Chain Foundation, Hyderabad V. Commissioner of Income Tax, Exemptions, Hyderabad

ITA 1315/Hyd/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4627 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-07-2018
• Assessment Year: 2016-2017
• Appeal Filed On: 27-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANJAY KUMAR SHARDA
• Keywords: Opportunity of being heard
• Section: 80G; 12AA; 201; 20

Judgement Text

IN THE IN COME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1 3 15 /HYD/201 7 ASSESSMENT YEAR: 20 1 6 - 17 CHAIN FOUNDATION, HYDERABAD. PAN AABTC 5105D VS. COMMISSIONER OF INCOME - TAX (EXEMPTIONS), HYDERABAD. ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI SANJAY KUMAR SHARDA SUNIL KUMAR JAIN REVENUE BY : SMT. ALKA RAJVANSHI JAIN DATE OF HEA RING 30 / 0 7 /2018 DATE OF PRONOUNCEMENT 0 3 / 0 8 / 201 8 O R D E R PER S . RIFAUR RAHMAN , A .M. : T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 2 8 / 04 / 201 7 OF CIT( EXEMPTIONS ) , HYDERABAD FOR AY 20 1 6 - 1 7 . 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSEE, A TRUST, FILED APPLICATION IN FORM NO. 10G ON 19/10/2016 SEEKING APPROVAL U/S 80G OF THE INCOME - TAX ACT, 1961 (IN SHORT THE ACT). EARLIER, THE TRUST WAS GRANTED REGISTRATION U/S 12AA OF THE ACT VIDE ORDER DATED 27/06/2016. 2.1 THE CIT (E) ISSUED A LETTER DATED 16/01/2017 REQUIRING THE ASSESSEE TO PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECIFIC POINTS. ON VERIFICATION OF THE INFORMATION FILED BY THE ASSESSEE, THE CIT(E) FOUND THAT THE OBJECT AT SL. NO. R OF THE OBJECTS IS TO PUBLISH AND DISTRIBUTE TEXT AND NOTE - BOOKS, STUDY MATERIALS TO PERSONS INTERESTED IN STUDYING BHAGAVADGEETHA, VEDAS, UPANISHADS AND PHILOSOPHICAL BOOKS OF THE 2 ITA NO. 1315 /HYD/1 7 CHAIN FOUNDATION, HYD. LIKE NATURE, WHICH IS RELIGIOUS IN NATURE. FURTHER, HE OBSERVED THAT AS PER THE INFORMATION FILED BY THE ASSESSEE, THE ASSESSEE TRUST HAD NOT UNDERTAKEN ANY CHARITABLE ACTIVITIES EXCEPT DONATING RS. 4 LAKHS TO M/S AGARWAL SEVA TRUST IN THE LAST FOUR YEARS AND MOST OF THE INCOME RECEIVED WAS SPENT ONLY TOWARDS SALARIES TO STAFF, AUDIT FEE, AND OTHER MISCELLANEOUS EXPENDITURE AND NO CHARITABLE ACTIVITY WAS UNDERTAKEN. WHEN ASKED TO EXPLAIN HOW THE ASSESSEE TRUS T IS ELIGIBLE FOR APPROVAL U/S 80G OF THE ACT, THE ASSESSEE TRUST COULD NOT GIVE ANY CLARIFICATION ON THE RELIGIOUS OBJECT AT SL.NO. R AND NO CLARIFICATION WAS GIVEN ON THE CHARITABLE ACTIVITIES UNDERTAKEN IN THE PREVIOUS THREE YEARS EXCEPT GIVING DONATI ON TO ANOTHER TRUST. IN VIEW OF THE ABOVE OBSERVATIONS, THE CIT(E) REJECTED THE APPLICATION FILED FOR APPROVAL U/S 80G IN FORM NO. 10G. 3. AGGRIEVED BY THE ORDER OF CIT(E), THE ASSESSEE IS IN APPEAL BEFORE US. 4. BEFORE US, LD. AR OF THE ASSES SEE INVITED OUR ATTENTION TO THE LETTER DATED 30/04/2018 ADDRESSED TO THE DIT(E), WHICH IS ON RECORD, WHEREIN IT WAS ENCLOSED A COPY OF AMENDED TRUST DEED DATED 11/05/2017 TO SUBMIT THAT THE CLAUSE R WAS AMENDED AND, THEREFORE, THE MATTER MAY BE REMITTE D BACK TO THE CIT(E) FOR CONSIDERING THE SAME AND GRANT APPROVAL U/S 80G TO THE ASSESSEE. 5. LD. DR, ON THE OTHER HAND, CONCEDED TO THE SUBMISSIONS OF THE OF THE LD. AR. 6. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. AS SUBMITTED BY THE LD. AR OF THE ASSESSEE, THE ASSESSEE FILED BEFORE THE DEPARTMENT THE AMENDED TRUST DEED DATED 11/05/2017 WHEREIN THE CLAUSE R AMENDED AS UNDER: ORIGINAL CLAUSE: 3 ITA NO. 1315 /HYD/1 7 CHAIN FOUNDATION, HYD. R: TO PUBLISH AND DISTRIBUTE TEST NOTE BOOKS, STUDY MATERI ALS TO PERSONS INTERESTED IN STUDYING BHAGAVADGEETHA, VEDAS, UPANISHADS AND PHILOSOPHICAL BOOKS OF THE LIKE NATURE. AMENDED CLAUSE: R : TO PUBLISH AND DISTRIBUTE TEXT AND NOTE BOOKS, STUDY MATERIALS TO PERSONS INTERESTED IN STUDYING PHILOSOPHICAL NOTE B OOKS. IN VIEW OF THE ABOVE, WE REMIT THE ISSUE BACK TO THE FILE OF CIT(E) WITH A DIRECTION TO CONSIDER THE AMENDED CLAUSE AND GRANT APPROVAL TO THE ASSESSEE U/S 80G IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSES SEE IN THE MATTER. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST , 2018 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 3 RD AUGUST , 2018 KV C OPY TO: - 1) CHAIN FOUNDATION, H.NO. 11 - 6 - 27/17, BALANAGAR, OPP. IDPL, BALANAGAR, HYDERABAD 500 037 2) C IT (E) , HYDERABAD. 3) ADDL. CIT(E), HYDERABAD. 4) IT O(E) - 1 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE