DERA BABA JODH SACHIAR Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition filed under Article 226 of the Constitution of India, the petitioner has sought quashing of the notice dtd. 5/12/2018 (Annexure P-8) issued by respondent No.3 intending to make an addition of Rs.62,95,300.00 on account of credit in the Income and Expenditure Account of the petitioner Charitable-cum-Religious Institution under the Head 'Charity Box' (Gollak Box).

(2.) A few facts necessary for adjudication of the instant petition as narrated therein may be noticed. The petitioner-Society was created on 17/9/1981. The petitioner being a charitable trust was registered under Sec. 12AA of the Income Tax Act, 1961 (in short "the Act") vide certificate of registration dtd. 12/6/1998 (Annexure P-1) and its Memorandum of Association is dtd. 17/9/1981 (Annexure P-2). It is also registered with the Registrar of Firms and Societies, Haryana vide certificate of registration dtd. 24/4/1984 (Annexure P-3). The Commissioner of Income Tax, Rohtak after registration of the petitioner as a Charitable Trust had approved exemption under Sec. 80G of the Act vide certificate dtd. 18/10/2010 for the period from 1/2/2000 to 31/3/2005 and thereafter upto 31/3/2010 in compliance with the directions issued by this Court vide certificate dtd. 30/3/2010 (Annexure P-4) which is valid upto perpetuity. While granting registration and also allowing exemption under Sec. 80G of the Act, respondent No.2 had duly verified the Memorandum of Association, aims and objections of the petitioner and also verified the books and accounts and other statutory records wherein the petitioner had submitted the list (Annexure P-5) of Executive Body Members. The petitioner also submitted the Income Tax Returns, receipt and expenditure accounts, audit report dtd. 31/3/2016 (Annexure P-6 Colly). The petitioner had been put to scrutiny for various assessment years vide assessment orders dtd. 16/7/2015 (Annexure P-7) under Sec. 143(3) of the Act for the assessment years 2013-13 and others. The Assessing Officer issued notice dtd. 5/12/2018 (Annexure P-8) to the petitioner to make addition of Rs.62,95,300.00 credited in the income and expenditure account of the petitioner charitable-cum-religious institution under the head 'Charity Box' (Gollak box) being the donations made by various followers and devotees visiting the Gurudwara. The revenue also took an affidavit dtd. 4/7/2015 (Annexure P-9) from the petitioner that it is a religious-cumcharitable institution during the assessment proceedings for the assessment year 2013-14. Earlier also, the department had refused to the petitioner to renew the exemption granted under Sec. 80G of the Act against which the petitioner filed CWP-68-2006 and this Court vide order dtd. 22/2/2010 (Annexure P-10) directed respondent No.2 to reconsider the approval of the petitioner under Sec. 80G of the Act and the said approval was granted to the petitioner. Therefore, the petitioner being charitable-cum-religious institution is entitled for the exemptions and approvals as having been so allowed since its inception in view of the provisions of Sec. 115BBC(2)(b) of the Act. Hence, the present writ petition.

(3.) Learned counsel for the petitioner submitted that notice dtd. 5/12/2018 (Annexure P-8) issued by respondent No.3 is illegal, erroneous and perverse and had been issued against the provisions of the Act. It was further submitted that once the petitioner was held to be a charitable-cum-religious institution, respondent No.3 could not issue the notice, Annexure P-8, intending to make addition of Rs.62,95,300.00 credited in the income and expenditure account of the petitioner. In support of his contentions, learned counsel for the petitioner has placed reliance upon the judgment of the Apex Court in Berger Paints India Ltd. v. Commissioner of Income-Tax, Calcutta, 2004(12) SCC 42 and the Delhi High Court in Commissioner of Income Tax (Exemption) v. Bhagwan Shree Laxmi Naraindham Trust, ITA No. 269 of 2015 decided on 7/9/2015.