Rathore Chetri Sabha, Lucknow V. Commissioner of Income Tax (Exemption), Lucknow

ITA 313/LKW/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2009 (ITAT-LUCKNOW)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-08-2015
• Assessment Year: misc
• Appeal Filed On: 18-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: PRADEEP KAPOOR
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCHES : B LUCKNOW BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUD ICIAL MEMBER ITA NO: 313/LKW/2015 AY : - 2006-07 RATHORE CHATRI SABHA VS. CIT (EXEMPT IONS) 532/419, ALIGANJ BAZAR, LUCKNOW ALIGANJ, LUCKNOW 226024 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRADEEP KAPOOR, CA RESPONDENT BY : SMT. ALKA SINGH, DR DATE OF HEARING : 13.8.2015 DATE OF PRONOUNCEMENT : 3 0.10.2015 O R D E R PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER PRESENT APPEAL ARISES OUT OF ORDER PASSED U/S 80G (5)(VI) OF THE INCOME TAX ACT, 1961 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS), LUCKNOW THROUGH ORDER DATED 17.3.2015. 2. THE ASSESSEE SOCIETY I.E. RATHORE CHATRI SABHA HAD FILED AN APPLICATION ON 1.10.2014 IN FORM 10G BEFORE THE LD. CIT (EXEMPTION S), LUCKNOW SEEKING GRANT OF APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 . THE APPLICATION FOR REGISTRATION WAS REJECTED BY THE IMPUGNED ORDER. PARAS 3, 4 AND 5 OF THE IMPUGNED ORDER READ AS UNDER:- ITA NO.313/LKW/ 2015 RATHORE CH ATRI SABHA VS. CIT (EXEMPTIONS) 2 I HAVE GONE THROUGH THE APPLICATION MOVED BY THE A PPLICANT IN FORM NO. 10G. ON PERUSAL OF DETAILS FILED BY THE APPLICANT A LONGWITH FORM NO. 10G, IT IS FOUND THAT THE APPLICANT TRUST IS NOT REGISTERED EI THER U/S 12AA NOR / OR U/S 10(23)/10(23C) OF THE ACT. AS PER SUB RULE (2) OF R ULE 11 AA OF INCOME TAX ACT, 1962, THE APPLICATION TO BE FILED IN FORM NO. 10G FOR APPROVAL U/S 80G(5)(VI) SHALL BE ACCOMPANIED BY A COPY OF REGIST RATION GRANTED U/S 12AA OF THE INCOME TAX ACT. IN THE INSTANT CASE THE APPLIC ATION IS NOT ACCOMPANIED BY A COPY OF REGISTRATION U/S 12AA AND /OR UNDER SE CTION 10(23)/10(23C). THE APPLICANT EVEN AS ON DATE IS NOT REGISTERED U/S 12A A AND /OR U/S 10(23C) OF THE ACT. THUS, THE APPLICATION FILED IN FORM NO. 10 G IS INHERENTLY DEFICIENT AND THIS DEFICIENCY IS NOT CURABLE. FURTHER, THE APPROV AL U/S 80G (5)(VI) OF THE ACT CANNOT BE GIVEN TO THE INSTITUTION/ENTITY WHICH IS FORMED FOR CARRYING OUT CHARITABLE ACTIVITIES FOR THE BENEFIT OF A PARTICUL AR CASTE. UNDER THESE FACTS AND CIRCUMSTANCES, I AM OF CONSID ERED VIEW THAT THIS IS NOT A FIT CASE FOR GRANTING APPROVAL U/S 80G (5)(VI) OF THE INCOME TAX ACT, 1981. THEREFORE THE APPLICATION FILED IN FORM NO. 10G IS HEREBY REJECTED. 3. LD. AR FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT (EXEMPTIONS) WAS NOT CORRECT IN REFUSING TO GRANT APPROVAL U/S 80G(5)(VI ) OF THE INCOME TAX ACT AS MUCH AS THE ASSESEEE SOCIETY WAS A CHARITABLE INSTITUTIO N AND IT HAS SIMULTANEOUSLY APPLIED FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 19 61. 4. LD. DR ON THE OTHER HAND STRONGLY SUPPORTED T HE ORDER OF THE LD. CIT (EXEMPTIONS). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAV E GONE THROUGH THE FACTS AND DOCUMENTS ON RECORD. IT WILL BE WORTHWHILE TO REPRO DUCE RULE 11 AA OF THE INCOME TAX RULES, 1962 AT THIS JUNCTURE:- 11AA. (1) THE APPLICATION FOR APPROVAL OF ANY INST ITUTION OR FUND UNDER CLAUSE (VI) OF SUB-SECTION (5) OF SECTION 80G SHALL BE IN FORM NO. 10G AND SHALL BE MADE IN TRIPLICATE. (2) THE APPLICATION SHALL BE ACCOMPANIED BY THE FOLLOWING DOCUMENTS, NAMELY:- (I) COPY OF REGISTRATION GRANTED UNDER SECTION 12A OR COPY OF NOTIFICATION ITA NO.313/LKW/ 2015 RATHORE CH ATRI SABHA VS. CIT (EXEMPTIONS) 3 ISSUED UNDER SECTION 10(23) OR 10(23C) ; (II) NOTES ON ACTIVITIES OF INSTITUTION OR FUND S INCE ITS INCEPTION OR DURING THE LAST THREE YEARS, WHICHEVER IS LESS ; (III) COPIES OF ACCOUNTS OF INSTITUTION OR FUND S INCE ITS INCEPTION OR DURING THE LAST THREE YEARS, WHICHEVER IS LESS. (3) THE COMMISSIONER MAY CALL FOR SUCH FURTHER DOC UMENTS OR INFORMATION FROM THE INSTITUTION OR FUND OR CAUSE SUCH INQUIRES TO BE MADE AS HE MAY DEEM NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT TH E GENUINENESS OF THE ACTIVITIES OF SUCH INSTITUTION OR FUND. (4) WHERE THE COMMISSIONER IS SATISFIED THAT ALL THE CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SUB-SECTION (5) OF SECTION 80 G ARE FULFILLED BY THE INSTITUTION OR FUND, HE SHALL RECORD SUCH SATISFACT ION IN WRITING AND GRANT APPROVAL TO THE INSTITUTION OR FUND SPECIFYING THE ASSESSMENT YEAR OR YEARS FOR WHICH THE APPROVAL IS VALID. (5) WHERE THE COMMISSIONER IS SATISFIED THAT ONE OR MORE OF THE CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SUB-SECTION (5) OF SECTION 80G ARE NOT FULFILLED, HE SHALL REJECT THE APPLICATION FOR APPR OVAL, AFTER RECORDING THE REASONS FOR SUCH REJECTION IN WRITING : PROVIDED THAT NO ORDER OF REJECTION OF AN APPLICATI ON SHALL BE PASSED WITHOUT GIVING THE INSTITUTION OR FUND AN OPPORTUNITY OF BE ING HEARD. (6) THE TIME LIMIT WITHIN WHICH THE COMMISSIONER SH ALL PASS AN ORDER EITHER GRANTING THE APPROVAL OR REJECTING THE APPLICATION SHALL NOT EXCEED SIX MONTHS FROM THE [END OF THE MONTH IN] WHICH SUCH APPLICATI ON WAS MADE : PROVIDED THAT IN COMPUTING THE PERIOD OF SIX MONTHS ANY TIME TAKEN BY THE APPLICANT IN NOT COMPLYING WITH THE DIRECTIONS OF T HE COMMISSIONER UNDER SUB- RULE (3) SHALL BE EXCLUDED] 6. IT IS SEEN THAT SUB CLAUSE (I) OF SUB RULE (2) PROVIDES THAT THE APPLICATION TO BE FILED IN FORM 10G SHALL BE ACCOMPANIED BY A COPY OF REGISTRATION GRANTED U/S 12AA OR COPY OF REGISTRATION ISSUED U/S 10(23) OR 10(23C). IT IS UNDISPUTED THAT THE ASSESSEE SOCIETY IS YET TO BE GRANTED REGISTRATION U/S 12A / 12AA OF THE INCOME TAX ACT, 1961. SUB RULE (4) OF RULE 11 AA ALSO PROVIDES THAT THE C OMMISSIONER HAS TO BE SATISFIED THAT ALL THE CONDITIONS LAID DOWN IN CLAUSES 1 TO 5 OF SUB SECTION 5 OF SECTION 80G ARE FULFILLED BY THE INSTITUTION OR FUND, THEN SUCH SAT ISFACTION HAS TO BE RECORDED IN WRITING AND ITS ONLY THEREAFTER THAT THE APPROVAL T O THE INSTITUTION OR FUND U/S 80G (5) ITA NO.313/LKW/ 2015 RATHORE CH ATRI SABHA VS. CIT (EXEMPTIONS) 4 CAN BE GRANTED. IT IS NOT THE ASSESSEES CASE THAT THE APPROVAL U/S 80G (5) HAS BEEN DENIED TO IT EVEN THOUGH IT HAS FULFILLED THE REQUI REMENTS FOR APPROVAL AS ENVISAGED IN RULE 11AA OF THE INCOME TAX RULES, 1962. IN THES E CIRCUMSTANCES IT IS OUR CONSIDERED OPINION THAT THE LD. CIT(EXEMPTIONS) WAS CORRECT IN REJECTING THE APPLICATION IN FORM NO. 10G AND IN REFUSING THE GR ANT APPROVAL U/S 80G (5) (VI) OF THE INCOME TAX ACT 1961 TO THE ASSESSEES SOCIETY A S IT DID NOT HAVE THE REGISTRATION U/S 12A / 12AA OF THE INCOME TAX ACT, 1961. ACCORDI NGLY WE REFUSE TO INTERFERE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH OCTOBER, 2015. SD/- SD/- (A.K. GARODIA) (SUDHAN SHU SRIVASTAVA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 30 TH OCTOBER. 2015 VEENA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER DY. REGISTRAR SL. NO. DESCRIPTION DATE 1. DATE OF DICTATION BY THE AUTHOR 20.10.2015 2. DRAFT PLACED BEFORE THE DICTATING MEMBER 20.10 .2015 ITA NO.313/LKW/ 2015 RATHORE CH ATRI SABHA VS. CIT (EXEMPTIONS) 5 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY THE SECOND MEMBER 5. DATE OF APPROVED ORDER COMES TO THE SR. PS 6. DATE OF PRONOUNCEMENT OF ORDER 7. DATE OF FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER