Rising Star Khilte Chehre, New Delhi V. CIT(Exemption), New Delhi

ITA 225/DEL/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4693 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 13-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHMA SINGH
• Assessee Lawyers: S KRISHNAN
• Section: 13; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. KULDIP SINGH, JUDICIAL MEMBER ITA NO.224 & 225/DEL/2020 ASSESSMENT YEAR: - RISING STAR KHILTE CHEHRE 7/10, POCKET B PHASE-3, ASHOK VIHAR, NEW DELHI PAN NO. AADTR7704B VS CIT (EXEMPTION) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. S. KRISHNAN, ADVOCATE RESPONDENT BY SMT. SUSHMA SINGH, CIT DR DATE OF HEARING: 08/02/2021 DATE OF PRONOUNCEMENT: 12/02/2021 ORDER PER N. K. BILLAIYA, AM: ITA NO.224 /DEL/2010 AND 225/DEL/2020 ARE TWO SEPA RATE APPEALS BY THE ASSESSEE PREFERRED AGAINST CONSOLIDA TED ORDER OF CIT (EXEMPTION), NEW DELHI DATED 31.12.2019 BY WHIC H THE CIT (EXEMPTION) HAS DENIED REGISTRATION U/S. 12 AA AND U/S. 80 G OF THE ACT. 2 2. AT THE VERY OUTSET THE COUNSEL FOR THE ASSESSEE STATED THAT THE CIT (E) HAS GROSSLY ERRED IN NOT CONSIDERING TH E CHARITABLE ACTIVITIES OF THE APPELLANT AND HAS DENIED THE REGI STRATION ON FRIVOLOUS GROUNDS. IT IS THE SAY OF THE COUNSEL TH AT THE ACTIVITIES OF THE APPELLANT ARE IN LINE FOR THE CHARITABLE PURPOS ES FOR PUBLIC AT LARGE AND ARE ACCORDINGLY IN ACCORDANCE WITH THE PR OVISION OF SECTION 12 AA AND 80 G OF THE ACT. 3. PER CONTRA THE DR VEHEMENTLY STATED THAT THE APP ELLANT IN THE GARB OF CHARITABLE ACTIVITIES HAS PROVIDED BENE FITS TO RELATED PARTIES. 4. THE DR DREW OUR ATTENTION TO THE LIST OF DONORS AND POINTED OUT THAT SOME OF THE DONORS HAVE ACCOMPANIED THE VI SUALLY IMPAIRED PEOPLE ON TOUR TO DUBAI. THE DR FURTHER P OINTED OUT THAT SOME OF SUCH PEOPLE WERE ALSO RELATED TO THE S ETTLOR OF THE TRUST AND, THEREFORE, THE CIT (E) HAS RIGHTLY DENIE D THE REGISTRATION AND THE BENEFIT OF 80G. 5. REPLYING TO THE SUBMISSIONS OF THE DR, THE COUNS EL VEHEMENTLY STATED THAT THE VISUALLY IMPAIRED PEOPLE NEEDED VOLUNTEERS TO LOOKAFTER THEM IN THE TOUR TO DUBAI A ND OTHER PLACES. THE COUNSEL FURTHER STATED THAT THE RISING STAR TOURS AND TRAVELS, THOUGH RELATED TO THE SETTLOR, ARRANGED TR AVELE OF THE VISUALLY IMPAIRED PEOPLE AT THE BEST PRICE AND NO B ENEFIT WAS DERIVED FROM THE APPELLANT. 3 6. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS. WE HAVE CAREFULLY PERUSED THE LIST OF DONORS AND THE LIST OF TRAVELERS. THERE IS SOME FORCE IN THE SUBM ISSION OF THE DR THAT SOME OF THE DONORS ARE ALSO TRAVELERS. THE PO INT RAISED BY THE COUNSEL CAN ALSO BE NOT BRUSHED ASIDE LIGHTLY A S THE VISUALLY IMPAIRED PERSONS NEED VOLUNTEERS TO LOOKAFTER THEM. HOWEVER, WE FIND THAT SUCH LIST WAS NOT EXPLAINED BY THE APPELL ANT BEFORE THE CIT(E). MOREOVER, IN THE SUBMISSION MADE BEFORE TH E CIT(E) THE APPELLANT HAS MENTIONED THAT 33 VISUALLY IMPAIRED P ERSONS TOOK TRIP, HOWEVER, THE CIT(E) IN HIS ORDER HAS MENTIONE D THAT THE APPELLANT HAS ORGANIZED A TRIP TO DUBAI FOR 13 VISU ALLY IMPAIRED PERSONS. THE ACCOMPANIMENT OF THE VOLUNTEERS ALONGW ITH VISUALLY IMPAIRED PEOPLE HAVE NOT BEEN EXPLAINED PROPERLY BY THE APPELLANT BEFORE THE CIT (E). 7. IN THE INTEREST OF JUSTICE AND FAIR PLAY WE REST ORE THE QUARREL TO THE FILES OF THE CIT(E). THE ASSESSEE IS DIRECT ED TO EXPLAIN WITH EVIDENCE WHY SOME DONORS TRAVELLED WITH THE VISUALL Y IMPAIRED PERSONS AND THEIR RELATIONS, IF ANY. THE APPELLANT IS FURTHER DIRECTED TO DEMONSTRATE THAT NO BENEFIT/ PROFIT WAS DERIVED BY RISING STAR TOUR AND TRAVEL FROM THE ARRANGEMENT MA DE WITH THE APPELLANT. THE CIT(E) IS DIRECTED TO EXAMINE ISSUE S AFRESH AFTER GIVING A REASONABLE AND FAIR OPPORTUNITY OF BEING H EARD TO THE APPELLANT. 4 8. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 12.02.2021. SD/- SD/- (KULDIP SINGH) (N. K. BILL AIYA) JUDICIAL MEMBER ACCO UNTANT MEMBER *NEHA* DATE:- 12.02.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI DATE OF DICTATION 08.02.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12.02.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 12.02.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 12.02.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 12.02.2021 DATE ON WHICH THE FAIR ORDER COMES BAC K TO THE SR. PS/ PS 12.02.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 12.02.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT 5 REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER