Siksha Bikash Seba Foundation, Burdwan V. CIT, Burdwan, Burdwan

ITA 384/KOL/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1628 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2013
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 08-03-2011
• Court: TRIBUNAL
• Department Lawyers: ASOKE KUMAR DEY LD
• Assessee Lawyers: S L KOCHAR LD
• Keywords: Benefit of exemption; Bonafide mistake
• Section: 80G; 12AA

Judgement Text

ITA NOS. 384 & 384/KOL/11-PB-A-GM 1 , A , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- A CALCUTTA () BEFORE . . , SHRI P . K. BANSAL., ACCOUNTANT MEMBER !'# /AND $%$& 1(, SHRI GEORGE MATHAN, JUDICIAL MEMBER #) / ITA NO. 384 & 385/KOL/2011 M/S. SIKSHA BIKASH SEBA FOUNDATION PAN:AAEAS 0747B COMMISSIONER OF INCOME-TAX, BURDWAN ((* / APPELLANT ) - ' - - VERSUS -. (,(*/ RESPONDENT ) (* .! /FOR THE APPELLANT /SHRI S.L KOCHAR, ADVOCATE, LD. AR ,(* .! / FOR THE RESPONDENT: / SHRI ASOKE KUMAR DEY, LD. SR. DR /'0 1 2 /DATE OF HEARING : 07-02-2013 34 1 2 /DATE OF PRONOUNCEMENT:07 -02-2013 / ORDER 56 / PER BENCH THESE ARE TWO APPEALS FILED BY THE ASSESSEE AGAI NST THE SEPARATE ORDERS OF THE LEARNED COMMISSIONER OF INCOME-TAX, BURDWAN IN M.NO. T-18/ 33/CIT/BWN/09-10/3614-17 DATED 16-02- 10 AND DATED 13-01-2011 AGAINST THE REFUSAL TO GRAN T OF REGISTRATION U/S. 12AA AND INITIAL EXEMPTIO N U/S. 80G OF THE I.T ACT 1961. 2. SHRI S.L KOCHAR, ADVOCATE, LEARNED AR REPRESE NTED ON BEHALF OF THE ASSESSEE AND SHRI ASOKE KUMAR DEY, LEARNED SR. DR REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AR FOR THE ASSE SSEE THAT IN RESPECT OF APPEAL IN ITA NO. 384/KOL/2011 AGAINST THE REFUSAL TO GRANT OF RE GISTRATION U/S. 12AA AND INITIAL EXEMPTION U/S. 8 0G OF THE I.T ACT 1961, THERE WAS A DELAY OF 322 DAYS AND CONDONATION PETITION HAS BEEN FILED. IT WAS SUBMITTED THAT THE ASSESSEE WAS UNDER THE BONAFID E BELIEF THAT ONLY ONE APPEAL WAS REQUIRED TO BE FILED BEING THE APPEAL IN ITA NO. 385/KOL/2011. IT WAS SUBMITTED THAT ONLY WHEN THE ASSESSEE RECOGNISED THAT SEPARATE APPEALS WERE REQUIRED TO BE FILED AGAINST THE REFUSAL TO GRANT OF REGISTR ATION U/S. 12AA AND INITIAL EXEMPTION U/S. 80G OF THE I. T ACT 1961 AND THE SAME WAS FILED. IT WAS ALSO SUBMITTED THAT THERE WAS ALSO A CHANGE IN THE MAN AGEMENT OF THE TRUST AND AS THERE WAS NO NOTING LEFT BY THE PREVIOUS CHAIRMAN AND SECRETARY, IT CO ULD NOT BE ASCERTAINED WHETHER ANY APPEAL AGAINST T HE ITA NOS. 384 & 384/KOL/11-PB-A-GM 2 ORDER DATED 16.02.2010 WAS SUBMITTED IT WAS SUBMI TTED THAT THE DELAY IN FILING THE APPEAL DUE TO BONAFIDE MISTAKE MAY BE CONDONED. 4. IN REPLY, THE LEARNED SR.DR DID NOT RAISE ANY SERIOUS OBJECTION. AS IT IS NOTICED THAT THE DELA Y IN FILING THE APPEAL WAS BONAFIDE AND GENUINE, TH E DELAY IN FILING THE SAME IS CONDONED AND THE APPEALS ARE BEING DISPOSED OF ON MERITS. 5. IT WAS SUBMITTED BY THE LEARNED AR FOR THE ASSES SEE THAT THE ASSESSEE SOCIETY WAS REGISTERED UNDER THE WEST BENGAL REGISTRATION OF SOCIETIES A CT 1961. IT WAS SUBMITTED THAT THE ASSESSEE HAD ALSO DONE SUBSTANTIAL CHARITABLE ACTIVITIES. THE L EARNED AR FOR THE ASSESSEE DREW OUR ATTENTION TO T HE VARIOUS INCOME AND EXPENDITURE STATEMENTS FILED IN THE PAPER BOOK TO SHOW THAT THE ASSESSEE HAD DONE SUBSTANTIAL CHARITABLE WORKS IN THE FORM OF HEALTH AWARENESS CAMPS ON CATARACT OPERATION, SUPPLY O F MEDICINES AND LENSES AS ALSO SUPPLY OF BOOKS TO THE POOR STUDENTS AND OTHER LEARNING MATERIALS. IT ALSO ORGANIZES AWARENESS PROGRAMS ON HEALTH CHECK UP OF STUDENTS IN SCHOOLS AND OLD AGE PERSONS AND SUPPLY OF NUTRITIONAL TABLETS TO POOR PREGNANT M OTHERS AND OTHER AWARENESS CAMPS ON VOCATIONAL TRAINING ETC. THE LEARNED AR FOR THE ASSESSEE SUBMI TTED THAT THE ASSESSEE HAD BEEN DENIED THE REGISTRATION U/S. 12AA OF THE ACT ON THE GROUND THA T THE CATARACT OPERATIONS AND OTHER SUPPORTING ACTIVITIES WERE DONE THROUGH ITS SISTER CONCERN, M /S. DEBIPUR NETRALAYA PVT. LTD. HE ALSO DREW OUR ATTENTION TO THE MEMORANDUM OF UNDERSTANDING [PAG E 42 OF THE PB] ENTERED INTO BETWEEN THE ASSESSEE AND M/S. DEBIPUR NETRALAYA PVT. LTD (DNPL) TO SHOW THAT THE ASSESSEE [M/S. SBSE ] WOULD PAY RS. 500/- TO M/S. DEBIPUR NETRALAYA PVT. LTD. F OR EVERY CATARACT OPERATION WITH I.O.L IMPLANTATION, AS ALSO RS.175/- FOR EACH GLASS PROVI DED TO THE SCHOOL CHILDREN AND POST-OPERATIVE CATARACT PATIENTS. HE FURTHER DREW OUR ATTENTION TO THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED ON 31-03-2008, WHEREIN IT WAS SHOWN THAT THE CHAIRMAN OF THE ASSESSEE SOCIETY HAS PROVIDED UNSECURED LOANS OF RS. 8,00,000/- FOR THE PURPOSE O F THE CHARITABLE WORK. HE DREW OUR ATTENTION TO THE EXPENDITURE ON THE O.T AT RS. 1,22,300/-. IT WAS TH E SUBMISSION THAT INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED ON 31-03-2008 THE DONATION REC EIVED WAS RS.4,56,952/-. WHEREAS THE CHARITABLE ACTIVITY ITSELF WAS MORE THAN RS. 8 LAKH. HE FURTH ER DREW OUR ATTENTION TO THE INCOME AND EXPENDITUR E ACCOUNT FOR THE YEAR ENDED ON 31-3-09, WHEN THE DON ATION TO THE EXTENT OF RS.12,75,368/- WAS SHOWN AND THE CHARITABLE ACTIVITIES EXPENDITURE WAS NEA RLY RS. 16 LAKH. HE FURTHER DREW OUR ATTENTION TO THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR E NDED ON 31-3-10, WHEREIN DONATION RECEIVED WAS RS. 10,50,836/- FROM CHAIRMAN & ORS. AND THE CHARI TABLE ACTIVITIES WAS NEARLY RS. 17 LAKH. HE FURTHER SUBMITTED THAT THE FACT THAT THE ASSESSEE HAS ALSO RECEIVED AND RECEIVABLE AMOUNT OF RS.5,95,300/- ITA NOS. 384 & 384/KOL/11-PB-A-GM 3 FROM C.M.O.H BEING THE REIMBURSEMENT BY THE DISTR ICT BLINDNESS CONTROL SOCIETY UNDER THE GOVT. OF W.B CLEARLY SHOWED THAT THE ASSESSEE WAS DOING CHAR ITABLE ACTIVITIES. IT WAS THE SUBMISSION THAT THE ASSESSEE MAY BE GRANTED THE BENEFIT OF REGISTRATION U/S. 12AA AS ALSO BENEFIT OF EXEMPTION U/S. 80G O F THE ACT. 6. IN REPLY, THE LEARNED CIT/SR.DR SUBMITTED THAT THE ASSESSEE SOCIETY WAS OPERATING ITS CHARITABLE ACTIVITIES THROUGH SISTER CONCERN, M/S. DEVIPUR NETRALAY PVT. LTD, WHICH DENIED THE ASSESS EE THE BENEFIT OF REGISTRATION U/S. 12AA OF THE ACT. IT WAS ALSO SUBMITTED THAT THE ORDERS OF THE LD. CI T IN REFUSING THE GRANT OF REGISTRATION U/S. 12AA AS A LSO GRANT OF EXEMPTION U/S. 80G OF THE ACT WERE LIABLE TO BE UPHELD. HE HAS VEHEMENTLY SUPPORTED TH E ORDERS OF THE LD.CIT(A) IN DOING THE SAME. . 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN THE ASSESSEE AND M/S. DEVIPUR NETRALAY PVT. LTD CLEARLY SHOWS THAT M/S. DEVIPUR NETRALAY PVT. LTD DID NOT GET ANY SPECIAL BENEFIT ON ACCOUNT OF CATARACT OPERATION. IN THE PRESENT DA Y WHERE MEDICAL EXPENSES ARE HIGH TO PAY RS. 500/- F OR PER CATARACT SURGERY AND RS. 175/- FOR PROVIDIN G SPECTACLES MORE SPECIFICALLY TO THE SCHOOL CHILDRE N AND POST OPERATIVE CATARACT PATIENTS ITSELF SHOW S THAT CHARITABLE ACTIVITY WAS BEING DONE BY MAKING USE OF THE FACILITIES OF THE SISTER CONCERN, M/ S. DEVIPUR NETRALAY PVT. LTD . FURTHER, A PERUSAL OF T HE INCOME AND EXPENDITURE ACCOUNTS FOR THE VARIOUS YEARS OF THE ASSESSEE SOCIETY CLEARLY SHOWS THAT T HE ASSESSEE IS DOING THE CHARITABLE ACTIVITIES. IN THE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ASSESSEE IS ELIGIBLE FOR REGISTRATION U/S. 12AA AS ALSO EXEMPTION U/S. 80G OF THE ACT AND WE DIRECT THE LEA RNED CIT, BURDWAN TO GRANT THE ASSESSEE REGISTRATION U/S. 12AA AS ALSO EXEMPTION U/S. 80G O F THE ACT AS PRAYED FOR. 8. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED AS STATED ABOVE. . 7 / 5 / 8 79 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT 7.-02 -2013 SD/- SD/- ( . . , ) (P. K. BANSAL, ACCOUNTANT MEMBER) ( $%$& 1 ( , ) (GEORGE MATHAN, JUDICIAL MEMBER) ( (( (2 2 2 2) )) ) DATE 7-02-2013 ITA NOS. 384 & 384/KOL/11-PB-A-GM 4 *PP/SPS 1 ..: ;:4< / COPY OF THE ORDER FORWARDED TO: 1. . (* / THE APPELLANT : SIKSHA BIKASH SEBA FOUNDATION V ILL: DEBIPUR (KALITALA) .P. DEBIPUR P.S MEMARI, DIST BURDWAN 713146. 2 ,(* / THE RESPONDENT- CIT, AAYKAR BHAWAN ANNEXE, COU RT COMPOUND BURDWAN. 3 4. . . / THE CIT, . ( )/ THE CIT(A) 5 . '=.8 . / DR, KOLKATA BENCH 6 . GUARD FILE . ,: ./ TRUE COPY, // BY ORDER, 7 #$ /ASSTT REGISTRAR