Vishalwin Foundation, Ahmedabad V. The CIT(Exeemption), Ahmedabad

ITA 310/AHD/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5143 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-09-2023
• Assessment Year: misc
• Appeal Filed On: 27-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORTHEASSESSEEBEFOREUSFILEDPAPERBOOKRUNNINGFROM

Judgement Text

आयकरअपीलीयअधिकरण , अहमदाबादनयायपीी INTHEINCOMETAXAPPELLATETRIBUNAL, ‘’C’’BENCH,AHMEDABAD BEFOREMsSUCHITRAKAMBLE,JUDIICALMEMBER And SHRIWASEEMAHMED,ACCOUNTANTMEMBER आयकरअपीलसं./ITANo.310/AHD/2023 धििाधरणवरध / Asstt.Year:2023-2024 VishalwinFoundation, C/2/63GoyalIntercity, Gurukul, Drive-In-Road, Ahmedabad-380052. PAN:AACTV9372N Vs. TheCommissionerof IncomeTax(Exemption), Ahmedabad. (Applicant)(Respondent) Assesseeby:ShriJaiminShah,AR Revenueby:ShriKamleshMakwana,CIT.DR सुिवाईकीतारीख/DateofHearing:04/09/2023 घोरणाकीतारीख/DateofPronouncement:29/11/2023 आदेश/ORDER PERWASEEMAHMED,ACCOUNTANTMEMBER: ThecaptionedappealhasbeenfiledattheinstanceoftheAssesseeagainst theorderoftheLearnedPrincipalCommissionerofIncomeTax(Exemption), Ahmedabad,arisinginthematterofassessmentorderpassedunders.80G(5)of theIncomeTaxAct,1961(here-in-afterreferredtoas"theAct")relevanttothe AssessmentYear2023-2024. ITAno.310/AHD/2023 A.Y.2023-24 2 2.Theeffectiveissueraisedbytheassesseeisthatthelearned CIT(Exemption)erredinrejectingtheapplicationforregistrationundersection 80G(5)oftheActonwrongassumptionoffactsthattheassesseehasincurred expensesonreligiousactivity. 3.Thefactsinbriefarethattheassessee,acharitabletrust,wasformedvide deeddated29-11-2018withtheobjecttocarryouthumanwelfaresactivities whichwassubsequentlyregisteredwithDy.CharityCommissionerdated 07-01-2019andfurtherregisteredundersection12AAoftheActvideorderdated 24-07-2019. 3.1Theassesseefiledapplicationforapprovaloftrustundersection80G(5)of theActinForm10ABason03-09-2022.ThelearnedCIT(Exemption)on verificationofdetailsfiledwiththeapplicationfoundthatassesseehasincurred expenditureofreligiousnature.AssuchthetotalreceiptoftheassesseeforF.Y. 2020-21wasRs.8,12,675/-andexpenditureincurredonreligiousactivitywasRs. 8,87795/-whichis109.24%ofthetotalreceipts.ThelearnedCIT(Exemption) furtherfoundthataspertheprovisionofsubsection(2)and(5)ofsection80Gof theAct,theapprovalundersection80G(5)oftheActcanonlybeprovidedtothe institutionwhichisforcharitablepurposeandwhichshallnotincludewhollyor partiallyofreligiouscharacter.ThelearnedCIT(exemption)alsofoundsupport fromtheviewtakenbytheHon’bleSupremeCourtincaseofM/sUpperGanges SugarMillsLtd.vs.CITreportedin93taxman645.Thusthelearned CIT(Exemption)inviewoftheaboverejectedtheapplicationoftheassesseefor approvalundersection80G(5)oftheAct. 4.BeingaggrievedbytheorderofthelearnedCIT(Exemption)theassesseeis inappealbeforeus. ITAno.310/AHD/2023 A.Y.2023-24 3 5.ThelearnedARfortheassesseebeforeusfiledpaperbookrunningfrom pages1to85andcontendedthattherewasnoexpenditureofreligiousnature incurredbytheassesseewhichcanbeverifiedfromthefinancialstatementofthe assesseeplacedonpages26to29ofthepaperbook.Assuch,theconsultant whilefilingtheformfortheregistrationhasinadvertentlyspecifiedthe expenditureasreligiousnature.ThelearnedARaccordinglyprayedtorestorethe issuetothefileofthelearnedCITexemptionforfreshadjudicationasperthe provisionsoflawafterreferringthefinancialstatements. 6.Ontheotherhand,thelearnedDRbeforeusdidnotraiseanyserious objectionifthematterissetasidetothefileofthelearnedCITexemptionfor freshadjudicationaspertheprovisionsoflaw. 7.Wehaveheardtherivalcontentionsofboththepartiesandperusedthe materialsavailableonrecord.AdmittedlythelearnedCIT(Exemption)hadrejected theapplicationoftheassesseeforapprovalundersection80G(5)oftheActfor thereasonthattheassesseeincolumn27oftheForm10ABhasreportedthe amountofexpenditureincurredofreligiousnature.ThelearnedARofthe Assesseebeforeuscontendednoamountofreligiouscharacterwasincurredby theassesseeinthereportedperiod.Assuch,whilefilingtheapplicationinform 10AB,theamountincurredforcharitablepurposeswasinadvertentlyreportedas amountincurredforreligiousnature.ThelearnedARfurtherstatedthatthesame amountforthesameperiodwasreportedasamountincurredforcharitable purposeintheapplicationfiledforregistrationundersection12A(i)(AC)oftheAct. Toresolvethedisputeathand,wefinditappropriatetorestoretheissuetothe fileofthelearnedCITexemptionfordecidingtheissueafresh.ThelearnedCIT exemptionshallalsoconsiderthefinancialstatementsandthesupporting documentstoensurethatwhethertheassesseehasincurredanyexpenditureof religiousinnatureortherewasaninadvertentmistakeinreportingthe expenditureasreligiousinnature.Itisalsodirectedtotheassesseetofurnishthe ITAno.310/AHD/2023 A.Y.2023-24 4 necessarysupportingevidenceasdesiredbythelearnedCITexemptionfor resolvingthecontroversyasdiscussedabove.Hence,thematterissetasideto thefileofthelearnedCITexemptionforfreshadjudicationaspertheprovisions oflaw.Thus,thegroundofappealoftheassesseeisherebyallowedforthe statisticalpurposes. 8.Intheresulttheappealoftheassesseeisallowedforstatisticalpurposes. OrderpronouncedintheCourton29/11/2023atAhmedabad. Sd/-Sd/- (SUCHITRAKAMBLE)(WASEEMAHMED) JUDICIALMEMBERACCOUNTANTMEMBER (TrueCopy) Ahmedabad;Dated29/11/2023 Manish