M/s Samagra Manav Samiti, Agra V. C.I.T.-II, Agra

ITA 418/AGR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0366 (ITAT-AGRA)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2013
• Assessment Year: misc
• Appeal Filed On: 27-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Additional evidence
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.418/AGR/2012 SAMAGRA MANAV SEVA SAMITI, VS. COMMISSIONER OF IN COME TAX-II, (PREVIOUSLY KNOWN AS MANAV SEVA AGRA. SAMITI), 10, SAURABH NAGAR, DAYALBAGH, AGRA. (PAN : AADTM 0003 E). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAHIB P. SATSANGEE, C.A. RESPONDENT BY : SHRI WASEEM ARSHAD, SR. D.R. DATE OF HEARING : 19.02.2013 DATE OF PRONOUNCEMENT : 28.02.2013 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28.06.2012 PASSED BY THE LD. CIT-II, AGRA 2. THE GROUNDS RAISED BY THE ASSESSEE IN ITS APPEA L ARE AS UNDER :- 1. BECAUSE THE LEARNED CIT IN THE FACTS AND THE CI RCUMSTANCES OF, AND THE LAW APPLICABLE TO, THE CASE HAS ERRED IN RE JECTING THE APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME 2 ITA NO.418/AGR/2012 TAX ACT, 1961 TO THE SOCIETY. THE REGISTRATION UND ER SECTION 12AA DESERVES TO BE GRANTED. 2. BECAUSE THE SATISFACTION UNDER THE ACT HAS TO BE JUDICIAL SATISFACTION AND NOT PERSONAL. THE SATISFACTION OF THE LEARNED CIT IS NOT JUDICIAL IN THE CASE UNDER CONSIDERATION AND HE NCE THE SOCIETY DESERVES THE GRANT OF REGISTRATION. 3. BECAUSE THE LEARNED CIT HAS ERRED TO REJECT APPL ICATION OF REGISTRATION UNDER SECTION 12AA ON WRONG PREMISES S O MUCH SO THAT HE HAS TRIED TO VERIFY THE ACTIVITIES INSTEAD OF OB JECTS WHICH IS THE REQUIREMENT OF THE STATUTE. THE REGISTRATION DESER VES TO BE GRANTED. 4. BECAUSE WHAT IS REQUIRED TO BE CONSIDERED WHILE DISPOSING OFF THE APPLICATION UNDER SECTION 12AA BY THE LEARNED C IT IS WHETHER TRUST OR INSTITUTION IS A CHARITABLE ONE OR HAVING CHARITABLE PURPOSES. ONCE THE OBJECTS ARE CHARITABLE THE LEARNED CIT HAS NO OPTION BUT TO REGISTER THE SAME UNDER SECTION 12AA AND HENCE ALSO THE SOCIETY DESERVES TO BE REGISTERED. 5. BECAUSE WITHOUT PREJUDICE TO THE FOREGOING GROUN DS OF APPEAL AND IN THE ALTERNATIVE NO ADEQUATE OPPORTUNITY WAS GRANTED TO THE APPELLANT AND THE ORDER OF THE CIT DESERVES TO BE S ET ASIDE. 6. BECAUSE THE ORDER PASSED UNDER SECTION 12AA OF T HE INCOME TAX ACT, 1961 DATED 28.06.2012 AT KANPUR IS BAD IN LAW. 3. THE ASSESSEE HAS ALSO RAISED ADDITIONAL GROUND W HICH READS AS UNDER :- (I) BECAUSE THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED ON FACTS AND IN LAW IN REJECTING THE GRANT OF THE APPL ICATION UNDER SECTION 12AA IGNORING THE FACT THAT THE TRUST IS NOT MADE F OR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY. (II) BECAUSE THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED ON FACTS AND IN LAW IN REJECTING THE GRANT OF THE APPL ICATION UNDER SECTION 12AA WITHOUT CONDUCTING ANY ENQUIRY INTO THE MATTER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE ASSE SSEE. 3 ITA NO.418/AGR/2012 4. THE ASSESSEE HAS ALSO FURNISHED CERTAIN ADDITION AL EVIDENCES REGARDING RUNNING OF A CHARITABLE DISPENSARY AND A BAL KENDER SCHOOL WHICH HAVE BEEN PLACED ON RECORD. IT WAS REQUESTED TO ADMIT THE SA ME AS NO SUFFICIENT OPPORTUNITY WAS GIVEN BY THE CIT. 5. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. THE LD. DEPARTMENTAL REPRESENTATIVE DID NOT OBJECT IN ADMITTING THE ADDITIONAL GROUNDS AS THE EFFECTIVE GROUND IS IN RESPECT OF RE JECTION OF ASSESSEES APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) AND THE ADDITIONAL GROUND RAISED IS RELATED TO THE SAME ISSUE. HE DID NOT MAKE OBJECTION IN ADMITTING THE ADDITIONAL EVIDENCES ALSO. IN THE INTEREST OF JUSTICE, WE ADMIT THE ADDITIONAL GROUNDS RAISED AS WELL AS THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE. 6. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON 1 2.12.2011. THE CIT REJECTED THE ASSESSEES APPLICATION FOR REGISTRATION UNDER S ECTION 12AA OF THE ACT ON THE GROUND THAT THERE IS A CHANGE IN THE NAME FROM MAN AV SEVA SAMITI TO SAMAGRA MANAV SEVA SAMITI WITH THE PERMISSION OF THE REGIS TRATION OF SOCIETIES BUT THE SAME HAS NOT BEEN CHANGED IN THE MEMORANDUM OF ASSO CIATION. THE CIT WHILE EXAMINING THE OBJECT OF THE SOCIETY NOTICED THAT TH E SOCIETY HAS BEEN ESTABLISHED FOR 4 ITA NO.418/AGR/2012 THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY I.E . FOLLOWERS OF THE RADHASOAMI FAITH. THE ASSESSEES CASE IS THUS HIT BY PROVISIO NS OF SECTION 13(1)(B) OF THE ACT. THE CIT ALSO NOTICED THAT THE ASSESSEE HAS NOT FILE D BALANCE SHEET AND INCOME & EXPENDITURE ACCOUNT AND THERE IS NO ANY EVIDENCE OF ANY CHARITABLE ACTIVITIES. 7. AS REGARDS THE DISPUTE FOR A PARTICULAR RELIGIOU S COMMUNITY, THE LD. AUTHORIZED REPRESENTATIVE RELIED UPON THE FOLLOWING DECISIONS :- (I) DAWOODI BOHRA JAMAT VS. CIT, 123 ITD 452 (INDOR E) (II) CIT VS. DAWOODI BOHRA JAMAT, 317 ITR 342 (M.P. ) (III) MATLIWALA RELIEF TRUST VS. CIT, ITA NO.548/AH D/2006 DATED 05.02.2010 (IV) SHIKSHA SANKALP SOCIETY VS. CIT, 23 TAXMAN 152 (AGRA) (V) SMT. BIMLA DEVI GOPAL PRASAD PRESS WALE CHARITA BLE TRUST VS. CIT, ITA NOS.288 & 289/AGR/2012 DATED 23.11.2012. (VI) GURUSIKH EDUCATION SOCIETY VS. CIT, ITA NO.361 5/DEL/2012 DATED 05.12.2012. (VII) MALIK HASMULLAH ISLAMIC EDUCATION & WELFARE S OCIETY VS. CIT, ITA NO.735/LKW/2011 DATED 03.07.2012. (VIII) AGGARWAL MITRA MANDAL TRUST VS. DIT, 106 ITD 531 (DEL.) (IX) AHMEDABAD RANA CASTE ASSOCIATION VS. CIT, 82 I TR 704 (SC) (X) BHANDARY SEVA SAMITHI VS. DIT, ITA NO.5487/MUM/ 2010 DATED 25.10.2011 (XI) CIT VS. RADHASWAMI SATSANG SABHA, 25 ITR 472 ( ALL.) 8. AS REGARDS GENUINENESS OF THE ACTIVITIES, THE LD . AUTHORISED REPRESENTATIVE SUBMITTED THAT NECESSARY DIRECTION MAY BE GIVEN TO THE CIT TO CONSIDER ASSESSEES REQUEST FOR GRANTING REGISTRATION UNDER SECTION 12A A OF THE ACT W.E.F. THE DATE WHEN THE ACTIVITIES HAS BEEN STARTED BY THE SAMITI. 5 ITA NO.418/AGR/2012 9. AS REGARDS OBSERVATION OF THE CIT IN RESPECT OF SECTION 13(1)(B) OF THE ACT, THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT WH ILE GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT, EXAMINATION OF CONDITION O F SECTION 13(1)(B) IS NOT A REQUIREMENT. 10. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PA RTIES AND RECORDS PERUSED. WE FIND FORCE IN THE SUBMISSIONS OF THE LD. AUTHORI SED REPRESENTATIVE. HOWEVER, IN VIEW OF THE ADDITIONAL GROUNDS RAISED AND ADDITI ONAL EVIDENCES FILED, WE FIND THAT OPPORTUNITY TO CIT IS NECESSARY FOR RECORDING THE R ELEVANT FACTS AFTER NECESSARY EXAMINATION. WE, THEREFORE, SEND BACK THE MATTER T O THE FILE OF CIT WITH THE DIRECTION TO EXAMINE THE ASSESSEES CASE IN RESPECT OF OBJECTS OF THE SAMITI AND GENUINENESS OF THE ACTIVITIES IN ACCORDANCE WITH LA W AND PROVISIONS OF SECTION 12AA OF THE ACT. THE CIT WILL DECIDE THE ISSUE IN ACCORDANCE WITH LAW, KEEPING IN CONSIDERATION THE ABOVE SUBMISSIONS AND ADDITION AL EVIDENCES MADE BEFORE US AND AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARI NG TO THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER PBN/* 6 ITA NO.418/AGR/2012 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY