Ecotourism Society of India, New Delhi V. DIT (E), Delhi

ITA 2943/DEL/2011

• Counselvise Citation: 294320114 RSA 2011
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-08-2011
• Assessment Year: misc
• Appeal Filed On: 03-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT GARG SENIOR
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B : NEW DELHI) BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.2943/DEL./2011 M/S. ECOTOURISM SOCIETY OF INDIA, VS. DIT (EXEMPTI ONS), A-57, IST FLOOR, NIZAMUDDIN EAST, NEW DELHI. NEW DELHI. (PAN : AAAAE2957R) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, CA REVENUE BY : SHRI ROHIT GARG, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE DIT (EXEMPTIONS), NEW DELHI DATED 21.04.2011. THE GROU NDS OF APPEAL TAKEN BY THE ASSESSEE READ AS UNDER :- 1(I). THAT ON THE FACTS AND CIRCUMSTANCES OF THE C ASE AND UNDER THE LAW, THE DIT(E) WAS NOT JUSTIFIED IN REJE CTING OUR APPLICATION FOR ISSUE OF CERTIFICATE U/S. 80G(5) OF THE INCOME TAX ACT, 1961. (II) THAT THE SOCIETY IS DULY REGISTERED U/S. 12A AND THERE BEING NO DISPUTE ABOUT OBJECTS AND ACTIVITIES OF TH E TRUST, THERE IS NO VALID BASIS FOR REJECTION OF OUR APPLIC ATION FOR ISSUE OF CERTIFICATE U/S. 80G. (III) THAT OBSERVATIONS OF DIT(E) ABOUT COMMERCIAL ACTIVITIES ARE HIGHLY ARBITRARY AND WITHOUT ANY BAS IS AS ITA NO.2943/DEL./2011 2 OBJECTS AND ACTIVITIES OF THE TRUST ARE IN CONFORMI TY WITH PROVISIONS OF SEC. 2(15) OF THE INCOME TAX ACT, 196 1. 2. THE ASSESSEE MADE AN APPLICATION IN FORM NO.10G FOR SEEKING EXEMPTION U/S 80G OF THE INCOME-TAX ACT. THE SAME WAS DISMISSED BY THE DIT (EXEMPTIONS) BY HOLDING THAT SOCIETY IS PROVIDI NG/IMPARTING EDUCATION IN RESPECT OF ECOTOURISM IN THE COUNTRY TO THE DESIROU S PEOPLE/ORGANIZATION BY CHARGING FEE/AMOUNT WHICH DOES NOT COME UNDER THE C HARITABLE ACTIVITY AND THUS INVOLVED IN COMMERCIAL ACTIVITY. IT WAS ALSO NOTED BY THE DIT (EXEMPTIONS) THAT IN ABSENCE OF ANY DOCUMENTARY EVI DENCES OF CHARITABLE ACTIVITIES CARRIED OUT, IT COULD NOT BE ESTABLISHED THAT THE APPLICANT SATISFIED THE CONDITIONS LAID DOWN U/S 80G(5) OF THE INCOME-TAX A CT, 1961 AND THE APPLICATION WAS REJECTED. 3. LEARNED AR SUBMITTED THAT SOCIETY HAS GOT REGIST ERED U/S 12A OF THE INCOME-TAX ACT AND THERE IS NO DISPUTE ABOUT THE OB JECTS AND ACTIVITIES OF THE TRUST. THEREFORE, REJECTION OF THE APPLICATION FOR 80G EXEMPTION IS COMPLETELY UNJUSTIFIED. THE DIT (EXEMPTIONS)S OBS ERVATION THAT ASSESSEE IS DOING COMMERCIAL ACTIVITIES IS ALSO COMPLETELY CONT RARY TO THE FACTS OF THE CASE AND IT IS HIGHLY ARBITRARY AND WITHOUT ANY BASIS. THE OBJECTS AND ACTIVITIES OF THE TRUST ARE IN CONFORMITY WITH THE PROVISIONS OF 2(15) OF INCOME-TAX ACT WHERE THE CHARITABLE ACTIVITY HAS BEEN DEFINED. HE SUBMITTED THAT THE ASSESSEE IS ENCOURAGING ECOTOURISM IN INDIA. HE ALSO SUBMIT TED THAT BY THE FINANCE ITA NO.2943/DEL./2011 3 (NO.2) ACT, 2009 W.E.F. 1.4.2009, THE PRESERVATION OF ENVIRONMENT INCLUDING THE WATER SHEDS, FOREST AND WILD LIFE HAS BEEN TAKE N INTO THE DEFINITION OF CHARITABLE PURPOSES. THE MAIN OBJECTS OF THE SOCIE TY ARE TO PROMOTE THE CONCEPT OF ECOTOURISM IN INDIA. THE ECOTOURISM EVO LVE AS A CONCEPT WITH THE DEVELOPMENT AND CHANGE IN INDIAN SOCIETY. THE SOCI ETY IS TO INITIATE PROGRAMMES TO COVER THE TENETS OF THE ECOTOURISM IN THE FIELD OF NATURE BASED, ECOLOGICALLY SUSTAINABLE, WHERE EDUCATION, AWARENES S AND CONCERN FOR THE ENVIRONMENT AND ITS INTERPRETATION IS A MAJOR COMPO NENT AND WHERE INDIGENOUS AND LOCAL PEOPLE ARE BENEFITED. THE ECO TOURISM IS RESPONSIBLE TRAVEL TO NATURAL AREAS THAT CONSERVES THE ENVIRONM ENT AND WELL BEING OF THE LOCAL PEOPLE. THE ASSESSEE WILL GO FORWARD TO CONN ECT THE CONSERVATION OF NATURE AND THE ENVIRONMENT, COMMUNITIES AND SUSTAIN ABLE TRAVEL. THEREFORE, THE ASSESSEE COMES UNDER THE DEFINITION OF CHARITAB LE PURPOSES WHICH HAS BEEN ACCEPTED BY THE DIT (EXEMPTIONS) IN GRANTING THE RE GISTRATION U/S 12A READ WITH SECTION 12AA OF THE INCOME-TAX ACT. 4. ON THE OTHER HAND, THE LEARNED DR RELIED ON THE ORDER OF THE DIT (EXEMPTIONS). 5. WE HAVE HEARD BOTH THE SIDES IN DETAIL AND WE FI ND THAT THE SOCIETY HAS BEEN REGISTERED U/S 12A READ WITH SECTION 12AA OF T HE INCOME-TAX ACT BY THE DIT (EXEMPTIONS) ON 16.4.2010. THE MAIN OBJECTS OF THE SOCIETY ARE TO ITA NO.2943/DEL./2011 4 PROMOTE THE ECOTOURISM IN INDIA. THE INITIATION OF PROGRAMMES BY THE ASSESSEE ARE BASED ON THE FOLLOWING TENETS OF THE E COTOURISM :- (I) NATURE BASED; (II) ECOLOGICALLY SUSTAINABLE; (III) EDUCATION, AWARENESS AND CONCERN FOR ENVIRONMENT AN D ITS INTERPRETATION; AND (IV) FOR THE BENEFIT OF INDIGENOUS AND LOCAL PEOPLE. THE AMENDED DEFINITION OF CHARITABLE PURPOSES BY TH E FINANCE (NO.2) ACT, 2009 WITH EFFECT FROM 1.4.2009 IS AS UNDER :- CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRONMENT (INCLU DING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTERE ST] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY. THE PRESERVATION OF ENVIRONMENT ALSO COMES UNDER TH E DEFINITION OF CHARITABLE PURPOSES. THE ASSESSEE HAS BEEN GRANTED 12A REGIST RATION BY DIT (EXEMPTIONS) AND THE TOKEN FEES CHARGED IN THE FORM OF REGISTRATION FEE, WORKSHOP AND SPONSORSHIP FEES CANNOT BE TERMED AS A COMMERCIAL ACTIVITY. THE ASSESSEE IS ENGAGED IN THE FIELD OF IMPARTING E COTOURISM IN THE COUNTRY. IT IS SPREADING AWARENESS AMONG THE TOURISTS, ASSOCIAT IONS AND TRAVEL AGENCIES WHICH ARE INVOLVED IN THE TOURISM, AND TO ACHIEVE T HIS THE ASSESSEE IS CONDUCTING WORKSHOPS, ETC. AND FOR THE SAME, A TOKE N FEE IS CHARGED FOR REGISTRATION AND SPONSORSHIP. THE BASIC TENETS OF THE CONCEPT OF ECOTOURISM ITA NO.2943/DEL./2011 5 ARE NATURE BASED ON NATURE AND ECOLOGICALLY SUSTAIN ABLE AND THESE PROGRAMMES ARE FOR THE BENEFIT OF INDIGENOUS AND LOCAL PEOPLE. THEREFORE, IN OUR CONSIDERATION VIEW, THE SOCIETY DESERVES FOR EXEMPT ION U/S 80G. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER OF THE DIT (EXEMP TIONS) AND ALLOW EXEMPTION U/S 80G. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 19 TH DAY OF AUGUST, 2011. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 19 TH DAY OF AUGUST, 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.DIT (EXEMPTIONS), NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.