E) placed at (PB 37 to 39) wherein the assessee vide para 14 had submitted as under: "14. The main object of the assessee society is to promote and teach yoga to general public. The society has been working f....
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....mentioned that Society has been working for promotion of Yoga for the last many years. The Assessee vide this letter had also filed evidence of conducting such comps, but the Ld. CIT(E) has not mentioned or discussed any of such evidences. The Ld. CIT(E) has not properly appreciated the facts of the present case. While considering registration the Ld. CIT(E) was required only to examine the objects of the society which undoubtedly are charitable in nature. The other aspect was to examine the genuineness of activities of the society. The Assessee during proceedings before him had filed sufficient evidences regarding Yoga activities being carried out and had filed supporting evidences vide letter dated 14.07.2016 but the Ld. CIT(E) carried himself to another direction, wherein he objected about non filing of papers for land and objections relating to Bhandara expenses etc. Even if we assume that there were certain irregularities in the books of accounts, the same cannot be used to deny the exemption to assessee specifically in view of the fact that assessee had clarified the objections of Ld. CIT(E). The case laws relied on by Ld. DR are distinguishable on the facts as in those....
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....stration of Societies Act by the Registrar of Societies, under No.8 . 1221 in the year 1957-58. Petitioner No.1 is the founder of the Asharam and has the authority to appoint the Managing Committee. The object of the Asharam of the Society is to promote universal prosperity and to develop social, physical, mental and spiritual conditions for all human beings of all classes, creeds, religions, races, colours and castes by imparting learning based on Yoga, Vedic, Vedantic and Ancient Indian Culture and Philosophy. To establish a Vishav Gurukul University by opening instruction Centers all over India and abroad for imparting instructions in all languages in theory and practice of 'Yoga Science" including imparting instructions of Yogic Sadhana, Shat Karma, Yogic Sukshma Vigyan, Yogic Sthul Vigyan Yogic Pranayam etc. To establishe Ayurdevedic Research centers for imparting study and development of the theory and practice of Ancient Ayurdevic methods of healing with reference to modern methods. The petitioner is imparting Yoga and spiritual education in this Asharam which has the capacity to provide all facilities to the persons securing such education in the Asharam. The land und....
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....n Institution, established for charitable and religious purposes, receiving contribution, shall not be an income in terms of Section 11 of the Act. The benefit of Sections 11 and 12 of the Act, are available only if such Trust or Institution is registered under Section 12AA of the Act. 10. On the other hand, Section 10(23C) of the Act are the provisions of the Act in substitution of the earlier provisions of Section 10(22) of the Act as to which income shall not be included in computing the total income of any person. Therefore, the provisions of Sections 11, 12 or Section (23C) of the Act, deal with the income of a Trust or of the Institution and the circumstances as to when such income is to be excluded for computing the total income, but the basis of such benefit is the registration under Section 12AA of the Act. Unless a Trust or Institution is registered under Section 12AA of the Act, such Trust or Institution shall not be entitled to exclude from its total income, deductions or contributions or from other sources. Therefore, the principles laid down for excluding the income from consideration under Section 10(22) now 10(23)(C) or Sections 11 and 12 are not applicable wh....
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....ded on the basis that the assessee has not filed its income tax returns in earlier years that the activities of the assessee are not genuine. It has been further recorded that Section 13 of the Act comes into play at the time of granting exemption under Section 11 of the Act and not at the time of granting registration under Section 12AA of the Act. No adverse remarks have been recorded by the CIT (E) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the CIT (E) to grant registration under Section 12AA of the Act. The relevant observations recorded by the Tribunal read thus:- "We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The first reason on the basis of which the Commissioner of Income Tax (Exemptions) has refused to grant registration to the assessee is that the assessee has not been filing its income-tax returns in the earlier years. We do not find that it is a good reason to reject the application for registration sin....