Income Tax Appellate Tribunal - Chandigarh
Shri Ishwar Hari Charitable ... vs Cit Exemptions, Chandigarh on 24 March, 2025
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH, 'A' CHANDIGARH
BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND
SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER
आयकर अपील सं/. ITA No. 719/CHD/2022 &
ITA No. 475/CHD/2023
नधा रण वष / Assessment Year: 2022-23
Shri Ishwar Hari Charitable Trust, Vs The CIT (Exemptions),
SCO 80-81, 3rd Floor, Sector 17-C, Chandigarh.
Chandigarh.
थायी लेखा सं/.PAN NO: AAXTS4724L
अपीलाथ /Appellant यथ /Respondent
Assessee by : Shri T.N.Singla, CA
Revenue by : Shri Chandrajit Singh, CIT DR
Date of Hearing : 20.01.2025
Date of Pronouncement : 24.03.2025
HYBRID HEARING
ORDER
PER RAJ PAL YADAV, VP The present two appeals are directed against the separate orders of the ld. Commissioner of Income Tax (Exemptions) [in short 'the CIT (E)'] dated 27.09.2022 ( passed under Section ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 2 12A(1)(ac)(iii) and dated 28.09.2022 (passed in Form No. 10AD for grant of registration under Section 80G.
2. The Registry has pointed out that ITA 475/CHD/2023 is time barred by 228 days. In order to explain the delay, the assessee has filed an application contending therein that both the appeals were required to be filed simultaneously because there is only one day difference between the impugned orders passed by the CIT(E). The clerk of the Tax Consultant did a mistake and put the papers of ITA 475/CHD/2023 i.e. challenging the order of ld. CIT (E) passed under Section 12AB(b)(ii) in the appeal papers of denial of registration under Section 80G. This fact came to the notice when Tax Consultant was preparing the appeal for hearing.
3. Sub-section 5 of Section 253 contemplates that the Tribunal may admit an appeal or permit filing of memorandum of cross- objections after expiry of relevant period, if it is satisfied that there was a sufficient cause for not presenting it within that period. This expression sufficient cause employed ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 3 in the section has also been used identically in sub-section 3 of section 249 of Income Tax Act, which provides powers to the ld. Commissioner to condone the delay in filing the appeal before the Commissioner. Similarly, it has been used in section 5 of Indian Limitation Act, 1963. Whenever interpretation and construction of this expression has fallen for consideration before Hon'ble High Court as well as before the Hon'ble Supreme Court, then, Hon'ble Court were unanimous in their conclusion that this expression is to be used liberally. We may make reference to the following observations of the Hon'ble Supreme court from the decision in the case of Collector Land Acquisition Vs. Mst. Katiji& Others, 1987 AIR 1353:
1. Ordinarily a litigant does not stand to benefit by lodging an appeal late.
2. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties.
3. "Every day's delay must be explained" does not mean that a pedantic approach should be made. Why not ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 4 every hour's delay, every second's delay? The doctrine must be applied in a rational common sense pragmatic manner.
4. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay.
5. There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk.
6. It must be grasped that judiciary is respected not on account of its power to legalize injustice on technical grounds but because it is capable of removing injustice and is expected to do so.
4. Similarly, we would like to make reference to authoritative pronouncement of Hon'ble Supreme Court in the case of N. Balakrishnan Vs. M. Krishnamurthy (supra). It reads as under:
"Rule of limitation are no t me an t to des troy the right of parties. T hey ar e mean t to see th at par ties do not resort to dil atory tac tics, bu t seek their re me dy pro mp tly. T he object of provid ing a leg al re medy is to repair the damag e caused by reason of legal in jury. Law of limitation f ixes a l if e-span f or such legal re medy ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 5 f or the redress of the leg al injury so suf f ered. T ime is prec ious and th e was ted time would never revis it. During eff lux of time ne wer c auses would sprout up necessitating newer persons to seek legal re medy by approaching the courts. So a lif e span must be f ixed f or each re medy. Unending period f or launching the re medy may le ad to unending uncertain ty and consequential an archy. L aw of limitation is thus f ounded on public policy. It is enshrined in the max im Interest reipublicae up s it f in isl itiu m (it is f or the general welf are th at a period be pu tt to litig ation). Rules of limitation are not me an t to des troy the r igh t of the par ties. T hey are me an t to see th at p arties do not resor t to dil atory tac tics bu t seek their re medy pro mptly. T he ide a is that every legal re medy must be kept alive f or a legislativ ely f ixed period of time. A court knows th at ref usal to condone del ay would result f oreclosing a suitor f rom putting f orth his cause. T here is no presu mp tion that delay in appro aching the court is al ways del iberate. T his Court h as held th at the words "suff icient cause"
under Sec tion 5 of the Limitation Act should rece ive a liberal cons tructio n so as to adv ance subs tan tial justice vide Sh akuntal a Devi lain Vs. Kuntal Ku mar i [A IR 1969 SC 575] and State of West Bengal Vs. T he Ad min is trator, Howr ah Mun icip al ity [AIR 1972 SC 749]. It mus t be re me mbered th at in every case of delay there can be so me lapse on the par t of the l itig an t concerned. T hat alone is not enough to turn do wn h is ple a and to shut the door ag ains t h im. If the expl anation does not s mack of mal a f ides or it is not put f orth as par t of a dilatory s trategy the court must sho w utmos t cons ideration to the su itor. But when there is reasonable ground to th ink that the delay was occas ioned by th e par ty deliber ately to gain time then the court should lean ag ainst accep tance of the expl anation. Wh ile condoning delay the Could should not f orget the oppos ite p arty altogether. It mus t be borne in mind th at he is a looser and he too would h ave incurred qu iet a large litig ation expenses. It would be a salu tary guidelin e th at when cour ts condone the delay due to l aches on the par t of the appl ican t the court shall co mpens ate the opposite par ty f or his loss".
ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 6
5. Ld. DR has r e lie d up on the or de r of t he Re ve n ue Aut h or it ie s .
6. I n t he ligh t of t h e a b ove , if we pe r use t he ap p lic a t io n f or c on d o n a t io n of d e la y, t he n it w ou ld r e ve al t h a t d ue t o s om e c le r ic a l m is t a ke , p a pe r s of t h is a p p e a l h a ve be e n p ut in t h e f olde r of th e se c on d a p p e a l w h ic h w a s d uly f ile d we ll w it h i n l im it a t io n . Th e re c a n n ot b e a n y de libe ra te a t te m p t a t t h e e n d of t he a s se s se e t o m ake it s a p pe a l t ime ba rre d. It w a s a b on a f id e h um a n e rr or. Th e re f ore , w e c on d on e t he de la y a n d pr oce e d t o de c ide t he a p pe a l on me r it .
7. Th e a s se s se e has f ile d an a p p lic a t ion f or gr a n t of re gis t r a t ion un de r Se c t ion 1 2 A (1 )(a c )( iii ). T h is a p p lic a t ion of the a s se s se e has been a llowe d by the ld. CIT (E ) b ut re gis t r a t ion h a s b e e n gr a n te d a s a R e ligious Tr us t a n d n ot a s a C h a r it a b le Tr us t . T h e ld . C oun s e l f or t he a s se s se e dre w our a t t e n t ion t ow a r d s the ob je c t ive of the Tr us t a nd s ub m it t e d t h a t it is n ot s o le ly e xis t in g f or re ligio us p ur p os e . Th e re fe re n ce to r e ligious a c t i v it y i s o n ly w i t h a n a im t o ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 7 f ulf ill t h e ob je ct s of t h e Tr us t . He t ook us t h r oug h t h e Tr us t De e d f or e xh ibit in g t h e va r ious c h a r it a b le ob je c t s of the a s se s se e Tr us t .
8. On t h e ot h e r ha n d ld . C I T DR s ub m it t e d t h at s om e of the ob je c t ive s of t he a s se sse e are of re ligio us n a t ur e , t h e re f ore , ld . CI T (E ) h a s r igh t ly re gis te re d it a s a Re ligiou s Tr us t .
9. We h a ve d uly c on s id e re d t he r iv a l c on t e n t ion s a nd gone t h r oug h the re c or d c are f ully. Th e Tr us t De e d d ate d 0 5 . 0 3 . 2 0 1 8 is pla ce d a t p a ge No. 2 3 of t he P ape r B ook . I ts E n glis h t r a n s la t ion is a t p a ge 32 . Th e ob je c t iv e s of t he Tr us t a re on t he b a c ks id e of p a ge N o. 3 4 . Th e se ob je c t ive s re a d a s un d e r :
Aims and Objectives of trust:-
1. To achieve public confidence and to make them a part of religious organisations which is for the welfare of society and for spreading the message of peace in society and for the overall development of society, is Established. For working in common and public welfare and collectively motivate people to work for social welfare and for joining hands in public welfare as well as for respecting the famous personalities working in religious field and motivating the needy students of the village to send them to schools as well as imparting awareness against female foeticide in the society, motivating for respecting the women and girl child and to live as civilized ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 8 persons in the society spreading the message of volunteering.
Motivating people according to Gurubani rituals such as Kirat Kama, Naam Japna and Vand Chakhna as well as motivating to perform other tasks in accordance with Gurubani. To impart free education to children of poor people and also arrange free books for them and helping sports students to gain more success and arrange sports events in the village by commemorating sports students; will motivate them. Joining people by way of Gurbani by conducting dharmik samagam in the village and dharmik knowledge alongwith sending chelas to school, college, academic (knowledge) of Board level education and sending chela's to other parts of india and to other countries to let them learn common as well as religious education orally as 'well as by way of correspondence or to establish, run and manage to join the franchise and learn to cooperate.
2. Organizations like universities, colleges, schools, religious organizations, Gurdwaras, Old age home, orphan home, establishment of hospital, develop as well as control and administer these, attain grant and finance and for the welfare of the people establish rehabilitation centre and shelter houses. Providing good food to them and educate them to lead a clean environment education.
3. To Establish in India and other parts of the world religious libraries, reference libraries, mobile libraries, study through CDS and cassettes and provide them with, books, reviews, magazines, newspapers and other publications alongwith providing instrumental and vocal music to the disciples and Sadh Sangat.
4. Understanding normally Indian culture and its review and advertising Dharmik trust between India and the world, propagate and instigate to join hands to organize the cultural mission.
5. To organise Keertan Darbar, Lecture and for adjoining works by way of direct or indirect methods, for increasing importance of the trust and its objects and to encourage religious as well as social welfare. Taking donations, Receiving Moveable as well as immovable properties and other securities. To give membership of Trust to the Doners and for the welfare of the trust the trust may maintain its property in any state, may sell and buy more or exchange the same, better use of trust's Money for any legal purpose which will be applicable according to the need of time.
6. Make constructions, Development, buying, taking property on rent or lease to fulfil the objectives of the trust and to take care of the trust property for the purpose of doing sewa for all, to get required buildings for the trust.
ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 9
7. Using trust income and its property for the development of its activities which is written in the memorandum. And none of its portion be utilised in the form of dividends, bonus or any other form by the members of the trust.
8. Development of brotherhood and free service among the members and sadh sangat, providing free physical training to the followers to maintain the discipline which means necessary for the improvement of their health and for the development of brotherhood amongst them by way of developing special facilities towards the development of their cultural Activities.
9. Fulfilling the requirements of needy patients of poor areas by organizing free health care centres as well as camps for eye testing etc. To Organize healthy free langars at religious places or other areas.
10. To provide immediate help, financial assistance, langar, clothes or any other kind of help during natural calamities.
11. To Organize public congregation for encouraging the brotherhood amongst humanity and organize group marriages for the upliftment of poor people and to adopt needy students for their upliftment.
10. A p e r us a l of t h e ob je c t ive s w ou ld in d ic a t e t h a t la r ge n um b e r of ob je c t iv e s are f or ch a r it a b le p ur p ose s only. Th e a s se s se e w ould un d e r ta ke t he e xe r c ise f or e d uc a t ion of p oor , me d ic a l he lp , b r ot he r h ood in the S oc ie t y, or ga n iz ing m a rr ia ge s e t c . Th e ld . C I T (E ) h a s c a lle d f or th e re c or d a n d pe r use d. He wa s s a t is f ie d a bout s ome of it s a c t iv it ie s a n d t h e re f ore , re giste re d it a s a Re ligi ou s Tr us t b ut we f in d t h a t a s m a ll se gme n t of a c t iv it y can be a t tr ib ut e d t ow a r d s ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 10 re ligious b ut m a jor it y of ob je c tiv e s a re of c h a rit a b le n a t ure . Th e re f ore , it sh ou ld h a v e be e n gr a n te d re gis t r a t ion a s a C h a r it a b le I n s t it ut io n a n d in c a se it is f in d out th a t a s se s se e f a ile d t o a p p ly it s in c om e on it s c h a r it a b le ob je c t ive s, t he n s uc h i s s ue s can be look e d a f te r by t he AO d ur i n g t he a s se s s me n t pr oce e d in gs . Th e re f ore , we m od ify t h e or de r of the CIT (E ) d a te d 2 7. 0 9 . 2 0 22 . C la use (1 ) of An n e xure a p pe n de d t o t h is or d e r e xh ib it in g t h e c on d it i on s s ub je c t t o w h ic h re gis t r a t ion w a s gr a n te d re a d a s un de r :
"T h e R eg is tr ati on is b e in g g r an ted ' R EL IG IO U S T RU ST ' u / s 1 2 A B ( 1 )( b ) of th e In c om e T ax A c t."
11. Th e e xp re s s ion ' Re ligious Tr us t ' w ould b e re p la ce d b y a ' C h a r it a b le Tr us t ' . Ap a r t f r om t h is m od if ic a t i on , re s t w ould re m a in s a me .
12. N ow w e t a ke I TA N o. 7 1 9 / C HD / 2 0 2 2 . We f ind t h a t t he ld . C I T (E ) d id n ot gr a n t re gis t r a t ion un d e r S e c t ion 8 0 G on t h e gr oun d t h a t t he Tr us t is re gis t e re d a s a Re ligio us Tr us t . Ap a r t f r om t h at , it h a s n ot p oin t e d out a n y ot h e r de fe c t s . S in c e we h a ve c h a n ge d t he s t a t us of the Tr us t as a ITA 719/CHD/2022 & ITA 475/CHD/2023 A.Y. 2022-23 11 ' C h a r it a b le Tr us t ' in p la c e of Re ligious on e , t he n the ob je c t ion s of t h e ld . C I T (E ) w o uld n ot r e m a in . We se t a s ide t h e or de r of t he ld . C I T (E ) a n d re s t ore t h is is s ue t o t he f ile of t he ld . CI T (E ) f or f re s h e xa min a t io n .
13. I n v ie w of t h e a b ov e d is c us s io n , I TA 4 7 5 / C H D/ 2 0 2 3 i s a llow e d w he re as I TA 7 1 9 / C HD / 2 0 2 2 is a llo w e d f or s t a t is t ic a l p ur p os e s .
Or de r p r on oun c e d on 2 4 . 0 3. 2 02 5 .
Sd/- Sd/-
(KRINWANT SAHAY) (RAJPAL YADAV)
ACCOUNTANT MEMBER VICE PRESIDENT
"Poonam"
आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आयु / CIT
4. िवभागीय ितिनिध, आयकर अपीलीय आिधकरण, च डीगढ़/ DR, ITAT, CHANDIGARH
5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar