Yoga Vidya Pranic Healing Foundation Trust of Jharkhand, Ranchi V. CIT, Exemption, Patna

ITA 258/RAN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6341 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 24-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

ITA No. 258/RAN/2019 Yoga Vidya Pranic Healing Foundation Trust of Jharkhand 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-RANCHI ‘DIVISION BENCH’, KOLKATA [Virtual Court Hearing] Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 258/RAN/2019 Yoga Vidya Pranic Healing Foundation Trust of Jharkhand.........Appellant Lakhwinder House, Ground Floor, Pee Pee Compound, Ranchi-834001, Jharkhand [PAN: AAATY4250E] -Vs.- Commissioner of Income Tax (Exemption),.................................Respondent Patna, Central Revenue Building, Bir Chand Path, Patna-800001, Bihar Appearances by: N o n e , appeared on behalf of the assessee Shri Sanjay Mukherjee, CIT(D.R), appeared on behalf of the Revenue Date of concluding the hearing : February 22, 2022 Date of pronouncing the order : March 22, 2022 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Exemption), Patna dated 01.08.2019 passed under section 12AA(1)(b)(ii) of the Income Tax Act, 1961. 2. This appeal was presented before the Tribunal on 25.09.2019. It has been listed in the past and fresh notice was issued to the assessee but no one was present on behalf of the assessee. The assessee has not even filed any paper book. It has not filed copy of the Trust Deed. Therefore, with the assistance of ld. CIT(DR), we have perused the available record and proceed to decide the appeal ex-parte qua the assessee. It emerges out ITA No. 258/RAN/2019 Yoga Vidya Pranic Healing Foundation Trust of Jharkhand 2 from the record that the assessee-Trust had filed an application in Form No. 10A for grant of registration under section 12AA of the Income Tax Act. On receipt of such application, ld. Commissioner has conducted an inquiry as contemplated in section 12AA(b) of the Act. He passed a very brief order and the relevant part reads as under:- “On examination of documents available on record the following deficiencies have been detected:- (2) Genuineness of activities:- Under the heading ‘Procedure for registration’, the I.T. Act, 1961 provides u/s 12AA (b) that, ‘‘After satisfying himself about the objects of the trust or institution and the genuineness of its activities, he- 1. Shall pass an order in writing registering the trust or institution 2. Shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution". (A) Keeping into consideration of the full adherence to the norms delineated in the above section of the Act, the materials available on record have been perused to examine the application on both the prescribed grounds i.e. (i) objects of Trust/Society and (ii) the genuineness of activities claimed. During the course of examination, it is found that the applicant in his audit report has also claimed some activities (programs) as to have been performed in previous years but he failed to produce/submit such proper documents (evidences) in support of his claimed activities that could establish its genuineness. Merely, mentioning few nomenclatures of social activities in the audit report could not be treated itself as a proper evidence for its performance too. In absence of cogent supporting documents (evidences) the claimed activities of the applicant could not be established beyond all doubts. (B) It is natural that some money has to spend against the performance of charitable activity. But, during the course of examination, if amount spent against a claimed activity remains unverified, the performance of activity automatically becomes doubtful. Hence, it becomes natural and incidental to verify the expenses made against a particular activity for the purpose of examining its genuineness. During the course of examination it is found that the applicant has not submitted any bills and vouchers of the expenses made against the activities claimed. Hence, the expenses claimed against the performance of activities remained unverified. Consequently and naturally, the claimed activities remained doubtful. (3) Details of Beneficiaries :- The applicant was asked vide questionnaire issued from this office to provide details of beneficiaries of the claimed activities so as to examine that the beneficiaries are not specific individuals but he failed to submit the same. (4) Donation:- On perusal of Income and Expenditure account of the Society/Trust it is apparent that the applicant is continuously receiving donations from ITA No. 258/RAN/2019 Yoga Vidya Pranic Healing Foundation Trust of Jharkhand 3 various sources. The applicant was asked to submit/produce donation register and receipts showing its complete details vide questionnaire issued from this office but he failed to submit/produce the complete details of the same. Hence, in light of the above the genuineness of the same remains unverified. , In view of such, I am not satisfied about the genuineness of the activities of the Trust/Society as claimed and hence the application filed in form 10A for grant of Registration u/s 12AA of the Income Tax Act, 1961 is hereby rejected”. 3. A perusal of the above order would indicate that the assessee has not filed anything before the ld. CIT(Exemption) for demonstrating the genuineness of its activities. Therefore, under the compelling circumstances, the ld. CIT has denied the exemption. After perusal of the above, we do not find any merit in this appeal and it is dismissed. 4. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on March 22 nd , 2022. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 22 nd day of March, 2022 Copies to : (1) Yoga Vidya Pranic Healing Foundation Trust of Jharkhand. Lakhwinder House, Ground Floor, Pee Pee Compound, Ranchi-834001, Jharkhand (2) Commissioner of Income Tax (Exemption), Patna, Central Revenue Building, Bir Chand Path, Patna-800001, Bihar (3) Commissioner of Income Tax- (4) The Departmental Representative (5) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.