Manat Maitricharitable trust, Bhopal V. The CIT, Bhopal

ITA 318/IND/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7876 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 02-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: S S MUNDRA
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 318/IND/2011 A.Y. 2011-12 MANNAT MAITRI CHARITABLE TRUST BHOPAL PAN AACTM 5952B :: APPELLANT VS COMMISSIONER OF INCOME TAX BHOPAL :: RESPONDENT APPELLANT BY SHRI S.S. MUNDRA AND SHRI GIRDHAR GARG RESPONDENT BY SHRI ARUN DEWAN DATE OF HEARING 6.06.2012 DATE OF PRONOUNCEMENT 6.06.2012 O R D E R PER JOGINDER SINGH , JUDICIAL MEMBER THE ASSESSEE TRUST IS AGGRIEVED BY THE IMPUGNED OR DER DATED 29.9.2011, PASSED BY THE LEARNED CIT, DENYING THE B ENEFIT OF SECTION 80G OF THE ACT TO THE ASSESSEE TRUST. 2. DURING HEARING, WE HAVE HEARD SHRI S.S. MUNDRA A ND SHRI GIRDHAR GARG, LD. COUNSEL FOR THE ASSESSEE AND SHRI ARUN DEWAN, 2 LEARNED SENIOR DR. THE CRUX OF ARGUMENTS ON BEHALF OF THE ASSESSEE IS THAT THE ASSESSEE TRUST IS DOING THE AC TIVITY OF CHARITY AND EVEN GRANTED REGISTRATION U/S 12A OF THE ACT BY THE LEARNED CIT VIDE ORDER DATED 27.12.2010. IT WAS SUBMITTED THAT THE WRITTEN SUBMISSIONS OF THE ASSESSEE WERE NOT CONSID ERED IN PROPER PERSPECTIVE. IT WAS CLAIMED THAT THE TRUST WAS CREATED FOR RELIGIOUS AND SPIRITUAL ACTIVITIES I.E. PUBLIC CHAR ITABLE, SOCIAL AND CULTURAL, FINANCIAL PUBLIC CHARITABLE AND SCIENTIFI C RESEARCH AND DEVELOPMENT FOR CHARITABLE PURPOSES. IT WAS CLAIMED THAT SPIRITUAL SATSANG WITH TOUCH BLESSINGS WERE ORGANIS ED AT DIFFERENT LOCATIONS. IT WAS FURTHER CLAIMED THAT THE ORIGINA L TRUST DEED WAS ALSO PRODUCED BEFORE THE LEARNED CIT. ON THE OTHER HAND, THE LEARNED SENIOR DR STRONGLY OPPOSED THE ASSERTION OF THE ASSESSEE BY SUBMITTING THAT NO CHARITY IS DONE BY THE ASSESS EE TRUST AND IT HAS BEEN CREATED FOR ULTERIOR MOTIVE. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BR IEF, ARE THAT THE ASSESSEE TRUST APPLIED FOR EXEMPTION U/S 80G OF THE IT ACT VIDE APPLICATION, RECEIVED IN THE OFFICE OF THE LEARNED CIT, ON 31.3.2011. AS PER THE IMPUGNED ORDER, A LETTER WAS ISSUED TO THE ASSESSEE TRUST ASKING THE ASSESSEE TO SUBMIT THE DE TAILS OF 3 CHARITABLE ACTIVITIES CARRIED OUT DURING THE YEARS FROM 2007-08 TO 2009-10 ALONG WITH INCOME AND EXPENDITURE ACCOUNT A ND THE BALANCE SHEET. UNCONTROVERTEDLY, THESE DOCUMENTS WE RE SUBMITTED BY THE ASSESSEE. THE LEARNED CIT CONCLUD ED AS UNDER :- ON VERIFICATION OF WRITTEN SUBMISSION FILED BY THE ASSESSEE, THE GENUINENESS OF THE ACTIVITIES CARRIED OUT BY THE SOCIETY COULD NOT BE VERIFIED. A LSO NO COGENT RELIABLE AND CONCRETE EVIDENCE WERE FURNISHED TO JUSTIFY THE CLAIM OF ITS ACTIVITIES CA RRIED OUT BY THE SOCIETY. IN VIEW OF THE ABOVE, I AM OF THE CONSIDERED VIEW THAT THE CONDITIONS REQUIRED TO BE SATISFIED UNDER SECTION 80G(5) OF THE ACT FOR GRANT OF EXEMPTION AR E NOT FULFILLING BY THE ASSESSEE. CONSEQUENTLY, THE APPLICATION FILED UNDER SECTION 80G OF THE ACT IS HEREBY REJECTED AND EXEMPTION SOUGHT BY THE ASSESSEE UNDER SECTION 80G OF THE ACT IS REFUSED . IF THE AFORESAID CONCLUSION DRAWN BY THE LEARNED CI T IS ANALYSED, WE FIND THAT THE BENEFIT OF SECTION 80G WAS DENIED ON THE GROUND THAT THE GENUINENESS OF THE ACTIVITIES CARRIED OUT BY THE SOCIETY COULD NOT BE VERIFIED AND ALSO NO COGENT/RELIABLE E VIDENCE WAS FURNISHED TO JUSTIFY ITS CLAIM. WE ARE OF THE VIEW THAT A DETAILED AND REASONED ORDER IS EXPECTED TO BE PASSED. THE A SSESSEE HAS FILED A PAPER BOOK ALONG WITH CERTAIN PHOTOGRAPHS A ND ITS BALANCE SHEET AND INCOME AND EXPENDITURE ACCOUNT FOR THE FI NANCIAL YEARS 2007-08 TO 2009-10. THE LEARNED CIT IS DIRECTED TO EXAMINE THE 4 CLAIM OF THE ASSESSEE AND DECIDE ALONG WITH THE CLA IMED CHARITABLE ACTIVITIES DONE BY THE ASSESSEE AND AFTE R HEARING THE ASSESSEE, MAY PASS AN ORDER. THE LEARNED CIT WHILE DECIDING THE ISSUE ALONG WITH OTHERS MAY ALSO CONSIDER THE FOLLO WING CASES :- 1. CIT VS. UPPER GANGES SUGAR MILLS LTD.; 206 ITR 215 (CAL) 2. N.N. DESAI CHARITABLE TRUST V. CIT; 246 ITR 452 (GU J) 3. SHRI RAMKRISHNA SEWA ASHRAM V.CIT; 252 ITR 171 (AP) 4. ORPAT CHARITABLE TRUST V. CIT; 256 ITR 690 (GUJ.) 5. GANJAM NAGAPPA & SONS TRUST V. DI (EXEMPTION); 269 ITR 59 (KAR.); 6. ARSHA VIJNANA TRUST V. D.I. EXEMPTION; 295 ITR 437 7. UMAID CHARITABLE TRUST V. UOI; 307 ITR 226 (RAJ.) 8. SAVIER INSTITUTE OF DEV. ACTION V.CIT; 11 ITJ 112 ( MP) NEEDLESS TO MENTION THAT DUE OPPORTUNITY OF BEING H EARD BE PROVIDED TO THE ASSESSEE WITH FURTHER LIBERTY TO FU RNISH EVIDENCE, IF ANY, TO SUBSTANTIATE ITS CLAIM. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 6.6.2012. SD SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 6.6.2012 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE DN/- 5