SADHYA HEALTH FOR ALL SOCIETY, Jaipur V. CIT-II, Jaipur

ITA 459/JPR/2011

• Counselvise Citation: 45923114 RSA 2011
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 16-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA

Judgement Text

1 ITA 459(2)-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 459 & 458/JP/2011 SADHYA HEALTH FOR ALL SOCIETY, VS. THE COMMISSIONE R OF INCOME-TAX-II, 3-B RSEB COLONY, VAISHALI NAGAR, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHRAWAN KUMAR GUPTA RESPONDENT BY : SHRI SUNIL MATHUR DATE OF HEARING : 19.01.2012. DATE OF PRONOUNCEMENT : 30.01.2012 ORDER DATE OF ORDER : 30/01/2012. PER R.K. GUPTA, J.M. THESE ARE TWO APPEALS BY ASSESSEE AGAINST THE ORDE R OF LD. CIT WHO REJECTED THE APPLICATION UNDER SECTION12AA AND 80G FILED BY THE ASSESSEE. 2. THE LD. CIT REJECTED THE APPLICATION UNDER SECTI ON 12AA AS WELL AS APPLICATION UNDER SECTION 80G BY OBSERVING THAT ON GOING THROUG H THE DOCUMENTS SUBMITTED BY THE TRUST/SOCIETY IT WAS FOUND THAT SOCIETY HAS SHOWN T O HAVE SPENT SOME AMOUNT ON CHARITABLE ACTIVITIES IN FINANCIAL YEAR 2009-10. I T HAS SPENT RS. 1720/- IN THE NAME OF ORGANIZING SOME MEDICAL CAMP ETC. HOWEVER, IT IS N OTICED THAT THE SOCIETY HAS SHOWN MAJOR EXPENSES ON ACCOUNT OF BUILDING RENT I.E. RS. 25,000/- FOR 3 MONTHS FOR PREMISES SITUATED AT 6/94, VIDHYADHAR NAGAR, JAIPUR OUT OF T OTAL EXPENDITURE OF RS. 36,570/-. IT WAS 2 ALSO FOUND THAT IN THE PREMISES FOR WHICH RENT WAS PAID, BUSINESS IN THE NAME OF M/S. SUMAN PHARMA WAS GOING ON. RENT WAS PAID TO SHRI V INAY RAJ GUIPTA WHO IS FATHER OF MS. ANJALI GUPTA THE PRESIDENT OF SOCIETY. IT WAS NOT PROVED THAT HOW THIS EXPENDITURE WAS NECESSARY FOR CARRYING OUT CHARITABLE ACTIVITIE S AS PER OBJECTS. OUT OF TOTAL EXPENDITURE OF RS. 36,570/-, THE SPENT MERELY RS. 1 720/- ON THE SAID CHARITABLE ACTIVITIES. 3. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD, WE FIND THAT UNDISPUTEDLY THE ASSESSEE HAS STARTED CHARITAB LE ACTIVITIES. THE LD. CIT HAS CONSIDERED THE FINANCIAL ACCOUNT UPTO 31.3.2010. H OWEVER, HE HAS NOT TAKEN INTO CONSIDERATION THE ACTIVITIES DONE UPTO THE DATE OF ORDER PASSED BY HIM. INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED ON 15 TH FEBRUARY, 2011 IS PLACED ON RECORD AND IT IS SEEN THAT ASSESSEE HAS INCURRED EXPENDITURE ON A CCOUNT OF MEDICINE FOR HEALTH CAMP AT RS. 1626/-, CONVEYANCE EXPENSES RS. 725/-, TENT EXP ENSES RS. 270/-, PRINTING AND STATIONERY RS. 1450/-, MISCELLANEOUS EXPENSES RS. 2 85/-. DONATION HAS BEEN RECEIVED BY ASSESSEE AT RS. 19,800/- AND THROUGH DONATION BOX F URTHER DONATION HAS BEEN RECEIVED AT RS. 264/-. IT IS FURTHER SEEN THAT ASSESSEE HAS ST ARTED HEALTH ACTIVITIES AND VARIOUS CAMPS WERE ORGANIZED BY PUTTING TENTS ETC. PHOTOGRAPHS O F THE SAME ARE PLACED ON RECORD. THE MAIN OBJECTION OF LD. CIT WAS THAT ASSESSEE HAS PAI D RENT @ RS. 5000/- PER MONTH. THE RENT @ RS. 5000/- PER MONTH WAS PAID ONLY FOR THREE MONTHS AND THEREAFTER THE ASSESSEE TRUST IS PAYING RENT @ RS. 1000/- PER MONTH ONLY AN D THE LD. CIT HIMSELF ADMITTED THAT FEW ACTIVITIES OF CHARITABLE NATURE HAS BEEN DONE B Y ASSESSEE. WHETHER FEW ACTIVITIES OF CHARITABLE NATURE OR LARGE SCALE DOES NOT CURTAIL T HE RIGHT OF THE ASSESSEE FOR GETTING REGISTRATION UNDER SECTION 12AA. MOST AND FOREMOST OBLIGATION OF THE ASSESSEE IS THAT OBJECT OF THE TRUST SHOULD BE CHARITABLE IN NATURE AND THERE IS NO DISPUTE IN THIS REGARD. 3 THE ASSESSEE TRUST HAS STARTED CHARITABLE ACTIVITIE S AND VOLUMINOUS DETAILS IN RESPECT OF CHARITABLE ACTIVITIES WERE FILED BEFORE LD. CIT. C OPIES OF WHICH ARE PLACED ON RECORD. FROM ALL THESE DETAILS, IT IS CLEARLY ESTABLISHED T HAT ASSESSEE HAS STARTED CHARITABLE ACTIVITIES, OBJECTS OF THE TRUST ARE ALSO CHARITABL E IN NATURE AND THERE IS NO DISPUTE. IN VIEW OF THESE FACTS AND CIRCUMSTANCES, WE HOLD THAT ASSESSEE TRUST IS ENTITLED FOR GETTING REGISTRATION UNDER SECTION 12AA. ACCORDINGLY WE DI RECT THE LD. CIT TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT AS APPLIED. 4. SINCE WE HAVE ALLOWED APPEAL FOR GRANTING REGIST RATION UNDER SECTION12AA, THEREFORE, WE DIRECT THE LD. CIT TO GRANT APPROVAL UNDER SECTION 80G ALSO AFTER VERIFYING THE FACTS THAT CONDITIONS ARE SATISFIED FOR GRANTIN G REGISTRATION UNDER SECTION 80G OF THE ACT. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30. 01.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- SADHYA HEALTH FOR ALL SOCIETY, JAIPUR. THE CIT-II, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 459(2)/JP/2011) BY ORDER, AR ITAT JAIPUR. 4