Outcancer Foundation, Delhi V. DIT(E), Delhi

ITA 3862/DEL/2011

• Counselvise Citation: 386220114 RSA 2011
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 17-10-2011
• Assessment Year: misc
• Appeal Filed On: 16-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: MRS RANO JAIN CAS
• Section: 80G; 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, HONBLE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER I.T.A NOS. 3862,3863/DEL/11 OUTCANCER FOUNDATION, 209, NATRAJ APARTMENT, 67, I.P. EXTENSION, DELHI 110 092. VS. DIT (EXEMPTION), DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI VED JAIN & MRS. RANO JAIN, CA S RESPONDENT BY: SHRI R.S. NEGI, SR. DR ORDER ORDER ORDER ORDER PER RAJPAL YADAV : JM PER RAJPAL YADAV : JM PER RAJPAL YADAV : JM PER RAJPAL YADAV : JM THE PRESENT TWO APPEALS ARE DIRECTED AT THE INSTANC E OF ASSESSEE AGAINST THE SEPARATE ORDERS OF LD. DIRECTO R OF INCOME TAX (EXEMPTION) DELHI DATED 8 TH JULY, 2011 VIDE WHICH LD. DIT HAS REJECTED THE APPLICATIONS OF THE ASSESSEE FOR G RANT OF REGISTRATION U/S 12A AS WELL AS U/S 80G(5) OF THE I NCOME TAX ACT. ITA NOS. 3862,3863/DEL/11 2 FIRST WE TAKE ITA NO. 3863/DEL/11 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT LD. DIT HAS ERRED IN REJECTING THE APPLICATION FOR REGISTRA TION U/S 12AA (1)(B) OF THE INCOME TAX ACT. THE BRIEF FACTS OF T HE CASE ARE THAT ASSESSEE HAS FILED AN APPLICATION ON 5 TH JANUARY, 2011 IN FORM NO. 10A FOR SEEKING REGISTRATION U/S 12A OF TH E INCOME TAX ACT, 1961. LD. DIT HAD ISSUED A SHOW CAUSE NOTI CE INVITING EXPLANATION OF THE ASSESSEE VIDE LETTER DATED 27.1. 2011. SUCH EXPLANATION WAS TOBE SUBMITTED BY 21.2.2011. ON 21 ST FEBRUARY, 2011, THE CHARTERED ACCOUNTANT OF THE ASS ESSEE APPEARED BEFORE THE LD. DIT AND TOOK ADJOURNMENT. A CCORDING TO THE LD. DIT, NUMBER OF ADJOURNMENTS WERE TAKEN B Y THE ASSESSEE AND IT FAILED TO SUBMIT THE DETAILS. WHERE AS CASE OF THE ASSESSEE IS THAT IT HAS SUBMITTED ALL THE REQUI SITE DETAILS CALLED FOR BY THE LD. DIT NAMELY, IT HAS SUBMITTED COPY OF TRUST DEED, NOTE ON REGISTRATION U/S 12AA AND 80G, NOTE O N ACTIVITY OF THE TRUST, COPY OF PROVISIONAL BALANCE SHEET, INCOM E AND EXPENDITURE ACCOUNT AS ON 31 ST MARCH, 2011, DETAILS OF DONEES AND DETAILS OF AIDS GIVEN. THE LD. DIT HAS REJECTED THE APPLICATION OF ASSESSEE BY BRIEF ORDER WHICH INCLUD E THE DETAILS ITA NOS. 3862,3863/DEL/11 3 CALLED FOR AND THE FINDING RECORDED BY THE LD. DIT, WHICH READ AS UNDER :- 1. PLEASE FILE THE UNDERTAKING THAT THERE SHALL BE NO INFRINGEMENT TO THE PROVISO TO THE SECTION 2 (15) OF THE IT ACT. 2. PLEASE INSERT A PROVISION RELATING TO THE DISSOL UTION OF THE TRUST/SOCIETY PROVIDING INTER ALIA THAT IN THE EVENT OF DISSOLUTION FOR FUNDS/ASSETS WILL BE TRANSFERRED ON LY TO SOME OTHER TRUST HAVING SIMILAR OBJECTIVES. 