Hanumatdham Vidyapeeth Nyas, Muzaffarnagar V. CIT(E), Lucknow

ITA 122/DEL/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0845 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 19-02-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12AA; 13; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE, SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A NO.122/DEL/2021 (ASSESSMENT YEAR-NIL) HANUMATDHAM VIDH YAPEETH NYAS , SUKARTAL MORNA, MUZAFFARNAGAR-251316 (U.P.) PANAACTH 0016M VS. CIT (EXEMPTION) , LUCKNOW (APPELLANT) (RESPONDENT) APPELLANT BY SH. ANIL KUMAR JAIN, ADV. RESPONDENT BY MS. SUNITA SINGH, CIT- DR DATE OF HEARING 13.07.2021 DATE OF PRONOUNCEMENT 13.07.2021 ORDER PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST OR DER DATED 09.12.2020 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION)-LUCKNOW {CIT(E)} WHEREIN VIDE THE IMP UGNED ORDER THE LD. CIT(E) HAS REJECTED THE ASSESSEES APPLICAT ION FOR GRANT OF 2 ITA NO.122/DEL/2021 HANUMATDHAM VIDYAPEETH NYAS VS . CIT(E) REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 ( HEREIN AFTER CALLED THE ACT). 2.0 THE FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE/APPELLANT. 1. THE LD. CIT HAS ERRED IN REJECTING THE REGIS TRATION OF THE TRUST U/S 12AA IN SPITE OF FURNISHING OF DESIRE D INFORMATION. 2. THE LD. CIT HAS ERRED IN OBSERVING THAT THERE I S NOT SUFFICIENT MATERIAL TO PROVE ACTIVITIES OF THE TRUS T. 3. THE ORDER OF LD. CIT IS AGAINST LAW AND FACTS O F CASE. 4. THE APPELLANT CRAVES THE RIGHT TO ADD, AMEND OR WITHDRAW ANY GROUNDS OF APPEAL AT THE TIME OF HEARI NG. 3.0 THE LD. AUTHORIZED REPRESENTATIVE (AR) S UBMITTED THAT THE ASSESSEES APPLICATION FOR REGISTRATION U/S 12A A OF THE ACT WAS REJECTED ON THE GROUND THAT THE ASSESSEE HAD FAILED TO PRODUCE ANY MATERIAL WHICH COULD HAVE PROVIDED AN INSIGHT INTO T HE ACTIVITIES OF THE APPLICANT. HE DREW OUR ATTENTION TO PARAGRAPH-3 OF THE IMPUGNED ORDER AND SUBMITTED THAT THE DISMISSAL OF THE ASSESSEES APPLICATION WAS BAD IN LAW AS IT WAS INCUMBENT UPON TH E LD. CIT(E) TO EXAMINE ONLY THE GENUINENESS OF THE OBJECTS OF T HE TRUST AT THE 3 ITA NO.122/DEL/2021 HANUMATDHAM VIDYAPEETH NYAS VS . CIT(E) STAGE OF CONSIDERING THE ASSESSEES APPLICATION FOR GRANT OF REGISTRATION AND NOT DISMISS THE ASSESSEES APPLICA TION ON THE GROUND THAT CHARITABLE ACTIVITIES HAVE NOT BEEN CAR RIED OUT BY THE ASSESSEE SO FAR. THE LD. AUTHORIZED REPRESENTATIVE DREW OUR ATTENTION TO THE PAPER BOOK CONTAINING COPIES OF DO CUMENTS FILED IN RESPONSE TO THE QUERIES RAISED BY THE CIT(E) IN THI S REGARD AND SUBMITTED THAT ALL THE DETAILS REQUIRED HAD BEEN DU LY FILED EXCEPT FOR THE LIST OF DONORS WHO HAD DONATED AMOUNT EXCEE DING RS.2000/- AS NO SUCH DONATIONS HAD BEEN RECEIVED. 4.0 PER CONTRA, THE LD. CIT-DR PLACED RELIANCE ON THE ORDER OF THE LD. CIT(E). 5.0 WE HAVE HEARD THE RIVAL SUBMISSIONS AND H AVE ALSO PERUSED THE MATERIAL ON RECORD. IT IS SETTLED LAW T HAT AT THE TIME OF GRANTING REGISTRATION U/S 12AA OF THE ACT, THE LD. CIT(E) IS REQUIRED TO SEE ONLY THE OBJECTS OF THE ASSESSEE TRUST/SOCIE TY AND NOT TO GO ON TO EXAMINE THE APPLICATION OF INCOME, WHICH WILL HA VE TO BE UNDERTAKEN BY THE ASSESSING OFFICER ON YEAR TO YEAR BASIS AFTER THE ASSESSEE FILES THE RETURN OF INCOME CLAIMING EXEMPT ION U/S 11 OF THE ACT. THE HONBLE ALLAHABAD HIGH COURT IN THE CA SE OF FIFTH 4 ITA NO.122/DEL/2021 HANUMATDHAM VIDYAPEETH NYAS VS . CIT(E) GENERATION EDUCATION SOCIETY VS. CIT REPORTED IN [1 990] 185 ITR 634 (ALLAHABAD) HAS HELD THAT AT THE TIME OF CONSIDERING THE APPLI CATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT, THE L D. CIT(E) IS NOT REQUIRED TO EXAMINE THE APPLICATION OF INCOME OR CA RRYING ON OF ANY ACTIVITY BY THE ASSESSEE TRUST OR INSTITUTION IN TE RMS OF THE OBJECTS SET OUT THEREIN. THE HONBLE MADHYA PRADESH HIGH CO URT IN THE CASE OF CIT VS. D.P.R CHARITABLE TRUST REPORTED IN [2011] 6 1 DTR 410 , HAS HELD THAT WHILE CONSIDERING THE APPLICATION U/S 12A, THE LD. CIT(E) WHILE GRANTING REGISTRATION IS NOT REQUIRED TO EXAMINE WHETHER THE INCOME DERIVED BY THE TRUST IS BEING SP ENT FOR CHARITABLE PURPOSES OR WHETHER THE TRUST IS EARNING PROFIT. IT WAS HELD BY THE HONBLE MADHAYA PRADESH HIGH COURT THAT SINCE THE ASSESSEE TRUST WAS ESTABLISHED FOR EDUCATIONAL PURP OSES, THE TRUST WAS ENTITLED TO REGISTRATION. 5.1 THEREFORE, THE SETTLED JUDICIAL PRECEDENT IS THAT AT THE TIME OF CONSIDERING THE ASSESSEES APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT, THE LD. CIT IS REQUIRED ONLY T O EXAMINE THE OBJECTS OF THE SOCIETY/TRUST AND TO GRANT REGISTRAT ION IF THE OBJECTS ARE FOUND TO BE CHARITABLE IN NATURE. HOWEVER, IN T HE INSTANT CASE, 5 ITA NO.122/DEL/2021 HANUMATDHAM VIDYAPEETH NYAS VS . CIT(E) THE LD. CIT(E) HAS GONE BEYOND THE MANDATE CONFERRE D UPON HIM UNDER THE ACT AND HAS DISMISSED THE ASSESSEES APPL ICATION FOR REGISTRATION WITHOUT EVEN CONSIDERING THE OBJECTS O F THE ASSESSEE TRUST. WE, ACCORDINGLY, RESTORE THE FILE TO THE OFF ICE OF THE LD. CIT(E) WITH A DIRECTION THAT HE SHOULD RECONSIDER THE ASSE SSEES APPLICATION FOR REGISTRATION OF THE TRUST AFTER DUL Y CONSIDERING THE OBJECTS OF THE ASSESSEE TRUST AND AFTER GIVING PROP ER OPPORTUNITY TO THE ASSESSEE/APPLICANT TO PRESENT ITS CASE. 6.0 IN THE FINAL RESULT, THE APPEAL OF THE ASSESSE E STANDS ALLOWED FOR STATISTICAL PURPOSES. ABOVE DECISION WAS ANNOUNCED ON CONCLUSION O F VIRTUAL HEARING ON 13 TH JULY, 2021 SD/- S D/- (PRASHANT MAHARISHI) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13/07/2021 PK/PS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT DEHRADUN