The IOT Foundation, New Delhi V. DIT (Exemptions), New Delhi

ITA 3517/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52628 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: misc
• Appeal Filed On: 12-07-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR B R R KUMAR
• Assessee Lawyers: K SAMPATH
• Section: 11; 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH H DELHI ] BEFORE MS. DIVA SINGH, JM AND SHRI K. D. RA NJAN, AM I. T. A. NOS. 3516 & 3517 (DEL) OF 2011 ASSESSMENT YEARS : THE I O T FOUNDATION, DIRECTOR OF INCOME- TAX, 109GOLF APARTMENTS, SUJAN SINGH PARK, VS. [ EXEMPTIONS ], MAHARSHI RAMANA MARG, N E W D E L H I. N E W D E L H I 110 003. P A N / G I R NO. AAB TT 0420 A. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : SHRI K. SAMPATH, ADV.; DEPARTMENT BY : DR. B. R. R. KUMAR, SR. D. R.; O R D E R. P E R B E N C H : THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST ORDERS OF DIT {EXEMPTIONS], NEW DELHI, REJECTING REGISTRATION UNDER SECTION 12-AA S OUGHT VIDE ORDERS DATED 24.05.2006 AND 22.12.2006 (IN RESPECT OF APPLICATIONS DATED 17 TH NOVEMBER, 2005 AND 28 TH JUNE, 2006 RESPECTIVELY). THESE APPEALS WERE HEARD TOGETHER A ND ARE BEING DISPOSED OF, FOR THE SAKE OF CONVENIENCE, BY THIS CONSOLIDATED ORDER. 2. THE COMMON GROUNDS OF APPEAL RAISED BY THE ASSES SEE ARE AS FOLLOWS:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF TH E CASE AND IN LAW, THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS) HEREIN AFTER RE FERRED TO AS DIT (EXEMPTIONS) HAS GROSSLY ERRED IN : 2 I. T. A. NOS. 3516 & 3517 (DEL) OF 2010 1.1 DENYING REGISTRATION TO THE APPELLANT TRUST UNDER S ECTION 12-AA OF THE INCOME TAX ACT, 1961 DESPITE THE GENUINENESS OF THE APPELLANT TRUST AND CHARITABLE NATURE OF ITS ACTIVITIES; 1.2 DISMISSING THE APPLICATION OF THE APPELLANT TRUST O N ACCOUNT ON THE SUPPLEMENTARY TRUST DEED NOT BEING SIGNED BY WITNES SES EVEN THOUGH THE LEGAL POSITION IS THAT THE WITNESSES ARE NOT REQUIR ED STRICTLY UNDER LAW. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER UNDER SECTION 12-AA OF THE INCOME TAX ACT, 1961 PAS SED BY THE DIT (EXEMPTIONS) IS ERRONEOUS, BAD IN LAW AND VOID AB I NITIO AND MUST BE QUASHED WITH DIRECTIONS FOR APPROPRIATE RELIEF. 3. AT THE OUTSET, THE LD. AR OF THE ASSESSEE SUBMIT TED THAT IN THIS CASE THE ASSESSEE HAS FILED APPLICATION FOR REGISTRATION UNDER SECTION 12-A OF THE ACT ON 29 TH AUGUST, 2005, 17 TH NOVEMBER, 2005, 28 TH JUNE, 2006 AND 26 TH SEPTEMBER, 2007. THE APPLICATIONS FOR REGISTRATIO N WERE REJECTED BY THE DIRECTOR OF INCOME-TAX [EXEMPTION], NEW DELH I. THE ASSESSEE FILED APPEAL AGAINST ORDER PASSED BY THE DIT (EXEMPTION) ON 29 TH AUGUST, 2005 REJECTING APPLICATION FOR REGISTRATIO N. ITAT, DELHI BENCH C VIDE ORDER DATED 22 ND JULY, 2011 IN ITA. NO. 2036 (DEL) OF 2009 HAS GRANTED THE REGISTRATION. HE, THEREFORE, SUBMITTED THAT THE PRESENT APPEALS FILED AGAINST ORDERS REJECTING THE APPLICATION FOR REGISTRATION UNDER SE CTION 12-A HAVE BECOME INFRUCTUOUS. ON THE OTHER HAND, THE LD. SR. DR SUPPORTED THE ORDER OF T HE LD. DIT (EXEMPTION). 4.1 WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE ORDER OF THE ITAT DATED 22 ND JULY, 2011. ITAT, DELHI BENCH C HAS ALLOWED THE APP EAL BY OBSERVING AS UNDER:- 5. WE HAVE CONSIDERED THE FACTS OF THE CASE AND SUBMISSIONS MADE BEFORE US. THERE IS NO DISPUTE THAT THE OBJECTS OF THE FOUNDAT ION ARE CHARITABLE IN NATURE. THE ASSESSEE RECEIVED DONATIONS IN THIS YEAR WHICH WERE ACCUMULATED. FIVE DONATIONS WERE MADE TO ROTARY CLUB OF MADRAS CHARIT ABLE TRUST BETWEEN 2/9/2005 AND 25/3/2006 AGGREGATING TO RS.1,48,63,58 0/-. THE ROTARY CLUB IS APPROVED UNDER SECTION 80G AS PER ITS CERTIFICATE D ATED 27/3/2006. IT HAS ALSO BEEN CERTIFIED THAT THE DONATIONS WERE RECEIVED TOW ARDS TSUNAMI RELIEF OPERATION AT SULERIKATTUKUPPAM, KANCHIPURAM DISTRICT, TAMIL N ADU. IN VIEW THEREOF, IT CAN 3 I. T. A. NOS. 3516 & 3517 (DEL) OF 2010 BE SAID THAT THE ACTIVITIES OF THE TRUST ARE GENUIN E ON A PRIMA FACIE BASIS. THE QUESTION OF GRANT OF EXEMPTION UNDER SECTIONS 11 AN D 12 CAN ONLY BE DECIDED IN THE COURSE OF ASSESSMENT. THE SAME CANNOT BE A SUB JECT MATTER OF CONSIDERATION AT THE TIME OF GRANT OF REGISTRATION. SINCE THE TW IN CONDITIONS MENTIONED IN SECTION 12-AA ARE SATISFIED, WE ARE OF THE VIEW THAT THE LD . DIRECTOR OF INCOME-TAX [EXEMPTION] SHOULD HAVE GRANTED REGISTRATION TO THE ASSESSEE WITH EFFECT FROM THE DATE OF ITS CREATION. HE IS DIRECTED TO MODIFY HIS ORDER ACCORDINGLY. 4.2 SINCE THE ITAT HAS GRANTED REGISTRATION UNDER S ECTION 12-A, THE PRESENT APPEALS FILED BY THE ASSESSEE HAD BECOME INFRUCUOUS AND ARE DISMISSE D AS SUCH. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 13 TH SEPTEMBER, 2011. SD/- SD/- [ DIVA SINGH ] [ K. D. R ANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : _13 TH SEPTEMBER, 2011 . *MEHTA * COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT. 2. RESPONDENT. 3. CIT, 4. CIT (APPEALS), 5. DR, ITAT, NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR, ITAT.