Keshav Rastrothan Samiti, V. Commissioner of Income Tax, Jabalpur

ITA 223/JAB/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5676 (ITAT-JABALPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-04-2016
• Assessment Year: misc
• Appeal Filed On: 02-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D R LATHORIYA
• Assessee Lawyers: HEMANT S MODH
• Keywords: Charitable institution; Benefit of exemption
• Section: 12; 11

Judgement Text

1 I.T.A. NO.223 /JAB/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BEFORE S/SHRI N.S. SAINI (AM) N. K. CHOUDHRY (JM ) I.T.A. NO.223 /JAB/2013 KESHAV RASTROTHAN SAMITI, KEDSHAV BHAWAN, NEAR JAIL BUILDING, SHAHDOL (MP) VS. CIT-II, JABALPUR (MP) PAN/GIR NO. : ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SH. HEMANT S MODH RESPONDENT BY : SH. D.R.LATHORIYA DATE OF HEARING : 06-04-2016 DATE OF PRONOUNCEMENT : 06-04. 2016 O R D E R PER NARENDRA KUMAR CHOUDHRY, JM THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATING FROM AN ORDER UNDER SECTION 12AA(1) OF THE INCOME TAX ACT, 1961, OF TH E LD CIT-II, JABALPUR DATED 27.7.2013. 2 I.T.A. NO.223 /JAB/2013 2. THE ASSESSEE IS AGGRIEVED BY THE REJECTION OF AP PLICATION FOR GRANT OF REGISTRATION U/S.12AA OF THE INCOME TAX ACT, 1961. 3. FACTS IN BRIEF ARE THAT THE ASSESSEE HAD FILED APPLICATION FOR GRANT OF REGISTRATION OF THE SAMITI ON 21.1.2013 ALONGWITH I TS ENCLOSURES. IN THE OBJECT CLAUSE, IT HAS BEEN MENTIONED THAT THE ASSESSEE INS TITUTION CLAIMS TO PROMOTE DEVELOPMENT OF THE SOCIETY, EDUCATION, HEALTH, TRAI NING, ENVIRONMENT, UPGRADE OF OTHER SOCIAL ACTIVITIES FOR THE WEAKER SECTION OF T HE SOCIETY. ON EXAMINATION OF THESE OBJECTS, THE LD CIT OBSERVED THAT THERE WAS N O PROOF /EVIDENCE FOR VARIOUS ACTIVITIES OF OBJECTS AS SHOWN BY THE ASSESSEE EXCE PT ONE PROGRAMME FOR TREE PLANTATION. IN VIEW OF ABOVE, THE LD CIT OBSERVED THAT THE ASSESSEE SAMITI HAS COMPLETELY FAILED TO PROVE THE GENUINENESS OF ACTIV ITIES AS PER THE INSTRUMENT OF ESTABLISHMENT OF THE SAMITI AND TO COMPLY WITH THE REQUIREMENTS LAID DOWN FOR GRANT OF REGISTRATION U/S.12A OF THE ACT. ACCORDIN GLY, HE REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S.12AA(1) OF THE ACT. AGGRIEVED, THE ASSESSEE HAS FILED APPEAL BEFORE US. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AT T HE TIME OF REGISTRATION, LD. COMMISSIONER IS ONLY REQUIRED TO LOOK INTO THE OBJE CTS OF TRUST AND CANNOT GO BEYOND THE SAME. LD COUNSEL SUBMITTED THAT THE OBJ ECTS OF THE TRUST ARE TO PROMOTE 3 I.T.A. NO.223 /JAB/2013 EDUCATION, HEALTH, TRAINING, ENVIRONMENT, UPGRADE O F OTHER SOCIAL ACTIVITIES FOR THE WEAKER SECTION OF THE SOCIETY AND ALSO SEVERAL OTHE R OBJECTS WERE MENTIONED IN THE CONSTITUTION. EVEN OTHERWISE, THE SOCIETY WAS RE GISTERED AND STARTED ONLY IN 2012 AND WITHIN ONE YEAR, THE SOCIETY COULD NOT DO MUCH ACTIVITIES 5. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDER O F LD CIT AND ALSO SUBMITTED THAT THE ASSESSEE HAS FAILED TO DEMONSTRATE ANY OF THE ACTIVITIES CARRIED ON DURING ONE YEAR OF ESTABLISHMENT. 6. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IT IS NOW WELL SETTLED THAT AT THE TIME OF GRANT OF REGISTRATION U/S 12AA, THE LD. COMMISSIONER IS REQUIRED ONLY TO EXAMINE THE OB JECTS OF THE SOCIETY. A BARE PERUSAL OF THE OBJECTS OF SOCIETY MAKES IT CLEAR TH AT THE PRE-DOMINANT OBJECT OF THE SOCIETY IS TO IMPART EDUCATION, HEALTH, TRAINING, E NVIRONMENT, UPGRADE OF OTHER SOCIAL ACTIVITIES FOR THE WEAKER SECTION OF THE SOC IETY. BEFORE US, LD COUNSEL ALSO DEMONSTRATED COPY OF PAPER CUTTING OF ACTIVITIES OF THE SAMITI, WHICH ARE PLACED ON RECORD AT PAPER BOOK PAGES 27 TO 30, WHICH PROVES T HAT THE ASSESSEE SAMITI HAS DONE SOME CHARITABLE ACTIVITIES. WHILE CONSIDERING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12 A OF THE ACT , ALL THAT THE LD. COMMISSIONER MAY EXAMINE IS WHETHER THE APPLICATION IS MADE BY THE A SSESSEE IN ACCORDANCE WITH THE REQUIREMENT OF THE SECTION READ WITH RULE 17A AND A LSO WHETHER FORM NO. 10A HAS BEEN PROPERLY FILLED UP. HE MAY ALSO SEE WHETHER OB JECTS OF THE ASSESSEE SOCIETY ARE 4 I.T.A. NO.223 /JAB/2013 CHARITABLE OR NOT AS WAS HELD BY THE HON'BLE HIGH C OURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT 185 ITR 634 (ALL.). SO LONG AS THE SAMITI HAS EDUCATION AS ONE OF ITS OBJECTS, IT HAS TO BE A CCEPTED THAT THE SAMITI IS HAVING A CHARITABLE PURPOSE AS ITS OBJECTS AND MAY QUALIFY F OR CLAIMING EXEMPTION IN TERMS OF SECTION 11 & 12 OF THE ACT, SUBJECT TO FULFILLING THE CONDITIONS E NUMERATED THEREIN. THE MANNER OF APPLICATION OF FUNDS AND AS TO WHETHER ASSESSEE CAN CLAIM BENEFIT OF EXEMPTION IN TERMS OF SECTION 11 & 12 ARE THE QUESTIONS WHICH HAVE TO BE EXAMINED BY THE ASSESSING OFFICER AT THE STAGE W HEN SAME ARE URGED AND NOT BY THE COMMISSIONER WHILE CONSIDERING THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A. IN VIEW OF ABOVE, WE SET ASIDE THE ORDER OF L D CIT AND RESTORE IT BACK TO HIS FILE TO CONSIDER THE REGISTRATION U/S.12A OF THE AC T AFTER CONSIDERING THE GENUINENESS OF ACTIVITIES OF THE ASSESSEE SAMITI IN ACCORDANCE WITH LAW. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6/4/2016 . SD/- SD/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER JABALPUR, DATED 6 / 4/2016 PARIDA , SR. PS 5 I.T.A. NO.223 /JAB/2013 COPY OF THE ORDER FORWARDED TO : 1. THJE APPELLANT :KESHAV RASTROTHAN SAMITI, KEDSHAV BHAWAN, NEAR JAIL BUILDING, SHAHDOL (MP) 2. THE RESPONDENT: CIT II, JABALPUR 3. THE CIT(A). JABALPUR 4. CIT 5. DR, ITAT, JABALPUR 6. GUARD FILE. BY ORDER, //TRUE COPY// SR. PS, ITA T, CAMP: JABAL PUR