Anthill Creations Foundation, Faridabad V. CIT(Exemption), Chandigarh

ITA 2097/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7940 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 27-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P V GUPTA
• Assessee Lawyers: SANJAY GOEL; I P BANSAL
• Keywords: Charitable institution; Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES A : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.2097/DEL./2018 ASSESSMENT YEAR 2018-2019 M/S. ANTHILL CREATIONS FOUNDATION, 190/9, SECTOR-9, FARIDABAD, HARYANA 121 006. PAN AAPCA2784F VS THE CIT (EXEMPTIONS), CHANDIGARH. (RESPONDENT) FOR ASSESSEE : SHRI I.P. BANSAL & SHRI SANJAY GOEL, ADVOCATES FOR REVENUE : SHRI P.V. GUPTA, SR. D.R. DATE OF HEARING : 22.04.2019 DATE OF PRONOUNCEMENT : 23.04.2019 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT (EXEMPTIONS), CHANDIGARH, DATED 30.01.2018 UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961. 2 ITA.NO.2097/DEL./2018 M/S. ANTHILL CREATIONS FOUNDATION, FARIDABAD. 2. THE LD. CIT(E) NOTED THAT IN THE PRESENT CASE ASSESSEE FILED APPLICATION IN PRESCRIBED FORM FOR APPROVAL UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961. THE ASSESSEE ALSO SIMULTANEOUSLY FILED AN APPLICATION UNDER SECTION 12AA OF THE I.T. ACT, 1961. THE LD. CIT(E) NOTED THAT THOUGH THE REGISTRATION UNDER SECTION 12A HAVE BEEN GRANTED TO ASSESSEE RECENTLY, BUT, REQUEST FOR APPROVAL UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT IS TREATED AS PREMATURE. THE SAME WAS ACCORDINGLY DISMISSED. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ISSUE IS COVERED BY THE ORDER OF ITAT, DELHI BENCH IN THE CASE OF BHARAT BHUSHAN JAIN CHARITABLE TRUST VS. CIT (EXEMPTIONS), NEW DELHI [2019] 103 TAXMANN.COM 296 (DELHI-TRIBU.) IN WHICH UNDER SIMILAR CIRCUMSTANCES, THE APPLICATION FOR ASSESSEE WAS FOUND PREMATURE. HOWEVER, APPROVAL UNDER SECTION 80G(5) HAVE BEEN GRANTED. THE ORDER OF THE TRIBUNAL READS AS UNDER : IT IS NOT IN DISPUTE THAT ASSESSEE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12A MEANING THEREBY, 3 ITA.NO.2097/DEL./2018 M/S. ANTHILL CREATIONS FOUNDATION, FARIDABAD. COMMISSIONER (EXEMPTIONS) WAS SATISFIED ABOUT THE CHARITABLE ACTIVITIES CARRIED-OUT BY THE ASSESSEE AND THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE. THE COMMISSIONER (EXEMPTIONS) HAD NOT DISPUTED THAT ASSESSEE SATISFIED THE CONDITIONS OF SECTION 80G(5). IT IS ALSO NOT IN DISPUTE THAT ASSESSEE HAD CARRIED-OUT SOME OF THE CHARITABLE ACTIVITIES IN FURTHERANCE TO ITS OBJECTS. THEREFORE, THERE WAS NO BASIS FOR COMMISSIONER (EXEMPTIONS) TO REJECT THE APPLICATION UNDER SECTION 80G(5) OF THE ACT.[PARA-5] IN VIEW OF THE ABOVE, THE IMPUGNED ORDER IS SET ASIDE AND THE COMMISSIONER (EXEMPTIONS) IS DIRECTED TO GRANT APPROVAL/EXEMPTION TO THE ASSESSEE UNDER SECTION 80G(5). [PARA 5.1] IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. [PARA 61] 4. THE LD. D.R. DID NOT DISPUTE THE ABOVE FACTS. HOWEVER, STATED THAT APPLICATION WAS PREMATURE. 5. CONSIDERING THE FACTS OF THE CASE, WE ARE OF THE VIEW THAT THE ISSUE IS COVERED BY THE ORDER OF THE ITAT, 4 ITA.NO.2097/DEL./2018 M/S. ANTHILL CREATIONS FOUNDATION, FARIDABAD. DELHI BENCH IN THE CASE OF BHARAT BHUSHAN JAIN CHARITABLE TRUST VS. CIT (EXEMPTIONS), NEW DELHI (SUPRA) IN WHICH ALSO APPLICATION UNDER SECTION 80G(5) WAS FOUND PREMATURE. IT MAY ALSO BE NOTED HERE THAT THE LD. CIT(E) DID NOT RECORD ANYTHING IN THE ORDER, IF ASSESSEE VIOLATED CONDITIONS OF SECTION 80G(5) OF THE I.T. ACT. SINCE IN THE PRESENT CASE ALSO ASSESSEE HAS BEEN GRANTING REGISTRATION UNDER SECTION 12A OF THE I.T. ACT, THEREFORE, LD. CIT(E) WAS SATISFIED ABOUT THE CHARITABLE ACTIVITIES CARRIED OUT BY THE ASSESSEE AND THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE. THEREFORE, ASSESSEE IS ENTITLED FOR APPROVAL UNDER SECTION 80G(5) OF THE INCOME TAX ACT, 1961. WE, ACCORDINGLY, SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(E) AND DIRECT THE LD. CIT(E) TO GRANT APPROVAL/EXEMPTION TO THE ASSESSEE UNDER SECTION 80G(5) OF THE I.T. ACT, 1961, FROM THE DATE OF APPLICATION. 6. IN THE RESULT, APPEAL OF ASSESSEE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 23 RD APRIL, 2019. VBP/- 5 ITA.NO.2097/DEL./2018 M/S. ANTHILL CREATIONS FOUNDATION, FARIDABAD. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT A BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.