DHANBAD BLIND RELIEF SOCIETY, Dhanbad V. CIT EXEMPTION , PATNA

ITA 12/RAN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9734 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJI T SINGH
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 12 / RAN / 2018 DHANBAD BLIND RELIEF SOCIETY, NEW COLONY, NR. RLC COURT, JAGIWAN NAGAR, DHANBAD826003 [ PAN NO.AANAS 3371 A ] V/S . CIT (EXEMPTION), PATNA /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI DEVESH PODDAR, ADVOCATE /BY RESPONDENT SHRI INDERJIT SINGH CIT-DR /DATE OF HEARING 07-01-2019 /DATE OF PRONOUNCEMENT 11-01-2019 / O R D E R PER BENCH:- THIS ASSESSEES APPEAL ARISES AGAINST THE COMMISSIO NER OF INCOME TAX (EXEMPTION)-PATNAS ORDER DATED 22.09.2017, DENYING REGISTRATION IN PROCEEDINGS U/S. 12AA OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT VIDE FOLLOWING DISCUSSION:- THE APPLICANT SOCIETY FILED APPLICATION IN FORM NO .10A OF THE INCOME TAX RULES,1962 ON 30.03.2017 FOR REGISTRATION U/S. 12AA OF THE E INCOME TAX ACT, 1961. THE APPLICANT WAS REQUESTED T O APPEAR ON 20.06.2017 EITHER IN PERSON OR THROUGH AN AUTHORIZE D REPRESENTATIVE WITH RELEVANT DOCUMENTS FOR VERIFICATION OF THE GEN UINENESS OF THE SOCIETY. THE DETAILS SENT BY THE APPLICANT SOCIETY BY POST A ND MAIL HAVE BEEN CONSIDERED. THE SOCIETY HAS NOT FILED THE AUDITED B ALANCE SHEET AS ON ITA NO.12/RAN/2018 DHANBAD BLIND RELIEF SOCIETY VS. CIT(EX),PAT PAGE 2 31.03.2016 THOUGH IT IS OVERDUE. THE AR STATED THAT AUDIT AS ON 31.03.2016 IS YET TO BE COMPLETED. FURTHER IT IS SE EN THAT THE SCHOOL IS RUN FROM A PREMISE NEITHER OWNED BY THE APPLICANT S OCIETY NOR TAKEN ON RENT. NO PLAUSIBLE EXPLANATION HAS BEEN SUBMITTED I N THIS REGARD. IN VIEW OF SUCH, I AM NOT SATISFIED ABOUT THE GENUI NENESS OF ACTIVITIES OF THE SOCIETY. THEREFORE APPLICATION FILED IN FROM NO .10A FOR GETTING REGISTRATION U/S./ 12AA OF INCOME-TAX ACT, 1961 IS REJECTED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT LEARNED CIT(EX) HAS NOT DECLINED ASSESSEES REGISTRATION SOUGHT ON THE GROU ND THAT ITS OBJECTS ARE IN ANY WAY NOT COVERED U/S 12(15) OF THE ACT. LEARNED COUNSEL HAS PLACED ON RECORD ITS MEMORANDUM OF ASSOCIATION COMPRISING THE RELEVANT OBJECTS AS FOLLOWS:- 4. AIMS & OBJECTIVES OF THE SOCIETY: I. THE PREVENTION OF PREVENTABLE AND THE CURE OF CU RABLE BLINDNESS AND EYE TROUBLE. II. TO IMPART EDUCATION TO THE BLIND THROUGH SUITAB LE MEDIA INCLUDING BHARTIYA BRAILLE SYSTEM BY ESTABLISHING SCHOOLS (WHEREVER AN D WHENEVER WITH HOSTEL FACILITIES), LIBRARIES AND BRAILLE PRESS. III. TO IMPART TRAINING O THE BLIND IN USEFUL VOCAT IONAL COURSES INCLUDING HANDICRAFT, MUSIC ETC. AND TO PROMOTE THEIR ALL-ROUND WELFARE, PHYSICAL, MENTAL, CULTURAL, SOCIAL AND ECONOMICAL. IV. THE CONSERVATION OF VISION, ORGANIZATION OF LEC TURES, DEMONSTRATIONS, EXHIBITIONS, CONFERENCES ETC./. AND THE PREPARATION OF LITERATURE, CHARTS, MODELS, LANTERN SLIDERS ETC. AND ANY OTHER STEPS TH AT MAY BE NECESSARY FOR THE PURPOSE OF PROPAGANDA AND EDUCATION OF THE MASSES W ITH REGARD TO EYE CARE. V. TO TRAIN AND MAINTAIN A STAFF OF WORKERS FOR THE TREATMENT OF EYE TROUBLE, CONSERVATION OF VISION, THE EDUCATION AND CARE OF T HE BLIND ETC. AND OTHER LAWFUL WORKS AND MAY BE NEEDED TO CARRY OUT THE AIM S AND OBJECTS OF THE SOCIETY. VI. TO INITIATE, PROMOTE AND ADVANCE MEASURES: CULT URAL, EDUCATIONAL, LEGISLATIVE AND OTHERS FOR ELIMINATING THE CAUSES OF BLINDNESS. VII. THE SOCIETY SHALL HELP BLIND STUDENT, GRANTS-I N-AID FOR HIGHER STUDIES INCLUDING TECHNICAL AND VOCATIONAL COURSE IN COLLEGE ETC. VIII. TO TAKE ALL THE MEASURES NECESSARY OR ADVISAB LE FOR CONSERVING VISION AND FOR PREVENTING AND CURING BLINDNESS AND THE REMOVAL OF ITS CAUSES AND FOR AMELIORATING AND IMPROVING THE CONDITION OF THE PER SONS SUFFERING FROM BLINDNESS. IX. THE SOCIETY SHALL ORGANIZE BOARDS, BRANCHES AND CENTERS FOR THE RELIEF OF THE BLIND AND SHALL DIRECTLY OR THROUGH THE ESTABLISHED AGENCIES MAINTAIN AND HELP EYE HOSPITALS, DISPENSARIES ETC. FOR THE TREATMENT OF ALL EYE DISEASES AND MAKE EFFORTS FOR THE CONSERVATION OF VISION. X. TO PURCHASE, SELL, HIRE OR LEASE OR OTHERWISE AC QUIRE ANY REAL OR PERSONAL PROPERTY AND ANY RIGHTS AND PRIVILEGES NECESSARY OR CONVENIENT FOR THE PURPOSE OF THE SOCIETY. XI. TO DO ALL SUCH LAWFUL THINGS AS ARE NECESSARY T O THE ATTAINMENT OF THE ABOVE OBJECTS OR ANY ONE OF THEM. XII. TO UNDERTAKE APPROPRIATE PROJECTS TO ENCOURAGE AND PROVIDE SOURCES OF EARNING TO BLIND STUDENT AND ALSO DEVELOP THE STAND ARD OF SKILL. ITA NO.12/RAN/2018 DHANBAD BLIND RELIEF SOCIETY VS. CIT(EX),PAT PAGE 3 XIII. TO PROMOTE HOMES FOR BLIND CHILDREN WITH PROP ER CARE AND GUIDE BY SOCIETY. OTHER OBJECTS. I) TO WORK ON PREVENTION, AWARENESS, EARLY IDENTIFI CATION, DIAGNOSIS, REHABILITATION, VOCATIONAL TRAINING, EDUCATION & TR AINING, INFRASTRUCTURE DEVELOPMENT AND ALL OTHER WELFARE WORK FOR DIFFEREN T DISABILITIES. II) GIVE FREE TRAINING TO WOMENS LIKE KUTIR UDYOGE , SO THEY CAN BECOME SELF- EMPLOYED AND THEIR LIVE-STYLE CAN BE IMPROVED. ALSO REMOVE SOCIAL EVILS SUCH AS DOWRY SYSTEM, CHILD MARRIAGE, CHILD LABOUR ETC. AND EDUCATE THE PEOPLES FROM SEMINARS TO ABOLISH SUCH SYSTEMS. III) TO WORK ON AWARENESS, PREVENTION, TRAINING AND TREATMENT OF AIDS, CANCER, DRUG ADDICTION, MALARIA, KALA ZAR AND OTHER KILLER DISEASES. IV) TO WORK FOR DEVELOPMENT OF SANITATION, CLEANNES S, PERSONAL DEVELOPMENT, EDUCATION & TRAINING, SELF EMPLOYMENT, TRIBAL WELFA RE IN THE STATE TO WORK IN THE EDUCATION & TRAINING, SELF EMPLOYMENT, TRIBAL W ELFARE IN THE STATE TO WORK IN THE FIELD FOR ENVIRONMENT PROTECTION, PLANTATION , WATER HARVESTING, POLLUTION CONTROL, NON-CONVENTIONAL SOURCES OF ENERGY, ETC. A ND KNOWLEDGE ABOUT THE PROTECTION OF ENVIRONMENT. V) ALSO WORK IN FIELD OF PLANTATION AND AGRICULTURAL, SPREAD EDUCATION FOR PLANTING TREES TO MAKE ENVIRONMENT GREEN AND CLEAN. ALSO ORG ANIZED SEMINARS FOR CONTROLLING THE POLLUTION. 3. MR. SINGH PLACES A VERY STRONG RELIANCE ON CIT(E X)S ORDER DENYING SEC. 12AA REGISTRATION. HIS FURTHER CASE IS THAT IF THE ASSESSEES PLEADINGS ARE BASED ON THE ABOVE STATED TRUST DEED. THE MATTER BE SENT BACK TO CIT(E) AS AN ALTERNATIVE FOR NECESSARY FACTUAL EXAMINATION TH EREOF. 4. WE FIND NO MERIT IN EITHER REVENUES TWIN ARGUME NTS. THE FACT REMAINS THAT CIT(E) HAS NOT COMMENTED ANYTHING ADVERSE AGAI NST THE ABOVE EXTRACTED OBJECTS SUFFICIENTLY TAKES CARE OF THE SAME TO CHAR ITABLE IN NATURE U/S 2(15) OF THE ACT. WE FURTHER FIND THAT ASSESSEES OBJECT NO. (II) IN PARTICULAR IS IN THE FIELD OF CARRYING OUT EDUCATIONAL ACTIVITIES FOR BLIND TH ROUGH SUITABLE MEDIUM BY WAY OF ESTABLISHMENT OF SCHOOLS, LIBRARY AND BRAILIE PR ESS. LEARNED COUNSEL QUOTES THIS TRIBUNALS CO-ORDINATE BENCHS DECISION IN ITA NO.237/RAN/2017 SARVODYA WELFARE SOCIETY VS CIT(E) DECIDED ON 26.11.2018 ACC EPTING SIMILAR REGISTRATION VIS--VIS THE PRINCIPLE REQUIRED TO BE FOLLOWED AT THE TIME OF SEC. 12AA PROCEEDINGS AS UNDER:- 7. WE FOUND STRENGTH IN THE SUBMISSIONS OF LD AR AN D ALSO AT THE TIME OF REGISTRATION THE CIT(E) HAS NOT DOUBTED THE OBJECTS AND ACTIVITI ES OF THE TRUST, THEREFORE, WE ARE OF THE FIRM OPINION THAT THE CIT(E) AT THE TIME OF REG ISTRATION HAS TO CONSIDER THE OBJECTIVES AND WE SUPPORT OUR VIEW WITH THE DECISIO N OF HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT (VARANASI) VS VARANASI WE 4ELFARED TRUST IN ITA NO.22 OF 2014 ORDER DATED 2.11.2014 WHEREIN THE HON'BLE HIGH COURT HAS HELD THAT THE PREPONDERANCE OF THE JUDICIAL OPINION OF ALL THE HI GH COURTS INCLUDING THIS COURT IS ITA NO.12/RAN/2018 DHANBAD BLIND RELIEF SOCIETY VS. CIT(EX),PAT PAGE 4 THAT AT THE TIME OF REGISTRATION U/S.12AA OF THE AC T, WHICH IS NECESSARY FOR CLAIMING EXEMPTION U/S.11 & 12 OF THE ACT THAT THE CIT IS NO T REQUIRED TO LOOK INTO THE ACTIVITIES, WHERE SUCH ACTIVITIES HAVE NOT OR ARE IN THE PROCES S OF IN ITS INITIATION. WHERE A TRUST, SET UP TO ACHIEVE ITS OBJECTIVES OF ENABLING EDUCAT IONAL INSTITUTION, IS IN THE PROCESS OF ESTABLISHING SUCH INSTITUTION AND RECEIVES DONATION S, THE REGISTRATION U/S 12A CANNOT BE REFUSED ON THE GROUND THAT THE TRUST HAS NOT YET COMMENCED, THE CHARITABLE OR RELIGIOUS ACTIVITIES. ANY ENQUIRY OF THE NATURE WOU LD AMOUNT TO PUTTING THE CART BEFORE THE HORSE. AT THIS STAGE, ONLY THE GENUINENESS OF T HE OBJECTS HAS TO BE TESTED AND NOT THE ACTIVITIES WHICH HAVE NOT YET COMMENCED. THE EN QUIRY OF THE CIT AT SUCH PRELIMINARY STAGE SHOULD BE RESTRICTED TO GENUINENE SS OF THE OBJECTS AND NOT OF THE ACTIVITIES UNLESS SUCH ACTIVITIES HAVE COMMENCED. T HE TRUST OR SOCIETY CANNOT CLAIM EXEMPTION,, UNLESS IT IS REGISTE4RED U/S. 12AA OF T HE ACT AND AT THAT SUCH INITIAL STAGE, THE TEST OF GENUINENESS OF THE ACTIVITIES CANNOT BE A GROUND ON WHICH THE REGISTRATION MAY BE REFUSED. WE ADOPT THE DETAILED REASONING MUTATIS MUTANDIS TO ACCEPT ASSESSEES GRIEVANCE. IT IS HELD ENTITLED FOR SEC. 12AA REGIST RATION AS PRAYED FOR THEREFORE. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 11 /01/2019 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP $- 11 / 01 /2019 RANCHI / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DHANBAD BLIND RELIEF SOCIETY, NEW COLONY , NR. RLC COURT. JAGIWAN NAGAR, DH ANNBAD-826003 2. /RESPONDENT-CIT(EX), PATNA 3. 0 3 / CONCERNED CIT RANCHI 4. 3- / CIT (A) RANCHI 5. 6 ##0, 0, / DR, ITAT, RANCHI 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR.PS, I TAT, RANCHI