Sri Hanuman Mandir Satsang Mandal ... vs Assessee

M/s Shri Hanuman Mandir Vs The CIT, Satsang M andal Trust, Patial a. Near Bi r Dasondhi Ram Apahaj Ashram, Rajpura Road, Patial a.

PAN: AANTS7584C

(Appellant) (Respondent)

Appellant by : Shri Ashok Kumar Goel Respondent by : Dr. Amarveer Singh

Date of Hearing : 15.04.2015 Date of Pronouncement : 15.04.2015

PER BHAVNESH SAINI,JM

This appeal by assessee is directed against the order of Ld.

Commissioner of Income Tax, Patiala dated 28.07.2014 under

section 12AA of the Income Tax Act rejecting the application for

registration under section 12AA of the Act

2. Briefly the facts of the case are that assessee filed

application for registration under section 12AA in prescribed

form which was accompanied by Trust Deed and list of Authors.

The aims and objects of the assessment Trust as per the Deed

are reproduced in the impugned order which provide that

assessee to open free dispensaries & laboratories, aid to the

diseased and disabled persons and to provide free 2

medicines/food, establish educational institutions etc. and to

run Bhandaras/Langars with the help of devotees and to arrange

free eye camps and it is also provided to issue free kitchen

utensils and beddings etc. to celebrate festivals of the great

souls and deities. It was also provided to arrange Bhagwat

Geeta/Ramayan etc. for upliftment of the society and to upgrade

temple building and surroundings. The Ld. Commissioner of

Income Tax observed that the Trust Deed provides that Swami

Madhavnand Giri, Chela Swami Phul Giri had constructed Shri

Hanuman Mandir on Patiala Rajpura Highway and vide his Will

dated 30.01.1983 had settled the trust for the said Shri

Hanuman Mandir in the name of Shri Hanuman Mandir Satsang

Mandal. Seven trustees had been named in the said Will out of

which, three had expired and two had since resigned but new

trustees had taken their place. The previous records are not

available. The trustees have retained properties of Shri

Hanuman Mandir. It is further mentioned in the Trust Deed

that there was no regular trust of the said properties and

therefore, it was expedient to reduce the aims and objects of the

Trust as well as rules and regulations of the trust through the

present Trust Deed. It was further mentioned that a sum of Rs.

40,800/- have been set aside for settling the Trust. It was also

found that the Trust received receipts from Golak, collection/

donation and rental income etc. and it was incurring

expenditure on Bhandaras, general repairs, maintenance,

Poshak, Puja function, salary etc. There was a surplus over

expenditure and immovable property of the Mandir was not

included in the assets of the trust. The assessee was asked to 3

explain how the temple property become property of the trust.

The assessee produced Will as mentioned above and it was

explained that temple property belong to Bhagwan Hanuman Ji,

therefore, it is not part of the balance sheet. It was submitted

that since right to manage the property of the Mandir was with

the trust and the income was controlled by the Trust, therefore,

property belong to the trust. However, no ownership document

of immovable property is available.

3. The enquiries through Assessing Officer were also got

conducted regarding ownership of the property and affairs of the

trust. It was stated that the ownership of the immovable

property of Shri Hanuman Mandir was in the name of Shri

Parshotam Haridwari and that the property at Haridwar was in

the name of Swami Madhwa Nand Giri Ji and Swami Kanta Nand

Giri Ji. The witness explained that Will is genuine. The

assessee was, therefore, asked to explain ownership of the

property. The assessee was also directed that the aims and

objects of the Trust Deed did not include managing either the

temple at Patiala or property at Haridwar. It was submitted that

though the property may be in the name of Shri Parshotam

Haridwari but he might have donated the property to the temple

and all the construction in the temple and idols were installed

by the spiritual preachers and devotees of Bhagwan Hanuman

Ji. Therefore, property belong to Bhagwan Hanuman Ji.

4. The Ld. Commissioner of Income Tax found that Will was

genuine. However, since the immovable property not shown in

the balance sheet of the assessee, therefore, it was found that

the property did not belong to the trust as no ownership 4

documents of the property are available and that the amounts

have not been spent for achieving the aims and objects.

Therefore, since the ownership of the property under trust was

not clear and appears to be without authority, it was found that

assessee is carrying on its activities not mandated by its aims

and objects and accordingly, registration application was

dismissed.

5. We have heard ld. Representatives of both the parties and

perused the material on record. Copy of the Will is filed in the

Paper Book alongwith translated copy. Ld. Commissioner of

Income Tax accepted the contention of assessee about

genuineness of the Will in question. In the Will under reference,

the executant has mentioned that he has appointed seven

trustees of his trust and that Shri Hanuman Mandir, Rajpura

Road has been constructed by the spiritual preachers with their

hard work of thirty years. It is also stated in the Will that

another property in Haridwar, District Sahranpur was also

constructed by spiritual preachers for which the executant has

documents and certain savings. Therefore, in order to run these

properties in proper way, Will was executed. On going through

the translated copy of the Will, we find that though the Will may

not be properly worded but the intention of the testator is clear

that he wanted to settle the property of Shri Hanuman Mandir as

well as property at Haridwar through the trustees so that

properties and its income may be properly utilized by the

trustees. Seven trustees are mentioned in the Will and in the

Trust Deed, same facts are mentioned that the Testator has

executed a Will and appointed seven persons and has surviving 5

trustees in order to maintain property of Shri Hanuman Mandir

and others, have executed the Trust Deed and explained its aims

and objects and made the rules and regulations for maintaining

the property in question. In the Will, it is also stated that the

property was got constructed with the hard work of the spiritual

preachers before thirty years. The Will is dated 30.01.1983.

Therefore, the properties in reference are acquired very long

back by the Testator. In the civil law, the property held without

objection from the owner of the property for a long period, say

more than 12 years, would become property of the persons who

are in possession of the properties through adverse possession.

The trustee was having possession of the temple and property at

Haridwar long back without objection from any person in the

world and has explained that he has constructed the property

through spiritual preachers. Therefore, there may not be any

doubt for the ownership of the immovable property, even if no

ownership document is available with the assessee trust. The

crux of the order of the Ld. Commissioner of Income Tax would

show that merely on the basis that the documents of ownership

of property under Trust are not available, the Ld. Commissioner

of Income Tax rejected the application for registration of the

Trust.

6. Section 12AA of the Income Tax Act provides that "the ld.

CIT bef ore granting the registration or rejecting the application f or

registration may call f or such documents or inf ormation in order

to satisf y himself about the objects and the genuineness of the

activities of the Trust." Therefore, at the stage of grant of

registration, the Ld. Commissioner of Income Tax could satisfy 6

himself about the objects of the Trust and the genuineness of its

activities. The reason given by Ld. Commissioner of Income Tax

that ownership of the property in question is not available to the

assessee may not be a ground for rejection of the registration

application. The aims and objects given in the Trust Deed

prima-facie show that assessee may be carrying on some

charitable activity or by managing the property of Shri Hanuman

Temple or property at Haridwar on which Ld. Commissioner of

Income Tax has not given any detailed findings. Therefore, the

matter requires re-consideration at the level of Ld.

Commissioner of Income Tax. We accordingly, set aside the

impugned order and restore the matter in issue to his file with

direction to re-decide application under section 12AA of the

Income Tax Act by giving reasonable sufficient opportunity of

being heard to the assessee. The Ld. Commissioner of Income

Tax shall give findings on the points of aims and objects of the

assessee Trust and the genuineness of its activities.

7. In the result, appeal of the assessee is allowed for

statistical purposes.

Order pronounced in the Open Court on 15 t h April,2015.

Sd/- Sd/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15 t h April , 2015. 'Poonam' Copy to:

The Appellant, The Respondent, The CIT(A), The CIT,DR

Assistant Registrar, ITA T Chandigarh