M/S Rural society of Jharkhand Health & Education, Ranchi V. CIT EXEMPTION, Patna

ITA 345/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7779 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 16-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DEEPK KR. SUTARIYA A; JSR
• Keywords: Source of fund
• Section: 80G; 12A; 12AA; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.345 /RAN/201 6 ASSESSMENT YEAR : 2016 - 2017 M/S. R URAL SOCIETY OF JHARKHAND HEALTH AND EDUCATION, PLOT NO.B, PART, RANCHI - KHUNTI MAIN ROAD, TUPUDANA, RANCHI. VS. CIT (EXEMPTIONS), 2 ND FLOOR, CENTRAL REVENUE BUILDING, BIRCHAND PATEL MARG, PATNA. PAN/GIR NO. AACAR 1534 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: NONE REVENUE BY : SHRI DEEPK KR. SUTARIYA CIT(A), JSR DATE OF HEARING : 21/05 / 201 8 DATE OF PRONOUNCEMENT : 23 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER U/S.80G(5)(VI) OF THE INCOME TAX A CT, 1961 OF THE CIT(EXEMPTION), PATNA FOR THE ASSESSMENT YEAR 2016 - 17. 2 ITA NO.345/RAN/2016 ASSESSMENT YEAR: 2016 - 2017 2. THE SOLE GROUND TAKEN BY THE ASSESSEE IS THAT THE CIT(EXEMPTION) IS NOT JUSTIFIED IN NOT GRANTING REGISTRATION OR APPROVAL UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961. 3. NO ONE APPEARED ON BEHALF OF THE ASSESSE E WHEN THE CASE WAS CALLED FOR HEARING DESPITE SERVICE OF NOTICE BY RPAD. THEREFORE, WE PROCEED TO DECIDE THE APPEAL EXPARTE AFTER HEARING LD D.R. AND ON THE BASIS OF MATERIALS AVAILABLE ON RECORD. 4 . THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A TRUST. IT FILED AN APPLICATION IN FORM NO.10G OF THE INCOME TAX RULES, 1962 FOR GRANT OF APPROVAL U/S.80G(5)(VI) OF THE ACT ON 22.4.2016. THE CIT(EXEMPTION) ON PERUSAL OF COPY OF ACCOUNTS OBSERVED THAT THE A SSESSEE SOCIETY HAS RECEIVED GRANT OF RS.18,00,000/ - FROM THE NATIONAL SKILL DEVELOPMENT CORPORATION BUT THE PARA - 10 OF RULES & REGULATIONS, WHICH IS REGARDING SOURCES OF INCOME OF THE SOCIETY DOES NOT MENTION ABOUT GRANT AS A SOURCE OF INCOME. AS THE GRANT IN AIDS WILL NOT BE INCOME OF THE TRUST, THEREFORE, THE ACTIVITIES CARRIED OUT WITH THIS GRANT IN AID CANNOT BE ACTIVITY OF THE TRUST SOCIETY. THEREFORE, THE CIT(EXEMPTION) DID NOT GRANT APPROVAL U/S.80G(5)(VI) OF THE ACT TO THE ASSESSEE TRUST. 5. H ENCE, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. AFTER HEARING LD D.R. WE HAVE GONE THROUGH THE WRITTEN SUBMISSION FILED BY THE ASSESSEE. WE FIND THAT THE ASSESSEE HAS NOT BEEN GRANTED REGISTRATION U/S.12A/AA OF THE ACT ON THE GROUND OF (I) RENT TO SECRETARY OF 3 ITA NO.345/RAN/2016 ASSESSMENT YEAR: 2016 - 2017 THE SECRETARY AND (II) NO ACTIVITY WAS CARRIED OUT DUE TO LACK OF VOLUNTARY DONATIONS. WE FIND 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 NOT IN DISPUTE THAT TH E ASSESSEE SOCIETY/TRUST 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 COMMISSIONER 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 SATISFACTION HAS TO BE RECORDED IN WRITING AND ITS ONLY THEREAFTER THAT THE APPROVAL TO THE INSTIT UTION OR FUND U/S 80G (5) CAN BE GRANTED. IN THESE CIRCUMSTANCES, IN OUR CONSIDERED OPINION, THE LD. CIT(EXEMPTIONS) WAS JUSTIFIED IN REJECTING THE APPLICATION IN FORM NO. 10G AND IN REFUSING THE GRANT APPROVAL U/S 80G (5) (VI) OF THE INCOME TAX ACT 1961 TO THE ASSESSEE'S SOCIETY AS IT DID NOT HAVE THE REGISTRATION U/S 12A / 12AA OF THE INCOME TAX ACT, 1961. WE, ACCORDINGLY, CONFIRM THE ORDER OF THE CIT(E) AND DISMISS THE GROUND OF APPEAL OF THE ASSESSE E. 9 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 23 /05 /201 8 4 ITA NO.345/RAN/2016 ASSESSMENT YEAR: 2016 - 2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : M/S. R URAL SOCIETY OF JHARKHAND HEALTH AND EDUCATION, PLOT NO.B, PART, RANCHI - KHUNTI MAIN ROAD, TUPUDANA, RANCHI 2. THE RESPONDENT: CIT (EXEMPTIONS), 2 ND FLOOR, CENTRAL REVENUE BUILDING, BIRCHAND PATEL MARG, PATNA 3. THE CIT(A), 4. PR. CIT , 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//