M/s. Sakuntala Devi Foundation For Cancer Research & Treatment (SDFCRT), Khurda V. CIT(Exemption), Hyderabad

ITA 317/CTK/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5349 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 01-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 ITA NO. 317/CTK/2015 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 317/CTK/2015 M/S. SAKUNTALA DEVI FOUNDATION FOR CANCER RESEARCH & TREATMENT, RAMACHANDRAPUR BAZAR, THANA CHAWK, PO: JATNI, KHURDA - 752050 VS. CIT (EXEMPTION), CAMP OFFICE, BHUBANESWAR. PAN/GIR NO. AANTS 1300 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI GOURI MOHAN RATH, AR REVENUE BY : SHRI KUNAL SINGH, CIT DR DATE OF HEARING : 24 /10 / 2017 DATE OF PRONOUNCEMENT : /10 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT (EXEMPTION), HYDERABAD, DATED 27.4.2015. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT THE CIT (EXEMPTION), HYDERABAD ERRED IN REFUSING TO GRANT REGISTRATION U/S.12AA OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED APPLICATION IN FORM NO.10A ON 29.10.2014 BEFORE THE COMMISSIONER OF INCOME TAX, BHUBANESWAR FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT. THE CIT(EXEMPTION) REFUSED TO GRANT REGISTRATION TO THE ASSESSEE BY OBSERVING AS UNDER: 2 ITA NO. 317/CTK/2015 SUCH SUB MISSION OF THE SAID TRUSTEES IS NOT SATISFACTORY AND HENCE NOT ACCEPTABLE. AS PER OBJECT CLAUSE (C), THE TRUSTEES ARE EMPOWERED TO CARRY ON ANY ACTIVITY FALLING UNDER ADVANCEMENT OF ANY OBJECT OF GENERAL PUBLIC UTILITY. FURTHER, AS PER THE SAID OBJECT CLA USE (F), THE TRUSTEES ARE EMPOWERED TO ADD SUCH OTHER OBJECTS I.E. NEW OBJECTS IN FUTURE, AS MAY BE NECESSARY I.E. AS MAY BE DECIDED BY THEM. THUS, THE TRUSTEES ARE EMPOWERED TO CARRY ON NEW OBJECTIVES AT THEIR DIRECTION IN FUTURE. UNDER THESE CIRCUMSTAN CES, THUS HAVING REGARD TO SUCH OBJECT CLAUSES MENTIONED IN THE TRUST DEED, IT MAY BE NOTICED THAT THE ENTIRE OBJECTS IN THE CASE OF THE APPLICANT TRUST ARE NOT VERIFIABLE. IN OTHER WORDS THE ENTIRE OBJECTS IN THE CASE OF THE ASSESSEE TRUST ARE NOT AMENAB LE TO VERIFICATION. THUS HAVING REGARD TO THE PROVISIONS CONTAINED IN SEC. 12AA(1)(B) READ WITH CLAUSE (I) & (II) THEREUNDER, AND AS IN THE INSTANT CASE, I AM NOT SATISFIED ABOUT THE OBJECTS IN THE CASE OF THE APPLICANT TRUST, IT CANNOT BE GRANTED REGISTR ATION U/S.12AA OF THE ACT. FOR THE REASONS STATED ABOVE, THUS THE APPLICANT TRUST CANNOT BE GRANTED REGISTRATION U/S.12AA OF THE ACT. HENCE, REGISTRATION SOUGHT U/S.12AA OF THE ACT, IS REFUSED TO THE ABOVE TRUST. THUS, THE SAID APPLICATION IN FORM NO.10A FILED BY THE APPLICANT IS REJECTED. 4. BEFORE US , LD A.R. OF THE ASSESSEE FILED COPY OF THE ORDER OF THIS BENCH OF THE TRIBUNAL DATED 26.4.2017 PASSED IN ITA NO.442/CTK/2015 IN THE CASE OF CENTRE FOR THE SUSTAINABLE USE OF NATURAL AND SOCIAL RESOURCES (CSNR) VS. CIT (EXEMPTION), HYDERABAD AND SUBMITTED THAT THE TRIBUNAL IN THAT CASE OBSERVED THAT - 7... WHEN WE PERUSE THE IMPUGNED ORDER PASSED BY THE CIT IN ENTIRETY, IT LEADS TO THE CONCLUSION THAT THE CIT HAS NOT DISPUTED CHARITABLE NATURE OF THE SOCIETY EXCEPT OBJECT CLAUSE 3.1 AND 3.2. IN CASE, ANY OBJ ECT CLAUSE IS NOT OF CHARITABLE NATURE AND IS DETRIMENTAL TO THE OTHER CHARITABLE ACTIVITIES BEING PERFORMED BY THE TRUST EITHER REGISTRATION CAN BE WITHDRAWN OR EXPENSES TO THAT EXTENT CAN BE DISALLOWED BY THE AO. FURTHERMORE, IN CASE NO ACTIVITIES ARE R EPORTED DURING THE F.Y. 2012 - 13 AS MENTIONED BY CIT, IT CANNOT DEBAR THE ASSESSEE TRUST TO GET REGISTRATION U/S.12A OF THE ACT BECAUSE MERE REGISTRATION DOES NOT PROVIDE LICENCE TO THE TRUST TO CLAIM EXEMPTION OF EXPENSES WITHOUT CARRYING OUT ANY ACTIVITY. 3 ITA NO. 317/CTK/2015 8. SO, IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, WE HEREBY ALLOW THE APPEAL FILED BY THE ASSESSEE, HENCE, IMPUGNED ORDER PASSED BY CIT IS SET ASIDE AND CIT IS DIRECTED TO GRANT RE GISTRATION U/S.12A OF THE ACT. 5. HENCE, LD A.R. PRAYED THAT THE FACTS IN THE CASE OF THE ASSESSEE ARE IDENTICAL TO THE FACTS WHICH WERE IN THE CASE OF CENTRE FOR THE SUSTAINABLE USE OF NATURAL AND SOCIAL RESOURCES (CSNR)(SUPRA) AND, THEREFORE, THE CIT (EXEMPTION) SHOULD BE DIRECTED TO GRANT REGIST RATION. 6. LD D.R. ON THE OTHER HAND FULLY JUSTIFIED THE ACTION OF THE CIT(EXEMPTION). 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE CIT(EXEMPTION) IN THE INSTANT CASE REFUSED TO GRANT REGISTRAT ION U/S.12AA OF THE ACT TO THE ASSESSEE TRUST AS ACCORDING TO HIM, AS PER OBJECT CLAUSE (C) THE TRUSTEES ARE EMPOWERED TO CARRY ON ANY ACTIVITY FALLING UNDER ADVANCEMENT OF ANY OBJECT OF GENERAL PUBLIC UTILITY AND THAT AS PER OBJECT CLAUSE (F), THE TRUSTEE S ARE EMPOWERED TO ADD SUCH OTHER OBJECTS I.E. NEW OBJECTS IN FUTURE, AS MAY BE NECESSARY I.E. AS MAY BE DECIDED BY THEM. THE TRUSTEES ARE EMPOWERED TO CARRY ON NEW OBJECTIVES AT THEIR DISCRETION IN FUTURE. THEREFORE, THE ENTIRE OBJECTS IN THE CASE OF TH E ASSESSEE TRUST ARE NOT VERIFIABLE. IN OUR CONSIDERED OPINION, WHILE CONSIDERING THE APPLICATION FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT, THE CIT (EXEMPTION) IS NOT REQUIRED TO LOOK INTO THE ACTIVITIES, WHERE SUCH ACTIVITIES HAVE NOT OR ARE IN THE PROCESS OF ITS INITIATION. AT THIS STAGE, ONLY THE GENUINENESS OF THE OBJECTS HAVE TO BE TESTED AND NOT THE ACTIVITIES UNLESS SUCH ACTIVITIES HAVE 4 ITA NO. 317/CTK/2015 COMMENCED. COMPLIANCE OF THE PROVISIONS OF SECTION 11,12 & 13 HAS TO BE EXAMINED BY THE ASSESSING OFFICER A T THE TIME OF DOING THE ASSESSMENT. IF HE FINDS ANY VIOLATION OF THE SAME, HE CAN DENY EXEMPTION TO THE ASSESSEE. FS THE CIT (E) AFTER EXAMINING THE OBJECTS OF THE TRUST HAVE NOT BROUGHT ANY MATERIAL TO SHOW THAT THE OBJECTS OF THE TRUST ARE NOT CHARITABLE OR ARE NOT GENUINE. THEREFORE, IN OUR CONSIDERED VIEW, THE CIT (EXEMPTION) WAS NOT JUSTIFIED IN REFUSING TO GRANT REGISTRATIO N U/S.12AA OF THE ACT TO THE ASSESSEE TRUST. HENCE, WE SET ASIDE THE ORDER OF THE CIT(EXEMPTION) AND DIRECT HIM TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE TRUST FROM THE DATE OF APPLICATION AND ALLOW THE APPEAL OF THE ASSESSEE. 8. IN THE RE SULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUN CED IN THE OPEN COURT ON 26 /10 /2017. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 26 /10 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : M/S. SAKUNTALA DEVI FOUNDATION FOR CANCER RESEARCH & TREATMENT, RAMACHANDRAPUR BAZAR, THANA CHAWK, PO: JATNI, KHURDA - 752050 2. THE RESPONDENT. CIT (EXEMPTION), CAMP OFFICE, BHUBANESWAR 3. THE CIT(A) - 4. PR.CIT - 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 5 ITA NO. 317/CTK/2015