SAM Foundation, Hyd, Hyderabad V. CIT(Exemptions), Hyd, Hyderabad

ITA 218/HYD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2548 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-04-2017
• Assessment Year: misc
• Appeal Filed On: 26-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G APARNA RAO
• Assessee Lawyers: RAVINDRA CHENJI
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 218/HYD/2016 SAM FOUNDATIONS, HYDERABAD. PAN AANTS 1519H VS. COMMISSIONER OF INCOME-TAX (EXEMPTIONS), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAVINDRA CHENJI REVENUE BY : SMT. G. APARNA RAO DATE OF HEARING : 24-04-2017 DATE OF PRONOUNCEMENT : 26-04-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS IS AN APPEAL OF THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(EXEMPTIONS), HYDERABAD, DATED 30-11-2015. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST REGISTERED U/S 12AA OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) APPLIED FOR REGISTRATION U/S 80G IN FORM NO. 10G ON 14/05/2015. TO VERIFY THE SUBMISSIONS OF THE ASSESSEE, A NOTICE VI DE LETTER DT. 22/09/2015 WAS ISSUED AND SUBSEQUENTLY DETAILS WERE CALLED FOR ON SPECIFIC POINTS. ASSESSEE HAS FILED COPY OF IT RETU RNS FOR THE AY 2014- 15 & 2015-16 ALONG WITH AUDITED REPORTS AND BANK ST ATEMENTS. 3. CIT(E) HAS REJECTED THE APPLICATION OF THE ASSES SEE BY OBSERVING THAT ASSESSEE HAS NOT CARRIED OUT ANY ACT IVITY EXCEPT TO SETTING APART OF THE FUNDS FOR THE PURPOSE OF INTER EST PAYMENT. 2 ITA NO. 218/H/16 SAM FOUNDATIONS, HYD. FURTHER, HE OBSERVED THAT FOR FY 2014-15 ALSO, ASSE SSEE HAD RESOLVED TO ACCUMULATE ITS INCOME FOR INVESTMENT I.E. RS. 14 ,74,533/- AND REPORTED THAT RS. 1,14,600/- SPENT FOR EDUCATION DO NATION. ON VERIFICATION OF THE BANK STATEMENT AND DETAILS OF E DUCATIONAL EXPENSES SUBMITTED BY THE ASSESSEE, SUCH PAYMENTS DID NOT FI ND PLACE AND ACCORDINGLY, THE CIT(E) REJECTED THE APPROVAL U/S 8 0H(5)(VI) OF THE ACT. 4. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE IS IN A PPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE CIT(E) DT. 30/11/2015 IS CONTRA RY TO LAW AND FACTS. 2. THE CIT(E) ERRED IN REJECTING APPLICATION FOR RE GISTRATION U/S 80G OF THE IT ACT. 3. THE CIT(E) ERRED IN HOLDING THAT THE ASSESSEE IS NOT ENTITLED FOR APPROVAL U/S 80G(5)(VI) OF THE ACT. 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R ANY OF THE AFORESAID GROUNDS AS THE OCCASION MAY REQUIRE. 5. LD. AR SUBMITTED THAT THE FINDINGS OF THE CIT(E) ARE NOT ACCORDING TO THE FINANCIAL STATEMENTS AND BANK STAT EMENT SUBMITTED BEFORE HIM. HE BROUGHT TO OUR KNOWLEDGE THE BANK ST ATEMENT WHICH IS AVAILABLE IN THE PAPER BOOK AT PAGE 21 TO SUPPORT T HE CLAIM OF THE ASSESSEE THAT ASSESSEE HAS, IN FACT, SPENT RS. 1,14 ,600/- FOR EDUCATIONAL DONATION. FURTHER, HE SUBMITTED THAT CA SH WAS WITHDRAWN FROM THE BANK AND SPENT ON CHILDREN EDUCATION AND O THER EDUCATIONAL PURPOSES. TO SUBSTANTIATE THE SAME, HE SUBMITTED ST ATEMENT OF DONATION FOR THE FY 2014-15, WHICH IS PLACED AT PAG ES 31 & 32 OF THE PAPER BOOK SUBMITTED BEFORE US. HE PRAYED THAT SUIT ABLE ORDER MAY BE PASSED FOR THE ASSESSEE TO GET THE REGISTRATION U/S 80G(5)(VI) OF THE ACT TO CARRY ON THE CHARITABLE ACTIVITIES OF THE AS SESSEE. 6. LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITI ES. 7. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED MAT ERIAL FACTS ON RECORD. CIT(E) HAS DENIED APPROVAL U/S 80G(5)(VI) T O THE ASSESSEE BY 3 ITA NO. 218/H/16 SAM FOUNDATIONS, HYD. OBSERVING THAT ASSESSEE IS ONLY SETTING APART FUNDS AND HAS NOT SPENT REPORTED EDUCATIONAL DONATION BY THE ASSESSEE IN FY 2014-15. IN OUR VIEW, SETTING APART FUNDS FOR THE CHARITABLE PURPOS ES IS NOT ANY WAY VIOLATING ANY RULES AND THE ASSESSEE HAS IN FACT SP ENT EDUCATIONAL DONATION DURING FY 2014-15, WHICH ASSESSEE HAS PLAC ED ON RECORD BY SUBMITTING CASH BOOK AND BANK STATEMENT WHICH PR OVES THAT ASSESSEE HAS IN FACT SPENT RS. 1,14,600/- FOR THE CHARITABLE PURPOSES I.E. EDUCATIONAL DONATION. IT CLEARLY DEMONSTRATES THAT ASSESSEE HAS CARRIED ON CHARITABLE ACTIVITIES DURING FY 2014-15. ACCORDINGLY, WE DIRECT THE CIT(E) TO GRANT REGISTRATION U/S 80G(5)( VI) CONSIDERING THE ABOVE DOCUMENTARY EVIDENCE SUBMITTED BY THE ASSESSE E. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2017. SD/- SD/- (D. MANMOHAN) (S. RIFAUR RAHMAN ) VICE PRESIDENT AC COUNTANT MEMBER HYDERABAD, DATED: 26 TH APRIL, 2017. KV COPY TO:- 1) SAM FOUNDATION, C/O SHRI RAVINDRA CHENJI, ADVOCA TE, C 308, AHUJA, HYDERABAD. 2) CIT(E), HYDERABAD. 3) ITO (E), WARD 4, HYDERABAD 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 5) GUARD FILE