Yess, New Delhi V. DIT(E), New Delhi

ITA 1521/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8504 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 25-06-2009
• Assessment Year: misc
• Appeal Filed On: 16-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHROE B
• Keywords: Set aside
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `G : NEW DELHI) BEFORE HONBLE SR. VICE PRESIDENT SHRI R.P. GARG A ND HONBLE JUDICIAL MEMBER, SHRI RAJPAL YADAV ITA NOS.1521 & 1522/DEL./2009 (ASSESSMENT YEAR : BLOCK PERIOD) YESS, VS. DIT(EXEMPTION) C-44, FRIENDS COLONY, NEW DELHI. NEW DELHI-110 065. (PAN/GIR NO.AAATY1746R) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ATUL PURI, REVENUE BY : SHRI KISHROE B., SR.DR ORDER PER R.P. GARG, SR.VP THESE TWO APPEALS BY THE ASSESSEE ARE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX FOR REJECTING THE REGISTRATION U/S 12A A ND NOT GRANTING EXEMPTION U/S 80G(5)(VI) OF THE I.T. ACT, 1961. 2. THE SOCIETY TRUST WAS CREATED ON 9.10.2007 BY SE TTING APART A SUM OF RS.11,000 BY MRS. BRITA SAHNI, D/O SHRI RAVINDER SAHNI, R/O FRIE NDS COLONY, NEW DELHI. THE OBJECTS OF THE TRUST ARE GIVEN IN CLAUSE (3) OF THE TRUST D EED WHICH READS AS UNDER: 3. THE OBJECT AND PURPOSE OF THE TRUST ARE AND SHAL L BE RELIEF TO THE POOR, HANDICAPPED, DESTITUTE WOMEN, PROMOTION OF RELIGIOU S HARMONY, EDUCATION AND MEDICAL RELIEF TO ONE AND ALL OBJECTS FOR THE F URTHERANCE OF MAIN OBJECTS MENTIONED BELOW: (A) TO ESTABLISH, RUN, MAINTAIN, SUPPORT AND/OR TO GRANT AID OR FINANCIAL ASSISTANCE TO PLACES OF WORSHIP SCHOOLS, COLLEGES, EDUCATIONAL AND VOCATIONAL INSTITUTIONS, LIBRARIES, HOSTELS, BOARDI NG HOUSES, READING ROOMS, ORPHANAGE AND OTHER SIMILAR INSTITUTIONS: (B) TO ESTABLISH, RUN AND/OR MAINTAIN EDUCATIONAL I NSTITUTIONS AND/OR CENTERS OF EDUCATION AND/OR EDUCATIONAL RESEARCH, A ND/OR EDUCATION ITA NOS.1521 & 1522/DEL./2009 (A.Y. : BLOCK PERIOD) 2 LIBRARIES, LABORATORIES AND TO PROVIDE SERVICES TO OTHER EDUCATIONAL INSTITUTIONS. (C) TO GRANT FINANCIAL HELP, SCHOLARSHIPS, STIPENDS AND OTHER AID TO STUDENTS AND TO PROVIDE FOR THEIR EDUCATION. (D) TO GIVE DONATIONS, CONTRIBUTIONS, MONETARY OR F INANCIAL ASSISTANCE TO INDIVIDUAL AND/OR TO PLACES OF WORSHIP, SOCIETIE S, INSTITUTIONS AND/OR ORGANIZATIONS FOR THE PROMOTION AND ADVANCEM ENT OF RELIGIOUS EDUCATIONAL, LITERATURE, ART, SCIENCE OR CULTURE. (E) TO PROVIDE STUDENTS WITH BOOKS, SCIENTIFIC INST RUMENTS, COMPUTERS HARDWARE AND SOFTWARE AND OTHER APPLIANCES AND/OR R ENDER FINANCIAL ASSISTANCE OR MONETARY AIR TO THEM FOR THE PURPOSE OF STUDIES, HIGHER STUDIES AND/OR