Sanjivani Foundation, Ahmednagar V. Commissioner of Income-tax:1,

ITA 2129/PUN/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9516 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-11-2017
• Assessment Year: misc
• Appeal Filed On: 28-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ABHAY A SHASTRI
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.2129/PUN/2014 SHRI SANJIVANI FOUNDATION, C/O.THE CHAIRMAN, SANJAVNI FOUNDATION AT SAHAJNAND NAGAR, POST SHINGANAPURAM, TALUKA KOPARGAON DIST. AHMEDNAGAR 423603. PAN : AAKTS8191A. . / APPELLANT V/S COMMISSIONER OF INCOME TAX I, PUNE. . / RESPONDENT / APPELLANT BY : SHRI ABHAY A. SHASTRI / RESPONDENT BY : SHRI RAJEEV KUMAR, CIT. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX I, PUNE DT.07.11.2014 PASS ED U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A TRUST WHICH IS STATED TO BE FORMED ON 10.10.2010 AND REGISTERED BY THE ASST.CHARITY COMMISSION ER, / DATE OF HEARING : 02.11.2017 / DATE OF PRONOUNCEMENT: 10.01.2018 2 AHMEDNAGAR. ASSESSEE MADE AN APPLICATION IN FORM 10G TO THE CIT- I, PUNE FOR SEEKING APPROVAL U/S 80G(5) OF THE I.T ACT. THE REQUEST FOR APPROVAL U/S 80G(5) WAS REJECTED BY LD.CIT VIDE ORDE R DT.07.11.2014 FOR THE FOLLOWING REASONS : (1) ASSESSEE HAD FAILED TO FILE THE NOTICE OF ACCUMULATION OF INCOME BEFORE THE AO. (2) WITH REGARD TO E-BUS FACILITY, THOUGH THE ASSESSEE HAD PROVIDED THE NAMES OF STUDENTS TO WHOM THE COMPUTER EDUCATION WAS PROVIDED THROUGH E-BUS FACILITY BUT NO LOG BOOK FOR THE JOURNEYS PERFORMED WAS PRODUCED, NO DETAILS IN RESPECT OF EYE CHECK-UP CAMPS THAT WERE HELD BY THE ASSESSEE JOINTLY WITH THE TRUST AND COLLEGES WERE FURNISHED. HE ACCORDINGLY REJECTED THE REQUEST OF APPROVAL OF UNDE R SEC.80G OF THE ACT. AGGRIEVED BY THE ORDER OF LD. CIT, ASSESSEE I S NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS : 1. THAT THE REJECTION ORDER PASSED U/S 80G(5)(VI) OF THE ACT, IS AGAINST THE LAW AND TO THE FACTS OF THE CASE. 2. THAT THE LD.CIT WAS FURTHER WRONG FOR NOT APPEA RING THAT THE APPELLANT SOCIETY IS ALREADY REGISTERED U/S 12A(A) OF THE INCOME TAX ACT, 1961, FOR DOING CHARITABLE ACTIVITIES AND ALSO FULFIL THE CONDITIONS LAID DOWN U/S 80G(5)(VI) OF THE ACT. 3. THAT THE REJECTION ORDER PASSED U/S 80G(5)(VI) OF THE ACT IS FURTHER BAD IN LAW, AS NO REASONABLE AND PROPER OPPORTUNITY WAS PROPERLY AFFORDED TO THE APPELLANT SOCIETY TO PRESENT THEIR CASE BEFORE THE LD.CIT. 3. BEFORE US, LD.A.R. REITERATED THE SUBMISSIONS MADE BEFOR E AO AND LD.CIT AND FURTHER SUBMITTED THAT WHILE CONSIDERING TH E APPROVAL UNDER 80G OF THE ACT, THE ENQUIRY SHOULD BE C ONFINED TO 3 FINDING OUT IF THE INSTITUTE SATISFIES THE PRESCRIBED CONDITION S MENTIONED THEREIN. HE FURTHER SUBMITTED THAT AS FAR AS THE ASPECT OF APPLICATION OF INCOME IS CONCERNED, IT HAS TO BE EXAMINE D BY THE AO AT THE TIME OF FRAMING ASSESSMENT. HE FURTHER SUBMIT TED THAT ASSESSEE HAS BEEN GRANTED APPROVAL U/S 12A OF THE ACT AND THE SAM E IS NOT WITHDRAWN. HE THEREFORE SUBMITTED THAT LD.CIT HA S WRONGLY DENIED THE REGISTRATION AND PRAYED THAT ASSESSEE BE GRANTED APPROVAL U/S 80G OF THE ACT. LD.D.R. ON THE OTHER HAND, SUPPORTE D THE ORDER OF LD.CIT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPEC T TO REJECTING THE REQUEST OF ASSESSEE FOR REGISTRATION OF TRUST U/S 80 G OF THE ACT. BEFORE US, IT IS ASSESSEES SUBMISSION THAT IT IS REGISTERED U/S 12A OF THE ACT AND THE APPROVAL HAS NOT BEEN WITHDRAWN. THE AFORESAID SUBMISSION OF THE ASSESSEE HAS NOT BEEN CONTROVERTED B Y THE REVENUE. WE FIND THAT HONBLE PUNJAB AND HARYANA HIGH COURT IN THE CASE OF SONEPAT HINDU EDUCATIONAL AND CHARITABLE SOCIE TY VS. CIT (2005) 278 ITR 262 (P&H) HAS HELD THAT REGISTRATION OF AN INSTITUTION U/S 12A OF THE ACT IS SUFFICIENT PROOF OF IT BEING ESTABLISHED FOR CHARITABLE PURPOSES. IT FURTHER HELD THAT IN CONTINUING THE PURPOSE OF THE TRUST FOR THE PURPOSES O F APPROVAL U/S 80G OF THE ACT, IT IS IMPORTANT TO FIND OUT THE REAL PU RPOSE OF ESTABLISHING THE TRUST RATHER THAN JUST RELYING ON THE OBJECTS, MEMORANDUM AND ARTICLES OF THE TRUST DEED OF THE TRUST. IT FURTHER OBSERVED THAT IF COMMISSIONER OF INCOME TAX IS SATISFIED THA T THE 4 OBJECTS OF THE TRUST ARE CHARITABLE, APPROVAL SHOULD NOT BE DENIED ON MERE TECHNICALITIES. 5. FURTHER IT IS A SETTLED POSITION OF LAW THAT AT THE TIM E OF GRANTING APPROVAL U/S 80G OF THE ACT, WHAT IS TO BE EXAM INED IS THE OBJECT OF THE TRUST AND SO FAR AS THE ASPECT OF INCOME IS CONCERNED, SAME CAN BE VERY WELL EXAMINED BY THE AO AT THE TIME OF FRAMING ASSESSMENT AND FOR THIS PROPOSITION, WE FIND SUPPORT FROM THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. PUJYA SHRI JALARAMBAPA AND MATUSHRI VIRBAIMA CHENTABLE TRUST R EPORTED IN (2015) 55 TAXMANN. COM 52 (GUJ). 6. IN VIEW OF THE AFORESAID FACTS AND RELYING ON THE DEC ISIONS CITED HEREINABOVE, WE ARE OF THE VIEW THAT COMMISSIONER OF INCOM E TAX WAS NOT JUSTIFIED IN REFUSING THE REGISTRATION U/S 80G OF TH E ACT. WE THEREFORE DIRECT THE COMMISSIONER OF INCOME TAX TO GRAN T REGISTRATION U/S 80G OF THE ACT. THUS, THE GROUNDS OF THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED ON 10 TH DAY OF JANUARY, 2018. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; ! DATED : 10 TH JANUARY, 2018. YAMINI 5 !'#$#%! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5. 6. THE CIT-I, PUNE. JOINT CIT, AHMEDNAGAR RANGE, AHMEDNAGAR. #$% &&'(,* '(, / DR, ITAT, A PUNE; %-.// GUARD FILE. / BY ORDER , // TRUE COPY // 012&3'4 / SR. PRIVATE SECRETARY * '(, / ITAT, PUNE.