DIABETES EDUCATION AND WELFARE TRUST (DEWATA), Ajmer V. CIT (EXEMPTION), Jaipur

ITA 1010/JPR/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5600 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 16-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK DHK
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 1010 & 1011/JP/2016 UNDER SECTION : 80 G (5) (VI)/12AA(1)(B) DIABETES EDUCATION AND WELFARE TRUST (DEWATA) SHARMA HOSPITAL, ADARSH NAGAR, AJMER. CUKE VS. CIT (EXEMPTIONS) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO ACXPS9251J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE JKTLO DH VKSJ LS@ REVENUE BY : SMT. : PRATIMA KAUSHIK LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01.02.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 06.02.2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AG AINST THE ORDERS OF LD. CIT (EXEMPTIONS), JAIPUR DATED 7 TH SEPTEMBER,2016. FIRST, WE TAKE THE ITA 1011/JP/2016. THE ASSESSEE HAS RAISED FOLLOWING GRO UNDS OF APPEAL. GROUNDS OF APPEALS 1.THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIO NS) JAIPUR HAS ERRED IN LAW AND THE FACTS IN REJECTION THE REGISTRATION UND ER SECTION 12AA (1) (B).THAT THE REGISTRATION NEEDS TO BE GRANTED AS- THE TRUST HAS BEEN FORMED FOR WHOLLY CHARITABLE PUR POSED IN F.Y. 2015-16 THE TRUST HAS BEEN CONDUCTING ITS CHARITABLE ACTIVI TIES IN ACCORDANCE WITH ITS OBJECTS- CONDUCTED OVER 700 DIABETES AWARENESS ETC CAMPS. ORGANIZED SEVERAL HEALTH MELAS INVOLVED IN EDUCATION/AWARENESS & CONDUCTED EXHIBITIONS & DELIVERED LECTURES ETC. 2 ITA NOS. 1010 & 1011/JP/2016 DIBETES EDUCATION & WELFARE TRUST (EVIDENCES NEWSPAPER REPORTINGS, PHOTOS ETC SUBMITT ED 16/19.08.2016). SUBMITTED ALL PROOFS DESIRED DETAILS VIDE LETTERS D ATED 29-04-2016 & 16-08-2016. 2.THAT THE APPELLANT CARVES TO ADD, AMEND, AND ALTE R THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF APPELLATE HEARING. 2. AT THE TIME OF HEARING, NO ONE APPEARED ON BEHAL F OF THE ASSESSEE. HOWEVER, A LETTER DATED 31/1/2017 BY THE LD. COUNSEL SEEKING AN ADJOURNMENT ON THE GROUND THAT THE AUTHORIZED REPRESENTATIVE IS COMMITTED DUE TO BUDGET DATE, IS PLACED ON RECORD. IN OUR CONSIDERED VIEW, THIS IS NOT THE REA SONABLE CAUSE FOR SEEKING ADJOURNMENT. THEREFORE, THE REQUEST OF THE LD. COU NSEL SEEKING ADJOURNMENT IS REJECTED AND THE APPEAL IS BEING DECIDED IN THE ABS ENCE OF ASSESSEE. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTE D THE ORDER OF LEARNED CIT AND HAS DRAWN OUR ATTENTION TO PARA 5 OF THE ORDER. 4. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE, PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. CIT (EXEMPTIONS) IN P ARA 5 AND 6 OF HIS ORDER HAS GIVEN FINDINGS OF FACT AS UNDER : 5. BESIDES THIS, APPLICANT HAS NOT PRODUCED BOOKS OF ACCOUNTS, AS REQUIRED VIDE LETTER NO. 2375, DATED 04.08.2016. IT NEEDS SPECIAL ATTENTION THAT ONE OF THE BASIC CONDITIONS STIPULATED IN SECT ION 12AA IS THE GENUINENESS OF THE ACTIVITIES. THE NATURE AND EXTENT OF ACTIVI TIES ARE GENERALLY REFLECTED BY THE EXPENDITURE MADE ON SUCH ACTIVITIES. IF THE GE NUINENESS OF THE EXPENDITURE IS ITSELF NOT VERIFIABLE THEN GENUINENE SS OF THE ACTIVITIES COMES 3 ITA NOS. 1010 & 1011/JP/2016 DIBETES EDUCATION & WELFARE TRUST INTO DOUBT. IN THE PRESENT CASE THE APPLICANT FAIL ED TO PROVIDE THE BOOKS OF ACCOUNTS WHICH IN TURN CAUSE DOUBT ABOUT PROPER MAI NTENANCE OF ACCOUNTS AND GENUINENESS OF THE ACTIVITIES. THE ONUS LIES O N THE APPLICANT TO THE FILE COMPLETE DETAILS BUT IT FAILED TO DISCHARGE THE SAM E. 6. FURTHER, ONE PERUSAL OF TRUST DEED OF THE INSTIT UTION, IT IS NOTICED THAT NO PROPER DISSOLUTION CLAUSE IS MENTIONED. HENCE, IT NOT CLEARS THAT IN CASE OF DISSOLUTION OF INSTITUTION, HOW THE PROPERTY OF INS TITUTION WILL BE PROTECTED AND USED FOR CHARITABLE PURPOSED ACCORDING TO APPLICANT TRUSTS OBJECTS. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT AT THE TIME OF REGISTRATION UNDER SECTION 12AA, THE ASSESSEE HAS TO SATISFY THE BASIC CONDITION STIPULATED IN SECTION 12AA ABOUT GENUINENESS OF THE ACTIVITIES. IN THE P RESENT CASE THE LEARNED CIT HAS GIVEN A FINDING THAT DESPITE OPPORTUNITY GIVEN, THE ASSESSEE HAS FAILED TO PRODUCE THE BOOKS ON ACCOUNTS. WE, THEREFORE, FIND NO REAS ON TO INTERFERE INTO THE ORDER OF LEARNED CIT (EXEMPTIONS), THE SAME IS HEREBY UPHELD . APPEAL IS DISMISSED. ITA NO.1010/JP/2016 IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLLOWI NG GROUNDS : 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS ) JAIPUR HAS ERRED IN LAW AND THE FACTS IN REJECTION THE REGISTRATION UNDER SECTION 80G(5) (VI). THAT THE REGISTRATION NEED TO BE GRANTED AS- THE TRUST HAS BEEN FORMED FOR WHOLLY CHARITABLE PUR POSE IN F.Y. 2015- 16. 4 ITA NOS. 1010 & 1011/JP/2016 DIBETES EDUCATION & WELFARE TRUST THE TRUST HAS BEEN CONDUCTING ITS CHARITABLE ACTIVI TIES IN ACCORDANCE WITH ITS OBJECTS- CONDUCTED OVER 700 DIABETES AWARENESS ETC CAMPS. ORGANISED SEVERAL HEALTH MELAS. INVOLVED IN EDUCATION/AWARENESS & CONDUCTED EXHIBI TION & DELIVERED LECTURES ETC (EVIDENCE NEWSPAPER REPORTINGS, PHOTOS ETC SUBMITTE D 16/19.08.2016) 2. THAT THE APPELLANT CARVES TO ADD, AMEND, AND ALTER THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF APPELLATE HEARINGS. AS WE HAVE DISMISSED THE APPEAL OF THE ASSESSEE IN ITA NO. 1011/JP/2016 REJECTING THE GROUND OF THE ASSESSEE SEEKING REGIST RATION U/S 12AA, WE FIND NO MERIT IN THE GROUNDS RAISED IN ITA NO. 1010/JP/2016 IN RE SPECT OF EXEMPTION UNDER SECTION 80G OF THE ACT, THE SAME ARE REJECTED. IN THE RESULT, APPEALS OF THE ASSESSEE ARE DISMISS ED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 06/02/2017 . SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 06/02/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- DIABETES EDUCATION AND WELFARE T RUST (DEWATA), AJMR. 2. THE RESPONDENT THE CIT (EXEMPTIONS), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1010 & 1011/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NOS. 1010 & 1011/JP/2016 DIBETES EDUCATION & WELFARE TRUST