Society of Geoscientists and Allied Technolgists, Bhubaneswar V. CIT, Bhubaneswar

ITA 187/CTK/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65099 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 22-08-2012
• Assessment Year: 2012-2013
• Appeal Filed On: 14-03-2012
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Assessee Lawyers: P V RAO
• Keywords: Gift; Charitable institution; Cancellation of registration
• Section: 12; 80G; 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO, JUDICIAL MEMBER / I.T.A.NO S . 187 AND 188/CTK/2012 / ASSESSMENT YEAR 2012 - 13 SOCIETY OF GEOSCIENTISTS AND ALLIED TECHNOLOGISTS, 267, KHARVEL NAGAR, BHUBANESWAR 751 001. PAN: AACTS 3373 C - - - VERSUS - COMMISSIONER OF INCOME - TAX, BHUBANESWAR. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI P.V.RAO, AR / FOR THE RESPONDENT: / SHRI S.C.MOHANTY, DR / DATE OF HEARING: 22.08.2012 / DATE OF PRONOUNCEMENT: 31.08.2012 / ORDER . . , , SHRI K.K.GUPTA, ACCOUNTANT MEMBER. THESE TWO APPEALS BY THE ASSESSEE ARE ON THE REJECTION OF THE APPLICATION FOR RENEWAL OF REGISTRATION UNDER THE PROVISIO NS OF SECTION 80(5)(VI) WHICH IN TURN HAS BEEN CONSIDERED FOR THE PURPOSE OF REJECTING THE ASSESSEES REGISTRATIO N GRANTED HITHERTO GRANTED U/S. 12AA BY BRINGING ON RECORD VARIOUS MATERIALS WHICH WERE NOT PROPERLY ADDRESSED BY THE ASSESSEE BEING THE FACTS O F THE CASE ARE FORMING PART OF THE APPEAL MEMO HERE IN BEFORE US. 2. WE PROCEED TO DISPOSE OF BOTH THESE APPEALS SIMULTANEOUSLY FOR THE SOLE REASON THAT THE REJECTION OF REGISTRATION U/S.12AA HAS SUCCEEDED THE REJECTION OF RENEWAL OF REGISTRATION U/S. 80(5 )(VI). 3. THE BRIEF FACTS AS HAVE BEEN BROUGHT ON RECORD ARE THAT T HE ASSESSEE SOCIETY OF GEOSCIENTISTS AND ALLIED TECHNOLOGISTS IS REGISTERED ON 18TH DAY OF AUGUST, 1981 UNDER THE REGISTRATION OF THE SOCIETY ACT, 1860 IN THE I.T.A.NOS.187 AND 188/CTK/2012 2 AD DRESS; C/O DEPTT. OF GEOLO GY, UT KAL UNIVERSITY, VANIVIHAR, BHUBANEWAR AS SEEN FROM THE REGISTRATION CERTIFICATE. SUBSEQUENTLY THE SOCIETY WAS REGISTERED U/S 12 - A OF THE L.T. ACT, 1961 VIDE PROCEEDING OF THE CIT. ODISHA, B HUBANESWAR IN NO. ADM/(L.T.)/18/12 - A/89 - 90/8859, D T . 06/09TH JULY, 1990. THE SOCIETY WAS ALSO GRANTED RECOGNITION FOR EXEMPTION U/S 80( 5) (VI) VIDE PROCEEDING IN NO. I TO(TECH)/80G - 12/2006 - 07/, DT. 19.10.2006 BY THE COMMISSIONER OF INCOME TAX, BHUBANESWAR UPTO THE A.Y. 2011 - 12. BEFORE EXPIRY OF 80G CERTIFICATE THE AP PELLATE HAD PREPARED AN APPLICATION IS FORM L0 G FOR ITS RENEWED BEING UNAWARE OF THE CIRCULAR ISSUED BY CBDT DT. 27.10.2010 VIDE CIRCULAR NO. 7/2010 (F. NO. 197/21/2010 - ITA - 1) WHICH RENDERS THE EXCISING 80G CERTIFICATE APPROVAL EXPIRING ON OR AFTER 01.10.2 009 EXTENDED IN PERPETUITY. AS THE APPELLANT WAS HAVING 80G APPROVAL UP TO ASST. YEAR - 20 10 - 11 I.E. THE VALIDITY OF THE CERTIFICATE EXPIRING AFTER 01.10.2009, THE RENEWAL BECOMES AUTOMATIC. HOWEVER, IN RESPONSE TO THE ASSESSEES APPLICATION AS THE CIT CANC ELLED THE REGISTRATION GRANTED TO THE SOCIETY U/S 12 AA (3) ON THE GROUND THAT THE SOCIETY IS CARRYING ON ACTIVITY IS THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ACTIVITY OF RENDERING SERVICES IS RELATION TO ANY TRADE, COMMERCE OR BUSINESS FOR A FEE/CONSI DERATION. CONSEQUENTLY, THE RENEWAL OF RECOGNITION U/S 80G (5) (VI) WAS NOT GRANTED. IT IS AGAINST THESE ORDERS OF THE LEARNED CIT, THE ASSESSEE HAS COME UP IN THE PRESENT APPEALS. 4. THE LEARNED COUNSEL FOR THE ASSESSEE INITIATING HIS ARGUMENTS SUBMITTED THAT SOCI ETY OF GEOSCIENTISTS AND ALLIED TECHNOLOGISTS (SGAT) WAS ESTABLISHED IN THE YEAR 1980 AS A NON - PROFIT MAKING BODY OF PROFESSIONALS, SGAT HAS BEEN PROMOTING MINERAL DEVELOPMENT ACTIVITIES IN INDIA OVER THE LAST 32 YEARS. THE SOCIETY IS REGISTERED UNDER SOCIETIES REGISTRATION ACT, 1860. THE BROAD OBJECTIVE IS PROMOTION OF MINERAL DEVELOPMENT ACTIVITIES IN I.T.A.NOS.187 AND 188/CTK/2012 3 INDIA THROUGH SYMPOSIA, SEMINARS, WORKSHOPS AND INTERACTIVE MEETS; PUBLICATION OF JOURNALS, BOOKS AND INFORMATIVE BROCHURES; INTERACTION WITH GOVE RNMENT DEPARTMENTS, RESEARCH AND EDUCATIONAL INSTITUTIONS; COMPANIES INVOLVED WITH EXPLORATION, MINING, MINERAL PROCESSING AND MINERAL BASED INDUSTRIES. THE THRUST ACTIVITY OF THE SOCIETY IS ENVIRONMENTAL AWARENESS CAMPAIGNS IN THE MINING AREAS OF THE STAT E WHICH ARE PREDOMINANTLY POPULATED BY TRIBALS. THE OBJECTIVE OF THIS PROGRAMME, WHICH IS BEING ORGANIZED FOR MORE THAN 20 YEARS BY W HICH IS TO BRING AWARENESS AMONG THE STUDENT COMMUNITY, THE TEACHERS AND THEIR PARENTS, CO MMUNITY