Amratala Saradamayee Janakalyan Sangha, Purba Medinipur V. CIT, Kolkata - XVIII, Kolkata, Kolkata

ITA 318/KOL/2011

• Counselvise Citation: 31823514 RSA 2011
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 26-08-2011
• Assessment Year: misc
• Appeal Filed On: 22-02-2011
• Court: TRIBUNAL
• Department Lawyers: S K ROY
• Assessee Lawyers: P K ROY
• Keywords: Charitable institution
• Section: 12; 11A; 80G; 12A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 318/KOL/2011 %& '(/ ASSESSMENT YEAR : (*+ / APPELLANT ) AMRATALA SARADAMAYEE JANAKALYAN SANGHA, KOLKATA (PAN:AABAA 1714 H ) - % - - VERSUS - . (-.*+/ RESPONDENT ) C.I.T., KOLKATA-XVIII, KOLKATA *+ / 0 '/ FOR THE APPELLANT: SHRI P.K.ROY -.*+ / 0 '/ FOR THE RESPONDENT: SHRI S.K.ROY '1 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 10.12.2010 OF THE CIT(A)-KOKATA-XVIII, KOLKATA. 2. THE ONLY ISSUE RAISED BY ASSESSEE IN THIS APPEA L IS RELATING TO REJECTION OF REGISTRATION U/S 80G OF THE IT ACT. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT ASSESSEE SOCIETY FILED AN APPLICATION FOR SEEKING REGISTRATION U/S 12A AND EXEMPTION U/S 80G( 5)(VI) OF THE IT ACT, 1961. HOWEVER, THE LD. CIT HAS REFUSED THE SAME BY OBSERV ING AS UNDER :- 8. IN ORDER TO GET INITIAL EXEMPTION U/S 80G(5(VI ) OF THE IT ACT THE DISSOLUTION CLAUSE OF THE REGULATION OF THE SOCIETY SHOULD CONT AIN UNAMBIGUOUSLY THE PROVISION FOR THE TRANSFER OR APPLICATION AT ANY T IME OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS TO ANY OTHER INSTITUTION OR FU ND FOR CHARITABLE PURPOSE AT THE TIME OF ITS DISSOLUTION. THE SAID CLAUSE CANNO T BE REGARDED AS COMPLIED 2 WITH BY THE SOCIETY UNLESS THE REGISTRAR OF THE SOC IETY DULY REGISTERS THE SAME. IT IS NECESSARY TO ENSURE THAT THE MEMORANDUM OF RE GULATIONS EXPRESSLY STATE THE FATE OF INCOME OR ASSETS ON DISSOLUTION OF THE SOCIETY THAT INTENDS TO ENJOY THE BENEFIT OF INITIAL EXEMPTION U/S 80G(5) (VI) IN PERPETUITY. 9. IN VIEW OF THE REASONS CITED IN PARA-8 ABOVE T HE APPLICATION FILED BY THE SOCIETY ON 19/12/2008, FOR INITIAL EXEMPTION U/S 80G ARE HEREBY REJECTED. THE SECRETARY IS ADVISED TO SUBMIT AFRESH WITH NECESSAR Y AMENDMENT OF THE DISSOLUTION CLAUSE FOR RECONSIDERATION. 3.1. AGGRIEVED BY THIS ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, THE LD. COUNSEL APPEARIN G ON BEHALF OF ASSESSEE HAS SUBMITTED THAT LD. CIT HAS GRANTED REGISTRATION U./ S 12A OF THE IT ACT WHEREAS HAS REJECTED THE REGISTRATION U/S 80G OF THE IT ACT. TH E OBSERVATIONS MADE BY LD. CIT IN PARA-8 IS NOT IN ACCORDANCE WITH LAW. IN SUPPORT OF THIS HE RELIED ON THE PROVISIONS OF SECTION 80G (5)(I TO V) AS WELL AS 11AA OF IT RULES 1962 WHEREIN THE GUIDELINES HAS BEEN ISSUED FOR GRANT OF REGISTRATION U/S 80G OF TH E IT ACT. SO HE REQUESTED TO DIRECT LD. CIT TO GRANT THE REGISTRATION U/S 80G OF THE IT ACT. HE FURTHER SUBMITTED THAT THE SOCIETY DISSOLUTION CLAUSE HAS BEEN DRAFTED IN TERM S OF WEST BENGAL SOCIETY REGISTRATION ACT, 1961. THEREFORE, LD. CIT IS NOT J USTIFIED IN REJECTING THE REGISTRATION U/S 80G OF THE IT ACT. 5. ON THE OTHER HAND, THE LD. DR APPEARING ON BEHAL F OF THE REVENUE RELIED ON THE ORDERS OF LD. CIT. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD, IT IS OBSERVED THAT LD. CIT HA S GRANTED THE REGISTRATION U/S 12 A OF THE IT ACT ON THE SAME DAY AND REJECTED THE REGISTR ATION U/S 80G OF THE IT ACT BY THE OBSERVATIONS MADE IN THE PRECEDING PARAGRAPHS. 6.1. ON CAREFUL PERUSAL OF THE PROVISIONS OF CLAUSE I TO V OF THE SUB-SECTION (5) OF SECTION 80G OF THE IT ACT AND RULES OF 11A A OF THE IT RULES, 1962 IT IS OBSERVED THAT WHILE GRANTING THE REGISTRATION U/S 80G OF THE IT A CT THE COMMISSIONER OF INCOME TAX IS TO SATISFY THAT ALL THE CONDITIONS LAID DOWN IN CLAUSE (I TO V) OF SUB-SECTION OF SECTION 80G OF THE IT ACT ARE FULFILLED BY THE INSTITUTION OR FUND AS PER RULE 11AA (4) OF THE 3 IT RULES, 1962. SINCE IN THIS CASE THE REASONS FOR REJECTION OF THE REGISTRATION U/S 80G DOES NOT FALL WITHIN CLAUSE OF (I TO V) OF SUB-SECT ION OF SECTION 80G OF THE IT ACT LD. CIT IS NOT JUSTIFIED IN REJECTING THE REGISTRATION U/S 80G OF THE IT ACT WHEN ONCE HE HAS ALREADY GRANTED REGISTRATION U/S 12A OF THE IT ACT TO THE SAID SOCIETY. THEREFORE WE DIRECT LD. CIT TO GRANT REGISTRATION U/S 80G OF THE IT ACT. 7. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 16.09.2011. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 16.09.2011. '1 / -2 3'2'4- COPY OF THE ORDER FORWARDED TO: 1. AMRATALA SARADAMAYEE JANAKALYAN SANGHA, VILL & P.O. AMRATALA, DIST.PURBA MEDINIPUR, PIN:721656. 2 THE CIT, KOLKATA-XVIII, KOLKATA 3. THE CIT, 4. THE CIT(A)- 5. DR, KOLKATA BENCHES, KOLKATA .2 -/ TRUE COPY, '1%9/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)