Child Health Foundation, New Delhi V. DIT (Exemptions), New Delhi

ITA 4508/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53415 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-12-2011
• Assessment Year: misc
• Appeal Filed On: 10-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B S SISTANI
• Keywords: Corroborative evidences
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER I.T.A.NOS. 4508, 4509/DEL/2011 ASSESSMENT YEAR : - CHILD HEALTH FOUNDATION VS. DIT (EXEMPTION) C/O DR. PANNA CHAUDHRY, PLOT NO. 15, 3 RD FLOOR, D-11, M-2753, NETAJI NAGAR AAYAKAR BHAWAN, NEW DELHI 110 023. LAXMI NAGAR, NEW DELHI. AABTC1888M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.S. SISTANI , CA RESPONDENT BY : SHRI ROHIT GARG, SR . DR ORDER ORDER ORDER ORDER PER U.B.S. BEDI, J.M. PER U.B.S. BEDI, J.M. PER U.B.S. BEDI, J.M. PER U.B.S. BEDI, J.M. THESE TWO APPEALS OF THE ASSESSEE ARE DIRECTED AGAINST TH E ORDER PASSED BY DIRECTOR OF INCOME TAX (EXEMPTION) DA TED 27 TH JULY, 2011 WHEREBY ASSESSEES APPLICATIONS SEEKING REGISTRATION U /S 12A AND EXEMPTION U/S 80G OF THE INCOME TAX ACT HAVE BEE N REJECTED. 2. FACTS INDICATE THAT ASSESSEE FILED TWO APPLICATIONS ON 12 TH JANUARY, 2011 IN FORM NO, 10A AND 10G FOR SEEKING RE GISTRATION U/S 12A AND EXEMPTION U/S 80GOF THE INCOME TAX ACT RESPE CTIVELY. THE APPLICANT WAS ISSUED A LETTER DATED 28 TH JANUARY, 2011 REQUESTING THEREIN TO SUBMIT THE FOLLOWING DOCUMENTS / EXPLANATI ON ON 15.2.2011 : I) JUSTIFY WITH THE BILLS/VOUCHERS OF THE INCOME APPLI ED FOR CHARITABLE ACTIVITIES ALONG WITH PROOF OF BENEFICIAR IES. ITA NOS. 4508,4509/DEL/11 ASSTT. YEAR - 2 II) PLEASE FILE THE UNDERTAKING THAT THERE SHALL BE N O INFRINGEMENT TO THE PROVISO TO THE SECTION 2(15) OF T HE IT ACT. III) NO OBJECTION CERTIFICATE FROM THE LANDLORD ALO NG WITH THE PROOF OF OWNERSHIP/OCCUPANCY. IV) COPY OF ACCOUNTS FOR THE PERIOD SINCE THE INCEPTI ON OF THE TRUST / SOCIETY OR LAST 5 YEARS DURING WHICH THE TRUST HAS BEEN IN EXISTENCE. V) A NOTE ON ACTIVITIES CARRIED OUT SINCE INCEPTION / LAST 1/2/3/4 YEARS WITH SUPPORTING DOCUMENTARY EVIDENCE. VI) PLEASE JUSTIFY YOUR CLAIM OF REGISTRATION U/S 12A & EXEMPTION U/S 80G VII) PLEASE FURNISH THE DETAILS OF DONATION INCLUDING CORPUS DONATIONS RECEIVED & MADE GIVING NAME, ADDRESS, PAN OF DONORS VIII) PLEASE FURNISH CONTACT NO. & E.MAIL ADDRESS OF TH E APPLICANT & ITS MEMBERS IX) COPY OF I.T. RETURNS LAST ASSESSMENT YEARS X) ORIGINAL MOA & REGISTRATION CERTIFICATE FROM REGI STRAR/TRUST DEED FOR VERIFICATION. 3. LD. DIRECTOR OF INCOME TAX (EXEMPTION) NOTED IN THE IMPUGNED ORDER THAT THE ASSESSEE HAD SUBMITTED CERTAIN DOCUMENTS I N HIS OFFICE WHICH ARE INCOMPLETE IN NATURE AND ARE NOT SUPPORTED BY THE EVIDENCE REGARDING ACTIVITY OF THE TRUST AND PASSED TH E ORDER TO REJECT REGISTRATION APPLICATION AS WELL AS APPLICATION FOR EX EMPTION U/S 80G AS PER PARA 3 & 4 OF HIS ORDER WHICH IS REPRODUCED HE REUNDER :- 3. ON PERUSAL OF THE DOCUMENTS SUBMITTED IN THIS OFFIC E IT IS FOUND THAT ONE OF THE MAIN OBJECTIVES OF THE SOCIETY IS TO ESTABLISH / START / RUN / TAKEOVER / MANAG E /MAINTAIN SCHOOLS. THERE IS NO PROOF OR DOCUMENTS TO SHOW WHETHER THE SOCIETY IS ACTUALLY RUNNING ANY SCHOOL OR TAKEN ANY PERMISSION FROM THE COMPETENT ITA NOS. 4508,4509/DEL/11 ASSTT. YEAR - 3 AUTHORITY TO ESTABLISH A SCHOOL. IN THE ABSENCE OF DOCUMENTARY EVIDENCES, THE GENUINENESS OF THE CLAIM REGARDING CHARITABLE ACTIVITIES COULD NOT BE ESTABLISHED. THIS IS ONE OF THE CONDITIONS FOR GRANTING REGISTRATION U/S 12A OF THE I.T. ACT. ACCORDINGLY, TH E APPLICATION FILED BY THE APPLICANT FOR GRANT OF REGISTRATION U/S 12A IS HEREBY REJECTED. 4. SINCE THE APPLICANT IS NOT REGISTERED U/S 12A(A) OF THE INCOME TAX ACT 1961, ITS APPLICATION IN FORM NO. 10G SEEKING EXEMPTION U/S 80G IS ALSO REJECTED. 4. IN APPEAL AGAINST SUCH ORDER LD. COUNSEL FOR THE ASSE SSEE WHILE FURNISHING COPIES OF ALL THE DOCUMENTS FURNISHED BEFORE THE DIRECTOR (EXEMPTIONS), STRONGLY PLEADED THAT ERSTWHILE DIRECTOR OF INCOME TAX (EXEMPTION) HAS NOT GIVEN ANY DETAIL ABOUT INCOMPLET E DOCUMENTS NOR HAS GIVEN THE DETAIL ABOUT THE SUPPORTIVE EVIDENC E WHICH WAS SOUGHT REGARDING ACTIVITY OF THE TRUST AND HE HAS ALSO NOT GIVEN ANY OPPORTUNITY, IF THERE WAS INCOMPLETENESS OF ANY EVIDEN CE ,WHAT WAS THAT AND WHAT WAS THE DETAIL OF THE EVIDENCE TO SUPPO RT THE ACTIVITY OF THE TRUST, WHETHER IT IS GENUINE TRUST WHEREAS THE MATE RIAL WHICH WAS ASKED FOR HAS BEEN SUBMITTED AND FURTHER EVIDENCE COUL D ALSO BE SUBMITTED IN CASE THERE WAS SPECIFIC DEMAND IN THIS REGA RD. THEREFORE, IT WAS PLEADED THAT ASSESSEES TRUST IS GENUINE TRUST, DOING CHARITABLE WORK AND AS SUCH IS ENTITLED TO REGISTRATION AS WELL AS EXEMPTION. THEREFORE, SAME MAY BE GRANTED. 5. LD. DR SUBMITTED THAT ALL THE DOCUMENTS WERE NOT F ILED NOR ANY SUPPORTING EVIDENCE WAS FURNISHED REGARDING NATURE OF THE ACTIVITY OF ITA NOS. 4508,4509/DEL/11 ASSTT. YEAR - 4 THE TRUST SO THE LD. CIT(A) HAS RIGHTLY REJECTED BOTH THE APPLICATIONS OF THE ASSESSEE WHOSE ACTION SHOULD BE CONFIRMED. 6. WE HAVE HEARD BOTH THE SIDES AND CONSIDERED THE MAT ERIAL ON RECORD AND FIND THAT ONE OPPORTUNITY WAS GIVEN TO TH E ASSESSEE TO FURNISH CERTAIN DOCUMENTS AND EXPLANATION WHICH ARE ST ATED TO HAVE BEEN FURNISHED BEFORE THE DIRECTOR (EXEMPTION) BUT B EFORE REJECTING THE APPLICATIONS OF THE ASSESSEE, NO FURTHER OPPORTUNITY HAS BEEN GIVEN IF THERE WAS ANY DEFICIENCY IN THE DOCUMENTS / EXPLANATION FURNISHED. THEREFORE, IN THE INTEREST OF JUSTICE AND TO HAVE FAIR PLAY IN THE MATTER WE FIND IT JUST AND APPROPRIATE TO SET ASID E THE ORDER OF DIRECTOR OF INCOME TAX (EXEMPTIONS) AND RESTORE THE MATTER BACK ON HIS FILE WITH THE DIRECTION TO REDECIDE THE APPLICAT IONS OF ASSESSEE AFRESH AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. 7. IN THE RESULT THE APPEALS ARE ALLOWED FOR STATISTICA L PURPOSE. ORDER PRONOUNCED SOON AFTER THE CONCLUSION OF HEARIN G ON 13.12.2011. SD/- SD/- (A.N. PAHUJA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : 13.12.2011 VEENA ITA NOS. 4508,4509/DEL/11 ASSTT. YEAR - 5 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER DEPUTY REGISTRAR, ITAT