Jashn-E-Bahar, New Delhi V. DIT(E), New Delhi

ITA 4139/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5679 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-02-2010
• Assessment Year: misc
• Appeal Filed On: 21-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JA KHAN
• Assessee Lawyers: SEKHON
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 4139/DEL/2009 JASHAN-E-BAHAR, 50, S.F.S. APARTMENTS, GAUTAM APARTMENTS, GAUTAM NAGAR, NEW DELHI. VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), 3 RD FLOOR, AAYKAR BHAWAN, DISTT. CENTRE LAXMI NAGAR, DELHI (APPELLANT) (RESPONDENT) PAN : AAATJ 2898 P APPELLANT BY : SH. M.S. SEKHON , CA RESPONDENT BY : SH. J.A. KHAN, SR. DR O R D E R PER: C.L. SETHI, J.M. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 22.09.2009 PASSED BY THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS) IN R ESPECT OF THE ASSESSEES APPLICATION FOR SEEKING EXEMPTION APPROV AL U/S. 80G OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS UNDER:- 1. THAT THE LEARNED DIRECTOR OF INCOME TAX (EXEMPTIONS) DELHI, HAS ERRED IN DECLINING TO GRA NT RENEWAL OF EXEMPTIONS UNDER SECTION 80G OF THE INCO ME TAX ACT, 1961, BEYOND 31.03.2008. 2. THAT THE ORDER OF THE LEARNED DIT (EXEMPTIONS) IS BAD IN LAW AND ON THE FACTS OF THE CASE; AND ITA NO. 4139/DEL/2009 PAGE 2 OF 3 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR WITHDRAW ANY OF THE GROUNDS OF APPE AL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. 4. THE DIT (EXEMPTIONS) HAS REJECTED THE ASSESSEES APPLICATION FOR RENEWAL OF EXEMPTION U/S. 80G OF THE ACT BY OBSERVI NG AS UNDER:- 2. ON 03.09.2009, A REPLY WAS RECEIVED AT DAK COUNTER VIDE LETTER DATED 04.09.2009. ANOTHER LETT ER DATED 07.09.2009 WAS SENT TO THE APPLICANT FOR COMPLIANCE ON 16.09.2009. ON 16.09.2009, A REPLY W AS RECEIVED AT DAK COUNTER VIDE LETTER DATED 16.09.200 9. 3. FURTHER THE EXAMINATION FO THE ACCOUNTS FOR THE F.Y. 2007-08 FILED BY THE ASSESSEE REVEALS THAT THE ASSESSEE HAS CHARGED THE RECEIPTS AMOUNTING TO RS. 12,71,758/- UNDER THE HEADS RECEIPTS OF MUSHAIRA. THIS DETAILS CLEARLY SHOWS THAT THE ACTIVITY OF THE ASSE SSEE IS PURELY SOCIAL ACTIVITY WHICH DOES NOT COMES WITHIN THE MEANING OF PROVISION TO THE SECTION 2(15) OF THE IT ACT. THE ASSESSEE ALSO FAILED TO PRODUCE EVIDENCE TO SUBSTANTIATE THAT THE SOCIETY IS CARRYING OUT ANY CHARITABLE ACTIVITY. 4. IN SUM AND SUBSTANCE, IT IS MENTIONED THAT THE ACTIVITY OF THE ASSESSEE ARE ENGAGED IN SOCIAL ACTIVITY AND FAILED TO JUSTIFY THEIR CLAIM FOR EXEMPTION U/S . 80G. IN VIEW OF THE FORGOING FACTS, CLAIM OF ASSESSEE FO R RENEWAL OF EXEMPTIONS U/S. 80G IS HEREBY REJECTED. 5. ON PERUSAL OF THE DITS ORDER, IT IS SEEN THAT T HE ASSESSEE FILED ITS REPLY VIDE LETTER DATED 16.09.2009, WHICH WAS RECEI VED BY THE DIT (EXEMPTIONS) ON 16.09.2009. THEREAFTER, NO PERSONA L HEARING WAS TAKEN PLACE. THE DIT (EXEMPTIONS) HAS DECIDED THE ISSUE WITHOUT FIXING THE CASE FOR FURTHER PERSONAL HEARING. WE, THEREFORE, FIND IT FIT TO RESTORE THE MATTER BACK TO THE DIT (EXEMPTIONS) FOR HIS FRESH A DJUDICATION AFTER ITA NO. 4139/DEL/2009 PAGE 3 OF 3 CONSIDERING ALL THE MATERIALS ON RECORD AND THE PRO VISIONS OF LAW CONTAINED IN THAT BEHALF. THE ASSESSEE SHALL PRODU CE ALL NECESSARY DOCUMENTS AND DETAILS BEFORE THE DIT (EXEMPTIONS) I N SUPPORT OF ITS APPLICATION FOR RENEWAL OF EXEMPTION U/S. 80G OF TH E ACT. THE DIT (EXEMPTIONS) SHALL PROVIDE REASONABLE OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE, AND AFTER CONSIDERING THE ASSESSEES SUBM ISSION AND OTHER EVIDENCES, DIT (EXEMPTIONS) SHALL PASS A SPEAKING A ND REASONED ORDER. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS STATED TO BE ALLOWED FOR STATISTICAL PURPOSE. 7. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT I MMEDIATELY AFTER THE HEARING WAS OVER ON 11 TH FEBRUARY, 2010. SD/- ( SHAMIM YAHYA) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 11 TH FEBRUARY, 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR