Jodhpur Bhansali Bhaipa Sansthan, JODHPUR V. CIT-II, JODHPUR

ITA 434/JODH/2013

• Counselvise Citation: 43423314 RSA 2013
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 19-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI
• Assessee Lawyers: ANIL BHANSALI
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL : JODHPUR BENC H : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO.434/JODH/2013 [UNDER SECTION 80G(5)(VI)] JODHPUR BHANSALI BHAIPA SANSTHAN, VS. CIT-II, 672, SARDARPURA, JODHPUR. 12/C ROAD, JODHPUR. PAN NO. AABAJ1930A ASSESSEE BY : SHRI ANIL BHANSALI DEPARTMENT BY : SHRI N.A. JOSHI- D.R. DATE OF HEARING : 17/09/2013. DATE OF PRONOUNCEMENT : 18/09/2013. O R D E R PER N.K.SAINI, A.M THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R DATED 31/05/2013 OF LD. CIT-II, JODHPUR. THE FOLLOWING G ROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT, IN THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LEARNED CIT HAS ERRED IN REJECTING THE APPLICATION OF THE APPELLANT FOR GRANT OF EXEMPTION U/S 80G OF THE INCOME-TAX ACT. 2 2. THAT, IN THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LEARNED CIT HAS ERRED IN REJECTING THE APPLICATION ON ACCOUNT OF NO N-APPEARANCE I.E. DISMISSED IN LILMINE. 3. THAT, THE LEARNED CIT HAS ERRED IN REJECTING TH E APPLICATION FOR GRANT OF EXEMPTION U/S 80G IN VIEW OF THE FACT THAT THE A PPELLANT HAS BEEN GRANTED REGISTRATION U/S 12AA BY THE LEARNED CIT HI MSELF AND THE APPELLANT SUBMITTED ALL RELEVANT DETAILS ALONG WITH THE APPLICATION. 4. THAT THE LEARNED CIT HAS ERRED IN HOLDING THAT T HE APPELLANT FAILED TO PRODUCE DOCUMENTS TO ESTABLISH GENUINENESS OF THE A CTIVITIES OF THE APPELLANT. 5. THAT THE APPELLANT CRAVES FOR LEAVE TO ADD, ALTE R, AMEND THE GROUNDS OF APPEAL AT ANY TIME BEFORE THE APPEAL IS FINALLY HEARD. 2 FROM THE ABOVE GROUNDS, IT IS GATHERED THAT THE ON LY GRIEVANCE OF THE ASSESSEE RELATES TO THE REJECTION OF ITS APPLIC ATION FOR GRANT OF EXEMPTION UNDER SECTION 80G OF THE I.T. ACT, 1961 ( HEREINAFTER REFERRED TO AS ACT, FOR SHORT). 3. FACTS OF THE CASE IN BRIEF ARE THAT ASSESSEE FILED AN APPLICATION IN FORM NO. 10G ON 21/11/2012 FOR EXEMPTION UNDER SECT ION 80G(5)(VI) OF THE ACT. LEARNED CIT OBSERVED THAT THE ASSESSEE-TR UST HAD NOT FURNISHED NOTES ON CHARITABLE ACTIVITIES, BOOKS OF ACCOUNTS A ND DETAILS OF DONATIONS RECEIVED. HE ASKED THE ASSESSEE TO FURNISH THE AFO RESAID DETAILS. SINCE, THERE WAS NO COMPLIANCE FROM THE ASSESSEE, LEARNED CIT REJECTED THE APPLICATION. NOW, THE ASSESSEE IS IN APPEAL. 3 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESS EE WAS GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT BY THE L EARNED CIT HIMSELF AND ALL THE RELEVANT DETAILS WERE FURNISHED ALONG WITH THE APPLICATION. THEREFORE, LEARNED CIT WAS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE FAILED TO PRODUCE DOCUMENTS TO ESTABLISH GENUINENES S OF THE ACTIVITIES PARTICULARLY WHEN WHILE GRANTING THE REJECTION UNDE R SECTION 12A OF THE ACT, ALL THE DOCUMENTS WERE PRODUCED BEFORE LEARNED CIT, WHO HIMSELF VERIFIED FROM THOSE DOCUMENTS THAT THE ASSESSEE WAS ENGAGED IN THE CHARITABLE ACTIVITIES SINCE INCEPTION OF THE TRUST AND ALL OTHER DETAILS WERE ALSO VERIFIABLE. THEREFORE, LEARNED CIT OUGHT TO HA VE GRANTED EXEMPTION UNDER SECTION 80G OF THE ACT TO THE ASSESSEE. 5. IN HIS RIVAL SUBMISSIONS, LD. D.R. SUPPORTED THE O RDER OF LEARNED CIT. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RE CORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE REGISTRATION UNDER SECTION 12AA OF THE ACT WAS GRANTED TO THE ASSESSEE BY THE LEARNED CIT. THE SAID REGISTRATION CAN BE GRANTED ONLY WHEN LEARNED CIT I S SATISFIED THAT OBJECTS/ACTIVITIES OF AN INSTITUTION ARE CHARITABLE IN NATURE AND 4 GENUINE. IN THE PRESENCE CASE, THE SAID REGISTRATI ON GRANTED BY THE LEARNED CIT WAS NOT WITHDRAWN, THEREFORE, WHEN THE ACTIVITIES OF THE ASSESSEE WERE CONSIDERED TO BE CHARITABLE IN NATURE WHILE GRANTING THE REGISTRATION UNDER SECTION 12A OF THE ACT THEN ONLY ON THE BASIS OF NON- FURNISHING OF THE NOTES ON CHARITABLE ACTIVITIES, T HE DENIAL OF EXEMPTION UNDER SECTION 80G (5)(VI) OF THE ACT WAS NOT JUSTIF IED. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LEARNED CIT AND DIRECT HIM TO ALLOW THE EXEMPTION SOUGHT BY THE ASSESSEE UNDER SE CTION 80G OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE COURT ON 18 TH SEPTEMBER, 2013). (HARI OM MARATHA) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 18 TH SEPTEMBER, 2013. VR/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE LD.CIT 4. THE CIT(A) 5. THE D.R ASSISTANT REGISTRAR, ITAT, JODHPUR.