M/s Jeevan Dhara Dharuhera (Charitables & Educational Society), Rewari V. CIT, Chandigarh

ITA 4596/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5211 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 25-05-2017
• Assessment Year: misc
• Appeal Filed On: 13-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APOORVA KARAN
• Assessee Lawyers: N P SAHNI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A , NEW DELHI BEFORE SHRI A MIT SHUKLA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 4 596 /DEL/201 5 JEEVAN DHARA DHARUHERA (CHARITABLE & EDUCATIONAL SOCIETY) ASHA KIRAN, NRP BASS ROAD ALAVALPUR, DHARUHERA REWARI PAN: AABTI7687H VS . CIT, CHANDIGARH (APPELLANT) (RESPONDENT) APPELLAN T BY S HRI N.P.SAHNI, ADV. RESPONDENT BY S MT. APOORVA KARAN, CIT(DR) DATE OF HEARING 08 TH AUGUST, 2017 DATE OF PRONOUNCEMENT 14 TH AUGUST, 2017 ORDER PER L.P. SAHU, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DT. 12.5.2015 OF THE LD. CIT( EXEMPTIONS ), CHANDIGARH ON THE FOLLOWING GROUNDS. 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIO NS) CHANDIGARH HAS ERRED IN REJECTING TO GRANT OF APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961 TO THE APPELLANT SOCIETY WHEN THE REGISTRATION U/S 12A OF THE ACT IS STILL VALID AND IN OPERATION. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW , THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH HAS ERRED IN VIOLATING THE PRINCIPAL OF NATURAL JUSTICE BY NOT GIVING THE APPELLANT SOCIETY AN APPROPRIATE OPPORTUNITY OF BEING HEARD LAID DOWN IN RULE 11AA(5) OF THE INCOME TAX RULES 1962 BEFOR E REJECTING THE APPLICATION. ITA NO.4596/DEL/2015 JEEVAN DHARA, DHARUHERA (CHARITABLE AND EDUCATIONAL SOCIETY, REWARI 2 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH HAS MANIFESTLY ERRED IN NOT CONSIDERING THE SUBMISSIONS MADE BY THE APPELLANT SOCIETY VIDE ITS LETTER DATED 22.04. 2015 FILED BEFORE LD. ITO(HQ) CHANDIGARH AND LETTER 28.04.2015 FILED BEFORE LD. ITO (HQ) ROHTAK. 4. THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(E) HAS OSTENSIBLY FAILED TO APPRECIATE THAT THE APPELLANT SOCIETY IS A CHARITABLE OR GANIZATION REGISTERED U/S 12AA OF THE INCOME TAX ACT, 1961 AND HAS DULY COMPLIED WITH ALL THE CONDITIONS LAID DOWN U/S 80(G)(5)(I) TO (V) OF THE INCOME TAX ACT, 1961 FOR GRANT OF APPROVAL U/S 80G OF THE ACT AND OUGHT TO HAVE GRANTED THE APPROVAL. 5. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER IS PASSED IN HASTE AND IS AGAINST THE FACTS, LAW AND PROVISIONS OF THE INCOME TAX ACT, 1961 AND RULES MADE THERE UNDER. 6. FOR THE ABOVE GROUNDS AND ANY OTHER GROUND THAT MAY BE ADDUCED DURING THE APPE AL PROCEEDINGS, IT IS PRAYED THAT THE IMPUGNED ORDER REJECTING THE GRANT OF APPROVAL OF DONATIONS UNDER SEC. 80G TO THE APPELLANT SOCIETY BE QUASHED AND THE CIT(E) BE DIRECTED TO GRANT APPROVAL UNDER SEC. 80G OF THE INCOME TAX ACT. THAT THE APPELLANT CRA VES TO LEAVE TO ADD TO AND J OR AMEND, MODIFY OR WITHDRAW THE GROUNDS OUTLINED ABOVE BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 2. FACTS OF THE CASE IN BRIEF ARE THAT JEEVAN DHARA DHARUHERA, CHARITABLE & EDUCATIONAL SOCIETY (HEREINAFTER REFERRED TO AS THE APPELLANT SOCIETY) IS A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 VIDE REGISTRATION NO. DR/RWR/20 DATED JUNE 21, 2012 (NEW REGISTRATION NO. HR/RWR/2014/00196 DATED 28.03.2014 UNDER TH E HARYANA REGISTRATION AND REGULATIONS OF SOCIETIES ACT, 2012,). THE SOCIETY IS ALSO REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 HAVING REGISTRATION NUMBER 376 - J DATED 19.02.2014 (W.E.F. 01.04.2013) GRANTED BY ITA NO.4596/DEL/2015 JEEVAN DHARA, DHARUHERA (CHARITABLE AND EDUCATIONAL SOCIETY, REWARI 3 LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS), ROHTAK, HARYANA, ON 25.11.2014, THE APPELLANT SOCIETY HAD FILED AN APPLICATION IN FORM 10G FOR THE GRANT OF APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, 1961 ALONG WITH ALL REQUIRED DOCUMENTS AND DETAILS AS PER RULE 11AA OF THE INCOME - TAX RULES 1962 BEFORE THE OFFICE OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) CHANDIGARH. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) CHANDIGARH ISSUED NOTICE TO THE ASSESSEE ON 13.3.2015 . THE ASSESSEE FILED REPLY ALONG WITH FOLLOWING DOCUMENTS. (I) C OPY OF MEMORANDUM OF ASSOCIATION AND RULES & REGULATIONS OF THE SOCIETY; (II) COPY OF PROOF OF REGISTRATION; (III) COPY OF ALL BANK ACCOUNTS FOR THE PERIOD FROM 24.7.2012 TILL MARCH 31, 2015; (IV) COPY OF THE INCOME TAX RETURN FILED BY THE APPELLANT SOCIET Y; (V) COPY OF CERTIFICATE OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (THE ACT). (VI) BOOKS OF ACCOUNTS, VOUCHERS AND COPY OF BANK ACCOUNTS. THE LD. CIT(E) HAS DENIED TO GRANT APPROVAL U/S 80G ON THE BASIS OF THE FOLLOWING FINDINGS. A REPORT W AS CALLED FOR FROM ITO(E), ROHTAK VIDE THIS OFFICE LETTER NO.CIT(E)/CHD/2014 - 15/2465 DATED 13.3.2015. THE ITO(E), ROHTAK VIDE ITS OFFICE LETTER NO.191 DATED 5.5.2015 SENT A REPORT THROUGH JCIT, RANGE 2, CHANDIGARH. THE A.O. AS WELL AS THE JCIT OF IT(E) HAS NOT RECOMMENDED GRANT OF APPROVAL U/S 80G IN THIS CASE. IT HAS BEEN STATED BY THE A.O. IN HIS REPORT DT. 5.5.2015 THAT ALMOST 62 CHILDREN ARE IN THE SOCIETY BUT THE HOUSEHOLD EXPENSES AND SCHOOLING EXPENSES OF THE CHILDREN ARE ONLY AT RS.7.75 LACS FOR THE A.Y. 2014 - 15, WHICH ARE VERY LOW. THE SECRETARY OF THE SOCIETY STATED THAT THE EXPENSES ARE BORNE BY SOME OTHER TRUST DIRECTLY. HOWEVER, THE APPLICANT SOCIETY HAS FAILED TO FURNISH ANY DOCUMENTARY EVIDENCE FOR THE SAME. ITA NO.4596/DEL/2015 JEEVAN DHARA, DHARUHERA (CHARITABLE AND EDUCATIONAL SOCIETY, REWARI 4 4. CONSIDERING THE ABOVE FA CTS AND CIRCUMSTANCES OF THE CASE, THE APPLICATION FOR GRANT OF APPROVAL U/S 80G IS HEREBY REJECTED. 3. LD.AR FOR THE ASSESSEE SUBMITTED A PAPER BOOK BEFORE US CONTAINING PAGE NOS. 1 TO 1 27. HE SUBMITTED THAT THE LD. CIT(E) HAS NOT PROVIDED PROPER OPPORTUNITY TO THE ASSESSEE SOCIETY TO REPRESENT HIS CASE IN RESPECT OF FINDINGS OF THE A.O. HE, THEREFORE, REQUESTED THAT THE MATTER MAY KINDLY BE SENT BACK TO THE FILE OF THE LD. CIT(E). 4. ON THE OTHER HAND LD.DR DREW OUR ATTENTION TO THE LETTERS ISSUED BY LD. CIT(E) TO THE ASSESSEE WHICH IS AT PAGES 76 OF THE PAPER BOOK. FURTHER HE RELIED ON THE ORDER OF LD. CIT(E) AND SUBMITTED THAT THERE WAS NO SUCH ACTIVITY BEING CARRIED OUT BY THE APP ELLANT SOCIETY ON THE BASIS OF WHICH REGISTRATION CAN BE GRANTED U/S 80G(5) OF THE ACT. HE SUBMITTED THAT THE ASSESSEE SOCIETY HAS NOT FULFILLED THE CONDITIONS AS ENUMERATED UNDER SECTION 80G(5) OF THE ACT BASED ON WHICH REGISTRATION CAN BE GRANTED, THERE FORE, LD. CIT(E) HAS RIGHTLY DENIED GRANT OF REGISTRATION TO THE ASSESSEE SOCIETY U/S 80G(5) OF THE ACT. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL S AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW, CASE LAWS CITED. ADMITTEDLY, IT IS NOTICED THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER OPPORTUNITY WHILE DISPOSING OF THE APPLICATION OF THE ASSESSEE U/S 80G BY THE LD. CIT(E), CHANDIGARH. THEREF ORE, IN THE INTEREST OF JUSTICE, WE DEEM IT FIT AND PROPER TO RESTORE THE MATTER TO THE FILE OF LD. CIT(E), CHANDIGARH FOR DISPOSAL OF THE CASE OF THE ASSESSEE SOCIETY WITHIN SIX MONTHS FROM THE DATE OF RECEIPT OF THIS TRIBUNAL S ORDER, AFTER AFFORDING A REASONABLE OPPORTUNITY TO THE ASSESSEE TO REBUT THE FINDINGS RECORDED BY THE A.O. IT IS NEEDLESS TO SAY ITA NO.4596/DEL/2015 JEEVAN DHARA, DHARUHERA (CHARITABLE AND EDUCATIONAL SOCIETY, REWARI 5 THAT THE ASSESSEE SOCIETY MAY SUBMIT THE NECESSARY DOCUMENTS AS CALLED BY THE LD. CIT(E), IF ANY , AND TO COOPERATE WITH THE LD. CIT(E) IN DISPO SING OF THE CASE. 6 . IN THE RESULT THE APPEAL FILED BY THE ASSESSEE SOCIETY IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST, 2017. SD/ - SD/ - (A MIT SHUKLA) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 14 TH AUGUST, 2017 * GMV COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES NEW DELHI