RESEARCH. (G) TO GRANT RELIEF BY WAY OF PROVIDING/ARRANGING/G IVING DONATIONS, CONTRIBUTIONS, SUBSCRIPTIONS, MONETARY OR FINANCIAL ASSISTANCE OR AIDS TO THE DUMB; BLIND; DEAF; ORPHAN AND POOR OR N EEDY PERSONS AND/OR TO ANY ORGANIZATIONS OR INSTITUTIONS ESTABLI SHED IN RESPECT THEREOF. (H) TO ESTABLISH, RUN AND/OR MAINTAIN DISPENSARIES, HOSPITALS, NURSING HOMES, DIAGNOSTIC CENTERS, MATERNITY HOMES AND/OR C ENTER FOR DISPENSING OR DISTRIBUTING MEDICINES AND/OR MEDICAL FACILITIES AT ANY PLACE IN INDIA FOR THE BENIGNITY AND USE OF THE SICK AND SUFFERING AND TO PROVIDE THEM MEDICAL ATTENDANCE OR MEDICAL TREATMENT OR OTHER AIDS/MEDICAL EQUIPMENTS AND/OR T O MEET THEIR EXPENSES FOR THE SAME OR INCIDENTAL THERETO. (I) TO PAY ANY SUM OR SUMS OF MONEY BY WAY OF DONAT IONS, SUBSCRIPTIONS, CONTRIBUTIONS, MONETARY AIDS; AND/OR FINANCIAL ASSISTANCE, TO ANY SOCIETY, ORGANIZATION, INSTITUTI ON ENGAGED IN THE ACTIVITIES OF SUPPLYING DRINKING WATER TO THE PUBLI C, AND/OR ANIMALS, CATTLE OR BIRDS AT ANY PLACE IN INDIA, OR TO ANY DI SPENSARY, HOSPITAL, SANITORIUM OR ANY OTHER INSTITUTION, ORGANIZATION O R SOCIETY PROVIDING MEDICAL FACILITIES AND/OR DISPENSING OR D ISTRIBUTING MEDICINES AMONG THE NEEDY, SICK AND SUFFERING. (J) TO ESTABLISH, PROVIDE, START, RUN, SUPPORT AND/ OR TO MAINTAIN WATER CARTS, WATER BOOTHS OR TAPS ETC. FOR SUPPLYING AND/ OR MAKING AVAILABLE DRINKING AND/OR BATING WATER OR FACILITIE S THERETO AND/OR SWIMMING TANKS, BATHROOMS, ETC. FOR BATHING AND/OR WASHING PURPOSES AT ANY PLACE/PLACES IN INDIA FOR THE USE A ND BENEFIT OF THE PUBLIC IN GENERAL. (K) TO ESTABLISH, DIG, CONSTRUCT, START, RUN MAINTA IN AND/OR PROVIDE PONDS, TUBE WELLS, OPEN WELLS, TANKS AND PUMPS, POO LS AND OTHER SOURCES OF WATER SUPPLY ETC., AT ANY PLACE OR PLACE S IN INDIA FOR THE USE AND BENEFIT OF THE PUBLIC IN GENERAL. (L) TO ESTABLISH, RUN, TO MAINTAIN AND/OR GRANT FIN ANCIAL AID/OR ASSISTANCE BY WAY OF CONTRIBUTIONS, SUBSCRIPTION OR DONATIONS TO GAUSHALAS. ITA NOS.1521 & 1522/DEL./2009 (A.Y. : BLOCK PERIOD) 3 (M) TO PRESERVE PLACES OF HISTORICAL IMPORTANCE OR OF NATURE AND TO ESTABLISH AND MAINTAIN PUBLIC PARTS AND OTHER RECRE ATION CENTERS FOR USE AND BENEFIT OF THE PUBLIC IN GENERAL. (N) AND GENERALLY TO DO ALL OTHER ACTS, DEEDS AND T HINGS AS MAY BE CONDUCIVE TO THE ATTAINMENT AND FURTHERANCE OF ANY OR ALL OF THE ABOVE OBJECTS AND PURPOSES OF THE TRUST AND/OR IN A NY OTHER WAY SIMILAR TO THEM OR RELATING THERETO IN THE BENEFIT OF GENERAL PUBLIC. IT APPLIED FOR REGISTRATION U/S 12A AS WELL AS FOR GRANTING THE DEDUCTION U/S 80G OF THE ACT. THE CIT