GAUTAM BUDHA SOCIETY FOR SOCIAL WELFARE, NOIDA V. CIT(EXEMPTION), LUCKNOW

ITA 3681/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9113 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 16-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DLEHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO. 3681/DEL/2018 ASSESSMENT YEAR: 2017-18 GAUTAM BUDHA SOCIETY FOR , VS. CIT (EXEMPTION), SOCIAL WELFARE, PLOT NO. 23-24, LUCKNOW. AND 27-29, KNOWLEDGE PARK-2, GREATER NOIDA, GAUTAM BUDH NAGAR, UTTAR PRADESH. PAN : AACAG7153M (APPELLANT) (RESPONDENT) APPELLANT BY : MS. ADITI GUPTA, CA RESPONDENT BY: MS. ANIMA, SR. DR DATE OF HEARING: 28/07/2021 DATE OF ORDER : 04/08/2021 ORDER PER K. NARASIMHA CHARY, J.M. AGGRIEVED BY THE ORDER DATED 17/05/2017 PASSED BY T HE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION)- LUCKNOW ('L D. CIT(E)') FOR THE ASSESSMENT YEAR 2017-18, GAUTAM BUDHA SOCIETY FOR S OCIAL WELFARE (THE ASSESSEE) PREFERRED THIS APPEAL. 2. BRIEF FACTS OF THE CASE, RELEVANT FOR DISPOSAL O F THIS APPEAL, ARE THAT THE ASSESSEE IS A SOCIETY REGISTERED UNDER THE SOCI ETIES REGISTRATION ACT ON 30.04.2016 WITH THE MAIN OBJECTIVES OF RELIEF TO POOR AND MEDICAL RELIEF ETC. THEY HAVE FILED AN APPLICATION FOR REGI STRATION U/S. 12AA OF THE 2 INCOME-TAX ACT, 1961 (THE ACT) ON 09.11.2016, BUT THE INFORMATION SOUGHT BY THE LD. CIT(E) VIDE NOTICE DATED 22.04.20 17 COULD BE COMPLIED WITH BY THE ASSESSEE DUE TO THE REASON BEYOND THEIR CONTROL. ASSESSEE FURTHER SUBMITS THAT SUBSEQUENTLY THEY CAME TO KNOW THAT THE SAID APPLICATION WAS REJECTED BECAUSE OF NON-FURNISHING OF THE MATERIAL LIKE BOOKS, BANK ACCOUNTS ETC. 3. SUBSEQUENTLY, ASSESSEE FILED ANOTHER APPLICATION ON 23/06/2017 SEEKING EXEMPTION AND AFTER DUE VERIFICATION OF THE MATERIAL AND FACTS PLACED BEFORE THE LEARNED CIT(E), VIDE ORDER DATED 22.12.2017, LEARNED CIT(E) GRANTED REGISTRATION W.E.F. 2017-18. HOWEVER , BY ORDER DATED 07.02.2018, LEARNED CIT(E) RECTIFIED THE EARLIER OR DER MODIFYING THE EFFECT OF REGISTRATION FROM 2018-19 INSTEAD OF 2017-18, AS STATED IN THE ORDER DATED 22.12.2017. THEN HAVING REALISED THE NECESSIT Y OF FILING OF AN APPEAL AGAINST THE ORDER DATED 17.05.2017, BY WAY O F WHICH, LEARNED CIT(E) DECLINED TO GRANT REGISTRATION, THE ASSESSEE PREFERRED THIS APPEAL WITH A DELAY OF 291 DAYS. 4. IT IS SUBMITTED ON BEHALF OF THE ASSESSEE THAT T HE ASSESSEE WAS HAPPY WITH THE ORDER DATED 22.12.2017 BECAUSE THE R EGISTRATION WAS GRANTED W.E.F. 2017-18, BUT IT IS ONLY SUBSEQUENTLY DUE TO THE ORDER DATED 07.02.2018, THE ASSESSEE REALISED THE NECESSITY OF PREFERRING THE APPEAL AGAINST THE ORDER DATED 17.05.2017. IT IS FURTHER S UBMITTED THAT IT IS ONLY DUE TO THE BONA FIDE AND MISTAKEN IMPRESSION OF THE ASSESSEE, THE DELAY OCCURRED AND THEREFORE, THE DELAY MAY BE CONDONED. THE ASSESSEE PLACES RELIANCE ON THE DECISION OF HONBLE MADRAS HIGH COU RT IN THE CASE OF M/S. UNITED CHRISTMAS CELEBRATION COMMITTEE CHARITABLE T RUST V. ITO (2017) 3 249 TAXMAN 372 AND ANOTHER DECISION OF HONBLE ALLA HABAD HIGH COURT IN THE CASE OF BHARAT AUTO CENTER V. CIT, 282 ITR 3 66 (ALLD.). 5. LEARNED DR FAIRLY CONCEDED TO ALLOW THE CONDONAT ION OF DELAY IN VIEW OF THE FACTS PLEADED BY THE ASSESSEE. WHILE RE CORDING THE SAME AND ALSO IN VIEW OF THE FACT THAT THERE IS A REASONABLE BELIEF IN THE MIND OF THE ASSESSEE DUE TO THE ORDER DATED 22.12.2017 AND ALSO THAT THE ASSESSEE DOES NOT STAND TO GAIN BY CHALLENGING THE ORDER DAT ED 17.05.2017 WITH DELAY, WE ARE INCLINED TO CONDONE THE DELAY AND PRO CEED TO HEAR THE APPEAL ON MERITS. 6. IT IS SUBMITTED BY THE LD. AR THAT ON THE VERY S AME SET OF FACTS AS WERE EXISTING WITH REFERENCE TO THE APPLICATION DAT ED 09.11.2016 FILED BY THE ASSESSEE FOR GRANT OF REGISTRATION, THE LEARNED CIT(E) GRANTED REGISTRATION BY ORDER DATED 22.12.2017. THERE IS NO CHANGE AS TO THE OBJECTIVES OF THE SOCIETY OR THE NON-COMMENCEMENT O F ANY ACTIVITIES THEREOF. IT IS ONLY BECAUSE THE LEARNED CIT(E) MOD IFIED THE EFFECT OF REGISTRATION FROM 2018-19 INSTEAD OF 2017-18, THE N ECESSITY TO CHALLENGE THE ORDER DATED 17.05.2017 HAD ARISEN. LEARNED AR S UBMITS THAT AT THE TIME OF REGISTRATION, THE REASONS FOR NON-COMMENCEM ENT OF ACTIVITIES OR DEEPER ENQUIRY INTO THE BOOKS IS NOT NECESSARY. APP LICATION OF INCOME IS NOT A NECESSARY CONSIDERATION AT THE TIME OF GRANT OF REGISTRATION. RELIANCE IS PLACED BY THE LEARNED AR ON THE DECISIO N OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF BHARTIYA KISAN SANG H SEWA NIKETAN V. CIT(E) (2017) 166 ITD 562 AND VIDYADAYANI SHIKSHA SAMIT VS . CIT (ITA NO. 309/DEL/2016). LEARNED DR PLACES RELIANCE ON THE IM PUGNED ORDER. 7. WE HAVE GONE THROUGH THE RECORD IN THE LIGHT OF SUBMISSIONS MADE ON EITHER SIDE. IT GOES AN UNCHALLENGED FACT THAT T HE FACTUAL MATRIX OF THE 4 CASE REMAINS THE SAME WHILE REFUSING TO GRANT EXEMP TION BY ORDER DATED 17.05.2017 AND GRANTING EXEMPTION BY ORDER DATED 22 .12.2017. IT WAS THE SAME SET OF OBJECTS AND ACTIVITIES EXISTED ON B OTH THE DATES. AT NO POINT OF TIME, LEARNED CIT(E) DOUBTED THE CHARITABL E NATURE OF THE OBJECTS OF THE ASSESSEE SOCIETY, BUT BY REFUSING TO GRANT R EGISTRATION, LD. CIT(E) OBSERVED THAT THE ASSESSEE FAILED TO PROVIDE ANY CO GENT PROOF THAT COULD VERIFY THAT THE ASSESSEE HAS ACTUALLY CARRIED OUT A CTIVITIES IN PURSUANCE TO THE OBJECTS SET FORTH IN THE MEMORANDUM OF THE TRUS T; THAT THE ASSESSEE TRUST HAS HAD A LONG HISTORY OF EXISTENCE AND CANNO T BE REGARDED AS GERMANE; THAT THE ASSESSEE HAD SUFFICIENT OPPORTUNI TY TO CARRY OUT CHARITABLE ACTIVITIES DURING THIS PERIOD BUT UNFORT UNATELY THEY DID NOT DO SO; AND THAT NO BOOKS OF ACCOUNT OR VOUCHERS WERE P RODUCED BY THE ASSESSEE TO HOLD THE TESTIMONY OF ITS CLAIM OF CHAR ITY. DESPITE RECORDING THESE OBSERVATIONS, LEARNED CIT(E) GRANTED EXEMPTIO N BY ORDER DATED 22.12.2017. HOWEVER, LEARNED CIT(E) MODIFIED THE SA ME GIVING EFFECT TO SUCH REGISTRATION W.E.F. 2018-19 INSTEAD OF 2017-18 . 8. IN THESE SET OF CIRCUMSTANCES, WE ARE OF THE CON SIDERED OPINION THAT THE ORDER OF LD. CIT(E) GRANTING REGISTRATION BY ORDER DATED 22.12.2017 ITSELF IS A JUSTIFICATION TO GIVE EFFECT TO IT W.E.F. 2017-18. WE, THEREFORE, DIRECT THE LD. CIT(E) TO GRANT REGISTRAT ION W.E.F. 2017-18. 9. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 4 TH DAY OF AUGUST, 2021. SD/- SD/- ( N.K. BILLAIYA) (K. NARSIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 04/08/2021 AKS