NGOS, POLICY MAKERS ABOUT DEGRADATION BEING CAUSED TO ENVIRONMENT BY VARIOUS ACTIVITIES AND TO MOTIVATE THEM TO TAKE APPROPRIATE AMELIORATIVE MEASURES TO PREVENT DEGRADATION OF THE ENVIRONMENT. EVERY YEAR ABOUT 250 STUDENTS AND 100 TEACHERS PARTICIPATE IN THE PROGRAMME. ENVIRONMEN TAL MANAGEMENT STUDIES IN MINING AREAS FACILITATE INFRASTRUCTURE DEVELOPMENT SUCH AS ROADS, PORTS AND RAILWAYS TO FACILITATE MINERAL TRAFFIC AND EXPORT, SUGGESTIONS TO STREAMLINE LEGISLATIVE MEASURES AND PROCEDURES CONSTITUTE OTHER IMPORTANT OBJECTIVES OF SGAT. WITH A VIEW TO UPDATING THE STUDENTS PURSUING P.G . DEGREE COURSES IN GEOSCIENCES MINING, METALLURGY, MATERIALS SCIENCE AND MINERAL ENGINEERING ABOUT THE LATEST DEVELOPMENTS IN RESPECTIVE DISCIPLINES, SGAT HAS BEEN ORGANIZING MINERALDEVELOPMENT AWARENE SS PROGRAMME ON ANNUAL BASIS. SGAT IS IN THE PROCESS OF ESTABLISHING AN INSTITUTE FOR GEOSCIENCES AND ALLIED TECHNOLOGIES AS WELL AS TRAINING CENTERS FOR THE BENEFIT OF THE POOR AND NEEDY SCHOLARS CLAUSE M OF THE OBJECTS OF SGAT . THE SOCIETY AWARDS SCHOL ARSHIPS TO MERITORIOUS STUDENTS PURSUING STUDIES IN GEOSCIENCE, MINING & METALLURGICAL ENGINEERING, MINERAL BENEFICIATION, MINERAL DEVELOPMENT PLANNING AMONG OTHERS. S GAT HAS EFFECTIVE INTERACTION WITH BOTH CENTRAL AND STATE GOVERNMENT AUTHORITIES AND ITS RECOMMENDATIONS HAVE BEEN GIVEN I.T.A.NOS.187 AND 188/CTK/2012 4 DUE CONSIDERATION IN FOR MULATION OF LEGISLATIONS GOVERNING GRANT OF MINERAL CONCESSIONS AND ENVIRONMENTAL PROTECTION, MINERAL POLICY, DEVELOPMENT OF INFRASTRUCTURE FACILITIES, RESEARCH PROJECTS CREATION OF EDUCATIONAL FACILI TIES AND INSTITUTIONS ETC. THE SOCIETY HAS SO FAR ORGANIZED AS MANY AS 47 SYMPOSIA/SEMINARS/WORKSHOPS DEALING WITH ALMOST ALL R ESPECTS OF MINERAL DEVELOPMENT AND ENVIRONMENT MANAGEMENT . THE SOCIETY CONFE R S A NUMBER OF AWARDS, PUBLISHES A BY ANNUL BULLETIN AND HAS PREPARED A VISION DOCUMENT FOR MINERAL DEVELOPMENT 2020 FOR ODISHA . SGAT HAS MADE A DOCUMENTARY FILM ON MINING AND ENVIRONMENT WITH THE OBJECTIVE OF EDUCATING THE PUBLIC, NGOS, POLICY MAKERS ABOUT THE CONTRIBUTION OF MINING TO ECONOMIC GROWTH OF TH E COUNTRY AND DISPEL THE WRONG NOTION THAT MINING IS MAJOR CONTRIBUTOR TO DEGRADATION OF ENVIRONMENT. SGAT HAS CONTRIBUTED TO CHIEF MINISTER RELIEF FUND AND IT PROVIDED RELIEF TO THE VI CTIMS OF SUPER CYCLONE WHICH DEVASTATED THE COASTAL TRACKS OF ODISHA 19 99. THE MEMBERS OF THE SOCIETY DO NOT DERIVE ANY FINANCIAL BENEFIT FROM THE SOCIETY. AS THE SOCIETY IS AN ASSOCIATION OF GEOLOGISTS & ALLIED TECHNOLOGISTS A PURELY PROFESSIONAL BODY WITH THE OBJECTIVE OF STUDY OF ALL BRANCHES OF GEOSCIENCES FOR ECONO MI CAL DEVELOPME NT OF THE COUNTRY. T HE SOCIETY IS IN EXISTENCE FOR THE LAST THIRTY TWO YEARS. ITS FIRST ADDRESS WAS THE DEPARTMENT OF GEOLOGY, UTKAL UNIVERSITY SI GNIFYING THAT THE SGAT IS INVOLVED IN STUDY OF GEOLOGY IN THE MINERAL RICH STATE OF ODISHA FOR THE EC ONOMIC DEVELOPMENT OF THE COMMUNITY. THE OBJECTS OF THE SOCIETY INCLUDED. 1. TO CONTRIBUTE FUNDS FOR RELIEF OPERATIONS. 2. TO CONTRIBUTE FOR SOCIAL AND ECONOMIC DEVELOPMENT OF THE SOCIETY GIVING EMPHASIS ON CREATING AWARENESS FOR SUSTAINABLE DEVELOPMENT WITH ADEQUATE ENVIRONMENT PROTECTION MEASURES. I.T.A.NOS.187 AND 188/CTK/2012 5 3. TO PROMOTE ESTABLISHMENT OF AN INSTITUTE OF GEOSCIENCES AND ALLIED TECHNOLOGIES AS WELL AS THE TRAINING CENTERS FOR BENEFIT OF THE POOR AND NEEDY SCHOLARS AND THEREBY THE WEAKER SECTION OF THE SOCIETY. T HE AFORESAID OBJECTS INDICATE CLEARLY THAT ITS OBJECTIVES ARE EDUCATION & TRAINING IN THE FIELD OF GEOLOGY AND CHARITABLE BY WAY OF CONTRIBUTING TO THE SOCIAL AND ECONOMIC DEVELOPMENT OF THE COMMUNITY. THE SOCIETY WAY REGISTERED U/C 12 A OF THE ACT IN 1990 (6TH/9TH JULY 1990). THE SOCIETY WAS ALSO GRANTED RECOGNITION FOR EXEMPTION U/S 80G (50(VI) TILL ASST YEAR 2011 - 12. THE SOCIETY ERRONEOUSLY I1IEDANPP1ICATION IN FORM 100 ON 13.09.2011 FOR RENEWAL OF EXEMPTION GRANTED U/S 80(5)(VI) OF THE ACT. AS A MATTER OF FACT, THE LEARNED AR OF THE ASSESSEE CONTENDED THAT IT IS NOT REQUIRED TO SEEK EXEMPTION AS THE EXEMPTION IS AVAILABLE IN PERPETUITY IN VIEW OF FRT4IAVINGBEEN AMENDED BY FINANCE ACT 2009 WHICH PROVIDED FOR NOT SEEKING RENEWAL CERTIFICATE ALREADY ISSUED U/S 80G AND IT VALID UP TO 31.03.2010. SGAT HAVING BEEN REGISTERED U/S 12A AND EX EMPTION U/S 800 GRANTED UP TO 31.03.10 , IT IS AUTOMATICALLY ENTITLED TO CLAIM EXEMPTION PERPETUALLY. HOWEVER THE SOCIETY INADVERTENTLY FILED AN APPLICATION BEFORE THE LEARNED CIT, BHUBANESWAR SEEKING RE NE WAL OF EXEMPTION. THE LEARNED CIT OUGHT TO HAVE INFORMED THE APPLICANT (SGAT) THAT THE EXEMPTION IS AVAILABLE PERPETUALLY AS HAD OCCURRED IN THE CASE OF THE APEX BODY, FEDERATION OF INDIAN MINERAL INDUSTRIES (FIMI). COPY OF THE LETTER RECEIVED FROM THE OFFICE OF THE DIRECTOR OF INCOME TAX EXEMPTIONS, NEW DEL HI IS ENCLOSED AS ANXURE. 4.1. THE LEARNED COUNSEL OF THEE ASSESSEE VEHEMENTLY CONTENDED THAT THE LEARNED CIT, BHUBANESWAR CANCELLED THE REGISTRATION GRANTED TO SGAT U/S 12A ON FLIMSY GROUNDS BASED ON IRRELEVANT, OUT OF CONTEXT AND MISPLACED CASE LAWS. HE SUBMITTED THAT THE LEARNED CIT SOUGHT TO ESTABLISH THAT THE OBJECTS OF SQAT ARE NOT FOR THE PURPOSE OF GENERAL PUBLIC UTILITY. SG AT, I.T.A.NOS.187 AND 188/CTK/2012 6 DURING THE COURSE OF ITS EXISTENCE FOR T HE LAST THIRTY YEARS HAS RELIGIOUSLY PURSUED THE OBJECTS AS STATED ABOVE AND THEREFORE QUALIFIES FOR REGISTRATION US 12A OF THE ACT. FURTHER, THE LEARNED CIT HAS NOT GIVEN ADEQUATE OPPORTUN ITY TO FURNISH THE DOCUMENTS CAL LED FOR BY HIM. THE GROUNDS TAKEN O N THE BASIS OF WHICH THE 12A REGISTRATION OF THE ASSESSEE HAS BEEN CANCELLED BY THE LEARNED CIT ARE - 1. AS PER THE MEMORANDUM OF THE SOCIETY, ELIGIBILITY CRITERIA HAS BEEN SPELT OUT TO BECOME A MEMBER, AS A RESULT, MEMBERS OF THE SOCIETY CANNOT BE TAKEN TO BE A SUFFICIENT CROSS SECTION OF THE PUBLIC. 2. PROMOTING , IMPROVING AND SAFEGUARDING THE INTEREST OF THE GEOSCIENTISTS AND ALLIED TECHNOLOGISTS AND TO UPHOLD THEIR DIGNITY AND STATUS OF THEIR PROFESSION CANNOT BE SAID TO BE CHARITABLE IN NATURE. THIS HAS BEEN DECIDED IN KEDIA JATIYA SAHAYAK SABHA AND FUND VS. CIT ( L963)49 ITR 74 (CAL). 3. PROMOTING SOCIAL INTERCOURSE AMONG THE MEMBERS OF AN ASSOCIATION CANNOT BE CONSIDERED K BE A CHARITABLE PURPOSE. THIS HAS BEEN DECIDED IN SOUTH INDIAN ATHLETIC ASSOC IATION LTD VS. CIT (1977) 107 ITR 108 (MADRAS). 4. THE SOCIETY HAS SET OUT OBJECTS TO BENEFIT ITS MEMBERS ONLY. THE HONBLE MADRAS HIGH COURT IN CIT VS. WORKSHOP TRUST (1983) 142 ITR 26 HAS DECIDED THAT IN SUCH CASES THE OBJECT CANNOT BE CONSIDERED TO BE CHARITABLE. 5. OBJECTS OF THE SOCIETY ARE NOT FOR THE PURPOSES OF GENERAL PUBLIC UTILITY AND IT IS ONLY FOR THE PURPOSE OF PRIVATE GAIN. REFERENCE WAS MADE TO THE DECISION OF MADRAS HIGH COURT IN MADRAS HOTELS ASSOCIATION VS. CIT (1978) 111 ITR 241. 6. T HE MOTIVE OF THE SOCIETY BEING COMMERCIAL PROFIT, THEY HAVE ACCUMULATED FUNDS IN THE FORM OF INVESTMENTS, BANK DEPOSITS ETC. IN THIS REGARD REFERENCE WAS GIVEN TO THE DECISION OF PATNA HIGH COURT IN BIHAR STATE FOREST DEVELOPMENT CORPORATION VS. CIT (1997) 224 ITR 757 PATNA. 7. FURTHER, AS PER MEMORANDUM OF THE SOCIETY, IT WOULD RECEIVE CONTRIBUTION FROM ELIGIBLE MEMBERS AND THE COLLECTED FUNDS ARE TO BE INVESTED IN SUCH MANNER THAT IT WOULD FETCH MAXIMUM RETURN. HENCE, I.T.A.NOS.187 AND 188/CTK/2012 7 THE SOCIETY APPEARS TO HAVE BEEN CON STITUTED TO FUNCTION AND RUN WITH THE HELP OF CORPORATE BODIES AND OTHER MEMBERS FOR SERVING THEIR OWN PROFESSIONAL AND BUSINESS INTEREST. 8. PERUSAL OF THE FINANCIAL STATEMENT REVEALS THAT THE SOCIETY IS SEEN TO BE CARRYING ON COMMERCIAL ACTIVITY WITH MO TIVE OF PROFIT AS THE EXPENDITURE HAS BEEN INCURRED ONLY ON ADMINISTRATIVE, ESTABLISHMENT AND NON CHARITABLE EXPENSES. 9. SIMILARLY, THE INCOME OF THE SOCIETY INDICATES THAT THE SOCIETY IS CARRYING ON ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS. 10. NO ONE FROM THE APPELLANT SIDE HAD APPEARED ON THE DATE OF HEARING FIXED ON 01.02.2012 INDICATING THAT THE SOCIETY HAS NO OBJECTION TO THE CAN CELLATION OF THE REGISTRATION U/ S I2AA(3) OF THE ACT. 4.2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT T HE ORDER OF THE LEARNED CIT HAS BEEN DRAFTED ON THE PREMISE OF THE AMENDED DEFINITION OF CHARITABLE PURPOSE IN THE FINANCE ACT, 2008 WHICH SAYS THAT ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE TREATED AS CHARITABLE PURPOSE IF SOCIETY IS CARRYING ON ACTIVITY IS THE NATURE OF TRADE, COMMERCE OR BUSINESS A CT IVITY OF RENDERING SERVICES IS RELATION TO ANY TRADE, COMMERCE OR BUSINESS FOR A FEE/CONSIDERATION. HOWEVER, WHILE PASSING HIS ORDER THE LEARNED CIT HAS FAILED TO VERIFY THA T AS PER THE FINANCE ACT, 2008 CHAMBERS OF COMMERCE AND SIMILAR ORGANIZATIONS RENDERING SERVICES TO MEMBERS WOULD NOT BE AFFECTED BY THE AMENDMENT AND THEIR ACTIVITIES CONTINUE TO BE REGAR DED AS ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC INTEREST. AS THE OBJECT OF THE SOCIETY IS FOR ADVANCEMENT IN THE FIELD OF GEOSCIENCES AND ALLIED TECHNOLOGIES IT DO ES NOT FALL WITHIN THE AMBIT OF AMENDED DEFINITION. HENCE, THE ANALOGY ON WHICH THE ENTIRE ORDER IS DRAFTED BECOMES PERVERSE. FURTHER, AGGREGATE RECEI PT LIMIT HAS BEEN R AISED TO RS.25 LAKH FROM RS.10 LAKH W.E.F. Y. 2012 - 13 AND THE GROSS RECEIPT HOVERS AROUND RS 10 LAKH MARK ONLY. AS A RESULT, THE ASSESSEE IS NOT COVERED BY THE PROVISION OF THE LAW IN I.T.A.NOS.187 AND 188/CTK/2012 8 RESPECT OF DEFINITION OF THE CHARITABLE PURPOSE. HEN CE, THE ORDER OF THE LEARNED CIT IS NULL AND VOID. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE SOCIETY WAS ENJOYING THE APPROVAL OF 80G GRANTED BY THE DEPARTMENT ALL ALONG SINCE ASST. YEAR 2002 - 03 TILL ASST. YEAR 2011 - 12 WITHOUT EVER BEI NG QUESTIONED ABOUT THE INTEGRITY AND PURPOSE OF FUNCTIONING OF THE SOCIETY. IT WAS ALL ALONG BEEN HELD THAT IT IS OPERATING FOR CHARITABLE PURPOSE AS DEFINED IN SECTION 2(15) OF THE INCOME TAX ACT, 1961. THE OBJECTS OF THE SOCIETY ARE AS UNDER . 1. THE OBJ ECTIVE AND PURPOSE FOR WHICH THE SOCIETY IS ESTABLISHED ARE: (A) TO PROMOTE AND ADVANCE THE STUDY OF ALL BRANCHES OF GEOSCIENCES AND ALLIED TECHNOLOGIES AND ENCOURAGE EFFECTIVE INTERACTION AMONG ITS MEMBERS FOR ECONOMIC DEVELOPMENT OF THE COUNTRY. (B) TO P ROMOTE AND SAFEGUARD THE INTERESTS OF THE GEOSCIENTISTS AND ALLIED TECHNOLOGISTS AND TO UPHOLD THE DIGNITY AND STATUS OF THEIR PROFESSIONS. (C) TO COMMUNICATE TO MEMBERS INFORMATION RELATING TO ALL BRANCHES OF GEOSCIENCES AND ALLIED TECHNOLOGIES AND TO PR INT, PUBLISH, ISSUE AND CIRCULATE SUCH PAPERS , NEWS LETTERS, SOUVENIRS, COMPILED WORKS AS MAY SEEM CONDUCIVE TO ANY OF THE OBJECTS OF THE SOCIETY. (D) TO O RGANIZE LECTURES, SEMINARS, SYMPOSIA, WORKSHOP S ETC. WITH A VIEW TO UPDATING KNO WLEDGE AND INFORMATIO N AND KEEPING ABREAST WITH LATEST DEVELOPMENT IN DIFFERENT FIELDS OF GEOSCIENCES AND ALLIED TECHNOLOGIES AND TO MEET ALL EXPENSES IN CONNECTION THERE WITH. (E) TO INSTITUTE AND AWARD PRIZE, MEDALS AND SCHOLARSHIPS AND TO FUND RESEARCH PROJECTS TO ENCOURAGE YOUNG AND MERITORIOUS GEOSCIENTISTS AND ALLIED TECHNOLOGISTS TO ATTAIN EXCELLENCE IN THEIR PROFESSIONS. (F ) TO SUGGEST AMENDMENTS AND IMPROVEMENTS IN LEGISLATIVE MEASURES AND PROCEDURES, F UNCTIONING OF PUBLIC PRIVATE BODIES AND RECOMMEND ESTABLISHMENT OF NEW FACILITIES AND INSTITUTES IN THE INTEREST OF MINERAL DEVELOPMENT. (G) TO PROVIDE PROFESSIONAL ADVICE AND TECHNICAL ASSISTANCE TO ENTREPRENEURS, GOVERNMENT, PUBLIC SECTOR AND PRIVATE ORGANIZATIONS ON MUTUALLY ACCEPTABLE TERMS. I.T.A.NOS.187 AND 188/CTK/2012 9 (H) TO PURCHASE, HIRE, TAK E ON LEASE, EXCHANGE, BORROW, ACCEPT ANY GIFT OR DONATION, OR OTHERWISE ACQUIRE AND HOLD, TEMPORARILY OR PERMANENTLY ANY REAL OR IMMOVABLE PROPERTY FOR THE PURPOSE OF OR BENEFIT OF THE SOCIETY AND; TO SELL, DEMISE LET, MORTGAGE OR OTHERWISE DISPOSE OF THE SAME. (I ) TO RAISE MONEY BY SUBSCRIPTION OR OTHERWISE AND TO GRANT ANY RIGHTS AND PRIVILEGES TO MEMBERS AND SUBSCRIBERS. ( J) TO RECEIVE GIFT, AID OR GRANT FROM ANY SOCIETY, GOVERNMENT, COMPANY, ORGANIZATION OR INDIVIDUAL ASSOCIATED WITH OR INTENDING TO PRO MOTE ANY OF THE OBJECTS OF THE SOCIETY. (K) TO CONTRIBUTE FUNDS FOR RELIEF OPERATIONS. (L ) TO CONTRIBUTE ESTABLISHMENT OF AN INSTITUTE OF GEOSCIENCES AND ALLIED TECHNOLOGIES AS WELL AS THE TRAINING CENTERS FOR BENEFIT OF THE POOR AND NEEDY SCHOLARS AND THE REBY THE WEAKER SECTION OF THE SOCIETY. (M) TO ARRANGE FOR THE PROMOTION, MANAGEMENT AND CONDUCT OF THE BUSINESS AND OBJECTS OF THE SOCIETY THROUGH A DULY ELECTED EXECUTIVE COUNCIL TO APPOINT AUDITOR, SECRETARIAL STAFF ON REMUNERATION AS DECIDED UPON BY TH E EXECUTIVE COUNCIL. (N) TO MET ALL THE CHARGES, COSTS AND EXPENSES INCIDENT TO THE FORMATION AND INCORPORATION OF THE SOCIETY AND FOR THE PROMOTION, MANAGEMENT AND CONDUCT OF THE BUSINESS AND OBJECTS OF THE SOCIETY OUT OF ITS FUNDS AND ASSETS. (O) TO INVE ST ANY MONEYS AND OTHER ASSETS OF THE SOCIETY IN SUCH MANNER AS MAY FROM TIME TO TIME BE DETERMINED BY THE EXECUTIVE COUNCIL. (P) TO BORROW, RAISE OR SECURE THE PAYMENT OR REPAYMENT OF MONEY IN SUCH MANNER AS IT MAY THINK FIT. (Q) TO DO ALL SUCH OTHER THIN GS AS THE SOCIETY MAY CONSIDER INCIDENTAL OR CONDUCTIVE TO THE ATTAINMENT OF THE ABOVE OBJECTS OR ANY OF THEM. 4.3. THE LEARNED COUNSEL FOR THE ASSESSEE STATED THE ACTIVITIES O F THE SOCIETY IN THE PAST YEARS. HE SUBMITTED THAT THE SOCIETY HA S SO FAR ORGAN IZED 47 SYMPOSIA / SEMINA RS / WORKSHOPS AND THE TOPICS COVERED INCLUDE: PROBLEMS AND PROSPECTS OF MINERAL UTILIZATION (1981). I.T.A.NOS.187 AND 188/CTK/2012 10 REMOTE SENSING TECHNIQUES IN MINERAL EXPLORATION (1982). DEVELOPMENT & UTILIZATION OF COAL RESOURCES (1983). MINERAL INDUS TRIES AND ENVIRONMENT (1983). MINERAL DEVELOPMENT DURING THE SEVENTH PLAN (1986). SMALL MINERAL DEPOSIT (1985). GEOLOGY, EXPLORATION AND DEVELOPMENT OF GRAPHITE RESOURCES (1986). RAW MATERIALS FOR REFRACTORIES AND CEMENT INDUSTRIES (1986). RAW MA TERIALS FOR SPONGE IRON MAKING (1986). DEVELOPMENTS IN MINERAL EXPLORATION TECHNIQUES (1987). APPROACH TO MINERAL DEVELOPMENT DURING THE 8TH FIVE YEAR PLAN (1988). GEOLOGY & MINERAL RESOURCES OF ORISSA (1989). MINING LAWS (1990). CHROMIUM AND NICKEL (1990). SAMPLING OF GEOLOGICAL MATERIALS (1991). DIMENSION AND DECORATIVE STONES (1992). IRON ORE 2000 & BEYOND (1993). GEM STONES (993). GUIDELINES & PRODUCERS FOR CLEARANCE OF MINING PROJECTS FROM FOREST AND ENVIRONMENT ANGLES (1994). ADEQUACY OF MINERAL EXPLORATION INPUTS AND COMPATIBILITY OF THE CURRENT MINING LEGISLATIONS FOR MINERAL DEVELOPMENT (1994). MANGANESE ORES & ALLOYS (1995). STRATEGY, TOOLS AND LABORATORY FACILITIES FOR DIAMOND AND GOLD EXPLORATION (1996). INTERACTIVE MEET O N RAW MATERIALS FOR IRON & STEEL MAKING (1996). CLEARANCE OF MINING PROJECTS FROM FOREST AND ENVIRONMENT ANGLES PROCEDURES, GROUND REALITIES AND CONSTRAINTS (1996). INFRASTRUCTURE IN MINERAL DEVELOPMENT (1997). STATUS OF EDUCATION, TRAINING AND R & D IN GEO - SCIENCE & ALLIED DISCIPLINES(1998). DEVELOPMENTS IN UNDERGROUND METAL MINING PRACTICES (2000). RECLAMATION & REHABILITATION OF MINED OUT AREAS (2001). INTERACTIVE MEETS WITH REPRESENTATIVES OF MINING INDUSTRY (2001). I.T.A.NOS.187 AND 188/CTK/2012 11 UTILIZATION OF MINES WASTE AND MARGINAL GRADE ORES / MINERALS (2001). VALUE ADDITION IN MINERAL INDUSTRY (2002). ASSESSMENT AND MANAGEMENT OF WATER RESOURCES (2003). STRATEGY FOR DEVELOPMENT OF IRON ORE RESOURCES OF INDIA FOR IRON MAKING AND EXPORT AUGUST 2004. INTERNAT IONAL SEMINAR VISION MINERAL DEVELOPMENT - 2020 DECEMBER 2005. WORKSHOP ON INDUSTRY AND MINING RECLAMATION, RESETTLEMENT AND REHABILITATION (R,R&R). INTERNATIONAL CONFERENCE ON EMERGING STEEL SCENARIO I N INDIA, FOCUS ORISSA, SEPTEMBER, 2007. I NTERAC TION AL MINING HISTORY CONGRESS, DECEMBER, 2007. PRESS MEET ON INCIDENCE OF HEXAVALENT CHROMIUM IN THE SUKINDA CHROMITE MINING AREA, ORISSA STATE; FEBRUARY 2008. WORKSHOP ON CORPORATE SOCIAL RESPONSIBILITY IN MINING BASED INDUSTRIES IN ORISSA JULY 20 03. SEMINAR IN IRON ORES; GENESIS AND EXPLORATION TECHNIQUE DECEMBER 2008. WORKSHOP ON RECRUITMENT OF POWER FOR MINING AND MINERAL BASED INDUSTRIES IN ORISSA, 2009. WORKSHOP ON STRATEGY FOR MANAGEMENT OF ECONOMIC SLOWDOWN IN MINERAL INDUSTRY: DECEM BER 2009. PRESS MEET ON DEVELOPMENT POTENTIAL OF BAUXITE RESOURCES OF ORISSA OCTOBER 2010. INTERNATIONAL SEMINAR ON DEVELOPMENT OF CHROMITE, NICKEL AND PGM RESOURCES, NOVEMBER 2010. SEMINAR ON APPROACH AND STRATEGY FOR INTEGRATED DEVELOPMENT OF JODA BARBIL KOIRA MINING AREA, ODISHA AT BARBIL, SEPTEMBER 2011. BESIDES INDIA, THE EVENTS HAD PARTICIPANTS FROM SOUTH AFRICA, AUSTRALIA, JAPAN, AUSTRIA, U.K. USA, CANADA, TURKEY, IRON, BRAZIL, SINGAPORE AND GERMANY. 4.4. THE LEARNED COUNSEL FOR THE ASSESSE E FURTHER SUBMITTED THAT SGAT BROUGHT OUT THE FIRST EVER COMPREHENSIVE TREATISE ON GEOLOGY & MINERAL I.T.A.NOS.187 AND 188/CTK/2012 12 RESOURCES OF ORISSA IN 1995. THE PUBLICATION WAS REVISED AND UPDATED IN 1998. IT HAS BEEN FURTHER UPDATED IN 2007. WITH A VIEW TO AROUSING AWARENESS FOR P ROTECTION OF ENVIRONMENT, SGAT HAS BEEN ORGANIZING ENVIRONMENT CUM MINERAL AWARENESS PROGRAMME (EMAP) IN THE MINING AREAS PARTICIPATED BY STUDENTS OF HIGHER SECONDARY SCHOOLS. THE WINNING TEAMS FROM EACH OF THE MINING AREAS PARTICIPATE IN THE STATE LEVEL E MAP HELD EVERY YEAR AT BHUBANESWAR. WITH A VIEW TO UPDATING THE STUDENTS PURSUING P.G. I DEGREE COURSES IN GEOSCIENCE MINING, METALLURGY, MATERIALS SCIENCE AND MINERAL ENGINEERING ABOUT THE LATEST DEVELOPMENTS IN RESPECTIVE DISCIPLINES, SGAT HAS BEEN ORGAN IZING M I NERAL DEVELOPMENT AWARENESS & QUIZ PROGRAMME ON ANNUAL BASIS. THE SOCIETY AWARDS SCHOLARSHIPS TO ME RI TORIOUS STUDENTS PURSUING STUDIES IN GEO - SCIENCE, MINING & METALLURGICAL ENGINEERING, MINERAL BENEFICIATION, MINERAL DEVELOPMENT PLA NNING AMONG OT HERS. SGAT HAS EFFECTIVE INTERACTION WITH BOTH CENTRAL AND STATE GOVERNMENT AUTHORITIES AND H RECOMMENDATIONS HAVE BEEN GIVEN DUE CONSIDERATION IN FORMULATION OF LEGISLATIONS GOVERNING GRANT OF MINERAL CONCESSIONS AND ENVIRONMENT PROTECTION, MINERAL POLICY , DEVELOPMENT OF INFRASTRUCTURE FACILITIES, RESEARCH PROJECTS, CREATION OF EDUCATIONAL FACILITIES AND INSTITUTIONS ETC. 4.5. THE LEARNED COUNSEL FOR THE ASSESSEE THEREAFTER STATED THE FACTS OF THE CASE VIS - A - VIS THE IMAGINARY HYPOTHESIS IN THE GROUNDS OF L EARNED CIT AS PER WHICH HE HAS CANCELLED THE REGISTRATION OF THE SOC IETY AS UNDER : 1. NEEDLESS TO SAY THAT OUR SOCIETY HAS ELIGIBILITY CRITERIA FOR MEMBERSHIP SO THAT THE N UMB ERS UNITED IN A BODY CAN SERVE THE SOCIETY BY USING THEIR PROFESSIONAL EXPERUSE FOR IERA1 PUBLIC UTILITY. OTHERWISE EVEN CRIMINALS AND ANTI SOCIALS WILL HAVE A RIGHT TO BE IND UCTED AS MEMBER. HENCE, THE CONTENTION OF THE LEARNED CIT THAT IN VIEW OF SUCH CLAUSE IN THE MEMO RANDUM, IT PREVENTS SUFFICIENT CROSS SECTION OF THE PUBLIC FROM HAVING BEEN REPRESENTED IN THE SOCIETY DEFIES ALL LOGIC. I.T.A.NOS.187 AND 188/CTK/2012 13 2. OBJECT OF GENERAL PUBLIC UTILITY CANNOT BE CONSTRUED TO BE EXTENDED TO WHOLE OF MANKIND. AN OBJECT BENEFICIAL TO A SECTION OF THE PUBLIC IS CONSIDERED AS OBJECT OF GENERAL PUBLIC UTILITY. HENCE, I T IS NOT NECESSARY THAT THE OBJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OR EVEN ALL PERSONS LIVING IN A PARTICULAR COUNTRY OR PROVINCE. THIS WAS DECIDED IN CIT VS. ANDHRA CHAMBER OF COMMERCE (55 ITR 722 (SC). 3. THE OBJECT AND ACTIVITIES OF THE SOCIET Y CLEARLY INDICATE THAT IT IS FOR ADVANCEMENT IN THE FIELD OF GEOSCIENCES AND ALLIED TECHNOLOGIES AND NOT FOR MERE EFFECTIVE INTERACTIONS AMONG ITS MEMBERS AS CITED BY LEARNED CIT IN HIS ORDER. NEITHER THE CASE LAW MENTIONED IS IN AN Y WAY RELEVANT TO THE A SSESSEES CASE. 4. AMONGST THE OBJECTS AND ACTIVITIES IT HAS CARRIED OUT OVER THE YEARS, GIVEN BELOW ARE FEW ACTIVITIES WHICH JUSTIFY THAT THE SOCIETY IS NOT OPERATING ONLY FOR THE MEMBERS AND RATHER IT IS GIVING BACK TO THE SOCIETY AND WORLD AT LARGE . A. PROMOTION OF MINERAL DEVELOPMENT ACTIVITIES. B. ENVIRONMENTAL AND MINERAL AWARENESS CAMPAIGNS. C. INTERNATIONAL AND NATIONAL SEMINARS AND WORKSHOPS ON CSR AND MINERAL DEVELOPMENT AND PROTECTION OF ENVIRONMENT AND MAINTAIN ECOLOGICAL BALANCE. THE ABOVE A CTIVITIES OF THE SOCIETY CANNOT BE SAID TO HAVE BEEN DONE FOR ITS MEMBERS ONLY AS HELD BY THE LEARNED CIT IN HIS PRECONCEIVED ORDER. 5. THE CASE LAW CITED BY THE LEARNED CIT IN MADRAS HOTELS ASSOCIATION IS NOT APPLICABLE IN THE CASE OF THE ASSESSEE AS N OT ONLY THE OBJECT BUT ALSO ITS ACTIVITIES ARE FOR THE PURPOSE OF GENERAL PUBLIC UTILITY. WHILE DRAWING REFERENCE TO THE CASE LAW THE LD CIT HAS TOTALLY OVERLOOKED THIS FACT . 6. THE SOCIETY DOES NOT HAVE ANY OBJECT BY VIRTUE OF WHICH IT CAN BE ASSUMED THA T THERE IS A POSSIBILITY OF IT BEING RUNNING FOR MAKING COMMERCIAL PROFIT. SIMPLY BECAUSE IT HAS GOT SOME BANK TERM DEPOSITS DOES NOT DOES NOT RENDER THE SOCIETY NOT FOR CHARITABLE PURPOSE. WE HAVE TO SEE THE SOURCE OF THE TDR, WHICH HAS BEEN MADE MAINLY O UT OF THE BUILDING FUND. THE DONATION RECEIVED FOR CONSTRUCTION OF BUILDING GETS TEMPORARILY PARKED IN TDR TILL IT IS UTILIZED FOR CONSTRUCTION OF BUILDING. AS THERE WILL ALWAYS BE A TIME GAP BETWEEN THE FUNDS RECEIVED FOR CONSTRUCTION AND THE UTILIZATION OF THE SAME, DURING THE I.T.A.NOS.187 AND 188/CTK/2012 14 LEAD TIME THE IDLE FUNDS ARE PARKED IN FDR TO EARN SOME INTEREST. BY NO STRETCH OF IMAGINATION THIS ACT CAN BE CONSIDERED AS MOTIVE FOR COMMERCIAL PROFIT AND HENCE, JUSTIFY THE CANCELLATION OF REGISTRATION OF THE SOCIETY ON THE GROU ND THAT IT IS NOT OPERATING FOR GENERAL PUBLIC UTILITY. HENCE, THE CASE LAW REFERRED BY THE LEARNED CIT IS IN NO WAY APPLICABLE TO US. 7. THE LEARNED CIT HAS DRAWN ATTENTION TO THE CLAUSE 44 OF THE MEMORANDUM OF THE SOCIETY, WHERE IN IT HAS BEEN MENTIONED THAT THE COLLECTED FUNDS ARE TO BE INVESTED IN SUCH A MANNER THAT IT WOULD FETCH MAXIMUM RETURN. AS PER THE LEARNED CIT, AS A RESULT OF THIS THE SOCIETY APPEARS TO HAVE BEEN CONSTITUTED TO FUNCTION AND RUN WITH THE INTERESTED MEMBERS FOR SERVING THEIR OWN PROFESSIONAL AND BUSINESS INTEREST. IT IS SURPRISING SEE THAT THE LEARNED CIT WANTS TO PENALIZE THE SOCIETY FOR BEING PRUDENT. EVEN THE LAYMANS COMMONSENSE SUGGESTS THAT THE IDLE FUNDS SHOULD BE INVESTED TO MAXIMIZE THE RETURN. THIS CLEARLY INDICATES THA T THE LEARNED CIT HAS PASSED HIS ORDER WITH A PRECONCEIVED MIND SET TO REJECT THE REGISTRATION OF THE SOCIETY. 8. THE LD. CIT IN HIS ORDER HAS ASSUMED THE FOLLOWING EXPENSES AS NON CHARITABLE EXPENSES AND HAS TAKEN IT AS ONE OF THE GROUNDS TO REJECT THE R EGISTRATION - SEMINAR ON DEVELOPMENT OF CHROMITES, NICKEL & PGM RESOURCE. EXPENDITURE ON BULLETIN PUBLICATION ENVIRONMENTAL & MINERAL AWARENESS PROGRAMME MINERAL DEVELOPMENT QUIZ PROGRAMME WORKSHOP EXPENSES ON GEOSCIENCES EDUCATION IN SECONDARY SCHOOL SEMIN AR FOR STATE MINERAL POLICY EXPENSES EXPENSES FOR VISION 2020 THE NOMENCLATURE OF THE AFORESAID EXPENSES ITSELF INDICATE THAT THE AFORESAID EXPENSES HAVE BEEN INCURRED SOLELY FOR THE PURPOSES FOR ADVANCEMENT OF MINING RELATED ACTIVITIES. THE SAID EXPENSES WORK OUT TO ALMOST 80% OF THE TOTAL EXPENDITURE INCURRED. DESPITE THIS, THE VIEWS OF THE LD. CIT THAT THESE ARE FOR NON CHARITABLE PURPOSE GOES BEYOND ANYBODYS IMAGINATION. I.T.A.NOS.187 AND 188/CTK/2012 15 9. SIMILARLY, THE MAJOR HEADS OF INCOME OF THE SOCIETY HAVE BEEN 1) SALE OF SGAT P UBLICATION 2) SEMINAR ON DEVELOPMENT OF CHROMITE, NICKEL & PGM RESOUCES. 3) SEMINAR REGISTRATION FEES 4) SEMINAR ADVERTISEMENT CONTRIBUTION 5) SEMINAR SPONSORSHIP CONTRIBUTION 6) CONTRIBUTION FOR QUIZ AND EMA PROGRAMME 7 ) CONTRIBUTION FOR STATE MINERAL POL ICY SEMINAR 8) WORKSHOP ON GEOSCIENCES EDUCATION IN SECONDARY SCHOOLS. IT IS APPARENT THAT THE AFORESAID INCO ME HAS BEEN EARNED SOLELY TO PURSUE THE OBJECTS OF ADVANCEMENT OF MINERAL RESOURCES FOR THE USE OF GENERAL PUBLIC. THE VIEWS OF THE LEARNED CIT THA T THE NATURE OF INCOME CLEARLY INDICATES THAT THE SOCIETY IS CARRYING ON ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS, DEFIES ALL LOGIC AND IS BIASED. 10. NOT ALLOWING ANOTHER OPPORTUNITY TO THE APPELLANT FOR HEARING BEFORE THE APPLICATION HAS BEE N DISPOSED OF BY REJECTING THE REGISTRATION OF THE APPELLANT GOES TO PROVE THE CLOSED MINDSET OF THE LEARNED CIT IN DISPOSING OFF THE APPLICATION. 4.6. THE LEARNED COUNSEL RELIED ON THE FOLLOWING CASE LAWS JUSTIFYING THAT THE OBJECTS OF THE SOCIETY AS CHAR ITABLE IN THE SENSE THAT THEY ARE FOR GENERAL PUBLIC UTILITY. 1. DIRECTOR OF INCOME TAX (EXEMPTION) VS. JAPAN CHAMBER OF COMMERCE AND INDUSTRY IN INDIA (2009) 308 ITR 76 (DEL.) - THE TRUST HAVING OBJECT OF PROMOTION OR DEVELOPMENT OF TRADE OR COMMERCE, BE NEFIT OF WHICH IS ENJOYED BY THE GENERAL PUBLIC ARE FOR CHARITABLE PURPOSE. 2. ICAI ACCOUNTING RESEARCH FOUNDATION VS. DGIT (EXEMPTION) (2010) 321 ITR 73 (DEL.) FOUNDATION FORMED FOR KNOWLEDGE AND EDUCATION ARE ACTIVITIES IN THE NATURE OF OBJECT OF GENE RAL PUBLIC UTILITY AND COVERED UNDER THE DEFINITION OF CHARITABLE PURPOSE. 3. DIRECTOR OF INCOME TAX (EXEMPTIONS) VS. BHARAT DIAMOND BOURSE (2000) 245 ITR 437 (BORN) - PROMOTION OF TRADE AND COMMERCE IS AN OBJECT OF GENERAL PUBLIC UTILITY. I.T.A.NOS.187 AND 188/CTK/2012 16 4. CIT VS. JOD HPUR CHARTERED ACCOUNTANTS SOCIETY (2002) 258 ITR 548 (RAJ.) - . THE ACTIVITIES BEING IN THE NATURE OF GENERAL PUBLIC UTILITY IT IS CHARITABLE IN NATURE. 5. THE LEARNED DR OBJECTED TO THE LEARNED COUNSEL FOR THE ASSESSEES FINDING OF FACT S AS PART OF THE AP PEAL MEMO. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED IN A REJOINDER ON THE OBJECTION OF LEARNED DR THAT THE ISSUE IS GRAVE INSOFAR AS THE LEARNED CIT HAS TRIED TO PUT THE CART BEFORE HORSE WHICH MEANS THAT RENEWAL OF REGISTRATION WHICH WAS NOT TO BE A PPLIED FOR IN TERM OF THE PROVISIONS OF THE ACT WAS ACTED UPON BY THE LEARNED CIT BY REJECTING THE APPLICATION FOR RENEWAL BUT SOU MOTO CANCELLATION OF REGISTRATION ALREADY GRANTED U/S.12AA WOULD ITSELF MEAN THAT THAT THE LEARNED CIT CONSIDERED THE FACTS FOR REJECTION IN PURELY HYPOTHETICAL AND BIAS VIEW. RENEWAL OF REGISTRATION U/S. 80(5)(VI) CANNOT BE LINKED FOR GRANTING REGISTRATION U/S.12AA ONLY. THE OBJECTION WAS OVERRULED BY THE BENCH. 6. THE LEARNED DR SUPPORTED THE ORDER OF THE LEARNED CIT FOR H IS PART OF THE SUBMISSIONS. 7. AFTER HEARING THE PARTIES AND PERUSING THE RECORDS, WE ARE INCLINED TO HOLD THAT THE ASSESSEE HAS BEEN UNJUSTIFIABLY CONSIDERED FOR REJECTION OF RENEWAL OF REGISTRATION UNDER THE PROVISIONS OF U/S. 80(5)(VI) AND THE CANCELLATIO N OF REGISTRATION ALREADY GRANTED SINCE 1990 HAS BEEN REVOKED BY THE LEARNED CIT ON MATERIAL NOT CONFRONTED TO THE ASSESSEE. WE HAVE PERUSED THE ORDER OF THE LEARNED CIT REJECTING THE REGISTRATION U/S.12AA AND WE FIND THAT HE HAS TRIED TO CONSIDER THE REJE CTION BY HOLDING A VIEW THAT THE DONATIONS AND CONTRIBUTIONS RECEIVED BY THE ASSESSEE WERE FROM CORPORATE BODIES WHICH RESULTED IN HOLDING OF FUNDS IN FIXED DEPOSITS AND BANK ACCOUNT WHICH IN HIS VIEW WAS CONTRAVENING THE PROVISIONS OF SECTION 11. WE ARE U NABLE TO SATISFY OURSELVES TO THIS PROPOSITION OF THE LEARNED CIT INSOFAR I.T.A.NOS.187 AND 188/CTK/2012 17 AS THE LEARNED CIT HAS NOT BEEN ABLE TO LINK WHETHER THESE ACTIVITIES COULD BE CARRIED OUT OTHERWISE. THE LEARNED COUNSEL FOR THE ASSESSEE HAS BEEN ABLE TO SUBSTANTIATE THE WORK REND ERED BY THE SOCIETY SINCE 1990 AND MORE SO THE ASSESSEE WAS TO CONTINUE WITH HOLDING REGISTRATION U/S. 80(5)(VI) BUT ERRONEOUSLY APPLIED FOR RENEWAL AS IT STOOD EXPIRED IN THE FY 2011 THEREFORE PROMPTED THE LEARNED CIT TO CANCEL BOTH THE CERTIFICATES OF REGISTRATION FOR THE FY 2012 AND 2013. WE HAVE BEEN FURNISHED WITH THE DETAILS FILED TILL THE ASSESSMENT YEAR 2011 - 12 WHICH HAVE BEEN ACCEPTED BY THE ASSESSING OFFICER. IN THIS VIEW OF THE MATTER, WE ARE UNABLE TO CONSIDER THE FINDINGS OF THE LEARNED CIT O THER THAN AS FILED BEFORE THE ASSESSING OFFICER. THE LEARNED CIT OUGHT TO HAVE CONFINED HIMSELF TO SATISFACTION FOR THE MAIN OBJECTS BEING CARRIED OUT BY THE SOCIETY FOR THE GENERAL PUBLIC UTILITY WITHOUT LINKING THE SAME TO CONSIDER THE EXPENDITURES INCUR RED CONTRAVENING THE PROVISIONS OF SECTION 11. FURTHERMORE THE LEARNED CIT APPEARS TO HAVE CONSIDERED BUSINESS ACTIVITIES AS BEING CARRIED OUT BECAUSE IT INVOLVES CORPORATE BODIES IS OF NO AVAIL. ON OUR PERUSAL OF THE ORDERS, WE DO FIND THAT CANCELLATION O F REGISTRATION U/S. 80(5)(VI) PRECEDED THE REVOCATION OF THE REGISTRATION U/S.12AA WHICH IN ITSELF INDICATES THAT THE LEARNED CIT PROCEEDED TO CONSIDER THE CASE OF THE ASSESSEE EXPARTE BY NOTING THAT THE SOCIETY DID NOT RESPOND TO THE NOTICES ISSUED FOR AD DRESSING THE ISSUE AS IT CAME UP AFTER HIS CANCELLATION OF THE APPLICATION FOR RENEWAL OF REGISTRATION U/S. 80(5)(VI). THE LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO SUBM ITTED A COPY OF LETTER FROM THE OFFICE OF THE DIT( EXEMPTION), 3RD FLOOR, AYAKAR BHAWAAN , LAXMI NAGAR DISTT. CENTRE, DELHI 110 092 DT.7.7.2010 ADDRESSED TO THE FEDERATION OF INDIAN MINERAL INDUSTRIES STATING THAT THE CERTIFICATE IS VALID FROM 1ST APRIL , 2010 ONWARDS TILL IT IS RESCINDED AND SUBJECT TO THE SAME CONDITION S AND ALSO SUBJECT TO THE CONDITION THAT THEIR CASE SHOULD NOT HIT BY THE NEWLY INSERTED I.T.A.NOS.187 AND 188/CTK/2012 18 PROVISO TO SECTION 2(15) OF THE ACT. IN OTHER WORDS, THE LEARNED CIT HAS TRIED TO ADDRESS REJECTING THE APPLICATION FOR RENEWAL U/S. 80(5)(VI) BY MAKING EFFORTS TO REVOKE 12A REGISTRATION A LREADY GRANTED WHEN THE RENEWAL FOR REGISTRATION U/S.80G(5)(VI) WAS NOT REQUIRED AS PER THE LAW ITSELF. THE REVOKING OF REGISTRATION U/S.12AA THEREFORE WAS UNJUSTIFIED , ILLEGAL AND ARBITRARY INSOFAR AS THE LEARNED CIT HAS NOT BROUGHT ON RECORD ANY MATERIA L THAT HE WAS NOT SATISFIED ABOUT THE GENUINENITY OF THE ACTIVITIES OF THE TRUST OR SOCIETY WHEN THE ENQUIRIES HE MADE WERE AVAILABLE TO THE ASSESSING OFFICER AND HAS NOT FOUND ANY OF THE OBJECTS OF THE TRUST OR SOCIETY AS NON - GENUINE INSOFAR AS IT WAS NOT THE ASSESSEES ENDEAVOR TO GET A CANCELLATION OF REGISTRATION HAVING APPLIED AFRESH BUT ON THE BASIS OF INFORMATION AVAILABLE TO THE DEPARTMENT WITH THE ASSESSING OFFICER WHO COULD NOT STEP INTO THE SHOES OF THE LEARNED CIT TO CANCEL REGISTRATION BY BRIN GING ON RECORD THE PROVISIONS OF SECTION (1A) OF SECTION 12AA WHICH HAS BEEN BROUGHT ON INTO THE STATUTE AS ON 1.4.1999. IN OTHER WORDS, ON HAVING PERUSED THE ORDER OF THE LEARNED CIT WE ARE OF THE CONSIDERED VIEW THAT THE FINDING OF THE LEARNED CIT RATHER LEAN IN FAVOUR OF THE SOCIETY TO LET IT CONTINUE WITH THE REGISTRATION GRANTED U/S.12AA. HAVING SAID SO, THE RENEWAL WAS REQUIRED FOR SECTION 80(5)(VI) AS WELL. FINDING NO INFIRMITY IN THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE, WE QUASH THE O RDER PASSED BY THE LEARNED CIT CANCELLING REGISTRATION U/S. 80(5)(VI) AND U/S.12AA BY ALLOWING THE APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED. S D/ - S D/ - ( . . . ) , (K.S.S.PRASAD RAO), J UDICIAL MEMBER ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( ) DATE: 31.08.2012 ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY. I.T.A.NOS.187 AND 188/CTK/2012 19 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : SOCIETY OF GEOSCIENTISTS AND ALLIED TECHNOLOGISTS, 267, KHARVEL NAGAR, BHUBANESWAR 751 001. 2 / THE RESPONDENT: COMMISSIONER OF INCOME - TAX, BHUBANESWAR. 3 . / THE CIT, 4 . ( )/ THE CI T(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, APPENDIX XVII SEAL TO BE AFFIX ED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1. DATE OF DICTATION 27.08.2012 . 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28.08.2012 OTHER MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S 31.08.2012 . 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.08.2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................ 9. DATE OF DESPATCH OF THE ORDER ..