REQUIRED THE ASSESSEE TO FURNISH CERT AIN DETAILS AND ON GOING THROUGH THAT THE CIT HELD THAT NO CONCRETE EVIDENCE HAS BEEN FIL ED WHICH COULD PROVE THAT ACTUAL CHARITABLE ACTIVITIES HAD BEEN CARRIED OUT BY THE A SSESSEE TRUST. QUOTING PROVISIONS OF SECTION 12A, HE OBSERVED THAT FOLLOWING TWO CONDITI ONS WERE TO BE SATISFIED: (I) THE OBJECT OF THE SOCIETY SHOULD BE OF CHARITAB LE IN NATURE; AND (II) THE ACTIVITY OF THE SOCIETY SHOULD BE GENUINE. THE CIT, THEREFORE, HELD THAT IN ABSENCE OF CONCRET E EVIDENCE, THE GENUINENESS OF THE OF THE ACTIVITIES COULD NOT BE ESTABLISHED AND, THEREF ORE, ONE OF THE CONDITIONS FOR GRANTING REGISTRATION U/S 12AA IS NOT SATISFIED. HE ACCORDI NGLY REJECTED THE REGISTRATION U/S 12A AS WELL AS GRANTING EXEMPTION U/S 80G OF THE ACT. 3. WE HAVE GONE THROUGH THE MATERIAL ON RECORD AND SUBMISSION ADVANCED BY BOTH THE SIDES. ON A BARE PERUSAL OF THE OBJECTS STATED AS PER IN CLAUSE 3 OF THE TRUST DEED, IT WOULD BE EVIDENT THAT THE OBJECTS OF THE TRUST ARE CHARITABLE AND WE DO NOT FIND ANY CLAUSE THEREIN WHICH COULD BE SAID TO BE NON-CHARITABLE. E VEN THE CIT HAS NOT POINTED OUT THAT ANY CLAUSE WAS NON-CHARITABLE AT THE TIME OF GRANTI NG REGISTRATION OF THE TRUST. WHAT THE CIT HAS TO SEE IS THAT ITS OBJECTS ARE CHARITABLE A ND IF HE FINDS THAT THE OBJECTS ARE CHARITABLE HE SHOULD GRANT REGISTRATION TO THE TRUS T. AT THIS TIME, IT IS NOT REQUIRED TO EXAMINE THAT THE ACTIVITIES WERE CARRIED OUT IN A M ANNER WHICH COULD BE SAID TO BE NON- CHARITABLE. WHEN THE OBJECTS ARE CHARITABLE, IT HA S TO BE TREATED AS A GENUINE TRUST UNLESS THERE IS SOME MATERIAL ON RECORD TO HOLD IT OTHERWI SE. THE CIT HAS PUT THE ONUS ON THE ASSESSEE TO SAY THAT IT HAD NOT BROUGHT ANY EVIDENC E ON RECORD TO PROVE THAT ACTUAL CHARITABLE ACTIVITIES HAVE BEEN CARRIED OUT OR AS T O THE GENUINENESS OF THE ACTIVITIES. THE APPROACH OF THE CIT, IN OUR OPINION, IS NOT IN ACCO RDANCE WITH LAW AND AS HELD ABOVE, ON ITA NOS.1521 & 1522/DEL./2009 (A.Y. : BLOCK PERIOD) 4 A PERUSAL OF THE OBJECTS OF THE TRUST, WE FIND THAT ALL THE OBJECT IN THE CLAUSES ARE CHARITABLE AND THERE IS NOTHING IN THE TRUST WHICH COULD CAST A DOUBT ABOUT ITS GENUINITY. WE ACCORDINGLY SET ASIDE THE ORDER OF THE CIT AND DIRE CT HIM TO GRANT REGISTRATION AS WELL AS EXEMPTION U/S 80G OF THE ACT. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. 5. ORDER PRONOUNCED IN OPEN COURT ON 10.07.2009. (RAJPAL YADAV) (R.P. GARG) JUDICIAL MEMBER SR. VICE PRESIDENT DATED: JULY 10, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(E), NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT