Devbhumi Foundation, Meerut V. CIT, Haldwani

ITA 3750/DEL/2011

• Counselvise Citation: 375020114 RSA 2011
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-04-2012
• Assessment Year: misc
• Appeal Filed On: 04-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Assessee Lawyers: V K GOEL
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B DELHI BEFORE SHRI R.P. TOLANI AND SHRI K.G. BANSAL ITA NO. 3750(DEL)/2011 ASSESSMENT YEAR: N.A. DEVBHUMI FOUNDATION, COMMISSIONER OF INCOME-TAX, C/O AMRESH VASHIST & ASSOCIATES, HALD WANI. 115, CHAPPEL STREET, VS. MA SANTOSHI MANDIR MARKET, MEERUT CANTT. PAN: AABTD 0769J (APPELLANT) (RESPONDENT) APPELLLANT BY : SHRI V.K. GOEL, ADVOC ATE RESPONDENT BY : MS. NANDITA KANCHAN, SR. DR DATE OF HEARIN G : 16.04.2012 DATE OF PRONOU NCEMENT: 16.04.2012. ORDER PER K.G. BANSAL : AM VIDE ORDER DATED 06.06.2011 THE LD. COMMISSIONE R OF INCOME-TAX, HALDWANI, REFUSED TO GRANT REGISTRATION TO THE ASSESSEE-FOUNDATION ON THE GROUNDS THAT ITS CONTROL AND MANAGEMENT IS LIMIT ED TO FAMILY MEMBERS AND SINCE BOOKS OF ACCOUNT HAVE NOT BEEN PRODUCED, IT IS NOT FEASIBLE TO ITA NO. 3750(DEL)/2011 2 ASCERTAIN THAT ITS ACTIVITIES ARE GENUINE. AG GRIEVED BY THIS ORDER, THE ASSESSEE HAS FILED APPEAL, IN WHICH FOLLOWING GRO UNDS HAVE BEEN TAKEN:- 1. THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX IS ERRONEOUS, ARBITRARY, AND BAD IN LAW AND ON FACTS. 2. THE LD. COMMISSIONER OF INCOME-TAX ERRED IN LAW AS WELL AS ON FACTS WHILE REJECTING THE REGISTRATION OF THE TRU ST U/S 12AA AND 80G. 3. BECAUSE THE FOLLOWING OBSERVATIONS OF THE LD. COM MISSIONER OF INCOME-TAX IN THE ORDER ARE PERVERSE, ARBITRARY, BASELESS AND MISLEADING:- (A) THAT THE CONTROL OF THE TRUST IS LIMITED TO FAM ILY MEMBERS IGNORING ITS CHARITABLE OBJECTIVITY AND GENUINE ACTIVITY AND AT THIS STAGE OF REGISTRAT ION. ON MERE PRESUMPTIONS AND ON SURMISES THAT THE INSTITUTION IS UNDER CONTROL OF FAMILY MEMBERS REJECTION CANNOT BE MADE. (B) THAT THE BOOKS OF ACCOUNTS HAVE NOT BEEN PRODUCED SO THE WORK DONE COULD NOT BE VERIFIED. HE HAS ERRED IN OVERLOOKING THAT THE BOOKS OF ACCOUNTS WERE PRESENTED BEFORE HIM AND HE WAS RELYING ON DULY AUDITED BALANCE SHEETS SUBMITTED ALONG WITH THE APPLICATION OF REGISTRATION. (C) THE LEARNED OFFICER DID NOT DENY THAT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST WERE N OT RELATED TO CHARITABLE PURPOSES. 4. WHILE CONSIDERING APPLICATION OF A TRUST OR INST ITUTION FOR REGISTRATION UNDER SECTION 12AA, THAT THE LD. COM MISSIONER OF INCOME-TAX IS REQUIRED ONLY TO SEE THAT ACTIVITIE S OF SAID TRUST/INSTITUTION ARE GENUINE AND IN CONSONANCE WI TH ITS OBJECTS; SECTION 12AA DOES NOT SPEAK ANYWHERE THAT COMMI SSIONER, WHILE CONSIDERING APPLICATION FOR REGISTRATION, SHALL A LSO SEE ITS ITA NO. 3750(DEL)/2011 3 MANAGEMENT CONTROL. THE LD. COMMISSIONER OF INCOM E-TAX HAS IGNORED THE APPROVAL/ACCREDITATION OF THE INSTI TUTION FROM STATUTORY AUTHORITY LIKE AICTE. 5. THE APPELLANT PRAYS THAT THE REGISTRATION U/S 1 2AA BE ORDERED FOR THE TRUST. THE APPELLANT RESERVES THE RIGHT TO ADD, ALTE R, AMEND OR MODIFY ANY OF THE GROUNDS OR RAISE ANY FURTHER GROUND DURING T HE COURSE OF HEARING OF THE APPEAL. FOR THESE AND OTHER GROUNDS OF APPEAL THAT MAY BE FURTHER ADDUCED AT THE TIME OF HEARING, THE ORDER OF THE LD. COMMISSI ONER OF INCOME-TAX REQUIRES TO BE MODIFIED ACCORDINGLY. 2. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE S UBMITS THAT THE REQUIREMENTS FOR GRANT OF REGISTRATION ARE THAT THE OBJECTS ARE CHARITABLE IN NATURE AND ITS ACTIVITIES ARE GENUINE. THEREF ORE, LIMITING THE CONTROL AND MANAGEMENT TO FAMILY MEMBERS CANNOT BE A G ROUND FOR REFUSAL TO REGISTER THE TRUST. THE ASSESSEE HAD FILED ACCO UNTS AS REQUIRED UNDER THE LAW BUT WAS NOT ABLE TO PRODUCE THE BOOKS OF ACC OUNT. THEREFORE, IT IS REQUESTED THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE COMMISSIONER OF INCOME-TAX FOR CONSIDERING THE ISSUES DE-NOV O FOR DECIDING THE MATTER ON MERIT. ON THE OTHER HAND, THE LD. SENIOR DR C OULD NOT SHOW AS TO HOW THE OBJECTS ARE NOT CHARITABLE IN NATURE OR LIMITI NG THE CONTROL AND MANAGEMENT TO FAMILY MEMBERS CAN BE A GROUND F OR REFUSAL OF REGISTRATION. ITA NO. 3750(DEL)/2011 4 3. ON CONSIDERING THE FACTS AND RIVAL SUBMISSIO NS, WE FIND THAT THE MATTER OF REGISTRATION U/S 12AA REQUIRES FRESH CO NSIDERATION BY THE LD. CIT IN THE LIGHT OF PRE-CONDITIONS THAT OBJECTS ARE CHARITABLE OR RELIGIOUS IN NATURE AND ACTIVITIES ARE GENUINE. FOR THIS PURP OSE, THE ASSESSEE IS REQUIRED TO PRODUCE THE BOOKS BEFORE THE LD. C IT AND ANY OTHER EVIDENCE REQUIRED BY HIM FOR ASCERTAINMENT OF AFORESAID PRE-CONDITIONS. ACCORDINGLY, THIS MATTER IS RESTORED TO HIS FIL E FOR FRESH DECISION AS PER LAW. 4. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (R.P. TOLANI) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER SP SATIA COPY OF THE ORDER FORWARDED TO:- DEVBHUMI FOUNDATION, C/O AMRESH VASHIST & ASSOCIATE S, MEERUT CANTT. AO CIT(A) CIT, HALDWANI. THE D.R., ITAT, NEW DELHI. ASSISTANT REGISTRAR.