ALL INDIA WOMENS CONFERENCE , JAMSHEDPUR V. ITO WARD EXEMPTION, JSR

ITA 239/RAN/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3719 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 11-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDRAJEET SINGH
• Section: 143(3); 10(23C); 12; 2; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER& MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO. 239/RAN/2017 (ASSESSMENT YEAR: 2014-15) ALL INDIA WOMENS CONFERENCE (GOLMURI CONSTITUENT BRANCH), MAHILA SHARAN, TELCO COLONY, JAMSHEDPUR 831004 VS. ITO, (EXEMPTIONS) WARD, JAMSHEDPUR [ PAN NO. AAA TA3 977 G ] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI DEVESH PODDAR, ADV. RESPONDENT BY : SHRI INDRAJEET SINGH, SR. D.R. DATE OF HEARING 07.11.2019 DATE OF PRONOUNCEMENT 26.11.2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE ASSESSEE IS DIRECTE D AGAINST THE ORDER DATED 23.06.2017 PASSED BY THE COMMISSIONER OF INCO ME TAX (APPEALS), JAMSHEDPUR UNDER SECTION 143(3) OF THE INCOME TAX A CT, 1961 (HEREINAFTER REFERRED AS TO THE ACT) ARISING OUT OF THE ORDER DATED 19.12.2016 PASSED BY THE INCOME TAX OFFICER (EXEMPTIONS), WARD-JAMSHEDPU R FOR ASSESSMENT YEAR 2014-15 WHEREBY AND WHEREUNDER CLAIM FOR EXEMP TION UNDER SECTION 11 OF THE ACT HAS DENIED. 2. THE ASSESSEE IS A REGISTERED SOCIETY UNDER THE SOCIETY REGISTRATION ACT XXI OF 1860 FROM IG, REGISTRATION, JHARKHAND; I T IS FURTHER REGISTERED ITA NO.239/RAN/2017 ALL INDIA WOMENS CONFERENCE VS. ITO ASST.YEAR 2014-15 - 2 - UNDER SECTION 12A/12AA OF THE INCOME TAX ACT. THE MAIN OBJECT OF THE ASSESSEE SOCIETY IS TO HELP DESTITUTE AND HANDICAPP ED MENTALLY RETARDED AND NEEDY WOMEN AND CHILDREN TO EARN THEIR LIVELIHOOD B Y OPENING AVENUES OF EMPLOYMENT AND MAINTAIN ORPHANAGE TO BRING UP LEPER PARENTS TILL THEY ARE SETTLED IN LIFE. ON THIS PREMISE OF HAVING CHARITA BLE PURPOSE EXEMPTION WAS GRANTED EARLIER BY THE REVENUE TO THE ASSESSEE SOCI ETY. HOWEVER, IN THE YEAR UNDER CONSIDERATION APPLYING THE PROVISO TO SEC. 2( 15) OF THE ACT, THE CLAIM MADE BY THE ASSESSEE UNDER SECTION 11 OF THE ACT WA S DISALLOWED, SUGGESTING THAT THE ASSESSEE IS NOT PROVIDING RELIE F TO THE POOR AS IT COULD NOT BE ON CONTINUOUS BASIS IGNORING THE OBJECT ALLOWS R ELIEF TO POOR TILL THEY ARE SETTLED IN LIFE. 3. AT THE TIME OF HEARING OF INSTANT APPEAL THE LD. COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE ISSUE HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE CO-ORDINATE BENCH IN ITA NOS. 304 & 305/RAN/2014 FOR A.YS. 2010-11 AND 2011-12 IN ASSES SEES OWN CASE. HENCE, HE PRAYED FOR THE SAME RELIEF; A COPY OF THE SAID ORDER HAS ALSO BEEN SUBMITTED BEFORE US. 4. THE LD. REPRESENTATIVE FOR THE REVENUE, HOWEVER, FAILED TO CONTROVERT SUCH CONTENTIONS MADE BY THE LD. AR. 5. HEARD THE PARTIES, PERUSED THE RELEVANT MATERIAL S AVAILABLE ON RECORD INCLUDING THE ORDER PASSED IN THE CO-ORDINATE BENCH IN ITA NOS. 304 & 305/RAN/2014 FOR A.YS. 2010-11 AND 2011-12. THE RE LEVANT PORTION WHEREOF IS AS FOLLOWS:- 19. WE FIND THAT THE DEFINITION OF CHARITABLE P URPOSES AS DEFINED IN SECTION 2(15) OF THE ACT HAS UNDERGONE AMENDMENT W.E.F. ASS ESSMENT YEAR 2009-2010. ITA NO.239/RAN/2017 ALL INDIA WOMENS CONFERENCE VS. ITO ASST.YEAR 2014-15 - 3 - THE CBDT IN ITS CIRCULAR NO.11/2008 DATED-19.12.200 8 HAS CLARIFIED THE AMBIT AND SCOPE OF ABOVE AMENDMENT AS UNDER: 'RELIEF OF THE POOR ENCOMPASSES A WIDE RANGE OF OBJ ECTS FOR THE WELFARE OF THE ECONOMICALLY AND SOCIALLY DISADVANTA GED OR NEEDY. IT WILL, THEREFORE, INCLUDE WITHIN ITS AMBIT PURPOSES SUCH AS RELIEF, TO DESTITUTE, ORPHANS OR THE HANDICAPPED, DISADVANTAGE D WOMEN OR CHILDREN, SMALL AND MARGINAL FARMERS, INDIGENT ARTI SANS OR SENIOR CITIZENS IN NEED OF AID. ENTITIES WHO HAVE THESE OB JECTS WILL CONTINUE TO BE ELIGIBLE FOR EXEMPTION EVEN IF THEY INCIDENTALLY CARRY ON A COMMERCIAL ACTIVITY, SUBJECT, HOWEVER, TO THE CONDI TIONS STIPULATED UNDER SECTION 11(4A) OR THE SEVENTH PROVISO TO SECT ION 10(23C) WHICH ARE THAT (A) THE BUSINESS SHOULD BE INCIDENTAL TO THE ATTAIN MENT OF THE OBJECTIVES OF THE ENTITY, AND (B) SEPARATE BOOKS OF ACCOUNT SHOULD BE MAINTAINED IN RESPECT OF SUCH BUSINESS.' 20. THUS, IT IS EVIDENT FROM THE ABOVE THAT SIMPLY BECAUSE THE ACTIVITY UNDERTAKEN BY THE ASSESSEE IN FURTHERANCE OF ITS OB JECT OF PROVIDING RELIEF TO POOR INVOLVES AN ACTIVITY WHICH CAN BE TERMED AS BU SINESS, WILL NOT DISENTITLE THE ASSESSEE OF EXEMPTION U/S. 11 & 12 OF THE ACT S UBJECT TO THE CONDITION THAT THE REQUIREMENT OF SECTION 11(4A) IS SATISFIED. 21. IN THE INSTANT CASE, IT IS NOT IN DISPUTE THAT THE CONDITIONS OF SECTION 11(4A) WERE NOT SATISFIED. 22. FURTHER, PROVIDING GAINFUL EMPLOYMENT TO NEEDY AND DESTITUTE WOMEN COMES WITHIN THE AMBIT OF PHRASE 'RELIEF TO POOR' I S ALSO EVIDENT FROM THE ABOVE QUOTED CBDT CIRCULAR. 23. IN THE INSTANT CASE, WE FIND THAT NO MATERIAL C OULD BE BROUGHT ON RECORD BY THE REVENUE TO SHOW THAT THE EMPLOYMENT W HICH WAS PROVIDED BY THE ASSESSEE BY UNDERTAKING THE ACTIVITY OF CABLE HARNE SS WAS NOT TO ANY DESTITUTE AND NEEDY WOMEN. NO MATERIAL WAS BROUGHT BEFORE U S TO SHOW THAT OBJECT OF UNDERTAKING THE CONTRACT OF CABLE HARNESS WAS ANYTH ING OTHER THAN PROVIDING GAINFUL EMPLOYMENT TO NEEDY DESTITUTE WOMEN. IN OUR CONSIDERED VIEW, PROVIDING GAINFUL EMPLOYMENT TO NEEDY AND DESTITUTE WOMEN IS A DIGNIFIED WAY OF PROVIDING RELIEF TO THEM. IN THE ABOVE CIRCU MSTANCES, THE REVENUE WAS NOT JUSTIFIED IN DENYING EXEMPTION U/S.11 & 12 OF T HE ACT TO THE ASSESSEE SOCIETY IN RESPECT OF THE ACTIVITY UNDER CONSIDERAT ION AND MORE SO, WHEN SIMILAR ACTIVITY WAS CONSIDERED AS CHARITABLE ACTIV ITY IN THE CASE OF THE ASSESSEE ITSELF IN EARLIER YEARS AS WELL AS SUBSEQU ENT YEARS. WE, THEREFORE, SET ITA NO.239/RAN/2017 ALL INDIA WOMENS CONFERENCE VS. ITO ASST.YEAR 2014-15 - 4 - ASIDE THE ORDERS OF LOWER AUTHORITIES AND DIRECT TH E ASSESSING OFFICER TO ALLOW EXEMPTION U/S. 11 & 12 OF THE ACT AS PER LAW IN RES PECT OF ACTIVITY UNDER CONSIDERATION. THUS, THIS GROUND OF APPEAL OF THE A SSESSEE IS ALLOWED FOR BOTH THE ASSESSMENT YEARS UNDER CONSIDERATION. 24. IN THE RESULT, THE APPEALS FILED BY THE ASSESSE E ARE ALLOWED. 6. IN THE ABSENCE OF ANY CHANGED CIRCUMSTANCES WE D O NOT FIND ANY REASON TO DEVIATE FROM THE OBSERVATIONS MADE BY THE HONBLE CO-ORDINATE BENCH AND RESPECTFULLY RELYING UPON THE SAME WE DEC IDE THE ISSUE IN FAVOUR OF THE ASSESSEE. HENCE, WE SET-ASIDE THE ORDERS PA SSED BY THE LOWER AUTHORITIES WITH A DIRECTION TO THE AO TO ALLOW EXE MPTION UNDER SECTION 11 AND 12 OF THE ACT AS CLAIMED BY THE ASSESSEE. HENC E, ASSESSEES APPEAL IS ALLOWED. 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. THIS ORDER PRONOUN CED IN OPEN COURT ON 26 / 1 1 /201 9 SD/- SD/- (PRADIP KUMAR KEDIA) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 26/11/2019 TANMAY, SR. PS TRUE COPY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)- 5. , ! ' , #$%% / DR, ITAT, RANCHI 6. &' () / GUARD FILE. / BY ORDER, / (DY./ASSTT. REGISTRAR) !, #$ / ITAT, RANCHI