Federation of Indian Women Enterpreneurs, New Delhi V. DIT (Exemptions), New Delhi

ITA 3451/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58423 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-01-2012
• Assessment Year: misc
• Appeal Filed On: 06-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

ITA NO. 3451/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3451/DEL/2011 A.Y. : ----- FEDERATION OF INDIAN WOMEN ENTREPRENEURS, 1-A, LOWER GROUND FLOOR, HAUZ KHAS VILLAGE, NEW DELHI VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), PLOT NO. 15, 3 RD FLOOR, AAYAKAR BHAVAN, LAXMI NAGAR, DISTRICT CENTRE, DELHI 110092 (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. TARUN KANDHARI, CA DEPARTMENT BY : SH. ROHIT GARG, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS), DELHI DATED 04.5.2011. 2. THE GROUNDS RAISED READ AS UNDER:- (I) THAT THE ORDER PASSED BY THE LD. DIT(E) IS AGA INST THE LAW AND FACTS OF THE CASE. (II) THAT THE LD. DIT(E) WAS UNJUSTIFIED IN REJECTIN G THE APPLICATION ON THE GROUND THAT THE SOCIETY IS NOT I NVOLVED IN CHARITABLE ACTIVITIES RATHER DOING COMMERCIAL ACTIVI TIES BY CHARGING FEE/AMOUNT FROM PARTICIPANTS. ITA NO. 3451/DEL/2011 2 (III) THAT THE DIT(E) HAS OVER LOOKED THE PROVISIONS CONTAINED IN SEC. 2(15). (IV) THAT THE DIT(E) HAS ERRED IN SAYING THAT THE SOCIETY IS SELLING TECHNICAL EXPERTISE TO PEOPLE RATHER THAT P ROVIDING TRAINING AND ENTREPRENEURSHIP DEVELOPMENT TO ALL SE CTION OF THE SOCIETY IGNORING THE ACTIVITIES RENDERED BY THE SOCIETY IN ORDER TO GET DONATION. (V) THAT THE APPELLANT CRAVES LEAVES TO ADD/ ALTER ANY GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 3. IN THIS CASE ASSESSEE FILED AN APPLICATION DATED 19.11.2010 IN FORM NO. 10G SEEKING EXEMPTION U/S. 80G OF THE INCOME TAX ACT, 1961. THE DIT(E) VIDE HIS ORDER NOTED THAT ASSESSE E WAS ASKED TO EXPLAIN THE NATURE OF RECEIPTS SHOWN IN THESE YEARS AND FROM WHOM THE SAME WERE RECEIVED. IN RESPONSE, IT WAS SUBMITT ED THAT ALL THESE INCOME HAS BEEN EARNED ON ACCOUNT OF ACTIVITIES CAR RIED OUT BY THE APPLICANT BY THE NAME OF CAPACITY BUILDING, PERSONAL ITY DEVELOPMENT, MARKET OPPORTUNITY, INFORMATION TECHNOLOGY FOR BUSIN ESS PROMOTION, MARKET CAPTURING THROUGH INNOVATIVE PACKING IN THE FORM OF SEMINARS AND CONFERENCE HELD FOR WOMEN ENTREPRENEURS. THE DIT(E) OBSERVED FROM THE ABOVE RECEIPTS, IT WAS FOUND THAT THE ASSES SEE IS CHARGING FEE/ AMOUNT FROM THE PARTICIPANTS ATTENDING THEIR SE MINARS AND CONFERENCES HELD FOR WOMEN ENTREPRENEURS. IN OTHER W ORDS, THE APPLICANT IS SELLING ITS SKILLS / TECHNICAL EXPERT ISE TO THE DESIROUS PERSONS/ PEOPLE WHO WANT TO IMPROVE THEIR BUSINESS S KILLS / CAPACITY FOR THE PROMOTION OF THEIR BUSINESS. ITA NO. 3451/DEL/2011 3 3.1 THE DIT(E) FURTHER OBSERVED THAT KEEPING IN VIEW THE NATURE OF RECEIPTS OF BENEFICIARIES OF THE ACTIVITIES CARRIE D OUT BY THE SOCIETY, IT CANNOT BE HELD THAT THE ASSESSEE IS INVOLVED IN CHA RITABLE ACTIVITIES RATHER, IT IS DOING COMMERCIAL ACTIVITIES AND THEIR SERVICES ARE AVAILABLE FOR THOSE PEOPLE/WOMEN WHO ATTEND THEIR SEMINARS / C ONFERENCES AFTER MAKING PAYMENTS AS PARTICIPANTS. DIT(E) OPINED CHARG ING OF FEE/AMOUNT DOES NOT COME WITHIN THE AMBIT OF CHARITABL E ACTIVITY AND THUS CANNOT BE HELD AS CHARITABLE INSTITUTE. 3.2 FURTHER, DIT(E) OBSERVED THAT IN VIEW OF THE ABOV E FACTS AND IN THE ABSENCE OF DOCUMENTARY EVIDENCES OF CHARITABLE A CTIVITIES CARRIED OUT, IT COULD NOT BE ESTABLISHED THAT APPLICANT SAT ISFIES THE CONDITIONS LAID OUT U/S. 80G(5) OF THE IT ACT, 1961. THERE FORE, ASSESSEES APPLICATION FURNISHED IN FORM 10G FOR EXEMPTION U/S 80 G OF THE IT ACT, 1961 WAS REJECTED. 4. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. WE FIND THAT AS SESSEE IN THE PRESENT CASE HAS NOT BEEN GIVEN PROPER OPPORTUNITY TO CANVAS THE CASE PROPERLY. THERE IS NO MENTION OF ASSESSEE S RESPONSE TO THE OBSERVATION MADE BY THE LD. DIT(E). FURTHERMORE, LD. DIT(E) HAS OBSERVED THAT THERE IS ABSENCE OF DOCUMENTARY EVIDE NCE OF CHARITABLE ITA NO. 3451/DEL/2011 4 ACTIVITY CARRIED OUT. IT IS NOT CLEAR WHETHER ASSE SSEE WAS GIVEN PROPER OPPORTUNITY OR NOT IN THIS REGARD. IN OUR CONSIDERE D OPINION, INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS REMITTED TO TH E FILE OF THE DIT(E) TO CONSIDER THE ISSUE AFRESH, AFTER GIVING THE ASSESSE E ADEQUATE OPPORTUNITY OF BEING HEARD. ACCORDINGLY, THE ISS UE STANDS REMITTED TO THE FILE OF THE DIT(E). NEEDLESS TO ADD THAT THE AS SESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06/1/2012. SD/- SD/- [ [[ [U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTAN ACCOUNTAN ACCOUNTAN ACCOUNTANT MEMBER T MEMBER T MEMBER T MEMBER DATE 06/1/2012 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES