Dhan Laxmi Foundation Samiti, Mathura V. C.I.T.-1, Agra

ITA 197/AGR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94125 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 25-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BELU SINHA
• Assessee Lawyers: ROOP KISHORE AGARWAL
• Section: 12A; 12AA; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SH RI G.C. GUPTA, VICE PRES ID ENT AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER ITA NO. 197/AGRA/2014 ASSESSMENT YEAR: 2013 - 14 DHAN LAXMI FOUNDATION SAMITI, VS. COMMISSIONER OF SARVANPURA, DAS HBHUJI GANESH, INCOME - TAX - I, AGRA. MATHURA. (PAN : AABTD 8408L) APPELLANT BY : SHRI ROOPKISHORE AGARWAL, ADVOCATE RESPONDENT BY : SMT. BELU SINHA, SR. D.R. DATE OF HEARING : 24.07.2015 DATE OF PRONOUNCEMENT : 12.08.2015 O R D E R PER INTURI RAMA RAO , A CCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE APPELLANT SOCIETY AGAINST THE ORDER OF LD . CIT - I, AGRA DATED 16.05.2014 DENYING REGISTRATION UNDER THE PROVISIONS OF SECTION 12AA OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER). 2. THE ASSESSEE HAS RA IS E D THE FOLLOWING GROUNDS OF APPEAL : - 1. BECAUSE THE CIT ERRED IN HOLDING THAT NO CHARITABLE ACTIVITY HAS BEEN DONE BY TRUST AND DETAILS OF CHARITABLE EXPENSES WRONGLY DISCARDED FOR NO REASON. ITA NO.197/AGRA/2014 A.Y. 2013 - 14 2 2. BECAUSE THE CIT ERRED IN LAW AS WELL AS ON FACT TO OVERLOOK THE EXPLANATIONS AND EVIDENCE RELATING TO CHARITABLE OBJECTS AND CHARITABLE ACTIVITIES REGULARLY PERFORMED BY TRUST. 3. BECAUSE THE CIT HAS ERRED IN RELYING ON THE WRONG AND INCORRECT REPORTS OF ITI AND J.C.I.T., RANGE - 3, MATHURA & DID NOT PROVID E COPY OF SUCH REPORTS TO APPELLANT FOR SUBMISSION OF EXPLANATION/OBJECTION. THUS IMPUGNED ORDER IS ONE SIDED. 4. BECAUSE THE CIT ERRED IN LAW AS WELL AS ON FACTS BY PASSING ORDER WITHOUT DISCUSSION OF FACTS AND EVIDENCE ON RECORD. THE ARGUMENTS MADE AT T HE TIME OF HEARING AND EVIDENCE PRODUCED, HAVE ALSO BEEN OVERLOOKED. 5. BECAUSE THE CIT HAS PASSED SUMMERY ORDER IN THREE LINES AT PAGE 2 (PARA NO. 4) OF RELYING ON THE DEPARTMENTAL REPORTS WHICH ARE WRONG AND AGAINST THE FACTS 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY IS FORMED WITH THE FOLLOWING OBJECTS : - 1. TO MANAGE FOODING AND LODGING TO THE PILGRIMS. 2. TO ESTABLISH GAUSHALAS 3. TO IMPART FREE EDUCATION AND STUDY MATERIAL TO POOR STUDENTS 4. TO ESTABLISH EDUCATIONAL INSTITUTE, LIBRARY ETC. FOR SPREADING EDUCATION. 5. TO ORGANISE /CELEBRATE TRADITIONAL FESTIVALS 6. TO ARRANGE FOR LIVELIHOOD FOR RELIGIOUS PERSONS AND EDUCATE THEM TO BE SELF DEPENDENT. 7. TO ACT FOR ESTABLISHING UNITY, AFFECTION, BROTHERHOOD FOR INCREASING MORAL VALUE IN THE SOCIET Y AND TO RENDER SERVICES TO THE SAINTS AND PUBLIC. 8. TO ARRANGE MEDICINES AND OTHER THINGS FOR PHYSICALLY CHALLENGED, PATIENTS AND POOR. 9. TO PUBLISH MAGAZINES FOR THE DEVELOPMENT OF SOCIETY. ITA NO.197/AGRA/2014 A.Y. 2013 - 14 3 10. TO HELP POOR AND ORPHANS. 11. TO ARRANGE THE LAND AND MONEY FOR FULFILLI NG THE OBJECTS OF THE SOCIETY. 12. TO HELP THE VICTIMS OF NATURAL CALAMITIES AND EARTHQUAKES. 13. TO ESTABLISH HOUSE FOR ABANDONED AGED PERSONS 14. TO ACT FOR CONTROLLING YAMUNA POLLUTION. 15. TO ORGANISE PROGRAMMES FOR PLANTATION ETC. 4. THE ASSESSEE SOCIETY FILED APPL ICATION DATED 18.11.2013 IN FORM NO.10A FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT BEFORE THE LD. CIT - I, AGRA. THE SAID APPLICATION WAS REJECTED BY THE LD. CIT - I VIDE THE IMPUGNED ORDER BY HOLDING THAT THE EXPENSES INCURRED DURING THE PERIOD 21.12.2012 TO 31.03.2013 WERE NOT VERIFIABLE AND ALSO ON OTHER GROUND THAT THE ASSESSEE SOCIETY HAD NOT COMMENCED ITS CHARITABLE ACTIVITIES. BEING AGGRIEVED, THE ASSESSEE SOCIETY HAD FILED PRESENT APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IT IS NOT THE CASE OF THE LD. CIT THAT THE OBJECTS OF THE ASSESSEE SOCIETY ARE NOT CHARITABLE IN NATURE. THE ISSUE OF VERIFICATION OF EXPENSES IS A SUBJECT MATTER OF ASSESSMENT PROCEEDINGS. IN CASE IT IS FOUND THAT TH E ASSESSEE INCURRED EXPENDITURES FOR THE PURPOSES OTHER THAN THE OBJECTS FOR WHICH THE SOCIETY IS SET UP, PROBABLY AT THAT POINT OF TIME SUCH EXPENDITURES CAN BE DISALLOWED. THE FACT THAT THE ASSESSEE SOCIETY HAD NOT COMMENCED ITS CHARITABLE ACTIVITIES IS NOT A GROUND FOR REJECTION OF APPLICATION UNDER SECTION 12A OF THE ACT. THEREFORE, WE DIRECT THE LD. CIT TO GRANT REGISTRATION ITA NO.197/AGRA/2014 A.Y. 2013 - 14 4 UNDER SECTION 12A OF THE ACT AND ACCORDINGLY APPEAL FILED BY THE ASSESSEE SOCIETY IS DISPOSED OF. 6. IN THE RESULT, APPEAL FIL ED BY THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 1 2.08.2015 ) SD / - SD/ - ( G.C. GUPTA ) ( INTURI RAMA RAO ) VICE PRESIDENT ACC OUNTANT MEMBER DATE: 1 2 TH AUGUST , 201 5 PBN/* COPY OF THE ORDER FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA