Chinar (Central Himalayan Institute for Nature & Applied Research, Nanital V. The Commissioner of Income Tax (Exemption ) , Lucknow

ITA 198/DDN/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2355 (ITAT-DEHRADUN)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBU NAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE, SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO.198/DDN/2019 (ASSESSMENT YEAR: NIL) CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) HN.41, MEHTA NIWASMALDAN COMPOUND,MALLITAL SNOW VIEW, NAINITAL-263 001. (UTTARAKHAND) PAN AACTC 0048E VS. CIT(EXEMPTION S ) , LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SH. HEMANTARORA, CA& SH. SANJAY ARORA, CA RESPONDENT BY SH. N.C.UPPADHAY, SR. DR DATE OF HEARING 03.03.2021 DATE OF PRONOUNCEMENT 03.03.2021 ORDER PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST ORDER DATED 29.08.2019 PASSED BY THE LEARNED COMMIS SIONER OF INCOME TAX (EXEMPTIONS), LUCKNOW {CIT(E)} REJECTING ASSESSEES 2 ITA NO.198/DDN/2019 CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) VS. DCIT APPLICATION SEEKING APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT). 2.0 THE BRIEF FACTS OF THE CASE ARE THAT TH E ASSESSEE HAS BEEN GRANTED APPROVAL U/S 12A OF THE ACT VIDE ORDER DATE D 15.12.2017 BY THE LD. CIT(E), LUNCKNOW. SUBSEQUENTLY, THE ASSESSEE FILED AN APPLICATION FOR GRANT OF APPROVAL U/S 80G (5) (VI) OF THE ACT. THIS APPLICATION OF THE ASSESSEE WAS REJECTED VIDE THE IM PUGNED ORDER BY NOTING THAT THE ACTIVITIES PERFORMED BY THE ASSESSE E TRUST DID NOT FALL UNDER THE LIMB OF RELIEF TO POOR FOR WHICH 12 A RECOGNITION HAD BEEN GRANTED TO THE ASSESSEE. 3.0 AGGRIEVED, THE ASSESSEE HAS NOW APPROACHE D THIS TRIBUNAL CHALLENGING THE REJECTION OF ASSESSEES APPLICATION . THE FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE IN THIS RE GARD: 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE IMPUGNED ORDER IS BASED UPON CONJECTURES, SURMISES AND ASSUMING INCORRECT FACTS AND, THEREFORE, IS BAD IN LAW. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT(EXEMPTIONS) HAS ERRED REJECTIN G THE 3 ITA NO.198/DDN/2019 CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) VS. DCIT APPLICATION FILED BY THE APPELLANT FOR REGISTRATION U/S 80G OF THE ACT, INTER ALIA BECAUSE: 2.1. THE ACTIVITIES PERFORMED BY THE APPELLANT ARE COVERED UNDER THE AMBIT OF CHARTITABLE PURPOSE AS DEFINED UNDER THE PROVISIONS OF THE ACT AND FALL WITHIN THE LIMB PERTAINING TO RELIEF TO POOR 2.2 THE APPELLANT IS REGISTERED UNDER SECTION 12AA OF THE ACT AND FULFILLS ALL THE CONDITIONS AS MENTIONED UN DER CLAUSE (I) TO CLAUSE (V) OF SUB-SECTION (5) OF SECT ION 80G, A FACT WHICH HAS NOT BEEN CHALLENGED BY THE HONBLE CIT(EXEMPTIONS). 2.3 AS HELD BY VARIOUS JUDICIAL FORUMS, THERE WAS NO JUSTIFIABLE CAUSE FOR THE HONBLE CIT(EXEMPTIONS) T O LOOK INTO THE OBJECTS OR ACTIVITIES CARRIED OUT BY THE A PPELLANT. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT (EXEMPTIONS) HAS ERRED IN HOLD ING THAT THE ACTIVITIES OF THE APPELLANT DO NOT FALL WITHIN THE AMBIT OF CHARITABLE ACTIVITIES, INTER ALIA BECAUSE- 3.1. THE OBJECTS OF THE APPELLANT HAD ALREADY BEEN EXAMINED AND HELD TO BE CHARITABLE IN NATURE AT THE TIME OF ITS REGISTRATION UNDER SECTION 12AA OF THE ACT. 4 ITA NO.198/DDN/2019 CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) VS. DCIT 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT(EXEMPTIONS) HAS ERRED IN HOLDI NG THAT NO EXPENDITURE HAS BEEN INCURRED BY THE APPELLANT TOWA RDS CHARITABLE OBJECTS FOR WHICH THE TRUST HAD BEEN FOR MED, INTER ALIA BECAUSE- 4.1. THE EXPENDITURE INCURRED BY THE APPELLANT DURI NG FY 2017-18 IS IN LINE WITH THE OBJECTS OF THE TRUST, A FACT THAT HAS NOT BEEN APPRECIATED BY THE HONBLE CIT(EXEMPTI ONS). 4.2. THE EXPENDITURE INCURRED ON INTERNATIONAL M OUNTAIN DAY HAS RESULTED IN PROMOTION OF RURAL TOURISM, WH ICH HAS GENERATED VARIOUS LIVELIHOODOPTION FOR THE POOR COMMUNITIES LIVING NEARBY. 4.0 THE LD. AUTHORIZED REPRESENTATIVE (AR) SU BMITS THAT THE ASSESSEES APPLICATION WAS REJECTED WITHOUT ANY COGEN T REASON. IT WAS SUBMITTED THAT THE ASSESSEE CONTINUES TO ENJOY R EGISTRATION U/S 12A OF THE ACT AND, THEREFORE, THE LD. CIT(E) WAS NO T JUSTIFIED IN REJECTING THE ASSESSEES APPLICATION FOR APPROVAL U /S 80G OF THE ACT. 5.0 PER CONTRA, THE LD. SR. DEPARTMENTAL REP RESENTATIVE (DR) SUPPORTED THE ORDER OF THE LD. CIT(E). 5 ITA NO.198/DDN/2019 CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) VS. DCIT 6.0 HAVING HEARD BOTH THE PARTIES AND AFTER HAVING GONE THROUGH THE RECORDS, IT IS SEEN THAT THE ASSESSEE C ONTINUES TO ENJOY REGISTRATION U/S 12A OF THE ACT AND, THEREFORE, THE IR APPEARS TO BE NO APPARENT REASON FOR WHICH THE ASSESSEES REQUEST FOR RECOGNITION U/S 80G OF THE ACT WAS DENIED. IN OUR CONSIDERED OPI NION, INTEREST OF SUBSTANTIAL JUSTICE WOULD BE SERVED, IF THE LD. CIT(E) RE-CONSIDERS THE ASSESSEES APPLICATION. ACCORDINGLY, WE RESTORE THIS FILE TO THE OFFICE OF LD. CIT(E) WITH A DIRECTION TO CONSIDER TH E APPLICATION OF THE ASSESSEE KEEPING IN MIND THAT THE ASSESSEE ENJOYS R EGISTRATION U/S 12A OF THE ACT AFTER GIVING PROPER OPPORTUNITY TO T HE ASSESSEE TO PRESENT ITS CASE. 7.0 IN THE FINAL RESULT, THE APPEAL OF THE ASSESSE E STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03/03/2021. SD/- S D/- (PRASHANT MAHARISHI) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03/03/2021 PK/PS 6 ITA NO.198/DDN/2019 CHINAR (CENTRAL HIMALAYAN INSTITUTE FOR NATURE & APPLIED RESEARCH) VS. DCIT COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI (DEHRADUN CIRCUIT BENCH, DEHRADUN)