Sukhmani Society for Citizen Services, Nawanshahr V. The Commissioner of Income-tax -1, Jalandhar

ITA 297/ASR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2214 (ITAT-AMRITSAR)
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-04-2013
• Assessment Year: misc
• Appeal Filed On: 12-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Charitable institution; Opportunity of being heard; Competent authority; Condonation of delay
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 297(ASR)/2012) ASSESSMENT YEAR: PAN: ABTFS4517J SUKHMANI SOCIETY FOR CITIZEN VS. COMMISSION ER OF INCOME TAX-I SERVICES , SAHEED BHAGAR SINGH JALANDHAR NAGAR, NAWANSHAHAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. NIRMAL MAHAJAN, C.A. RESPONDENT BY: SH. TARSEM LAL, D.R. DATE OF HEARING: 08.04.2013 DATE OF PRONOUNCEMENT: 22.04.2013 ORDER PER BENCH 1) THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 26.04.2012 PASSED BY COMMISSIONER OF IN COME TAX-I, JALANDHAR, ON THE FOLLOWING GROUNDS: I. THE COMMISSIONER OF INCOME TAX-I, JALANDHAR, IS WRO NG IN REJECTING THE APPLICATION OF THE ASSESSEE FOR REGIS TRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961 AND HIS OR DER IS AGAINST THE LAW AND FACTS OF THE CASE. II. ANY OTHER GROUND WHICH MAY BE RAISED AT THE TIME OF HEARING. 2 2) THERE IS A DELAY OF TWO DAYS IN FILING THE PRES ENT APPEAL AND THE ASSESSEE HAS FILED APPLICATION DATED 27.08.2012 REQ UESTING FOR CONDONATION OF DELAY OF TWO DAYS ON THE GROUND THAT THE ASSESSEE HAD HANDED OVER THE DOCUMENTS TO HIS COUNSEL FOR PREPAR ING THE APPEAL WELL IN TIME BUT THE COUNSEL BEING UNWELL COULD NOT PREPARE THE APPEAL IN TIME THAT LED TO THE DELAY OF TWO DAYS IN FILING THE PRE SENT APPEAL. THEREFORE, THE ASSESSEE REQUESTED TO CONDONE THE DELAY OF TWO DAYS IN FILING THE PRESENT APPEAL. 3) ON THE OTHER HAND, LEARNED D.R. HAS NOT RAISED ANY OBJECTION ON THE REQUEST OF THE ASSESSEES COUNSEL. 4) KEEPING IN VIEW THE REASONS MENTIONED BY THE AS SESSEE IN THE APPLICATION FOR CONDONATION OF DELAY DATED 27.08.20 12, WE ARE FULLY CONVINCED WITH THE SAME AND CONDONE THE DELAY OF TW O DAYS IN FILLING THE PRESENT APPEAL BY ADMITTING THE PRESENT APPEAL. 5) IN THE PRESENT CASE, THE ASSESSEE-SOCIETY WAS C REATED ON 22.02.2006 AND GOT REGISTERED ON THE SAME DAY WITH THE ADDITIONAL REGISTRAR OF SOCIETIES, NAWANSHAHAR. THE ASSESSEE-S OCIETY FILED AN APPLICATION UNDER SECTION 12A(A) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) IN THE PRESC RIBED PROFORMA ON 29.11.2011 FOR REGISTRATION OF THE SOCIETY ALONG WI TH CERTIFIED COPY OF 3 MEMORANDUM OF ARTICLES OF ASSOCIATION, COPY OF AUDI TED ACCOUNTS FOR THE PERIOD ENDING 31.03.2009 & 31.03.2010, LIST OF MEMBERS OF THE MANAGING COMMITTEE AND COPY OF THE CERTIFICATE OF R EGISTRATION BY THE ADDITIONAL REGISTRAR OF SOCIETIES. 6) ASSESSEE STATED THAT THE SOCIETY IS ENGAGED IN PROVIDING SERVICE TO THE PUBLIC TO FACILITATE THEM IN OBTAINING DIFFE RENT KINDS OF LICENSES, PERMISSION OF REGISTRATION LIKE BIRTH, DEATH, MARRI AGE CERTIFICATES, DRIVING LICENSES, RATION-CARDS, ARMS LICENSES AND S ENIOR CITIZEN CARD ETC. BUT BY CHARGING A FEE FOR EACH TYPE OF SERVICE S. THE FEE IS FIXED BY THE REGULATORY AUTHORITY OF THE GOVERNMENT OF PUNJA B. ASSESSEE FURTHER STATED THAT AT PRESENT THE SOCIETY IS RUNNING NINE CENTERS AND THE HEAD OFFICE IS AT NAWANSHAHAR AND THE BRANCH OFFICES ARE AT BANGA, BALACHAUR, RAHON, AUR, MUKANDPUR, SAROYA, SAHIBA AND KATHGARH. THE ASSESSEE- SOCIETY IS ENGAGED IN ADVANCEMENT OF AN OBJECT OF G ENERAL PUBLIC UTILITY AND HENCE IT REQUESTED FOR REGISTRATION UNDER SECTI ON 12A(A) OF THE ACT. 7) AFTER EXAMINING THE CONTENTS OF THE APPLICATION ALONG WITH THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE-SOCIETY, LEARNED COMMISSIONER OF INCOME TAX-I, JALANDHAR, HELD THAT IN VIEW OF THE AMENDMENT TO SECTION 2(15) OF THE ACT WHICH HAS TAK EN PLACE W.E.F. 01.04.2009 AND AS PER WHICH, AN OBJECT OF GENERAL P UBLIC UTILITY WHICH 4 INVOLVES CARRYING ON OF AN ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE I N RELATION TO ANY TRADE, COMMERCE OR BUSINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, O R RETENTION, OF THE INCOME FROM SUCH ACTIVITY HAS CEASED TO BE A CHARITABLE PU RPOSE. LEARNED CIT-I, JALANDHAR, FURTHER HELD THAT THE SOCIETY IS GIVING SERVICES BY CHARGING FEES AND THUS IT BECOMES AN ACTIVITY IN THE NATURE OF A BUSINESS AND HENCE BY VIRTUE OF THIS AMENDMENT, THE ACTIVITY NO LONGER FA LLS IN THE AMBIT OF THE DEFINITION OF SECTION 2(15) OF THE ACT. THEREFORE, HE REFUSED TO GRANT REGISTRATION TO THE ASSESSEE-SOCIETY VIDE HIS IMPUG NED ORDER DATED 26.04.2012. 8) BEING AGGRIEVED WITH THE IMPUGNED ORDER DATED 2 6.04.2012, ASSESSEE FILED THE PRESENT APPEAL. 9) AT THE TIME OF HEARING, LEARNED D.R., SH. TARSE M LAL, RAISED THE A PRELIMINARY OBJECTION THAT EXACTLY A SIMILAR ISSU E CAME UP FOR HEARING BEFORE THIS BENCH I.E. I.T.A. NO. 551(ASR)/2011; SU KHMANI SOCIETY FOR CITIZEN SERVICES, D.C. OFFICE, MANSA VS. COMMISSION ER OF INCOME TAX, C.R. BUILDING, BATHINDA, AND THIS BENCH VIDE ITS OR DER DATED 26.09.2012, HAS DECIDED THE ISSUE IN DISPUTE AGAINST THE ASSESS EE BY DISMISSING THE APPEAL FILED BY THE ASSESSEE-SOCIETY. THUS, LEARNED D.R. REQUESTED THAT THE 5 PRESENT APPEAL FILED BY THE ASSESSEE MAY ALSO BE DI SMISSED ON THE SIMILAR TERMS. 10) LEARNED COUNSEL FOR THE ASSESSEE-SOCIETY RELIED U PON HIS WRITTEN SUBMISSION DATED 03.04.2013 AND STATED THAT THE PRE SENT APPEAL MAY BE DECIDED AFTER CONSIDERING HIS WRITTEN SUBMISSION. 11) WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE LEVANT RECORDS AVAILABLE WITH US WHICH INCLUDES SMALL PAPER-BOOK F ILED BY THE ASSESSEE CONTAINING PAGES FROM 1 TO 47 IN WHICH ASSESSEE HAS ATTACHED THE COPY OF FORM NO. 10A; COPY OF CERTIFICATE OF REGISTRATION O F SOCIETIES; COPY OF MEMORANDUM OF ASSOCIATION; COPY OF RULES OF SOCIETY ; COPY OF AUDITORS REPORT, BALANCE-SHEET AND INCOME AND EXPENDITURE AC COUNT FOR THE PERIOD ENDED 31.03.2009; COPY OF AUDITORS REPORT, BALANCE -SHEET AND INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED ON 31. 03.2010; COPY OF THE AUDITORS REPORT, BALANCE-SHEET AND INCOME AND EXPE NDITURE ACCOUNT FOR THE PERIOD ENDED ON 31.03.2011; COPY OF REPLY DATED 19.04.2012 AND COPY OF ORDER UNDER SECTION 12AA(A)(B)(I) OF INCOME TAX ACT, DATED 26.09.2007. 12) WE HAVE THOROUGHLY GONE THROUGH THE WRITTEN SUBMI SSION FILED BY LEARNED COUNSEL FOR THE ASSESSEE ALONG WITH THE DECISION OF THIS BENCH CITED BY HIM I.E SUKHMANI SOCIETY FOR CITIZEN SERVI CES VS. 6 COMMISSIONER OF INCOME TAX; I.T.A. NO. 551(ASR)/201 1, REPORTED IN (2013) 153 TTJ (ASR) 235. AS STATED BY LEARNED D.R. THAT THIS BENCH EXACTLY IN A SIMILAR ISSUE, WHICH CAME UP FOR HEARI NG, HAD DECIDED THE ISSUE AGAINST THE ASSESSEE BY DISMISSING THE APPEAL FILED BY THE ASSESSEE- SOCIETY, WE ARE OF THE VIEW THAT THE FACTS AND CIRC UMSTANCES OF THE PRESENT CASE AS WELL AS THE CASE CITED ABOVE BY LEARNED D.R . I.E. I.T.A. NO. 551(ASR)/2011; SUKHMANI SOCIETY FOR CITIZEN SERVICE S VS. COMMISSIONER OF INCOME TAX, ARE ALMOST SIMILAR AND THIS BENCH HAS ALREADY ADJUDICATED ALMOST SIMILAR WRITTEN SUBMISSI ON FILED BY THE ASSESSEE-SOCIETY AND DECIDED THE ISSUE IN DISPUTE A GAINST THE ASSESSEE. 13) LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO NOT DIS TINGUISHED THE DECISION OF THIS BENCH PASSED IN I.T.A. NO. 551(ASR )/2011 ON 26.09.2012 IN HIS WRITTEN SUBMISSION. AS STATED ABOVE, LEARNED COUNSEL FOR THE ASSESSEE HAS ATTACHED THE INCOME AND EXPENDITURE AC COUNT FOR THE PERIOD ENDING ON 31 ST MARCH, 2009; 31 ST MARCH, 2010 AND 31 ST MARCH, 2011, PARTICULARS AND AMOUNTS OF INCOME EARNED AND THE EX PENDITURE INCURRED BY THE ASSESSEE-SOCIETY. FOR THE SAKE OF CONVENIENC E, INCOME AND EXPENDITURE ACCOUNTS FOR THE YEARS ENDING ON 31 ST MARCH, 2009; 31 ST MARCH, 2010 AND 31 ST MARCH, 2011, ARE REPRODUCE BELOW: 7 SUWIDHA SOCIETY D.C. OFFICE, NAWANSHAHR INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING ON 31 ST MARCH, 2009 PARTICULARS AMOUNT PARTICULARS AMOUNT TO ADVERTISEMENT 38,406.00 BY AFFIDAVIT ATTESTATION FEE 1,548,660.00 TO BANK CHARGES 700.00 BY AIRTEL BILL FEES 115.00 TO CLEANING & SANITATION 25,943.00 BY ARMS LICENCE FEE 403,600.00 TO DATA ENTRY CHARGES 410,290.00 BY ATTESTATION DOCUMENT FEE 173,195.00 TO DEPRECIATION 2,328,629.67 BY ATTESTATION OF MARRIAGE DOCUMENT 106,905.00 TO DIESEL EXP. 116,743.00 BY BIRTH & DEATH CERTIFICATE 1,830,383.00 TO ELECTRICITY EXP. 789,289.00 BY CHARACTER VERIFICATION CERTIFICATE 4,730.00 TO FORM CONTRACT FEE 135,000.00 BY COPING TEHSIL FEE 29,380.00 TO INSURANCE CHARGES 19,954.00 BY COPY OF PUBLIC GRIEVANCES FEE 13,790.00 TO INTT ON BANK LOAN 15,255.00 BY COUNTERSIGN 779,960.00 TO INTT ON PLRS LOAN 9,301.00 BY D.S.S.O. 154.00 TO MISC. EXP. 17,564.00 BY DTO OFFICE NAWANSHAHR 79,056.00 TO PAPER AND PERIODICALS 33,432.00 BY ELECTRICITY BILL CHARGES FEE 193,600.00 TO PHOTOSTAT EXP. 1,526.00 BY FORMS SALE 1,251,359.00 TO POL (VEHICLES) 179,422.00 BY GROUP PHOTO OF MARRIAGE 98,500.00 TO POSTAGE EXP. 238,847.00 BY LATE ENTRY OF COURT ORDER 6,280.00 TO PRINTING OF FORMS 217,752.00 BY LICENCE FOR STAMP VENDOR 200.00 TO RENT PAID 360,000.00 BY LICENCE FOR FERTILIZER (AGRI.) 19,970.00 TO REPAIR & MAINT(VEHICLES) 14,196.00 BY LOUD SPEAKER FEE(SDM) 45,610.00 TO REPAIR & MAINTENANCE 140,758.00 BY MARRIAGE CERTIFICATE(TEHSILDAR) 986,300.00 TO SALARY 3,002,571.00 BY MISCELLANEOUS BRANCH FEE 108,550.00 8 TO STATIONERY 834,840.00 BY NOC FOR BUILDING PLAN 31,500.00 TO TEA MATERIAL 73,185.00 BY NONENCUMBRANCE CERTIFICATE 124,740.00 TO TELEPHONE EXP. 130,445.00 BY PASSPORT FEE 930,200.00 TO UNIFORM EXP. 22,000.00 BY PHOTO COUNTER(PASSPORT SIZE) 3,175.00 TO SURPLUS(EXCESS OF INCOME OVER EXPENDITURE) 3,261,772.97 BY PHOTO STATE FEE 17,733.00 BY POLICE CLEARANCE CERTIFICATE FEES 99,600.00 BY RATION CARD FEE 23,920.00 BY RENT RECEIVED 84,600.00 BY SPECIAL MARRIAGE(DC) SANNAT 34,200.00 STD PCO TELEPHONE CHARGES 7,484.00 BY SUB COPYING AGENCY FEE 63,260.00 BY SUWIDHA CENTRE AUR 48,969.00 BY SUWIDHA CENTRE BALACHAUR 1,741,021.00 BY SUWIDHA CENTRE BANGA 605,798.00 BY SUWIDHA CENTRE KATHGARH 69,390.00 BY SUWIDHA CENTRE MUKANDPUR 75,145.00 BY SUWIDHA CENTRE RAHON 129,937.00 BY SUWIDHA CENTRE SAHIBA 74,604.00 BY SUWIDHA CENTRE SAROYA 86,659.00 BY TEA CHARGES FEES 80,853.00 BY SERVICE CHARGES 324,725.00 BY TYPING DOCUMENT FEE 38,093.00 BY WATER SUPPLY CONNECTION FEE 12,780.00 BY MISC. INCOME 4,100.00 BY BANK INTEREST 3,183.64 BY COMMISSION (PROFIT) FROM STAMP PAPER SALE 21,855.00 12,41 7,821.64 12,417,821.64 ------------------ --------------- --- 9 DATE :29-06-2009 SD/./- SD/./- SD/./- PLACE :NAWANSHAHR INCHARGE MEMBER SE CRETARY PRESIDENT AUDITORS REPORT AS PER OUR REPORT OF EVEN DATE FOR YOGESH RMESH & ASSOCIATES CHARTERED ACCOUNTANTS SD/./- (YOGESH KUMAR) PROP. SUWIDHA SOCIETY D.C. OFFICE, NAWANSHAHR INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING ON 31 ST MARCH, 2010 PARTICULARS AMOUNT PARTICULARS AMOUNT TO ADVERTISEMENT 46,655.00 BY AFFIDAVIT ATTESTATION FEE 1,404,960.00 TO AUDIT FEE 15,000.00 BY ARMS LICENCE FEE 382,730.00 TO BANK CHARGES 39,971.00 BY ATTESTATION DOCUMENT FEE 176,650.00 TO CLEANING & SANITATION 10,530.00 BY ATTESTATION OF MARRIAGE DOCUMENT 95,250.00 TO DEPRECIATION 2,025,082.00 BY BIRTH & DEATH CERTIFICATE 1,383,366.00 TO DIESEL EXP. 25,013.00 BY COPING TEHSIL FEE 25,870.00 TO ELECTRICITY EXP. 503,051.00 BY COPY OF PUBLIC GRIEVANCES FEE 8,900.00 TO FORM CONTRACT FEE 170,000.00 BY COUNTERSIGN 564,810.00 TO HEAD OFFICE PSEG 4,585,336.00 BY DTO OFFICE NAWANSHAHR 301,947.00 TO INSURANCE CHARGES 15,775.00 BY ELECTRICITY BILL CHARGES FEE 260,775.00 TO INTT ON BANK LOAN 19,722.00 BY FORMS SALE 1,310,209.00 TO MISC. EXP. 14,933.00 BY GROUP PHOTO OF MARRIAGE 93,850.00 TO PAPER AND PERIODICALS 7,236.00 BY LATE ENTRY OF COURT ORDER 5,070.00 10 TO PHOTOSTAT EXP. 4,993.00 BY LICENCE FOR FERTILIZER (AGRI.) 15,500.00 TO POL (VEHICLES) 152,048.00 BY LOUD SPEAKER FEE(SDM) 32,710.00 TO POSTAGE EXP. 144,305.00 BY MARRIAGE CERTIFICATE(TEHSILDAR) 938,000.00 TO PRINTING OF FORMS 164,716.00 BY MISCELLANEOUS BRANCH FEE 97,680.00 TO PROFESSION CHARGES 10,000.00 BY NOC FOR BUILDING PLAN 28,000.00 TO PROVIDENT FUND 1,216,960.00 BY NONENCUMBRANCE CERTIFICATE 117,930.00 TO RENT PAID 240,000.00 BY PASSPORT FEE 468,800.00 TO REPAIR & MAINTENANCE 130,444.00 BY PHOTO COUNTER(PASSPORT SIZE) 1,700.00 TO SALARY 3,335,820.00 BY PHOTO STATE FEE 20,992.00 TO STATIONERY 627,350.00 BY POLICE CLEARANCE CERTIFICATE FEES 68,910.00 TO TEA MATERIAL 89,039.00 BY RATION CARD FEE 29,020.00 TO TELEPHONE EXP. 80,749.00 BY RENT RECEIVED 238,000.00 BY SPECIAL MARRIAGE(DC) SANNAT 26,220.00 BY SUB COPYING AGENCY FEE 42,590.00 BY SUWIDHA CENTRE AUR 55,413.00 BY SUWIDHA CENTRE BALACHAUR 1,733,367.00 BY SUWIDHA CENTRE BANGA 454,325.00 BY SUWIDHA CENTRE KATHGARH 45,205.00 BY SUWIDHA CENTRE MUKANDPUR 88,600.00 BY SUWIDHA CENTRE RAHON 113,492.00 BY SUWIDHA CENTRE SAHIBA 95,454.00 BY SUWIDHA CENTRE SAROYA 131,023.00 BY TEA CHARGES FEES 107,797.00 BY SERVICES CHARGES(TEHSIL) 278,731.00 BY TYPING DOCUMENT FEE 33,215.00 BY WATER SUPPLY CONNECTION FEE 20,820.00 BY MISC. INCOME 8,067.00 BY BANK INTEREST 132.00 11 BY COMMISSION (PROFIT) FROM STAMP PAPER SALE 28,756.00 BY DEFICIT (BEING EXCESS OF EXP. OVER INCOME) 2,339,892.00 13,67 4,728.00 13,674,728.00 ------------------ --------------- --- DATE :25-08-2010 SD/./- SD/./- SD/./- PLACE :NAWANSHAHR INCHARGE MEMBER SE CRETARY PRESIDENT AUDITORS REPORT AS PER OUR REPORT OF EVEN DATE FOR YOGESH ROMESH & ASSOCIATES CHARTERED ACCOUNTANTS SD/./- (YOGESH KUMAR) PROP. SUWIDHA SOCIEY FOR CITIZEN SERVICES D.C. OFFICE, NAWANSHAHR INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING ON 31 ST MARCH, 2011 PARTICULARS AMOUNT PARTICULARS AMOUNT TO ADVERTISEMENT 38,806.00 BY ADVERTISEMENT INCOME 45,000.00 TO AUDIT FEE 15,000.00 BY AFFIDAVIT ATTESTATION FEE 870,278.00 TO BANK CHARGES 1,571.00 BY ARMS LICENCE FEE 389,258.00 TO CLEANING & SANITATION 40,938.00 BY ATTESTATION DOCUMENT FEE 101,825.00 TO DEPRECIATION 1,668,525.00 BY ATTESTATION OF MARRIAGE DOCUMENT 82,762.00 TO DIESEL EXP. 11,658.00 BY BIRTH & DEATH