M/s Community Rural Development Society, Visakhapatnam V. The Commissioner of Income Tax-1, Visakhapatnam

ITA 121/VIZ/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0608 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 22-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Assessee Lawyers: C V S MURTHY
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.121/VIZAG/2010 ASSESSMENT YEAR : N.A. M/S. COMMUNITY RURAL DEVELOPMENT SOCIETY, VISAKHAPATNAM CIT-1 VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AAAAC 1215E APPELLANT BY: SHRI C.V.S. MURTHY, CA RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT REFUSING RENEWAL OF RECOGNITION OF EXEMPTION U/S 80 G OF THE I.T. ACT. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY EXAM INED THE ORDER OF THE CIT REJECTING THE RENEWAL OF THE EXEMPTION U/S 80G(5)(V I) OF THE I.T. ACT AND THE MATERIAL PLACED ON RECORD AND WE FIND THAT CIT HAS REJECTED THE RENEWAL OF THE EXEMPTION ON THE GROUND THAT THE ASSESSEE HAS E NGAGED IN RELIGIOUS ACTIVITIES AFTER HAVING NOTICED FROM THE PHOTOGRAPH S FILED BY THE ASSESSEE THAT SOCIETY IS ENGAGED IN GOSPEL ACTIVITIES WHICH MEANS THE RELIGIOUS ACTIVITIES. 2. DURING THE COURSE OF HEARING OF THIS APPEAL, ASS ESSEE HAS FILED THE COPY OF MEMORANDUM OF THE SOCIETY, PHOTOGRAPHS, ANN UAL REPORT AND THE EARLIER CERTIFICATE GRANTED TO IT. IN SUPPORT OF H IS CONTENTION THAT THE SOCIETY IS NOT ENGAGED IN ANY CHARITABLE ACTIVITY, HE FILED TH E PHOTOGRAPHS OF THE WOMENS DEVELOPMENT CHILD CARE, OLD AGE CARE, CHILD CARE, HEALTH AWARENESS AND MEDICAL CAMPS ETC. THE CIT HAS RELIED UPON ONE PHOTOGRAPHS RELATING TO GOSPEL BUT THAT DOES NOT MEAN THAT THE SOCIETY IS ENGAGED IN RELIGIOUS ACTIVITIES AS CONTENDED BY THE ASSESSEE. THE LD. C OUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT THE FINANCIAL STATEMENT UPTO THE YEAR ENDING 31.3.2009 WERE FILED BEFORE THE CIT AND AT NO POINT OF TIME NO EXPENDITURE/PAYMENT WERE INCURRED BY THE ASSESSEE S OCIETY TOWARDS ANY RELIGIOUS ACTIVITY. THEREFORE, IT IS NOT UNDERSTAN DABLE HOW THE CIT HAD COME 2 TO THE CONCLUSION THAT THE SOCIETY IS CARRYING ON R ELIGIOUS ACTIVITIES. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT THE ASSESSEE HAS FILED ONE PHOTOGRAPH OF REV. DR. R.V. RAO, THE PRESIDENT OF S OCIETY WITH THE HEADNOTE GOSPEL BUT ALL THESE PHOTOGRAPHS WERE TAKEN ONLY ON THE OCCASION OF FELICITATION CEREMONY OF DR. R.V. RAO ON HIS ACQUIR ING D.D. M.PHIL IN CHRISTIANITY ETC. THE PRESIDENT OF THE ORGANIZATIO N IN HIS INDIVIDUAL CAPACITY IS A RELIGIOUS PERSON AS LONG AS HIS RELIGIOUS ACTIVIT IES DO NOT INTERFERE IN SOCIETYS CHARITABLE ACTIVITIES. NONE OF THE PHOTO GRAPHS SHOWS THAT ASSESSEE IS INVOLVED IN RELIGIOUS ACTIVITIES. THE ASSESSEE WAS ALREADY GRANTED THE EXEMPTION U/S 80G OF THE ACT AND IT WAS SIMPLY REMO VAL OF THE EXEMPTION EARLIER GRANTED TO THE ASSESSEES. THE ASSESSEE HAS FURNISHED ALL RELEVANT MATERIAL BEFORE THE CIT AND AT NO POINT OF TIME ASS ESSEE WAS INVOLVED IN RELIGIOUS ACTIVITIES. 3. THE LD. D.R. ON THE OTHER HAND HAS PLACED THE RE LIANCE UPON THE ORDER OF THE CIT. 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT A ND THE DOCUMENT PLACED BEFORE US WE FIND THAT THERE IS ONLY ONE DOC UMENT ON WHICH CIT HAS PLACED A HEAVY RELIANCE. IT IS THE PHOTOGRAPH CONF ERRING THE M.PHIL TO DR. R.V. RAO WHO HAPPENED TO BE THE PRESIDENT OF THE SO CIETY. BUT THIS PHOTOGRAPH DOES NOT INDICATE THAT THE ASSESSEE SOCI ETY IS ENGAGED IN CHARITABLE ACTIVITIES. ON THE CONTRARY ASSESSEE HA VE FILED THE ENORMOUS PHOTOGRAPHS TO SUBSTANTIATE THAT IT WAS ENGAGED IN DIFFERENT TYPE OF CHARITABLE ACTIVITIES. HE HAS ALSO FILED THE FINAN CIAL STATEMENTS IN SUPPORT OF HIS CONTENTION THAT AT NO POINT OF TIME NO EXPENDIT URE WAS INCURRED FOR ANY RELIGIOUS ACTIVITIES. MORE SO CIT HAS NOT POINTED OUT ANY EXPENDITURE WHICH WERE INCURRED FOR RELIGIOUS ACTIVITY WHILE REJECTIN G THE RENEWAL OF EXEMPTION. WE THEREFORE OF THE VIEW THAT CIT(A) HAS DENIED THE RENEWAL OF EXEMPTION ON THE BASIS OF CONJUNCTS AND SURMISES. WE THEREFORE DO NOT SUBSCRIBE IT SINCE ASSESSEE IS CONTINUOUSLY ENGAGED IN CHARITABLE ACTI VITIES. WE ACCORDINGLY, DIRECT THE CIT TO GRANT THE RENEWAL OF EXEMPTION AS PER LAW AFTER SETTING ASIDE HIS ORDER. 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED. PRONOUNCED IN THE OPEN COURT ON 19.7.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 19 TH JULY, 2010 COPY TO 1 COMMUNITY RURAL DEVELOPMENT SOCIETY, 33-12-7, ALL IPURAM, VISAKHAPATNAM 2 CIT(A)-1, VISAKHAPATNAM 3 THE CIT-1, VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM