M/s. Kalamkar Foundation, Ghaziabad V. CIT, Lucknow

ITA 2243/DEL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2565 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 15-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOYAL
• Assessee Lawyers: S K BANSAL
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 2243/DEL/2015 ASSESSMENT YEARS: ------- KALAMKAR FOUNDATION, VS. CIT(EXEMPTIONS) RT-222, ROYALE TOWER, 5, ASHOK MARG, SHIPRA SUN CITY, LUCKNOW - 226007 INDIRAPURAM, UTTAR PADESH DISTT. GHAZIABAD (UP) (PAN: AACTK1003B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. S.K. BANSAL, CA DEPARTMENT BY : SH. SANJAY GOYAL, CIT(DR) ORDER PER H.S. SIDHU, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.3.2015 OF THE LD. CIT(E) PASSED U/S. 80G(5)( VI) OF THE ACT. THE GROUNDS RAISED READ AS UNDER:- 1. THAT THE LD. CIT(E), LUCKNOW HAS WRONGLY DENIED THE APPROVAL U/S. 80G OF THE ACT TO THE APPLICANT TRUST WHICH IS DULY REGISTERED U/S. 12A/12AA OF THE ACT. 2. THAT THE LD. CIT(E), HAS WRONGLY DECLINED THE APPROV AL U/S. 80G ON THE BAIS OF 2 I) ONE OF THE OBJECTS EXTENDS THE CHARITABLE ACTIVITIES BEYOND THE TERRITORY OF INDIA. II) TRUST MAY ACCEPT THE DONATIONS ETC. FROM FOREIGN INSTITUTES. III) INCOME AND EXPENDITURE ACCOUNT AS ON 31.3.2014 SHOWS SUBSTANTIAL EXPENDITURE INCURRED ON HOLDING OF SEMINARS WHICH IS ARBITRARY, ILLEGAL AND CONTRARY TO THE REQUIREMENT OF PROVISIONS OF SECTION 80G(5) OF THE ACT. 3. THAT THE ORDER IS BAD IN LAW AND ON FACTS. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NOT DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 3. LD. COUNSEL OF THE ASSESSEE STATED THAT ASSESSEE H AS FILED ALL THE NECESSARY EVIDENCES FOR SUBSTANTIATING ITS CLA IM OF EXEMPTION U/S. 80G OF THE ACT, BUT THE SAME HAS NOT BEEN CONSID ERED BY THE LD. CIT(E) IN THE IMPUGNED ORDER. HOWEVER, HE FILED THE PAPER BOOK CONTAINING PAGES 1-37 & ANNEXURE-I VIZ. REGISTRATIO N CERTIFICATE U/S. 12AA; APPLICATION FOR 80G REGISTRATION IN FORM 1 0G; IMPUGEND ORDER; QUESTIONNAIRE DATED 18.2.2015 FIXING HEARING FOR 2.3.2015; REPLY DATED 2.3.2015; RELY DATED 3.3.2015; TRUST DE ED AND 3 SUPPLEMENTARY TRUST DEED; LEDGER ACCOUNTS FOR 2012-13 AND 2013- 14 SUBMITTED ALONGWITH REPLY DATED 3.3.2015 AND STATE D THE SAID DOCUMENTS WERE NOT PROPERLY CONSIDER BY THE LD. CIT( E) WHILE PASSING THE NON-SPEAKING ORDER U/S. 80G OF THE ACT. HENCE, HE REQUESTED THAT THE ISSUES IN DISPUTE MAY BE SET ASIDE TO THE FILE OF THE LD. CIT(E) TO DECIDE THE SAME AFRESH AND DIRECT H IM TO PASS A SPEAKING ORDER, AFTER HEARING THE ASSESSEE. 4. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDERS O F THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED TH E RECORDS. IT WAS THE CONTENTION OF THE ASSESSEES COUNSEL THAT LD. CIT(E) HAS PASSED THE NON-SPEAKING ORDER. FOR THE SAKE OF CLARI TY, WE ARE REPRODUCING THE RELEVANT FINDING OF THE LD. CIT(E)S ORDER DATED 03.3.2015 PASSED U/S. 80G(5)(VI) OF THE ACT AS UND ER:- O RDER U/S 80G (5) (VI) OF THE INCOME TAX ACT IN THIS CASE, THE APPLICANT TRUST KALMKAR FOUNDATION, RT-122, ROYALE TOWER, SHIPRA SUN CITY, INDIRAPURAM, DISTRICT GHAZIABAD (UTTAR PRADESH)201014 FILED AN APPLICATION ON 4.9.2014 IN FORM NO. 10G SEEKING GRANT OF APPROVAL U/S. 80G(5)(VI) OF THE INCOME TAX ACT, 1961 BEFORE THE COMMISSIONER OF INCOME TAX, GHAZIABAD. 4 2. DUE TO CHANGE OF JURISDICTION W.E.F. 15.11.2014, A NOTICE OF HEARING WAS ISSUED TO THE APPLICANT ON 18.2.2015 FIXING THE DATE OF HEARING ON 02.3.2015. SHRI MK GUPTA, CA ATTENDED ON BEHALF OF THE APPLICANT AND FILED REPLY. THE CASE IS DISCUSSED. 3. I HAVE GONE THROUGH THE DETAILS FILED WITH THE APPLICATION. ON PERUSAL OF THE TRUST DEED, IT IS FOUND THAT THERE ARE 14 OBJECTS. ONE OF THE OBJECTS EXTENDS THE CHARITABLE ACTIVITIES BEYOND THE TERRITORY OF INDIA. IT IS ALSO MENTIONED IN THE TRUST DEED THAT THE TRUST MAY ACCEPT THE DONATIONS ETC. FROM THE FOREIGN INSTITUTES. FURTHER FROM THE PERUSAL OF THE INCOME AND EXPENDITURE ACCOUNT AS ON 31.3.2014, IT IS NOTICED THAT THE APPLICANT HAS INCURRED SUBSTANTIAL EXPENDITURE HOLDING THE SEMINARS. BUT, THE APPLICANT HAS NOT FILED FULL PARTICULARS IN THIS REGARD. THUS, I AM NOT SATISFIED FOR GRANTING APPROVAL TO THE APPLICANT. 4. IN THE ABOVE DISCUSSION, I AM OF THE CONSIDERED VIEW THAT THIS IS NOT A FIT CASE FOR 5 GRANTING OF APPROVAL. THEREFORE, THE APPLICATION FILED IN FORM NO. 1-G IS REJECTED. 5.1 AFTER HEARING BOTH THE PARTIES AND AFTER PERUSING TH E AFORESAID FINDING OF THE LD. CIT(E) AS WELL AS PAPER BOOK FIL ED BY THE ASSESSEE, WE FIND THAT ASSESSEES COUNSEL HAS STATED THAT ASSESSEE HAS FILED ALL THE NECESSARY EVIDENCES FOR SUBSTANT IATING ITS CLAIM OF EXEMPTION U/S. 80G OF THE ACT, BUT THE SAME HAS NOT BEE N CONSIDERED BY THE LD. CIT(E) IN THE IMPUGNED ORDER AND LD. CIT(E) HAS PASSED A NON-SPEAKING ORDER. HOWEVER, THE LD. CI T(E) IN HIS ORDER VIDE PARA NO. HAS STATED THAT FROM THE PERUSAL OF THE INCOME AND EXPENDITURE ACCOUNT AS ON 31.3.2014, IT IS NOTICED THAT THE APPLICANT HAS INCURRED SUBSTANTIAL EXPENDITURE HOLDING THE SEMINARS. BUT THE APPLICANT HAS NOT FILED FULL PARTICU LARS IN THIS REGARD. THUS HE WAS NOT SATISFIED FOR GRANTING APPR OVAL TO THE APPLICANT. HENCE, THERE IS CLEAR CONTRADICTION BETWEEN THE STATEMENT MADE BY THE LD. COUNSEL FOR THE ASSESSEE BEF ORE US AS WELL IN THE IMPUGNED ORDER. THEREFORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDERS OF THE LD. CIT(E) AND REMITTED BA CK THE ISSUES TO THE FILE OF THE LD. CIT(E) TO DECIDE THE ISSUES IN DI SPUTE AFRESH, IN ACCORDANCE WITH LAW, AFTER GIVING ADEQUATE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE AND AFTER CONSIDERING THE AFORESAID P APER BOOK AND ANY OTHER EVIDENCES FILED BY THE ASSESSEE AND THEN PAS S A WELL REASONED AND SPEAKING ORDER. 6 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STA NDS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 07/03/2019. SD/- SD/- [O.P. KANT] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL M EMBER DATED:07/03/2019 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR