Tribal foundation, West Singhbhum V. CIT EXEMPTION, Patna

ITA 369/RAN/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9690 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 22-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VINAY KUMAR JALAN; RAJIV RANJAN
• Section: 12A; 201

Judgement Text

1 ITA NO. 369 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 369 /RAN/201 6 A.Y. : 2016 - 2017 TRIBAL FOUNDATION, NOWAMUNDI BASTI, PO - NOWAMUNDI, DISTRICT - WEST SINGHBH UM, JHARKHAND - 833217 V S CIT(E), PATNA P AN NO. : A A EAT 4189 N (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI VINAY KUMAR JALAN & RAJIV RANJAN,ADV REVENUE BY :SHRI K.E.SUNIL BABU DATE OF HEARING : 2 8 . 05 .201 8 DA TE OF PRONOUNCEMENT : 30 . 05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(E), PATNA, DATED 26.10.2016 . 2. THE SOLE ISSUE INVOLVED IN THE PRESENT APPEAL OF THE ASSESSEE IS WITH RESPEC T TO REJECTION OF APPLICATION FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT. 3. BRI EF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SOCIETY AND FILED AN APPLICATION DATED 05.05.2016 SEEKING REGISTRATION U/S.12AA OF THE ACT, HOWEVER, THE CIT(E) REJECTED THE APPLICATION FOR GRANT OF REGISTRATION ON THE GROUND THAT AS THE GRANT - IN - AID WILL NOT BE INCOME OF THE TRUST/SOCIETY, 2 ITA NO. 369 /RAN/ 201 6 THEREFORE, THE ACTIVITIES CARRIED WITH THIS GRANT - IN - AID CANNOT BE ACTIVITY OF THE TRUST/SOCIETY AND HE IS NOT SATISFIED ABOUT THE ACTIVITIES OF THE SOCIETY. 4 . AGGRIEVED BY THE ORDER OF CIT( E ), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 5 . LD. AR BEFORE US SUBMITTED THAT THE CIT(E) HAS ERRED IN REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/ S.12AA OF THE ACT AND SUBMITTED THAT THE CIT(E) HAS IGNORED THE FACT THAT PROVIDING SHELTER TO POOR PRIMITIVE TRIBES IS ONE OF THE OBJECT OF THE ASSESSEE SOCIETY WHICH IS INTIMATELY INTERWOVEN WITH THE MAIN OBJECT OF THE ASSESSEE SOCIETY TO PROVIDE SUPPORT TO THE COMMUNITY FOR A CAUSE OF ECONOMIC BETTERMENT AND UPLIFTMENT OF SOCIAL STATUS OF THE PEOPLE. LD. AR OF THE ASSESSEE FILED THE PAPER BOOK ALONG WITH COPY OF VARIOUS FORMS FOR REGISTRATION AND OTHER DETAILS AS ENVISAGED IN THE PAPER BOOK CONTAINING 29 2 PAGES . THE CONTENTION OF THE LD. AR THAT THE CIT(A) SHOULD HAVE CONSIDERED THESE FACTS AND GRANTED REGISTRATION. 6 . CONTRA, LD. DR SUPPORTED THE ORDER OF CIT(E). 7 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTE IS WITH RESPECT TO REJECTION OF REGISTRATION U/S.12AA OF THE ACT. LD. A R TO SUBSTANTIATE THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY ARE GENUINE, HAS FILED DETAILS BEFORE US WHICH ARE AS UNDER : - I) ORDERS OF THE HON'BLE ITAT IN THE CASE OF M/S SHIV SHISHYA SAMPRAWAH AND M/S VAISHWIK SHIV SHISHYA PARIWAR II) WRITTEN SUBMISSION PLACED BEFORE THE CIT(EXEMPTIONS) VIDE LETTER NO TF/2016 - 17/137, DATED 20.10.2016 3 ITA NO. 369 /RAN/ 201 6 III) COPY OF FORM 10A IV) COPY OF CERTIFICATE OF REGISTRATION, MEMORANDUM OF ASSOCIATION AND ARTICL E OF ASSOCIATION REGISTERED UNDER SOCIETIES REGISTRATION ACT V) DETAILS OF SERVICES/ACTIVITIES TOWARDS THE FULFILLMENT OF THE AIM AND OBJECTIVES OF THE INSTITUTION ALONG WITH THE DOCUMENTARY EVIDENCE VI) COPY OF ALL BANK PASS BOOKS SINCE ITS INCEPTION V II) BOOKS OF ACCOUNTS & ITR (IF ANY) SINCE ITS INCEPTION V I II) COPY OF RENT AGREEMENT, NO OBJECTION CERTIFICATE AND RESOLUTION OF WORKING COMMITTEE IX ) COPY OF ELECTRICITY BILL/ TAX RECEIPTS ALONG WITH THE AFFIDAVIT OF THE LANDLORD & ID PROOF X) WELFARE ACTIVITIES CARRIED OUT WITH PROGRESS REPORT SINCE ITS INCEPTION AND DETAILS IN RESPECT OF THE ACTIVITIES CARRIED OUT X I ) BREAK - UP/ LIST OF DONORS (GENERAL & CORPUS) ALONG WITH THEIR ADDRESS AND PAN XI I ) LIST OF GOVERNING BODY MEMBERS ALONG WITH THEIR CO MPLETE ADDRESS AND ID PROOF XII I ) EXPLANATION REGARDING HOW THE AIM AND OBJECTS OF THE TRUST/ INSTITUTION ARE WITHIN THE MEANING OF 'CHARITABLE PURPOSE' XIV ) COPY OF RESOLUTION PASSED / EXTRACT OF MINUTES BOOKS FOR REGISTRATION OF SOCIETY U/S 12A OF THE ACT X V) COPY OF DENI A L ORDER U/S 12A OF THE ACT ALONG WITH RELEVANT DOCUMENTS XV I ) LIST OF MEMBERS OF THE SOCIETY XVI I ) COPY OF PROCEEDING BOOK XVII I ) BRIEF PRESENTATION OF THE SOCIETY 8 . LD. AR FURTHER RELIED ON THE DECISION OF COORDINATE BENCH OF T HE TRIBUNAL IN THE CASE OF VAISHWIK SHIV SHISHYA SAMPRAWAH, ITA NO.129/RAN/2015, ORDER DATED 28.02.2017 , WHEREIN IT IS HELD THAT THE REGISTRATION U/S.12AA CANNOT BE REJECTED BASED ON THE APPLICATION OF INCOME BUT THE CIT(A) HAS TO CONSIDER THE GENUINENESS OF THE ACTIVITIES AND 4 ITA NO. 369 /RAN/ 201 6 THE ACTIVITIES WHICH IS NOT IN DISPUTE AND FURTHER WE ARE OF THE OPINION THAT SIMILAR ISSUE WAS DEALT BY THE HONBLE MADRAS HIGH COURT IN THE CASE OF DIT(E) VS. SEERVI SAMAJ TAMBARAM TRUST [2014] 362 ITR 199 (MADRAS HC) AND APPLYING T HE RATIO OF LAW LAID DOWN TO THE PRESENT FACTS OF THE CASE, WE DIRECT THE CIT(E) TO GRANT REGISTRATION TO THE ASSESSEE U/S.12AA OF THE ACT. THUS, THE GROUND OF APPEAL OF ASSESSEE IS ALLOWED. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 30 / 05 /201 8 S D/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI, DATED 30 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITA T, RANCHI 1. THE APPELLANT TRIBAL FOUNDATION, NOWAMUNDI BASTI, PO - NOWAM UNDI, DISTRICT - WEST SINGHBHUM, JHARKHAND - 833217 2. THE RESPONDENT CIT(E), PATNA 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.