M/s Gurudwara Bohli Sahib Kar Sewa & Charitable Society, Pehowa V. CIT(E), Chandigarh

ITA 1263/CHANDI/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5002 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 28-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution

Judgement Text

ITA NO. 1263/CHD/2017-M/S GURUDWARA BOHLI SAHIB KAR SEWA & CHARITABLE SOCIETY, PEHOWA, HA RYANA 2 ADDRESSING SOME OF THE SOCIAL EVILS, PROVIDING FREE ACCOMMODATION TO PILGRIMS AND GENERAL PUBLIC, PROMOTION AND PROGRESS OF AGRICULTURAL AND ANIMAL HUSBANDRY, HELPING POOR AND NEEDY PEOPLE IN CASE OF NATURAL DISASTER, TAKING UP PROGRAMS FOR ENSURING P ROTECTION OF ENVIRONMENT AND VARIOUS OTHER ACTIVITIES / SERVICES ETC. HOWEVER, THE LD. CIT (E) REJECTED THE APPLICATION OF THE ASS ESSEE OBSERVING THAT THE ASSESSEE HAS POSSESSED SO MANY VEHICLES IN CLUDING LUXURY VEHICLES AND THAT THERE WAS NO EXPLANATION HOW THE PURCHASE / USE OF THESE VEHICLES INVOLVED IN CHARITABLE PURPOSES O R ACTIVITY. FURTHER, THAT THE ASSESSEE HAS SHOWN DONATIONS REC EIVABLE. THE POINT RAISED BY LD. CIT(E) IS THAT HOW AN ENTITY BE SURE ABOUT THE EXACT VALUE OF DONATIONS. FURTHER, LD. CIT (E) FOUND T HAT THE ASSESSEE HAD SHOWN HUGE MONETARY RECEIPTS DURING THE PERIOD WHEN DEMONETARIZATION WAS EFFECTED BY THE GOVERNMENT. TH E LD. CIT(E) HAS FURTHER OBSERVED THAT IN THE PAST, MOST OF THE CASH DONATIONS HAVE NOT BEEN BROUGHT INTO MAIN STREAM. HE, THEREFO RE, HELD THAT THE ACTIVITY OF THE ASSESSEE TRUST WAS NOT CHARITABLE I N NATURE. 3. THE LD. COUNSEL, BEFORE US, HAS SUBMITTED THAT WHILE GIVING THE ABOVE OBSERVATIONS / FINDINGS, THE LD. CIT(E) HAS N OT GIVEN PROPER OPPORTUNITY TO THE ASSESSEE. THAT THOUGH CERTAIN QU ERIES WERE RAISED BY LD. CIT(E) WHICH WERE DULY REPLIED, HOWEVER, THE ASSESSEE HAS NOT BEEN GIVEN OPPORTUNITY TO REBUT THE ABOVE FINDI NGS, AS NO QUESTION WAS ASKED BY THE LD. CIT(E) SPECIFICALLY ON THE ABOVE ISSUES. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT THE ASSESSEE BE GIVEN OPPORTUNITY TO EXPLAIN ABOUT EACH OF THE ISSU E, SUCH AS, POSSESSION OF VEHICLES, RECEIPT OF DONATIONS AND TH EIR APPLICATION ON ITA NO. 1263/CHD/2017-M/S GURUDWARA BOHLI SAHIB KAR SEWA & CHARITABLE SOCIETY, PEHOWA, HA RYANA 4 SET ASIDE AND THE MATTER IS RESTORED BACK TO THE FI LE OF CIT (E) TO DECIDE IT AFRESH IN ACCORDANCE WITH LAW, AFTER GIVI NG PROPER OPPORTUNITY TO THE ASSESSEE TO EXPLAIN ABOUT EACH O F THE ISSUES AS MAY BE CONSIDERED APPROPRIATE / POINTS RAISED BY THE LD . CIT(E) IN THIS RESPECT. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 01.08.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR