Jan Jagran Sewa Samiti, Haryana V. CIT, Rohtak

ITA 1133/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90861 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-01-2015
• Assessment Year: misc
• Appeal Filed On: 27-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GUNJAN PRAS
• Assessee Lawyers: RAJESH R ANI
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D NEW DELHI) BEFORE SHRI I.C. SUDHIR AND SHRI B.C. MEENA ITA NO. 1133/DEL/2013 ASSESSMENT YEAR: - - JAN JAGRAN SEWA SAMITI, VS. COMMISSIONER OF IT., 588/31, GALI NO. 6, ROHTAK ASHOK VIHAR, MEHLANA ROAD, (HARYANA) SONEPAT (HR.) (PAN: AABAJ1490M) (APPELLANT) (RESPONDENT) ITA NO. 1132/DEL/2013 ASSESSMENT YEAR : - - MALIK CHARITABLE TRUST, VS. COMMISSIONER OF IT., 588/31, GALI NO. 6, ROHTAK ASHOK VIHAR, MEHLANA ROAD, (HARYANA) SONEPAT (HR.) (PAN: AADTM0488M) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI RAJESH R ANI, ADV. RESPONDENT BY: SHRI GUNJAN PRAS AD, CIT(DR) DATE OF HEARING : 02.01.2015 DATE OF PRONOUNCEMENT: :03.2015 ORDER PER I.C. SUDHIR: JUDICIAL MEMBER THE ASSESSEES HAVE QUESTIONED DENIAL OF THEIR REGIS TRATIONS UNDER SEC. 12AA OF THE INCOME-TAX ACT, 1961 BY THE LEARNED CIT ON SEVERAL GROUNDS. THE ISSUE INVOLVED IN ALL THE GROUNDS, WHICH SHOULD HAVE BEEN IN CONCISED 2 FORM, IS ON THE VALIDITY OF REJECTION OF THE APPLIC ATION OF THE ASSESSEE FOR REGISTRATION SOUGHT UNDER SEC. 12AA OF THE ACT. 2. WHILE REITERATING THE GROUNDS OF THE APPEALS, TH E LEARNED AR SUBMITTED THAT THE LEARNED CIT HAS CATEGORIZED THE ASSESSEE SOCIETY UNDER THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBL IC UTILITY INSTEAD OF MEDICAL RELIEF. SHE SUBMITTED THAT ASSESSEES ARE RE GISTERED SOCIETIES. JAN JAGRAN SEWA SAMITI WAS REGISTERED W.E.F. 28.3.2011 AND MALIK CHARITABLE TRUST WAS REGISTERED ON 07.10.2011. THE VERY OBJECT OF BOTH THE SOCIETIES IS TO MAKE AWARE THE PUBLIC ABOUT HEALTH THROUGH NATUR OPATHY AND ACUPRESSURE AND WITHOUT TAKING ANY MEDICINES. THEY ORGANIZE CAM PS FOR CHECK-UP AND THEREAFTER PATIENTS ARE GIVEN TREATMENT THROUGH ACU PRESSURE AND NATUROPATHY. THE ENERGY LEVEL AND BLOOD CIRCULATION OF THE HUMAN BODY IS CHECKED AND THE TREATMENT IS GIVEN BY PRESSING THE PROPER POINTS OF THE HUMAN BODY BY ACUPRESSURE. NOMINAL FEE IS CHARGED. THE LEARNED AR SUBMITTED THAT THE LEARNED CIT HAS DENIED THE REQUESTED REGISTRATION B Y NOTING WRONG FACTS AND WITHOUT GIVING OPPORTUNITY TO THE ASSESSEES TO MEET OUT THOSE OBJECTIONS RAISED BY HIM. SHE THEREAFTER TRIED TO MEET OUT EAC H AND EVERY OBJECTIONS ON THE BASIS OF WHICH LEARNED CIT(APPEALS) HAS REJECTE D THE REGISTRATION. SHE SUBMITTED FURTHER THAT THE ASSESSEES CHARGE THE NOM INAL FEES JUST FOR MEETING 3 OUT THE EXPENSES INCURRED IN ORGANIZING THE CAMPS. THE ASSESSEES DO NOT MAKE THESE FEES MANDATORY. IF ANYBODY DOES NOT PAY THE FEES OR IS NOT ABLE TO PAY THE FEES DESPITE THAT TREATMENT IS NOT DENIED T O SUCH PERSONS. ALL THE EXPENSES MENTIONED IN THE INCOME AND EXPENDITURE AC COUNTS ARE DULY AUTHORIZED BY THE PRESIDENTS OF THE SOCIETIES AND A RE PROPERLY ACCOUNTED IN THE BOOKS. THE BOOKS WERE NEVER DEMANDED BY THE LEA RNED COMMISSIONER. THE LEARNED AR SUBMITTED FURTHER THAT THE LEARNED C IT IS NOT CORRECT IN SAYING THAT THE ASSESSEE SOCIETY HAD NOT ANNEXED TH E ORIGINAL INSTRUMENTS ALONG WITH THE APPLICATIONS. ON DEMAND BY THE LEARN ED COMMISSIONER, THE ORIGINAL INSTRUMENTS FOR FORMING THE SOCIETY WERE S HOWN BY THE ASSESSEE TO THE LEARNED COMMISSIONER DURING THE COURSE OF HEARI NG ON 20.12.2012. SHE SUBMITTED THAT THE PROVISO TO SEC. 2(15) OF THE ACT DOES NOT APPLY IN THE CASE OF ASSESSEES EVEN IF THEY ARE CATEGORIZED UNDER THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY AS HELD BY THE LEA RNED COMMISSIONER INSTEAD OF MEDICAL RELIEF SINCE VALUE OF RECEIPTS DOES NOT EXCEED, THE MONITORY LIMIT PRESCRIBED IN THE SAID PROVISION. THE LEARNED AR AL SO ARGUED THAT IT IS AN ESTABLISHED PROPOSITION OF LAW THAT WHILE GRANTING REGISTRATION IN THE FIRST YEAR UNDER SEC. 12AA OF THE ACT, THE LEARNED COMMIS SIONER IS REQUIRED TO SEE ONLY THE AIMS AND OBJECTS OF THE SOCIETIES. SHE PLACED RELIANCE ON THE FOLLOWING DECISIONS: 4 1. NEW LIFE IN CHRIST EVANGELISTIC ASSOCIATION VS. CIT - 246 ITR 532 (MADRAS); 2. CIT VS. KANNIKA PERMESHWARI DEVASTHANAM - 133 I TR 779 (MADRAS). 3. THE LEARNED CIT(DR) ON THE OTHER HAND SUBMITTED THAT THE LEARNED CIT WHILE REJECTING THE APPLICATION FOR REGISTRATIO N HAS PASSED COMPREHENSIVE AND REASONED ORDER TO JUSTIFY THAT TH E APPELLANT SOCIETY ARE NOT ELIGIBLE FOR THE REGISTRATION UNDER SEC. 12AA O F THE ACT. THE SOCIETIES UNDER THE GARB OF CHARITY ACTUALLY RUN THEIR CLINIC S TO EARN THE PROFITS AS A PROFESSIONAL PRACTICENOR. THEY HAVE NOT MAINTAINED THEIR ACCOUNTS PROPERLY. THE RECEIPTS HAVE BEEN SPENT ON PURPOSES OTHER THAN THE CHARITABLE OBJECTS. 4. CONSIDERING THE ABOVE SUBMISSIONS IN VIEW OF THE ORDERS IMPUGNED, WE FIND THAT THE LEARNED CIT WHILE REJECTING APPLIC ATIONS FOR REGISTRATION UNDER SEC. 12AA OF THE ACT OF THE SOCIETIES BY RAIS ING SEVERAL OBJECTIONS THEREIN HAS NOT GIVEN OPPORTUNITY TO THE SOCIETIES TO MEET OUT THOSE OBJECTIONS RAISED BY HIM. WE THUS IN THE INTEREST O F JUSTICE SET ASIDE THE MATTER TO THE FILE OF THE LEARNED CIT TO RECONSIDER THE APPLICATIONS OF THE SOCIETIES FOR REGISTRATION UNDER SEC. 12AA OF THE A CT AFTER AFFORDING PROPER 5 OPPORTUNITY TO THEM TO MEET OUT THE OBJECTIONS RAIS ED BY HIM. THE GROUNDS INVOLVING THE ISSUES ARE ACCORDINGLY ALLOWED FOR ST ATISTICAL PURPOSES. 5. IN RESULT, THE APPEALS ARE ALLOWED FOR STATISTIC AL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 16.04.201 5 SD/- SD/- ( B.C. MEENA ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 /04/2015 MOHAN LAL COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR 6 DATE DRAFT DICTATED ON COMPUTER 26.03.2015 DRAFT PLACED BEFORE AUTHOR 26.03.2015 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 16.04.20 14 APPROVED DRAFT COMES TO THE SR.PS/PS 16.04.2015 KEPT FOR PRONOUNCEMENT ON 16.04.2015 FILE SENT TO THE BENCH CLERK 16.04.2015 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.