The Commissioner Of Income Tax (Exemptions), Chandigarh v. Dream And Beauty Charitable Trust (Regd.), Ludhiana

ITA No.8525 of 2018 ���IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.8525 of 2018 Date of Decision: 10.02.2020 The Commissioner of Income Tax (Exemptions), Chandigarh Versus Appellant Dream and Beauty Charitable Trust (Regd.), Ludhiana Respondent CORAM: HON'BLE MR. JUSTICE AJAY TEWARIHON'BLE MR. JUSTICE AVNEESH JHINGAN Present:Mr. Denesh Goyal, Sr. Standing Counsel for the Revenue.for the Revenue. AJAY TEWARI, J. (Oral) **** [1]The present appeal has been filed under Section 260A ofthe Income Tax Act, 1961 [for brevity 'the Act'] against the orderdated 17.10.2014 passed by the Income Tax Appellate Tribunal,Chandigarh in ITA No.1013/CHD/2011. [2]The brief facts are that assessee was and continuing tobe registered under Section 12AA of the Act. It had also beengranted benefits under Section 80G(5) of the Act. It moved anapplication for extension of exemption under Section 80G of the Actwhich was denied by the subordinate authorities. By the impugnedorder, the Tribunal relied upon the judgment of this Court in CIT Vs.Shri Vishav Namdhari Sangat reported as 354 ITR 33 holding thatCircular No. 5/2020 and Circular No.7/2010 issued by Central Board ITA No.8525 of 2018 of Direct Taxes had given perpetuity to the exemptions grantedunder Section 80G(5) of the Act and consequently, allowed theexemption to continue. [3]The following questions of law have been framed: “TWhether on the facts and circumstances of thecase and in law, the ITAT is right in directing theregistration to be accorded instead of reverting it backfor re-examination in the light of judgement of theHon'ble Allahabad High Court in appeal No.112 of2013 in the case of CIT, Meerut Vs. M/s A.R. Trust,Meerut, wherien it was held that the Tribunal couldhave ordered for setting aside the order of RegisteringAuthority refusing registration but it could not havedirected for registration straight away in as much asthere has to be satisfaction recorded by the Registeringauthority which was lacking? TT.Whether on the facts and circumstances of thecase and in law, the Hon'ble ITAT 1s right indisregarding the fact that there was no need to getregistered under Societies Registration Act, 1860, whenit had already been registered with the Sub-Registrar(Revenue) as a Trust? LLL.Whether on the facts and circumstances of thecase and in law, the Hon'ble ITAT 1s right indisregarding the fact that the property of the trust hadnot been applied to the extent of 85% to the statedobjects of the applicant? LV.Whether on the facts and circumstances of thecase and in law, the Hon'ble ITAT 1s right indisregarding the fact that this is entity created for thevested interests of a few promoters who are creatingand also disposing off the Capital assests TAX FREE ITA No.8525 of 2018 claiming a bogus status ofa charity? VYWhether on the facts and circumstances of thecase and in law, the Hon'ble ITAT 1s right indisregarding the fact that the trust has amended by asupplementary trust deed whereas this trust originallydeclared to be trrevocable Trust i.e. cannot beamendeed by a supplementary trust deed? VIWhether on thefacts and circumstancesfthe case,the order of the Appellate Tribunal is contrary to theevidence and material on the record of the case andtherefore, perverse?” [4]However, learned counsel for the appellant is not in a position to deny the applicability of judgment in Shri Vishav Namdhari Sangat's case (supra) in the present case. [5]In the circumstances, the appeal is dismissed. [6]Since the appeal is disposed of, the pending application, if any, stands disposed of. JUDGE JUDGE February 10, 2020pankaj bawejaI. Whether speaking/ reasonedYes/Noa. Whether reportableYes/No