CERTIFICATE 885,828.00 TO ELECTRICITY EXP. 913,602.00 BY COPING TEHSIL FEE 23,421.00 TO ENTERTAINMENT 3,693.00 BY COPY OF PUBLIC 9,478.00 12 GRIEVANCES FEE TO FORM CONTRACT FEE 495,000.00 BY COUNTERSIGN 596,641.00 TO HEAD OFFICE PSEG 909,577.00 BY DTO OFFICE NAWANSHAHR 100,000.00 TO INSURANCE CHARGES 14,428.00 BY ELECTRICITY BILL CHARGES FEE 200,215.00 TO INTT ON BANK LOAN 208,079.00 BY FORMS SALE 1,468,144.00 TO LEGAL FEE 10,000.00 BY GROUP PHOTO OF MARRIAGE 83,702.00 TO MISC. EXP. 18,699.00 BY LATE ENTRY OF COURT ORDER 36,842.00 TO PAPER AND PERIODICALS 13,660.00 BY LICENCE FOR FERTILIZER (AGRI.) 16,390.00 TO POL (VEHICLES) 194,905.00 BY LOUD SPEAKER FEE(SDM) 29,243.00 TO POSTAGE EXP. 168,860.00 BY MARRIAGE CERTIFICATE(TEHSILDAR) 842,362.00 TO PRINTING OF FORMS 171,239.00 BY MISCELLANEOUS BRANCH FEE 166,826.00 TO PROVIDENT FUND 513,891.00 BY NOC FOR BUILDING PLAN 22,099.00 TO REGISTRATION ISO 41,362.00 BY NONENCUMBRANCE CERTIFICATE 74,971.00 TO RENT PAID 230,000.00 BY PASSPORT FEE 336,257.00 TO REPAIR & MAINTENANCE 239,174.00 BY PHOTO COUNTER(PASSPORT SIZE) 1,468.00 TO REPAIR & MAINT(VEHI) 20,594.00 BY PHOTO STATE FEE 38,550.00 TO SALARY 3,771,732.00 BY POLICE CLEARANCE CERTIFICATE FEES 58,670.00 TO STATIONERY 621,265.00 BY RATION CARD FEE 14,334.00 TO TEA MATERIAL 43,050.00 BY RENT RECEIVED 296,300.00 TO TELEPHONE EXP. 132,620.00 BY SPECIAL MARRIAGE(DC) SANNAT 34,008.00 TO TRAVELLING & CONVEYANCE 100,750.00 BY SUB COPYING AGENCY FEE 41,674.00 TO TDS ON FDR 52,770.00 BY SUWIDHA CENTRE AUR 55,891.00 BY SUWIDHA CENTRE BALACHAUR 1,246,310.00 BY SUWIDHA CENTRE BANGA 448,558.00 BY SUWIDHA CENTRE KATHGARH 57,710.00 BY SUWIDHA CENTRE MUKANDPUR 102,750.00 BY SUWIDHA CENTRE RAHON 84,650.00 13 BY SUWIDHA CENTRE SAHIBA 111,543.00 BY SUWIDHA CENTRE SAROYA 133,823.00 BY TEA CHARGES FEES 70,481.00 BY SERVICES CHARGES(TEHSIL) 300,673.00 BY TYPING DOCUMENT FEE 10,052.00 BY WATER SUPPLY CONNECTION FEE 7,944.00 BY MISC. INCOME 6,212.00 BY BANK INTEREST 427,305.27 BY COMMISSION (PROFIT) FROM STAMP PAPER SALE 32,937.00 BY DEFICIT (BEING EXCESS OF EXP. OVER INCOME) 752,052.73 10,66 5,448.00 10,665,448.00 ------------------ --------------- --- DATE :05-07-2011 SD/./- SD/./- SD/./- PLACE :NAWANSHAHR INCHARGE MEMBER SE CRETARY PRESIDENT AUDITORS REPORT AS PER OUR REPORT OF EVEN DATE FOR YOGESH ROMESH & ASSOCIATES CHARTERED ACCOUNTANTS SD/./- (YOGESH KUMAR) PROP. 14) WE HAVE ALSO PERUSED THE INCOME AND EXPENDITURE A CCOUNTS WHICH ARE REPRODUCED ABOVE AS WELL AS THE IMPUGNED ORDER ALONG WITH THE RELEVANT PROVISIONS OF SECTION 12AA AND SECTION 2(1 5) OF THE ACT. FOR 14 THE SAKE OF CONVENIENCE, THE PROVISION OF SECTION 1 2AA AND SECTION 2(15) OF THE ACT ARE REPRODUCED AS UNDER: SECTION 12AA.(1) THE COMMISSIONER, ON RECEIPT OF A N APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUTION MADE UNDER C LAUSE (A) [ OR CLAUSE (AA) OF SUB SECTION(1) OF SECTION 12A, SHALL A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRU ST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SAT ISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEMED N ECESSARY IN THIS BEHALF; AND B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE T RUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE I) SHALL PASS AN ORDER IN WRITING REGISTERING THE TRUS T OR INSTITUTION; II) SHALL, IF HE IS NOT SO SATISFIED, PASS AN ORDER IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION, AND COPY OF THE SUCH ORDER SHALL BE SENT TO THE APP LICANT. SECTION 2(15): CHARITABLE PURPOSE INCLUDES RELIE F OF THE POOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRON MENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST,] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. 15) KEEPING IN VIEW THE AFORESAID DISCUSSION AS PER R ECORD AS WELL AS THE DOCUMENTARY EVIDENCE GIVEN BY THE ASSESSEE, WE FIND THAT THE ASSESSEE-SOCIETY WAS CREATED ON 22.02.2006 AND GOT REGISTERED ON THE SAME DAY WITH THE ADDITIONAL REGISTRAR OF SOCIETIES , NAWANSHAHAR. THE ASSESSEE-SOCIETY FILED AN APPLICATION UNDER SECTION 12A(A) OF THE ACT IN 15 THE PRESCRIBED PROFORMA ON 29.11.2011 FOR REGISTRAT ION OF SOCIETY ALONG WITH CERTIFIED COPY OF MEMORANDUM OF ARTICLES OF AS SOCIATION, COPY OF AUDITED ACCOUNTS FOR THE PERIOD ENDING 31.03.2009 & 31.03.2010. ASSESSEE ITSELF STATED THAT THE SOCIETY IS ENGAGED IN PROVIDING SERVICES TO THE PUBLIC TO FACILITATE THEM IN OBTAINING DIFFEREN T KINDS OF LICENSES, PERMISSION OF REGISTRATION LIKE BIRTH, DEATH, MARRI AGE CERTIFICATES, DRIVING LICENSES, RATION-CARDS, ARMS LICENSES AND S ENIOR CITIZEN CARD ETC. BUT BY CHARGING A FEE FOR EACH TYPE OF SERVICE S. THIS FEE IS FIXED BY THE REGULATORY AUTHORITY OF THE GOVERNMENT OF PUNJA B. AS PER THE ARGUMENT ADVANCED BY LEARNED COUNSEL FOR THE ASSESS EE THAT THE SOCIETY IS ENGAGED IN ADVANCEMENT OF AN OBJECT OF GENERAL PUBL IC UTILITY AND HENCE IT IS ENTITLED FOR REGISTRATION UNDER SECTION 12A(A ) OF THE ACT. BUT KEEPING IN VIEW THE AMENDMENT OF SECTION 2(15) OF THE ACT T HAT HAS TAKEN PLACE W.E.F. 01.04.2009, ACCORDING TO WHICH, AN OBJECT O F GENERAL PUBLIC UTILITY WHICH INVOLVES CARRYING ON OF AN ACTIVITY IN THE N ATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING A NY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS FOR A C ESS OR FEE OR ANY OTHER CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, OR RETENTION, OF THE INCOME FROM SUCH ACTIVITY HAS CEA SED TO BE A CHARITABLE PURPOSE. IN THE PRESENT CASE, THERE IS NO DOUBT THA T THE ASSESSEE-SOCIETY IS 16 GIVING SERVICES BUT BY CHARGING FEES. IT IS PERTINE NT TO MENTION HERE THAT THE ASSESSEES COUNSEL HAS NOT FILED ANY CHART OF S ERVICES AND CHARGES AGAINST THE SERVICES RENDERED BY THE SOCIETY BUT AS WE STATED ABOVE THAT THE FACTS OF THE PRESENT CASE AND THE FACTS OF THE CASE OF SUKHMANI SOCIETY FOR CITIZEN SERVICES, D.C. OFFICE, MANSA (SUPRA), A RE SIMILAR. IN THE CASE OF SUKHMANI SOCIETY FOR CITIZEN SERVICES (SUPRA), T HE ASSESSEES COUNSEL HAS FILED A CHART OF SERVICES AND CHARGES AGAINST T HE SERVICES RENDERED BY THE SOCIETY THAT ARE ABOUT 36 IN NUMBER. FOR THE SA KE OF CONVENIENCE, A CHART OF 17 SERVICES RENDERED BY THE SOCIETY AND TH E CHARGES TAKEN BY THE SOCIETY IS REPRODUCED HEREUNDER: SUKHMANI SOCIETY FOR CITIZEN SERVICES VS. CIT. BAT HINDA I.T.A. NO. 551/ASR- 2011 SERVICE FACILI. CHARGES TIME FRAME FINANCIAL YEAR 2008-09 FINANCIAL YEAR 2009-10 FINANCIAL YEAR 2010-11 (RS.) DAYS NO. OF CASES %AGE OF TOTAL NO. OF CASES %AGE OF TOTAL NO. OF CASES %AGE OF TOTAL 1 ISSUANCE OF NATIONALITY CERTIFICATE 20 15 0 0 0 0.00% 11856 24.70% 2 ISSUANCE OF BIRTH CERTIFICATE 20 7 5001 32.46% 5419 11.62% 7462 15.55% 3 DRIVING LICENCES RELATED SERVICES 20 7 0 0.00% 20041 42.96% 7326 15.26% 4 ARM LICENCES RELATED SERVESS 500 45 4282 27.79% 5 855 12.55% 5173 10.78% 5 ISSUANCE OF AFFIDAVITS 20 SAME DAY 1036 6.72% 4258 9.13% 5011 10.44% 6 REGISTRATION OF VEHICLE SERVICES 100 5 0 0.00% 6096 13.07% 4675 9.74% 7 ISSUANCE OF COPY OF A DOCUMENT 30 7 1473 9.56% 12 57 2.69% 1904 3.97% 17 8 ISSUANCE OF DEATH CERTIFICATE 20 7 975 6.33% 951 2.04% 1577 3.29% 9 SUBMISSION OF PASSPORT APPLICATIONS 100 20 2101 13.63% 1654 3.55% 1282 2.67% 10 AGRICULTURE RELATED 100 30 274 1.78% 779 1.67% 614 1.28% 11 NON-ENCUMBERENCE CERTIFICATE 20 0 0 0.00% 0 0.00% 374 0.78% 12 FORM SEELING 0 0 0 0.00% 0 0.00% 160 0.33% 13 ISSUANCE OF SURETY BONDS 50 SAME DAY 5 0.03% 29 0.06% 151 0.31% 14 REGISTRATION OF MARRIAGE 500 SAME DAY 60 0.39% 88 0.19% 63 0.13% 15 OTHERS 0 0 202 1.31% 218 0.47% 373 0.78% 16 NOC OF PETROL PUMP 1000 40 0 0.00% 0 0.00% 0 0.00% 17 NOC FOR BUILDING PLAN 500 30 0 0.00% 0 0.00% 0 0.00% TOTAL 15409 46645 48001 (COUNSEL FOR THE ASSESSEE (APPELLANT) 16) A PERUSAL OF THE ABOVE CHART SHOWS THAT THE ASSES SEE-SOCIETY CHARGES AS MUCH AS RS. 1,000/- FOR ISSUING NOC FOR PETROL PUMP, RS. 500/- FOR REGISTRATION OF MARRIAGE, RS. 500/- FOR N OC ON BUILDING PLAN AND SO ON. IT IS PERTINENT TO MENTION HERE THAT THE SE CHARGES ARE IN ADDITION TO THE STATUTORY FEES CHARGED BY THE STATE GOVERNMENT DEPARTMENTS. THESE CHARGES/FEES ARE CHARGED BY THE APPLICANT FOR PROVIDING THE ALLEGED CITIZENS SERVICES. 18 17) LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO FILED B ALANCE SHEET OF 31.03.2009 TO 31.03.2011 IN WHICH THE ASSESSEE-SOCI ETY HAS SHOWN LIABILITIES AND ASSETS AS WELL AS INCOME & EXPENDIT URE ACCOUNTS FOR THE YEAR ENDING 31.03.2009 TO 31.03.2011. AFTER GOING T HROUGH THE BALANCE- SHEET AS WELL AS INCOME & EXPENDITURE ACCOUNTS OF T HE ASSESSEE FOR THREE YEARS MENTIONED ABOVE, WE HAVE NOT FOUND ANY EXPEND ITURE INCURRED BY THE SOCIETY ON CHARITABLE PUBLIC UTILITY WORKS. ALM OST, ALL THE EXPENDITURES HAVE BEEN INCURRED BY THE ASSESSEE-SOC IETY ON PRINTING AND STATIONERY, SALARY TO THEIR EMPLOYEES, BANK EXPENDI TURE, COMPUTER REPAIR, AUDIT FEE, ELECTRICITY BILL, TELEPHONE, ELECTRIC RE PAIR, TRAVELLING, MISC. EXPENDITURE, POSTAGE ETC. 18) AS PER SECTION 12AA OF THE ACT, LEARNED CIT-I, JA LANDHAR, ON RECEIPT OF AN APPLICATION FOR REGISTRATION, CAN CAL L FOR SUCH DOCUMENTS OR INFORMATION FROM THE PRESENT SOCIETY AS HE THINKS N ECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIV ITIES OF THE SOCIETY AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSA RY IN THIS BEHALF. IF LEARNED CIT-I, JALANDHAR, IS SATISFIED HIMSELF OF T HE OBJECTS OF THE TRUST OF THIS SOCIETY AND GENUINENESS OF ITS ACTIVITIES, HE SHALL PASS AN ORDER IN WRITING REGISTERING THE PRESENT SOCIETY AND IF HE I S NOT SATISFIED THEN HE SHALL PASS ORDER IN WRITING REFUSING TO REGISTER TH E SOCIETY AFTER GIVING 19 REASONABLE OPPORTUNITY OF BEING HEARD. IN THE PRESE NT CASE, LEARNED CIT-I, JALANDHAR, IS FULLY SATISFIED THAT KEEPING IN VIEW THE AMENDMENT OF SECTION 2(15) OF THE ACT WHICH HAS TAKEN PLACE W.E. F. 01.04.2009 AS PER WHICH, AN OBJECT OF GENERAL PUBLIC UTILITY WHICH IN VOLVES CARRYING ON OF AN ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BU SINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION, IRRES PECTIVE OF THE NATURE OF USE OR APPLICATION, OR RETENTION, OF THE INCOME FRO M SUCH ACTIVITY HAS CEASED TO BE A CHARITABLE PURPOSE. LEARNED CIT-I, J ALANDHAR, HELD THAT THE SOCIETY IS GIVING SERVICES TO THE GENERAL PUBLIC BY CHARGING FEES AND THUS IT BECOMES AN ACTIVITY IN THE NATURE OF A BUSINESS AND HENCE BY VIRTUE OF THIS AMENDMENT, THE ACTIVITY NO LONGER FALLS IN THE AMBIT OF THE DEFINITION OF SECTION 2(15) OF THE ACT. THEREFORE, HE REFUSED TO GRANT REGISTRATION TO THE ASSESSEE-SOCIETY. 19) WE HAVE ALSO THOROUGHLY GONE THROUGH THE OBJECT O F THE ASSESSEE-SOCIETY WHICH CLEARLY MENTIONS THAT THE AS SESSEE SOCIETY IS CHARGING SERVICE FEE OR USER CHARGERS FROM THE CUST OMERS FOR THE APPROVAL OF THE COMPETENT AUTHORITY AND THE CONCERNED DEPART MENTS/ORGANIZATIONS OVER AND ABOVE THE PRESCRIBED BILL AMOUNT/FEE/STATU TORY FEE FOR PROVIDING THE SERVICES THROUGH SUKHMANI CENTRES/FINANCIAL INS TITUTIONS OR 20 FRANCHISEES. FOR THE SAKE OF CONVENIENCE, ONE OF TH E MAIN OBJECTS OF THE SOCIETY FROM THE WRITTEN SUBMISSION DATED 03.04.201 3 I.E (E) IS REPRODUCED AS UNDER: (E) TO WORK OUT AND RECOMMEND THE SERVICE FEE OR U SER CHARGES THAT COULD BE CHARTED FROM THE END CUSTOMERS FOR TH E APPROVAL OF THE COMPETENT AUTHORITY AND CONCERNED DEPARTMENTS/O RGANIZATIONS OVER AND ABOVE THE PRESCRIBED BILL AMOUNT/FEE/STATU TORY FEE FOR PROVIDING THE SERVICES THROUGH SUKHMANI CENTRES/FIN ANCIAL INSTITUTIONS OR FRANCHISEES . 20) KEEPING IN VIEW THE AFORESAID OBJECT OF THE SOCIE TY, WE ARE OF THE VIEW THAT THIS SOCIETY HAS BEEN ESTABLISHED FOR MAINTAINING THE AGENCIES AND FRANCHISEES IN THE DISTRICT TO CONDUCT BUSINESS OF THE SOCIETY, WHICH CLEARLY ESTABLISHES THAT THE PRESENT SOCIETY IS DOING BUSINESS WITH OTHER AGENCIES AND FRANCHISEES IN THE DISTRICT. WE HAVE NOT SEEN ANY OBJECT OF THE SOCIETY WHICH SHOWS THAT THE PRESENT SOCIETY IS DOING ANY CHARITABLE ACTIVITIES FOR THE GENERAL PUBLIC UTILIT Y. EVEN OTHERWISE THE ASSESSEE-SOCIETY HAS FAILED TO ESTABLISH BEFORE THE CIT-I, JALANDHAR, AS WELL AS BEFORE US THAT ASSESSEE-SOCIETY IS DOING AN Y CHARITABLE WORK KEEPING IN VIEW ITS OBJECT. MERELY, MENTIONING ABOU T VARIOUS OBJECTS IN THE NATURE OF CHARITABLE ACTIVITIES IN THE MEMORAND UM OF ASSOCIATION, DOES NOT MEAN THAT THE SOCIETY IS DOING ANY CHARITA BLE ACTIVITIES FOR THE 21 GENERAL PUBLIC UTILITY AND IS ENTITLED FOR REGISTRA TION UNDER SECTION 12A(A) OF THE ACT. 21) KEEPING IN VIEW OF THE AFORESAID DISCUSSION, WE A RE OF THE CONSIDERED VIEW THAT THE ACTIVITIES OF THE ASSESSEE -SOCIETY ARE NOT CHARITABLE IN NATURE WITHIN THE MEANING OF PROVISIO NS OF SECTION 2(15) OF THE ACT AND IT DOES NOT QUALIFY TO TREAT AS CHARITA BLE INSTITUTION. SINCE THE ASSESSEE HAS NOT ESTABLISHED THAT ITS SOCIETY IS FO RMED WITH OBJECTS OF ANY CHARITABLE PURPOSE, THEN THE QUESTION OF DISCUSSION OF CITATION RELIED UPON BY THE ASSESSEES COUNSEL DOES NOT ARISE, EVEN OTHE RWISE THESE JUDGMENTS ARE DIFFERENT FROM THE FACTS OF PRESENT CASE AND AR E NOT HELPFUL TO THE SOCIETY. THE PRESENT SOCIETY IS DOING ITS BUSINESS AND CHARGING HUGE FEES FROM THE PUBLIC WHICH IS IN ADDITION TO THE PRESCRI BED FEE OF THE PUNJAB GOVERNMENT. EVEN OTHERWISE, THE FEES CHARGED BY THE PRESENT SOCIETY ARE IN ADDITION TO THE BURDEN FORCED UPON THE COMMON MA N. BECAUSE OF THIS, SERVICE HAS TO BE RENDERED BY THE PUNJAB GOVERNMENT FREE OF COST TO THE PUBLIC AGAINST THE FEE PRESCRIBED IN THE CHART AS R EPRODUCED IN THE FOREGOING PARAGRAPHS. WE ARE OF THE CONSIDERED OPIN ION THAT NO INTERFERENCE IS CALLED FOR IN THE WELL REASONED ORD ER PASSED BY LEARNED CIT-I, JALANDHAR. THEREFORE, WE UPHOLD THE IMPUGNED ORDER DATED 26.04.2012 BY DISMISSING THE PRESENT APPEAL FILED B Y THE ASSESSEE-SOCIETY. 22 22) IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE-S OCIETY IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2013 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22 ND APRIL , 2013 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SUKHMANI SOCIETY FOR CITIZEN, SERVIC ES , SAHEED BHAGAR SINGH, NAGAR, NAWANSHAHAR 2. COMMISSIONER OF INCOME TAX-I, JALANDHAR 3. THE SR DR, I.T.A.T., AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.