Sushila Devi Foundation, Meerut V. CIT, Meerut

ITA 4226/DEL/2010

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91281 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-07-2015
• Assessment Year: misc
• Appeal Filed On: 14-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS ACIT
• Section: 12AA

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL IN (DELHI BENCH G NEW DELHI) BEFORE SHRI D. MANMOHAN , VICE PRESIDENT AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 4226/DEL/2010, A.Y. : SUSHILA DEVI FOUNDATION 363/1, KHANDAK BAZAR, MEERUT VS. CIT MEERUT PAN : AAHTS9294H (APPELLANT) (RESPONDENT) APPELLANT BY : SH. VINOD KUMAR GOEL, ADV. RESPONDENT BY : SH. J.S.MINHAS, ACIT DR DATE OF HEARING : 02/07/2015 DATE OF PRONOUNCEMENT :02/07/2015 ORDER PER N.K.SAINI, A. M. : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER DATED 27.08.2010 OF CIT(A), MEERUT. 2. ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE REJECTION OF APPLICATION MOVED FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS TH E ACT). 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESS EE SOCIETY WAS ESTABLISHED ON 29.07.2008 AND FILED THE APPLICATION ON 24.02.2010 FOR THE REGISTRATION U/S 12AA OF THE ACT. THE LD. C IT(A) OBSERVED ITA NO. 4226 / DEL/2010 2 THAT THE OBJECTS OF THE SOCIETY WERE MAINLY EDUCATI ONAL BUT THE ACTIVITIES OF THE SOCIETY HAD NOT YET BEEN COMMENCE D. HE ALSO OBSERVED THAT THE ASSESSEE FOR THE FINANCIAL YEAR 2 008-09 HAS SHOWN A VERY NOMINAL AMOUNT OF RS. 20,500/- UNDER T HE HEAD CONCESSION AND FREE AID AND FOR THE FINANCIAL YEAR 2007-08, THE ASSESSEE HAD SHOWN TOTAL RECEIPTS OF RS. 22,000/- O UT OF WHICH EXPENSES OF RS. 5,616/- AND RS. 2,632/- HAD BEEN SH OWN UNDER THE HEAD AUDIT FREE AND TEA & REFRESHMENT RESPECTIVELY. THE LD. CIT OBSERVED THAT THE ASSESSEE HAD NOT INCURRED ANY EXP ENDITURE ON CHARITABLE ACTIVITIES AND ACCORDINGLY REJECTED THE APPLICATION MOVED BY THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. 4. BEING AGGRIEVED THE ASSESSEE IS IN APPEAL. TH E LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE OBJECTS OF THE ASSE SSEE SOCIETY ARE CHARITABLE IN NATURE AND EVEN THE LD CIT ADMITTED THAT THE ASSESSEE HAD INCURRED EXPENSES AMOUNTING TO RS. 20,500/- UND ER THE HEAD CONCESSION AND FREE AID, THEREFORE, THE REJECTION O F APPLICATION MOVED FOR REGISTRATION U/S 12AA OF THE ACT WAS NOT JUSTIFIED. IN HIS RIVAL SUBMISSIONS, THE LD DR STRONGLY SUPPORTED THE ORDER OF THE LD CIT. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON TH E RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LD. CIT AT THE ONE HAND STATED ITA NO. 4226 / DEL/2010 3 THAT THE ASSESSEE HAD SHOWN NOMINAL AMOUNT OF RS. 2 0,500/- UNDER THE HEAD CONCESSION AND FREE AID (WHICH IS ONE OF T HE OBJECT OF THE ASSESSEE SOCIETY) AND ON THE OTHER HAND HE STATED T HAT THE ASSESSEE HAD NOT INCURRED ANY EXPENDITURE ON CHARITABLE ACTI VITIES. THE AFORESAID OBSERVATION OF THE LD. CIT(A) IS CONTRADICTORY. IN THE PRESENT CASE, THE LD. C.I.T. HAD NOT DISCUSSED AS TO HOW AND WHY THE OBJECTS OF THE ASSESSEE ARE NOT CHARITABLE IN N ATURE. WE THEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THIS IS SUE BACK TO THE FILE OF THE LD. CIT TO BE ADJUDICATED AFRESH IN ACCORDAN CE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PUR POSES. (ORDER PRONOUNCED IN OPEN COURT ON 2 ND JULY, 2015.) SD/- SD/- (D.MANMOHAN) (N.K .SAINI) VICE PRESIDENT ACCO UNTANT MEMBER DATED 2 ND JULY, 2015 BINITA COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. CIT (ITAT), NEW DELHI. AR, I TAT ITA NO. 4226 / DEL/2010 4 N. DELHI