3. COPY OF ACCOUNTS OF THE PERIOD SINCE THE INCEPTI ON OF THE TRUST/SOCIETY OR LAST YEARS DURING WHICH THE TRUST HAS BEEN IN EXISTENCE. 4. PLEASE INSERT A CLAUSE IN THE DEED/MOA PROVIDING THAT THE FUNDS /PROPERTY OF THE TRUST WILL BE USED ONLY FOR THE OBJECTIVES OF THE TRUST/SOCIETY. 5. A NOTE ON ACTIVITIES CARRIED OUT SINCE INCEPTION /LAST 1/2/3/4 YEARS WITH SUPPORTING DOCUMENTARY EVIDENCES . 6. PLEASE JUSTIFY YOUR CLAIM FOR REGISTRATION U/S 1 2AA & 80G 7. JUSTIFY WITH THE BILLS/VOUCHERS OF THE INCOME A PPLIED FOR CHARITABLE ACTIVITIES ALONG WITH PROOF OF BENEFICIA RIES. 8. PLEASE FURNISH CONTACT NO. & E-MAIL ADDRESS OF T HE APPLICANT & ITS MEMBERS. 9. ON OBJECTION CERTIFICATE FROM THE LANDLORD ALONG SIDE THE PROOF OF OWNERSHIP/OCCUPANCY. 10. A NOTE CLARIFYING WHAT IS THE FOCUS AREA OF YOU R CHARITABLE ACTIVITIES AND GIVING A PROJECTION/PLAN OF ACTION FOR THE MAIN CHARITABLE ACTIVITIES TO BE UNDERTAKEN BY YOU DURING THE NEXT TWO YEARS. 11. PLEASE FURNISH THE DETAILS OF DONATIONS INCLUDI NG CORPUS DONATIONS RECEIVED & MADE GIVING. NAME, ADDRESS, PA N OF DONORS. 12. COPY OF I.T. RETURNS LAST ..ASSESSMENT YEAR PLEASE FURNISH DETAILS REGARDING 1. THE CONCRETE DOCUMENTARY EVIDENCE W.R.T FUNDS APPLIED TO THE CHARITY DONE. ITA NOS. 3862,3863/DEL/11 4 2. REGULAR ACTIVITIES CARRIED OUT 3. ULTIMATE BENEFICIARIES 2. ON 21.02.2011. SHRI SANDEEP GUPTA, CA AND THE A R OF THE ASSESSEE APPEARED AND FILED PO ALONG WITH CERTAIN D ETAILS. HE WAS ASKED TO FILE OWNERSHIP PROOF OF THE PRESENT AD DRESS AND ASKED TO SUBMIT INFORMATION AS CALLED FOR VIDE POIN T NO. 6 OF THE NOTICE DATED 27.01.2011 AND THE CASE WAS ADJOUR NED TO 7.3.20111. ON 7.3.2011 NEITHER ANYBODY ATTENDED NOR ANY DETAILS WERE FILED. ON 15.4.2011 CA OF THE ASSESSEE SENT A LETTER FOR ADJOURNMENT OF THE CASE AND THE CASE WAS ADJOURNED TO 29.4.2011. ON 29.4.2011 NEITHER ANYBODY ATTENDED NOR ANY FURTHER DETAILS WERE FILED. 3. ON PERUSAL OF DETAILS FILED IT IS SEEN THAT ON P AGE 10 & 11 CLAUSES 15 & 16 RESPECTIVELY OF THE TRUST DEED SHOW THAT THE APPLICANTS ACTIVITIES HAVE A PROFIT MOTIVE AS LEAS ING OUT PROPERTIES ON RENT AND COLLECTION OF RENTS EFFECTS AND PROFITS DO NOT SHOW THE INTENTION OF CHARITY. IT HAS NO DIS SOLUTION CLAUSE ALSO. THE MAIN OBJECTS AS PER TRUST DEED IS TO MAINTAIN, SET UP AND RUN CANCER RESEARCH CENTRES TO CARRY OUT MEDICAL RE SEARCH IN THE FIELD OF ONCOLOGY AND OTHER MEDICAL FACILITIES WHICH REQUIRES A GOOD INFRASTRUCTURES AND EXPERTISE ON TH E PART OF PEOPLE ASSOCIATED WITH IT IS FOUND MISSING IN THIS CASE. IT HAS NOT DISCLOSED THE METHOD OF ATTAINING THE SAID OBJE CTS. THE APPLICANT HAS SUBMITTED THAT IT WILL TAKE UP SOME T IME TO START ITS ACTIVITIES. IT ALSO STATED THAT GROUND LEVEL AC TIVITIES LIKE LIE UP (I) WITH HOSPITAL & MEDICALS INSTITUTE (II) NGOS AND OTHER CHARITABLE INSTITUTES FOR CANCER AND (III) SPREADIN G AWARENESS IS BEING PERFORMED BUT NO CONCRETE EVIDENCE HAS BEE N FURNISHED IN ITS SUPPORT. THEREFORE, IN VIEW OF THE ABOVE FACTS THE TRUST IS HELD TO BE NOT GENUINE WITH RESPECT TO ITS AIMS AND OBJECTS. 4. THE PROVISIONS OF SECTION 12AA STIPULATE THE FOL LOWING CONDITIONS FOR REGISTRATION U/S 12A OF THE I.T. ACT , 1961 :- (I) THE OBJECTS OF THE SOCIETY SHOULD BE CHARITABLE IN NATURE; (II) THE ACTIVITIES OF THE SOCIETY SHOULD BE GENUINE. THEREFORE, ONE OF THE CONDITIONS FOR GRANTING REGIS TRATION U/S 12AA IS ALSO NOT SATISFIED. 5. SINCE THE APPLICANT HAS FAILED TO ESTABLISH ITS GENUINENESS AS DISCUSSED IN THE PRECEDING PARAS IN THE LIGHT OF TH E AMENDED ITA NOS. 3862,3863/DEL/11 5 PROVISIONS OF THE ACT THE APPLICATION FILED FOR REG ISTRATION CANNOT BE CONSIDERED FAVOURABLY. ACCORDINGLY, THE A PPLICATION FILED BY THE APPLICANT FOR GRANT OF REGISTRATION U/ S 12AA IS HEREBY REJECTED. 3. THE LD. COUNSEL FOR THE ASSESSEE WHILE IMPUGNING THE ORDER OF LD. DIT SUBMITTED THAT IN PARAGRAPH 3, THE FIRST REASON ASSIGNED BY THE LD. DIT IS THAT CLAUSES NO. 15 & 16 OF THE TRUST DEED WOULD SHOW THAT ASSESEES ACTIVITIES HAVE A PR OFIT MOTIVE, BECAUSE IT WILL EARN RENT ETC. ON LEASING OUT OF TH E PROPERTY WHICH DOES NOT SHOW ANY INTENTION OF CHARITY. HE TO OK US THROUGH CLAUSE 15 OF THE TRUST DEED AND POINTED OUT THAT IT IS AN ANCILLARY CLAUSE TO ENABLE THE TRUSTEES TO MANAGE T HE TRUST PROPERTY. IT IS NOT THE PRIMARY AIMS AND OBJECTS OF THE TRUST. HE FURTHER CONTENDED THAT THE SECOND REASON ASSIGNED B Y THE LD. DIT IS THAT THERE IS NO DEMONSTRATIVE PROOF ON THE RECORD IN SUPPORT OF THE ACTIVITIES CARRIED OUT BY THE ASSESS EE. LD. COUNSEL SUBMITTED THAT THERE HAS BEEN CHANGES IN SE CTION 12A OF THE INCOME TAX ACT. EARLIER IF A PERSON IS IN RE CEIPT OF THE INCOME AND HAS MADE AN APPLICATION FOR REGISTRATION OF THE TRUST IN THE PRESCRIBED FORM AND IN THE PRESCRIBED MANNER TO THE COMMISSIONER BEFORE THE FIRST DAY OF JULY 1973 OR B EFORE EXPIRY OF PERIOD OF ONE YEAR FROM THE DAY OF THE CREATION OF THE TRUST, ITA NOS. 3862,3863/DEL/11 6 THEN REGISTRATION WOULD BE GRANTED U/S 12A FROM THE DATE WHICH IS LATER. THE PROVISO APPENDED TO SUB SECTION 1 OF SECTION 12A FURTHER EMPOWER THE COMMISSION TO CONDONE THE DELAY ON SUBMISSION OF AN APPLICATION, IF THERE EXIST REASON ABLE CAUSE. BUT AFTER FIRST DAY OF JUNE, 2007, NO SUCH POWER EX IST WITH THE COMMISSIONER. THUS, THE TRUST HAS TO MAKE THE APPLI CATION IMMEDIATELY AFTER ITS CREATION. OTHERWISE, WHATEVER DONATIONS RECEIVED BY IT WOULD BE TAXABLE IN THE ABSENCE OF T HE REGISTRATION. HE FURTHER POINTED OUT THAT SECTION 1 2AA SUB SECTION 3 HAS ALSO BEEN AMENDED. IT EMPOWERED THE L D. COMMISSIONER TO WITHDRAW REGISTRATION GRANTED EARLI ER, IF IT IS ESTABLISHED THAT ACTIVITIES OF SUCH TRUST ARE NOT G ENUINE OR ARE NOT CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF T HE TRUST. IN THE OLD SCHEME THIS POWER WAS NOT THERE. ACCORDING TO THE LD. COUNSEL FOR THE ASSESSEE, THE SCHEME OF SECTION 12 A AND 12AA SUGGEST THAT LD. COMMISSIONER HAS TO SEE PRIME FACI E GENUINENESS OF THE ACTIVITIES AS WELL AS AIMS AND O BJECTS CONTAINED IN THE TRUST DEED. THE LD. COUNSEL FURTHE R SUBMITTED THAT CHARITABLE INSTITUTES ARE BEING CAUGHT IN SUCH A POSITION THAT IF THEY RECEIVED DONATION AND TRY TO START THE ACTIVITIES THEN IN THE ABSENCE OF REGISTRATION THE RECEIPT WOULD BE TAXABLE. ITA NOS. 3862,3863/DEL/11 7 BECAUSE BENEFIT OF 11 & 12 WILL NOT BE THERE, BUT I F AN ASSESSEE APPLIED FOR GRANT OF REGISTRATION U/S 12A, THEN LD. REVENUE AUTHORITY WOULD EMPHASIS FIRST START THE ACTIVITIES , DEMONSTRATE HOW THE ACTIVITIES ARE GENUINE AND OF CHARITABLE NA TURE. HE RELIED UPON THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF DIT VS. GARDEN CITY EDUCATIONAL TRUST REPOR TED IN 191 TAXMAN PAGE 238 AND SUBMITTED THAT HONBLE COURT HA S OBSERVED THAT REGISTRATION U/S 12A IS ONE OF THE PR OCEDURAL ASPECT FOR CLAIMING BENEFIT U/S 11& 12 OF THE INCOM E TAX ACT. THE ISSUES WHETHER ASSESSEE WOULD EARN INCOME, IT W ILL APPLY ITS INCOME FOR THE PURPOSE OF ITS ACTIVITY OR NOT A RE RELEVANT WHILE ASSESSING THE INCOME OF THE ASSESSEE. FOR REG ISTRATION U/S 12A, LD. COMMISSIONER IS REQUIRED TO LOOK INTO PRIM E FACIE ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE ASSE SSEE. THE ACTIVITIES REPORTED IN THE AIMS AND OBJECTS SHOULD BE IN ACCORDANCE WITH LAW. THEY SHOULD NOT FOR THE PURPOS E OF CARRYING OUT ANY ILLEGAL ACTIVITIES. HE PREYED THA T AIMS AND OBJECTS OF THE ASSESSEE ARE OF CHARITABLE NATURE. T HEREFORE, REGISTRATION U/S 12A SHOULD BE GRANTED TO THE ASSES SEE BY PASSING AN ORDER U/S 12AA (1)(B). LD. DR, ON THE OT HER HAND RELIED UPON THE ORDER OF LD. COMMISSIONER. HE SUBMI TTED THAT ITA NOS. 3862,3863/DEL/11 8 ASSESSEE HAS RECEIVED A VERY NOMINAL DONATION. THE CORPUS FUND IS OF ` 88,100/- . IT HAS GIVEN A VERY SMALL A ID. HE TOOK US THROUGH THE DETAILS AVAILABLE ON PAGES NO. 21 TO 26 OF THE PAPER BOOK. FROM THESE DETAILS, IT IS NOT DISCERNAB LE THAT ASSESSEES ACTIVITIES ARE IN THE DIRECTION OF FULFI LMENT OF ITS AIMS AND OBJECTS. 4. WE HAVE DULY CONSIDERED THE RIVAL CONTENTION AND GONE THROUGH THE RECORD CAREFULLY. LD. DIT HAS CALLED FO R A NOTE ON THE ACTIVITIES TO BE TAKEN UP BY THE FOUNDATION. T HE ASSESSEE HAS GIVEN THE NOTE WHICH READ AS UNDER :- NOTE ON ACTIVITIES TO BE TAKEN UP BY THE FOUNDATION OVER THE NEXT 2 YEARS : THE OUTCANCER FOUNDATION WILL EARNESTLY WORK TOWARD S ACHIEVING ITS PRIMARY AND OTHER OBJECTIVES AND IN THIS REGARD WIL L DO A FOCUSED WORK ON THE FOLLOWING ACTIVITIES OVER THE NEXT YEARS: TO TIE UP WITH LEADING CANCER CARE HOSPITALS IN IND IA (PARTICULARLY IN NORTHERN AND WESTERN PARTS) TO PROMOTE THE PROGRAMS RELATING TO SPREADING AWARENESS ABOUT CANCER RISKS, EARLY DETEC TION AND POSSIBLE TREATMENTS. TO COLLABORATE WITH LEADING CANCER CARE HOSPITALS A ND HEALTHCARE CHAINS PROVIDING CANCER TREATMENTS TO FACILITATE DE SIGNING AND SETTING UP CANCER TREATMENT PROGRAMS WHICH ARE FOCU SED ON PROVIDING BOTH CURATIVE AS WELL AS PALLIATIVE CANC ER CARE FOR THE NEEDY AND POOR SEGMENTS OF SOCIETY; TO ESTABLISH OR PROMOTE OR PROVIDE HELP AND AID IN ESTABLISHING CHARITABLE HEALTHCARE CENTERS, SANATORIUMS AND SIMI LAR INSTITUTIONS FOR PROMOTION OF RESEARCH AND EDUCATION ACTIVITIES RELATING TO THE FIELD OF ONCOLOGY; ITA NOS. 3862,3863/DEL/11 9 TO PROMOTE AND SPONSOR PROGRAMS FOR FUND RAISING FO R SUPPORTING (A) TREATMENT OF CANCER PATIENTS PARTICULARLY THOSE BEL ONGING TO POOR STRATA OF SOCIETY (B) CANCER DETECTION PROGRAMS AND AWARENESS RALLIES AND (C) RESEARCH PROGRAMS ON IMPROVING CANC ER TREATMENT METHODS; 5. LD. DIT OBSERVED THAT IN ORDER TO FULFIL THESE A IMS AND OBJECTS, ASSESSEE WAS ENABLE TO PRODUCE SUPPORTING MATERIALS. THEREFORE, ITS ACTIVITIES ARE NOT GENUINE. THUS THE SUBSTANCE OF THE ORDER IS THAT ASSESSEE FAILED TO BRING CONCRETE EVIDENCE IN SUPPORT OF ITS ACTIVITIES REQUIRED TO BE PERFORMED. IN THE PAPER BOOK, ASSESSEE HAS PLACED ON RECORD THE DETAILS OF AIDS GIVEN BY IT TO THE NEEDY PERSONS FOR CONDUCTING THE INVES TIGATION OF CANCER. ONE OF THE BENEFICIARY IS MRS. SUSHMA CHAUD HARY, B-86, NAND GRAM, SARKARI COLONY, GHAZIABAD AND OTHER ONE IS MR. MURLI DHAR, H. NO. 190 NOIDA, UP. THEY INDICATE THA T WHATEVER LITTLE MEANS THAT ASSESSEE HAS, IT IS PERFORMING I TS WORK IN THE DIRECTION OF ITS AIMS AND OBJECTS. THEREFORE, ON AN ANALYSIS OF ALL THESE DETAILS, WE ARE OF THE VIEW THAT FOR THE PURP OSE OF GRANTING REGISTRATION U/S 12A, LD. DIT HAS TO FORM A PRIMA FACIE OPINION AS SUGGESTED BY THE HONBLE KARNATAKA HIGH COURT. THE HONBLE KARNATAKA HIGH COURT HAS AGAIN CONSIDERED T HIS ASPECT IN THE CASE OF SANJEEVAMMA HANUMANTHE GOWDA CHARITA BLE TRUST VS. DIT REPORTED IN 285 ITR 327. THE AIMS A ND OBJECTS OF ITA NOS. 3862,3863/DEL/11 10 THE ASSESSEE ARE PRIME FACIE CHARITABLE IN NATURE. THEREFORE, IT DESERVES A REGISTRATION U/S 12A, WE DIRECT THE LD. DIT TO GRANT REGISTRATION ADMISSIBLE AS PER RULES. NOW WE TAKE ITA NO. 3862/D/2011 6. LD. DIT HAS MADE REFERENCE OF HIS ORDER PASSED U /S 12AA (1)(B) OF THE INCOME TAX ACT. WHEREBY HE REFUSED RE GISTRATION TO THE ASSESSEE U/S 12A. HE MADE A REFERENCE TO THE DECISION OF HONBLE KERALA HIGH COURT RENDERED IN THE CASE OF S ELF EMPLOYERS SERVICE SOCIETY VS. CIT REPORTED IN 247 ITR PAGE 18. ON THE STRENGTH OF THIS DECISION, LD. COMMISSIONER HAS OBSERVED THAT GENUINENESS OF THE ACTIVITIES COULD N OT BE ESTABLISHED BY THE ASSESSEE. WITH THE ASSISTANCE OF LD. REPRESENTATIVE, WE HAVE GONE THROUGH THE RECORD CAR EFULLY. THE REFERENCE MADE TO THE DECISION OF HONBLE KERLA HIG H COURT IN THE CASE OF SELF EMPLOYERS SERVICE SOCIETY IS CONCE RNED, WE FIND THAT HONBLE KARNATAKA HIGH COURT HAS OBSERVED IN THAT CASE THAT LD. COMMISSIONER WHILE EXERCISING HIS JUR ISDICTION U/S 12AA FOR GRANT OF REGISTRATION U/S 12A, HAS TO BE S ATISFIED ALL THE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTS AND GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION. IN T HAT CASE, THE ITA NOS. 3862,3863/DEL/11 11 SOCIETY HAS NOT DONE ANY CHARITABLE WORK DURING THE RELEVANT PERIOD. ON THE OTHER HAND, ACTIVITIES WHICH SOCIETY HAD CARRIED OUT WERE ONLY FOR THE PURPOSE OF GENERATING INCOME FOR ITS MEMBER. ACCORDING TO THE HONBLE HIGH COURT, THERE WAS NO MATERIAL BEFORE THE COMMISSIONER TO BE SATISFIED OF THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTI TUTION. WE FIND THAT SUCH FACTS ARE NOT AVAILABLE IN THE PRESENT CA SE. THE AIMS AND OBJECTS EXTRACTED SUPRA DO INDICATE THAT THEY A RE CHARITABLE IN NATURE. THE ASSESSEE HAS TAKEN STEPS FOR FULFILM ENT THESE OBJECTS. IT HAS PLACED ON RECORD THE DETAILS OF AID S GIVEN BY THE PATIENTS. MOREOVER, THE REGISTRATION GRANTED TO THE ASSESSEE COULD BE WITHDRAWN IF IT WAS FOUND THAT IT IS NOT A CTING IN ACCORDANCE WITH AIMS AND OBJECTS AND CONSEQUENTLY O THER EXEMPTION COULD ALSO BE WITHDRAWN. THUS, IN VIEW OF OUR FINDING IN ITA NO. 3863/DEL/11 I.E IN THE CASE OF GRANT O F REGISTRATION U/S 12A, WE ARE OF THE VIEW THAT ACTIVITIES ARE OF CHARITABLE NATURE. IT IS A GENUINE TRUST. IT DESERVES TO AN E XEMPTION U/S 80G ALSO, SO THAT IT CAN RECEIVE MAXIMUM AIDS AND D ONATIONS. OTHERWISE, NO PERSON WOULD LIKE TO EXTEND THE BENEF IT TO AN INSTITUTION WHO DOES NOT ENJOY REGISTRATION U/S 80 G. ITA NOS. 3862,3863/DEL/11 12 7. IN THE RESULT, WE ALLOW BOTH THE APPEALS AND DIR ECT THE LD. DIT TO GRANT REGISTRATION U/S 12A AS WELL AS U/S 80 G (5) OF THE INCOME TAX ACT 1964. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DECEMBER, 2011. SD/- SD/- [G.E.VEERABHADRAPPA] [RAJPAL YADAV] PRESIDENT JUDICIAL MEMBER DATED: 2.12.2011 VEENA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES