Satya Prakash Foundation, Jabalpur V. Commissioner of Income Tax, Jabalpur

ITA 222/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1120 (ITAT-JABALPUR)
• Duration Of Justice: 5 year(s) 9 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 28-08-2013
• Court: TRIBUNAL
• Department Lawyers: V B SAGAR
• Assessee Lawyers: H S MODH

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 222/JAB/2013 SATYA PRAKASH FOUNDATION PARISHRAM JABALPUR PAN AAKT 53038E ::: APPELLANT VS COMMISSIONER OF INCOME TAX-II JABALPUR ::: RESPONDENT ` APPELLANT BY SHRI H.S . MODH RESPONDENT BY SHRI V.B. SAGAR DATE OF HEARING 29 . 5 .2015 DATE OF PRONOUNCEMENT 6 . 7 . 2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT-II, JABALPUR, DATED 5.7.2013 PASSED U /S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 BY WHICH THE 2 APPLICATION OF THE ASSESSEE WAS REJECTED BY HOLDING AS UNDER :- 2. HOWEVER, WHEN THE EXAMINATION OF THESE OBJECTS WAS UNDERTAKEN, IT WAS SEEN THAT THERE WAS NO PROOF/EVIDENCE FOR VARIOUS ACTIVITIES OF OBJECT IS SHOWN. PERUSAL OF RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR ENDING 31.3.11 REVEALS THAT THE ASSESSEE HAS SHOWN DONATIONS RECEIVED FOR CORPUS FUND AT RS. 10,000/- ON THE INCOME SIDE. ON THE EXPENDITURE SIDE THE ASSESSEE HAS SHOWN TO HAVE CARRIED OVER TO THIS AMOUNT TO THE BANK ACCOUNT. PERUSAL OF RECEIPT AND PAYMENT ACCOUNT FOR THE FINANCIAL YEAR ENDING 31.3.12 SHOWS THAT THIS AMOUNT IS LYING IN THE BANK ACCOUNT UNUTILIZED THROUGHOUT THE YEAR. THE COUNSEL OF THE ASSESSEE PLEADED DURING THE 3 HEARING OF THE CASE ON 5.7.13 THAT THE TRUST HAS NOT UNDERTAKEN ANY CHARITABLE ACTIVITY FROM THE DATE OF ITS FORMATION TILL THIS DATE. HE FURTHER CONTENDED THAT THE TRUST WILL UNDERTAKE CHARITABLE ACTIVITY ONLY AFTER IT WILL BE GRANTED EXEMPTION U/S 80G. THIS WILL CONSEQUENTLY ENABLE THE TRUST TO COLLECT THE DONATIONS. 3. THUS PERUSAL OF THE ACCOUNT AS WELL AS SUBMISSION OF THE COUNSEL OF THE ASSESSEE REVEALED THAT THERE WAS NO DIRECT EXPENDITURE RELATED TO THE OBJECTS OF THE TRUST ARE DONE IN THE INCOME AND EXPENDITURE ACCOUNT, IN ORDER TO CARRY OUT THE CHARITABLE ACTIVITIES. MERE INTENTION TO UNDERTAKE CHARITABLE ACTIVITY IN FUTURE DOES NOT ENTITLE THE ASSESSEE TRUST FOR APPROVAL U/S 80G(5) OF THE IT ACT, 1961. 4 4. IN VIEW OF THE FACTUAL POSITION STATED ABOVE, IT IS OBSERVED THAT THE ASSESSEE HAS HOPELESSLY FAILED TO FULFILL THE REQUIREMENTS OF SECTION 80G(5) MAIN CLAUSE AND HENCE THE PRAYER FOR APPROVAL IS ACCORDINGLY REJECTED. 2. WE HAVE HEARD BOTH THE SIDES. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED A LIST OF DOCUMENTS BEFORE US IN SECOND PAPER BOOK WHICH ARE PLACED AT PAGES 26 TO 73. I N THESE PAPERS THE ASSESSEE HAS SUBMITTED VARIOUS EVIDENC ES FOR CHARITABLE ACTIVITIES CARRIED ON BY THE ASSESSEE INCLUDING PAPER CUTTINGS. THE LEARNED CIT HAS REJECTE D THE APPLICATION OF THE ASSESSEE FOR THE REASON THAT THE TRUS T HAS NOT INCURRED ANY DIRECT EXPENDITURE RELATING TO OBJEC TS OF THE TRUST NOR CARRIED OUT ANY CHARITABLE ACTIVITY AND MER E INTENTION TO UNDERTAKE CHARITABLE ACTIVITIES SHALL NOT ENTITLE THE ASSESSEE TRUST TO EXEMPTION U/S 80G(5) OF THE AC T. SINCE THESE DOCUMENTS HAVE BEEN SUBMITTED BEFORE US FOR 5 THE FIRST TIME, THEREFORE, WE REMAND THE ISSUE BACK T O THE FILE OF THE LEARNED CIT FOR DECIDING THE ISSUE AFRES H AFTER CONSIDERING THESE DOCUMENTS. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 6.7.2015 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED - 6.7.2015 DN/-1819.6