Gareeb Guide (The Voluntary Organization), Hyderabad V. The Director of Income Tax (Exemptions), Hyderabad

ITA 1559/HYD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77956 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 10-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D V RAO
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 1559/HYD/2012 ASSESSMENT YEAR : 2011-12 GAREEB GUIDE (THE VOLUNTARY ORGANIZATION), HYDERABAD PAN AAHFG3708J THE DIRECTOR OF INCOME-TAX (EXEMPTION), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI D.V. RAO REVENUE BY SHRI SOLGY JOSE T. KOTTARAM DATE OF HEARING 04-06-2014 DATE OF PRONOUNCEMENT 18-06-2014 O R D E R PER SAKTIJIT DEY, A.M.: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 27/09/2012 PASSED BY THE DIT(E), HYDERABAD REJECTIN G ASSESSEES APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF T HE IT ACT. 2. BRIEFLY THE FACTS ARE, ASSESSEE CLAIMING ITSELF TO BE A CHARITABLE INSTITUTION APPLIED FOR REGISTRATION U/S 12AA OF T HE ACT IN THE PRESCRIBED MANNER BEFORE THE DIT(E) ON 31/03/2012. AS IT APPEARS FROM THE ORDER OF DIT(E) AFTER RECEIVING APPLICATIO N IN FORM NO. 10A, THE DIT(E) ISSUED A QUESTIONNAIRE VIDE LETTER DATED 02/07/2012 CALLING UPON THE ASSESSEE TO FURNISH DETAILS ON SPECIFIC IS SUES RAISED IN THE QUESTIONNAIRE AND FURTHER TO PRODUCE THEIR ORIGINAL DOCUMENTS OF REGISTRATION AND BOOKS OF ACCOUNT FOR VERIFICATION. AFTER PERUSING THE INFORMATION SUBMITTED BY ASSESSEE INSTITUTION, THE DIT(E) NOTED THAT THE OBJECTS OF THE TRUST AS MENTIONED IN THE TRUST DEED ARE NOT SPECIFIC AND CANNOT BE ACCEPTED AS CHARITABLE KEEPI NG IN VIEW THE 2 ITA NO. 1559/HYD/2012 GAREEB GUIDE (THE VOLUNTARY ORGANSATION), HYD. MEANING OF CHARITABLE PURPOSE DEFINED IN SECTION 2(15) OF THE ACT. FURTHER, THE DIT(E) ALSO NOTED THAT THOUGH DURING T HE PROCEEDING, ASSESSEE INSTITUTION STATED THAT THEY HAVE CONDUCTE D CAMPAIGNS ON RIGHT TO INFORMATION ACT, ROLE OF JUDICIARY, ROLE O F YOUTH IN POLITICS, PUBLIC INTEREST LITIGATION ON 25% FREE SEATS TO POO R STUDENTS IN PRIVATE COLLEGES, CAMPAIGN ON WOMEN RIGHT, CHILD RIGHT, ETC ., BUT, HAS NOT FURNISHED ANY EVIDENCE TO INDICATE THAT IT HAS IN R EALITY CONDUCTED SUCH CAMPAIGNS. DIT(E), FURTHER, NOTED THAT THE ASS ESSEE INSTITUTION COULD NOT EXPLAIN HOW SUCH OBJECTS ARE COVERED UNDE R CHARITABLE PURPOSE AS DEFINED IN SECTION 2(15) OF THE ACT. FUR THER, THE DIT(E) OBSERVED THAT THOUGH A SPECIFIC QUERY VIDE SL. NO. 13 OF THE QUESTIONNAIRE WAS RAISED TO INDICATE CERTAINTY OF T HE OBJECTS AND CLASSIFICATION OF THE OBJECTS UNDER DIFFERENT HEADS LIKE MEDICAL RELIEF, EDUCATION, RELIEF OF POOR OR ANY OTHER OBJECT OF GE NERAL PUBLIC UTILITY, HOWEVER, ASSESSEE INSTITUTION HAS NOT CLARIFIED ON SUCH ISSUE BY LEAVING SPECIFIC COLUMN BLANK. IN VIEW OF THE AFORE SAID, THE DIT(E) CAME TO A CONCLUSION THAT THE ASSESSEE CANNOT BE AL LOWED REGISTRATION U/S 12A OF THE ACT. ACCORDINGLY, HE RE JECTED THE APPLICATION FILED BY THE ASSESSEE INSTITUTION. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD. IT IS THE CONTENTION OF THE LEARNED AR THAT THE OBJ ECTS OF THE ASSESSEE WILL CLEARLY COME WITHIN THE MEANING OF CHARITABLE PURPOSE AS DEFINED U/S 2(15) OF THE ACT, AS THEY ARE FOR GENERAL PUBLI C UTILITY. THEREFORE, THE CONCLUSION DRAWN BY THE DIT(E) THAT THE OBJECTS ARE NOT CHARITABLE IS TOTALLY ARBITRARY AND WITHOUT ANY BASIS. SO FAR AS THE OTHER ALLEGATION OF THE DIT(E) THAT THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE IN RESPECT OF CLAIM OF CONDUCTED CAMPAIGN S ON VARIOUS ISSUES, THE LEARNED AR SUBMITTED THAT THE DIT(E) W ITHOUT AFFORDING A REASONABLE OPPORTUNITY FOR FURNISHING NECESSARY CLA RIFICATION/DETAILS WAS NOT JUSTIFIED IN ALLEGING THAT THE ASSESSEE HAS FAILED TO FURNISH THE NECESSARY INFORMATION. 3 ITA NO. 1559/HYD/2012 GAREEB GUIDE (THE VOLUNTARY ORGANSATION), HYD. 4. THE LEARNED DR, ON THE OTHER HAND, RELIED ON THE ORDER OF DIT(E). 5. AS CAN BE SEEN FROM THE ORDER OF THE DIT(E), THE OBJECTS OF THE ASSESSEE INSTITUTION ARE AS UNDER: 1. PROMOTING FUNDAMENTAL PRINCIPLES AND HUMANITARIA N VALUES, 2. DEVELOP IN A BETTER UNDERSTANDING INTERNALLY, 3. INFLUENCING BEHAVIOR IN THE COMMUNITY, 4. THE PROTECTION OF LIFE HEALTH AND HUMAN DIGNITY, 5. GUIDE THE PEOPLE FOR THEIR WELL WISH, 6. FIGHT FOR LEGAL AND ECONOMICAL EQUALITY, ETC. 6. THOUGH THE DIT(E) HAS HELD THAT THE AFORESAID OB JECTS ARE NOT SPECIFIC AND CANNOT BE ACCEPTED AS CHARITABLE BUT, ON WHAT BASIS HE HAS COME TO SUCH A CONCLUSION HAS NOT AT ALL BEEN D ISCUSSED BY HIM. FURTHER, THE ALLEGATION OF THE DIT(E) THAT THE ASSE SSEE HAS NOT INDICATED WITH CERTAINTY THE OBJECTS AND CLASSIFIC ATION OF THE OBJECTS UNDER DIFFERENT HEADS APPEARS TO BE VAGUE. WE FAIL TO UNDERSTAND WHAT THE DIT(E) ACTUALLY MEANT BY THAT. FURTHER, IT IS NOT CLEAR WHETHER THE DIT(E) HAS GRANTED ADEQUATE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM IN RESPECT OF THE CAMPAIGNS STATED TO HAVE BEEN UNDERTAKEN BY IT. THEREFORE, CONSIDERING THE SUBMIS SION OF THE LEARNED AR THAT IT WILL CLARIFY ALL ISSUES BY REMO VING DOUBTS/APPREHENSIONS OF THE DIT(E), IF ANOTHER OPPO RTUNITY IS GIVEN, WE ARE INCLINED TO REMIT THIS MATTER BACK TO THE FI LE OF DIT(E), WHO SHALL DECIDE THE ISSUE AFRESH AFTER AFFORDING REASO NABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE INSTITUTION. IF AT ALL THE DIT(E) COMES TO AN OPINION THAT OBJECTS OF ASSESSEE DO NOT COME WIT HIN THE MEANING OF CHARITABLE PURPOSE AS PROVIDED U/S 2(15), HE MUS T PROVIDE ADEQUATE REASONS FOR COMING TO SUCH CONCLUSION. FU RTHER, THE DIT(E) MUST SEEK CLARIFICATION ON ALL THE ISSUES, WHICH AC CORDING TO HIM, MAKES THE INSTITUTION INELIGIBLE FOR REGISTRATION U /S 12AA OF THE ACT. ONLY AFTER AFFORDING A FAIR OPPORTUNITY OF HEARING TO ASSESSEE 4 ITA NO. 1559/HYD/2012 GAREEB GUIDE (THE VOLUNTARY ORGANSATION), HYD. INSTITUTION AND CONSIDERING ALL ITS SUBMISSIONS AND MATERIALS ON RECORD, THE DIT(E) SHALL DECIDE THE ISSUE IN ACCORD ANCE WITH LAW. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS CONSIDE RED TO BE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 18/06/2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DE Y) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 18 TH JUNE, 2014 KV COPY TO:- 1) SHRI D.V. RAO, LEGAL ADVISOR, GAREEB GUIDE (THE VOLUNTARY ORGANISATION), 11/101, OLD MALAHAR, SAHARA STAT ES, MANSOORABAD, L.B. NAGAR, HYDERABAD 500 068. 2) DIT(E), HYDERABAD. 3) ADIT(E), HYDERABAD. 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.