JEELA UPBHOKTA JAGARAN SAMITI, SIKAR V. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

ITA 1114/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3724 (ITAT-JAIPUR)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 27-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDAR MEHTA
• Section: 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC HE A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 1114/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2018-19 JEELA UPBHOKTA JAGARAN SAMITI, SIKAR CUKE VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABTJ3474G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE (WRITTEN SUBMISSIONS) JKTLO DH VKSJ LS @ REVENUE BY : SHRI VARINDAR MEHTA (CIT DR) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 15/05/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 16/05/2019 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(E), JAIPUR DATED 17.07.2018 REJECTING THE APPLICATION O F THE ASSESSEE SOCIETY SEEKING REGISTRATION U/S 12AA OF THE ACT. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE L AST TWO SCHEDULE DATE OF HEARING. SUBSEQUENTLY, WRITTEN SUBMISSIONS WERE FILED WITH THE REGISTRY WITH A REQUEST TO CONSIDER THE SAME WHILE DECIDING THE M ATTER. IT WAS ACCORDINGLY DECIDED TO PROCEED WITH THE MATTER CONSIDERING THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. 3. IN ITS WRITTEN SUBMISSIONS, THE ASSESSEE SOCIET Y HAS SUBMITTED THAT THE LD. CIT(E) HAS REFERRED TO ONE OF THE OBJECTS OF TH E ASSESSEE SOCIETY AS PER ITS ITA NO. 1114/JP/2018 JEELA UPBHOKTA JAGARAN SAMITI, SIKAR VS. CIT(EXEMP TIONS), 2 MEMORANDUM OF ASSOCIATION DATED 11.12.2013 AND HAS HELD THAT THE OBJECT OF THE SOCIETY IS NOT THAT OF CHARITABLE NATURE AND OB JECT IS TO SUPPLY LABOUR ON CONTRACT TO GOVERNMENT/PRIVATE/CO-OPERATIVE SOCIETI ES ETC. IN THIS REGARD, IT WAS SUBMITTED THAT THE OBJECT OF THE SOCIETY IS NOT TO MAKE AVAILABLE ANY LABOUR ON CONTRACT TO ANY PERSON AS THE ASSESSEE SOCIETY H AS NO SUCH MANPOWER TO SUPPLY ON CONTRACT TO VARIOUS PERSONS. IT WAS SUBMI TTED THAT THE INTENTION BEHIND STATING THE SAID OBJECT IN THE MEMORANDUM OF ASSOCIATION IS TO PROVIDE ITS SERVICES AND HELP EDUCATED UNEMPLOYED YOUTH PER SONS IN GETTING JOBS TO EARN THEIR LIVELIHOOD. IN SUPPORT, RELIANCE WAS PL ACED ON THE RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR ENDED 31 ST MARCH, 2014, 31 ST MARCH, 2015 AND 31 ST MARCH, 2016 WHEREIN THERE IS NO RECEIPT FROM SUPPL Y OF LABOUR ON CONTRACT TO ANY PERSONS. IT WAS FURTHER SUBMITTED THAT THE R ELIANCE PLACED BY THE LD CIT(E) ON THE DECISION OF THE CO-ORDINATE BENCH IN CASE OF M/S MULTIPURPOSE ACTION FOR RURAL DEVELOPMENT SANSTHAN (ITA NO. 1005/JP/2017 DATED 28/02/2018) IS NOT CORRECT AS THE FACTS IN THAT CASE WERE ENTI RELY DIFFERENT FROM FACTS OF THE CASE OF THE ASSESSEE SOCIETY. IT WAS S UBMITTED THAT IN THAT CASE, THE ASSESSEE HAD SHOWN MAJOR RECEIPTS FROM PROVIDING PL ACEMENT SERVICES TO VARIOUS GOVERNMENT DEPARTMENT AND BANKS. HOWEVER, I N THE PRESENT CASE, THERE ARE NO SUCH RECEIPTS FROM PROVIDING OF PLACEM ENT SERVICES TO VARIOUS GOVERNMENT DEPARTMENT AND BANK. IT WAS ACCORDINGLY SUBMITTED THAT ALL THE OBJECTS OF THE ASSESSEE SOCIETY UNDER APPEAL ARE CO MPLETELY IN THE NATURE OF CHARITY AND FOR THE BETTERMENT OF HUMAN BEING AND T HEREFORE, THE ASSESSEE SHOULD BE GRANTED REGISTRATION U/S 12AA OF THE ACT. 4. IN HIS SUBMISSIONS, THE LD. CIT DR RELIED ON THE FINDINGS OF THE LD. CIT(E) IN HIS ORDER DATED 27.07.2018. REFERRING TO ONE OF THE OBJECTS STATED AT POINT NO. 12 OF THE MEMORANDUM OF THE ASSOCIATION DATED 1 8.12.2013, THE LD. CIT DR SUBMITTED THAT THE OBJECT IS TO SUPPLY LABOUR ON CONTRACT TO GOVERNMENT/PRIVATE/CO-OPERATIVE SOCIETIES ETC. WHIC H MEANS THAT THE ASSESSEE ITA NO. 1114/JP/2018 JEELA UPBHOKTA JAGARAN SAMITI, SIKAR VS. CIT(EXEMP TIONS), 3 SOCIETY INTENDED TO RUN PLACEMENTS CENTRES/ AGENCY WHICH ARE CLEARLY BUSINESS ACTIVITIES AND CANNOT BE HELD CHARITABLE WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. FURTHER, OUR REFERENCE WAS DRAWN TO PARA 1 0 OF THE CIT(E) ORDER WHEREIN IT HAS BEEN STATED THAT THE ASSESSEE SOCIET Y HAS PROVIDED PLACEMENT SERVICES TO VARIOUS GOVERNMENT, SEMI-GOVERNMENT/CO- OPERATIVE AND PRIVATE SECTOR. ACCORDINGLY, IT WAS SUBMITTED THAT THE OBJE CTS AS WELL AS THE ACTUAL ACTIVITIES OF THE ASSESSEE SOCIETY ARE NOT CHARITAB LE IN NATURE. THEREFORE, THE LD. CIT(E) HAS RIGHTLY DENIED THE REGISTRATION U/S 12AA OF THE ACT WHICH SHOULD BE CONFIRMED AND THE APPEAL OF THE ASSESSEE SOCIETY SH OULD BE DISMISSED. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PURSUED THE MATERIAL AVAILABLE ON RECORD. FIRSTLY, IT IS NOTED THAT NONE APPEARED ON BEHALF OF THE ASSESSEE AND EVEN THE SUBMISSIONS SO FILED BY THE ASSESSEE SOCIE TY ARE NOT SUFFICIENT ENOUGH FOR US TO DECIDE THE MATTER UNDER APPEAL. IT IS IMP ORTANT THAT THE BASIC DOCUMENTATION IN TERMS OF THE MEMORANDUM OF THE ASS OCIATION AND BYE- LAWS OF THE ASSESSEE SOCIETY SHOULD HAVE BEEN SUBMITTED BEFORE THE BENCH BESIDES THE ACTIVITIES WHICH HAVE ACTUALLY BEEN CARRIED OUT BY THE ASSESSEE SOCIETY IN THE PAST. MERELY SUBMITTING COPIES OF THE YEARLY R ECEIPT AND PAYMENT ACCOUNT IS NOT SUFFICIENT ENOUGH FOR US TO TAKE A VIEW IN T HE MATTER. FURTHER, THE LD. CIT(E) HAS REFERRED TO ONE OF THE OBJECTS OF THE AS SESSEE SOCIETY AND ON REVIEW OF THE SAME HAS OBSERVED THAT THE OBJECT OF THE ASS ESSEE SOCIETY IS TO SUPPLY LABOUR ON CONTRACT TO VARIOUS PERSONS AND TO RUN PL ACEMENTS CENTRES/AGENCIES AND FURTHER IN PARA 10 OF HIS ORDER, HE HAS STATED THAT THE ASSESSEE SOCIETY HAS PROVIDED PLACEMENT SERVICES TO VARIOUS GOVERNMENT, SEMI-GOVERNMENT/CO- OPERATIVE AND PRIVATE SECTOR. HOWEVER, THE ASSESSEE SOCIETY HAS CONTESTED THE SAID FINDING STATING THAT THE INTENTION BEHIND THE SAID OBJECT IS TO HELP SUPPORT EDUCATED UNEMPLOYED YOUTH PERSONS IN FINDING SUITAB LE EMPLOYMENT AND NOT TO PROVIDE ANY PLACEMENT SERVICES TO THE VARIOUS GOVER NMENT AND PRIVATE AGENCIES AS STATED BY THE LD CIT(E) AND REFERRING TO ITS YEA RLY RECEIPT AND PAYMENT ITA NO. 1114/JP/2018 JEELA UPBHOKTA JAGARAN SAMITI, SIKAR VS. CIT(EXEMP TIONS), 4 ACCOUNT, HAS SUBMITTED THAT THERE ARE NO RECEIPTS F ROM SUCH ACTIVITIES. IN OUR VIEW, THIS IS AGAIN A MATTER OF EXAMINATION AS TO W HETHER THERE ARE ANY ACTIVITIES WHICH HAVE BEEN ACTUALLY CARRIED OUT BY THE ASSESSEE IN FORM OF SUCH SERVICES AND WHAT IS THE EXACT NATURE OF SUCH ACTIV ITIES. EVEN ON THIS ACCOUNT, THE MATTER NEED EXAMINATION BY THE LD. CIT(E). ACCO RDINGLY, WE DEEM IT APPROPRIATE TO REMAND THE MATTER BACK TO THE FILE O F THE LD. CIT(E) TO CONSIDER THE MATTER AFRESH AFTER GIVING REASONABLE OPPORTUNI TY TO THE ASSESSEE. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 16/05/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/05/2019 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- JEELA UPBHOKTA JAGARAN SAMITI, SIKAR 2. IZR;FKHZ@ THE RESPONDENT- COMMISSIONER OF INCOME TAX (E), JAI PUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 1114/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR