The Diamond Merchants & Cutters Welfare Association, Anand V. The CIT-I, Baroda

ITA 2917/AHD/2012

• Counselvise Citation: 291720514 RSA 2012
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-08-2013
• Assessment Year: misc
• Appeal Filed On: 31-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAVI
• Keywords: Competent authority
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMADABAD BEFORE SHRI D.K.TYAGI , JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO. 2917/AHD/2012 ASSESSMENT YEAR :N.A. THE DIAMOND MERCHANTS & CUTTERS WELFARE ASSOCIATION VIR BHAGATSINH COMPLEX, 2 ND FLOOR PANIYARI, NR. MADLA TALAO, KHAMBHAT 388620 DIST ANAND V/S . CIT-I, AYKAR BHAVAN, 2 ND FLOOR, ANNEXEE BUILDING, RACE COURSE CIRCLE, BARODA. PAN NO. A A BTT7883R (APPELLANT) .. (RESPONDENT) BY APPELLANT SMT. URVASHI SHODHAN, A.R. /BY RESPONDENT SHRI O. P. VAISHNAVI, CIT. D.R. /DATE OF HEARING 21.08.2013 /DATE OF PRONOUNCEMENT 04.10.2013 O R D E R PER : SHRI T.R.MEENA, ACCOUNTANT MEMBER THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE WHI CH HAS EMANATED FROM THE ORDER OF CIT-I, BARODA, DATED 07.11.2012 F OR ASSESSMENT WHERE EXEMPTION U/S. 80G(5)(VI) OF THE ACT WAS REJECTED B Y THE CIT. 2. THE LD. CIT GAVE THE NOTICE TO FURNISH THE FOLLO WING INFORMATION TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE TRUST: ITA NO. 2917/AHD/12 A.Y. N.A. PAGE 2 (I) NO OBJECTION CERTIFICATE FROM THE OWNERS OF PR EMISES BEING UTILISED BY THE TRUST. (II) IF THE TRUST IS FOR EDUCATIONAL PURPOSE, PLEAS E SUBMIT THE APPROVAL CERTIFICATE OF THE COMPETENT AUTHORITY. (III) WHETHER THE TRUST IS REVOCABLE/IRREVOCABLE. (IV) WHETHER ANY DEMAND IS OUTSTANDING. (V) WHO ARE THE BENEFICIARIES OF THE TRUST. (VI) A COPY OF BANK ACCOUNT FROM THE DATE OF INCEPT ION OF THE TRUST. (VII) AUDITED COPY OF ACCOUNTS FOR THE F.Y. 2011-12 . (VIII) FURNISH THE EVIDENCES/DOCUMENTARY PROOF OF T HE ACTIVITIES CARRIED OUT BY THE TRUST FROM THE DATE OF INCEPTION. (IX) COPY OF FORM NO. 10 SUBMITTED TO THE ASSESSING -OFFICER FOR ACCUMULATION OF INCOME AND SURPLUS CARRIED OVER IN EXCESS OF 15% OF THE INCOME IF ANY. (X) IN RESPECT OF ALL TRUSTEES OF THE TRUST, THE FO LLOWING FURTHER INFORMATION MAY PLEASE BE GIVEN. SR. NO. NAME OF TRUSTEES ADDRESS OF TRUSTEES PAN STATE WHETHER THEY ASSESSED TO TAX. IF YES, THE WARD IN WHICH THEY HAVE FILED THE RETURN OF INCOME. IS THE TRUSTEE ARE RELATED WITH ONE- ANOTHER, IF SO, STATE THE RELATIONSHIP. 1 2 3 4 5 6 THE LD. CIT OBSERVED THAT THE APPELLANT HAD RECEIVE D GRANTS OF RS. 90,668/- IN F.Y. 2010-11. IN F.Y. 10-11, THE APPELLANT HAD APP LIED THE FUNDS FOR MEDICAL HELP WAS LESS THAN 85% OUT OF RS.1,24,576/-. THE A PPELLANT HAD GIVEN NOTEBOOKS IN K.K. PRATHMIK SHALA AND THE TRUST HAD ORGANIZED MEGA EYE CAMP ON 19.12.2010 & IN F.Y. 2011-12. THE ASSESSEE WAS GIVEN REASONABLE OPPORTUNITY ON THESE POINTS, WHICH WAS NOT REPLIED BY THE APPELLANT PROPERLY. THE LD. CIT OBSERVED AS UNDER: I. IN SUPPORT OF ITS CONTENTION THE TRUST HAS FILE D A DETAILED LIST OF BENEFICIARIES TO WHOM SPECS WAS GIVEN BY THE TRUST. ON PERUSAL OF THE LIST OF BENEFICIARIES IN RESPECT OF CAMP CONDUCTED ON 19.12.2010 IT IS SEEN THAT ON BEHALF O F SEVERAL ITA NO. 2917/AHD/12 A.Y. N.A. PAGE 3 GROUP OF RECIPIENTS OF SPECS, SINGLE SIGNATURE IS F OUND WHICH IS INCREDIBLE TO BELIEVE. II. ALTHOUGH THE TRUST COULD NOT OBTAIN THE DETAILE D ADDRESS OF ALL THE BENEFICIARIES WHO WERE STATED TO BE MOVING LABO URERS, IT COULD HAVE OBTAINED THE ADDRESS OF SOME LABOURERS W HO WERE RESIDING AT THE NATIVE PLACE. IN THE ABSENCE, THE C ONTENTION OF THE TRUST IS NOT BELIEVABLE. III. ALSO IT NEEDS TO BE MENTIONED HERE THAT THE CA MP WAS SAID TO BE CONDUCTED ON 19.12.2010. HOWEVER, THE DATE OF PU RCHASE OF SPECS BILL WAS ISSUED ON 19.3.2011 WHICH IS INCR EDIBLE TO BELIEVE. IV. IN THE ABSENCE OF DETAILED ADDRESS ETC. AS CALL ED FOR VIDE THIS OFFICE LETTER DATED 16.10.2012, THE GENUINENES S OF THE CHARITABLE ACTIVITIES SAID TO BE CARRIED OUT IS NOT VERIFIABLE. AS APPELLANT HAD NOT SUBMITTED REQUIRED DETAILS TO THE CIT, THUS, HE HELD THAT NO GENUINE ACTIVITY HAD BEEN CARRIED OUT BY THE TRU ST AND IT WAS NOT A FIT CASE FOR GRANTING APPROVAL U/S. 80G(5)(VI) OF THE ACT. 3. NOW THE ASSESSEE IS BEFORE US. LD. COUNSEL FOR THE APPELLANT CONTENDED THAT THE ASSESSEE TRUST IS A CHARITABLE T RUST HAS ORGANIZED EYE CAMP IN THE SURROUNDING AREA FOR LABOURERS. BESIDE S THIS, THIS TRUST ALSO ORGANIZED BLOOD DONATION CAMP FOR THIS LD. A.R. FIL ED A COPY OF PAMPHLET ISSUED BY THE TRUST. THE APPELLANT HAD RECEIVED GR ANT FROM ZILA UDYOG KENDRA, ANAND, FOR WHICH SHE REFERRED PAGE NOS. 3 & 4 OF THE PAPER BOOK FOR RS. 90,668/-. THE APPELLANT FURTHER FILED COPY OF REGISTER IN WHICH RECIPIENTS OF SPECS HAD SIGNED WHICH PROVED THAT ASSESSEE WAS DOI NG CHARITY WORK. IT WAS ARGUED THAT ASSESSEES CHARITY ACTIVITY WAS GENUINE . THUS, SHE REQUESTED TO ITA NO. 2917/AHD/12 A.Y. N.A. PAGE 4 SET ASIDE THE ISSUE TO THE CIT TO GRANT U/S. 80G AP PROVAL. AT THE OUTSET, LD. CIT D.R. SUPPORTED THE ORDER OF THE CIT. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. IT APPEARS THAT APPELLANT HAD NOT SUBMITTE D REQUIRED DETAILS BEFORE THE CIT BUT PAPER BOOK FILED BEFORE US, SHOWS THAT ASSE SSEE WAS IN CHARITABLE ACTIVITY IN F.Y. 10-11. THEREFORE, THE MATTER IS S ET ASIDE TO THE CIT TO DECIDE THE 80G APPROVAL AFTER CONSIDERING THE EVIDENCE AVA ILABLE WITH ASSESSEE. THE APPELLANT IS ALSO DIRECTED TO SUBMIT ALL THE EV IDENCES BEFORE THE CIT TO DECIDE THE CASE. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. THIS ORDER PRONOUNCED IN OPEN COURT ON 04.10.2013 SD/- SD/- ( D.K.TYAGI ) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY S.K.SINHA ! ! ! ! '! '! '! '! / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. '(' ) * / CONCERNED CIT 4. *- / CIT (A) 5. !./ ), ) , 12( / DR, ITAT, AHMEDABAD 6. /45 67 / GUARD FILE. BY ORDER/ , 8/ 1 ': ) , 12( ;