Rajputana Educational Society, Farrukhabad V. C.I.T., Aligarh

ITA 470/AGR/2011

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0445 (ITAT-AGRA)
• Duration Of Justice: 7 year(s) 4 month(s) 28 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-01-2013
• Assessment Year: misc
• Appeal Filed On: 19-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: S K GUPTA
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NOS.469 & 470/AGR/2011 RAJPUTANA EDUCATIONAL SOCIETY, VS. COMMISSIONER O F INCOME TAX, VILL. NIAMATPUR THAKURAN, ALIGARH. POST KANJHANA, FARRUKHABAD. (PAN: AABAR 1815 L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SWARAN SINGH & SHRI S.K. GUPTA, C.A. RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R . DATE OF HEARING : 09.01.2013 DATE OF PRONOUNCEMENT OF ORDER : 11.01.2013 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THESE ARE TWO APPEALS FILED BY THE ASSESSEE AGAINS T COMMON ORDER DATED 29.11.2011 PASSED BY THE LD. CIT, ALIGARH. ONE APP EAL IS IN RESPECT OF REJECTION OF APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) AND THE OTHER APPEAL I S IN RESPECT OF REJECTION OF APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G (5) OF THE ACT. ITA NOS.469 & 470/AGR/2011 2 2. THE GROUNDS RAISED IN BOTH THE APPEALS ARE BASED ON IDENTICAL SET OF FACTS, THEREFORE, FOR THE SAKE OF CONVENIENCE BOTH THE APP EALS ARE DECIDED BY THIS COMMON ORDER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY MOVED APPLICATIONS DATED 30.05.2011 IN FORM NO.10A & FORM NO.10G FOR G RANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AND APPROVAL FOR DEDUCTION UNDER SECTION 80G OF THE ACT RESPECTIVELY. THE CIT NOTED IN HIS ORDER THAT THE AIMS AND OBJECTS OF THE SOCIETY ARE TOO WIDE, DIVERSE AND NON-SPECIFIC. THE CIT CA LLED INFORMATION FROM WHICH HE FOUND THAT THE SOCIETY WAS ESTABLISHED ON 08.04.201 1 BUT NO CHARITABLE WORK WAS DONE BY THE SOCIETY. IT WAS ALSO FOUND THAT THE SO CIETY HAS NOT PRODUCED ITS BOOKS OF ACCOUNT. THE CIT HELD THAT UNDER THE CIRCUMSTAN CES, THE CHARITABLE ACTIVITIES OF THE SOCIETY COULD NOT BE VERIFIED. HE, THEREFORE, REJECTED BOTH THE APPLICATIONS FOR REGISTRATION UNDER SECTION 12AA AND APPROVAL FOR DE DUCTION UNDER SECTION 80G OF THE ACT. 4. LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE CIT IS NOT CORRECT IN HOLDING THAT NO CHARITABLE ACTIVITIES WERE CARRIED OUT BY THE ASSESSEE. LD. AUTHORISED REPRESENTATIVE DREW OUR ATTENTION ON VAR IOUS PAGES OF THE PAPER BOOKS I.E. PAGE NOS.26, 27, 46 AND OTHERS. LD. AUTHORISE D REPRESENTATIVE DREW OUR ATTENTION TO PAGE NO.26 WHERE COPY OF ORDER SHEET D ATED 26.11.2011 RELATING TO ITA NOS.469 & 470/AGR/2011 3 PROCEEDINGS BEFORE CIT HAS BEEN PLACED. FROM THE A BOVE ORDER SHEET DATED 26.11.2011, THE LD. AUTHORISED REPRESENTATIVE POINT ED OUT THAT IN THE ORDER SHEET IT HAS BEEN SATED THAT THE SOCIETY IS ENGAGED IN THE F IELD OF PROVIDING EDUCATION UPTO 7 TH STANDARD WHICH COMES UNDER 2 ND LIMB I.E. EDUCATION OF SECTION 2(15) OF THE ACT. IT HAS BEEN NOTED THAT THE SOCIETY WAS INCORPORATED ON 08.04.2011, I.E. 7 MONTHS BACK AND DOES NOT OWN ANY LAND/TITLE DEEDS IN POSSE SSION OF THE SOCIETY. IT HAS ALSO BEEN SUBMITTED THAT THE SOCIETY HAS NOT FILED BALAN CE SHEET, INCOME & EXPENDITURE ACCOUNT, RECEIPT & PAYMENT ACCOUNT AND AUDITED REPO RT IN FORM NO.10B BECAUSE THE SOCIETY CAME INTO EXISTENCE ON 08.04.2011. IT HAS ALSO BEEN SUBMITTED THAT AT PRESENT THE SOCIETY HAS BEEN RUNNING A PUBLIC SCHOO L IN A LEASED PREMISES AT JAHANGANJ, BAGAR & FARRUKHABAD I.E. IMPARTING EDUCA TION TO ALL CLASSES OF PUBLIC AT FARRUKHABAD AND FURTHER THE IMMEDIATE PLAN OF THE S OCIETY IS THE PROCUREMENT OF AFFILIATION FROM CBSE BOARD AND GETTING THE SCHOOL UPTO 12 TH STANDARD. THE SOCIETY HAS FILED THE PROSPECTUS OF THE SCHOOL, CLA SS-WISE STUDENTS ALONG WITH THEIR NAMES AND ADDRESS AND LIST OF THE TEACHERS WITH SPE CIFICATION OF DESIGNATION AND COPY OF CHALLAN OF APPLICATION FOR AFFILIATION WITH CBSE BOARD. ON THE BASIS OF THESE FACTS, THE LD. AUTHORISED REPRESENTATIVE SUBM ITTED THAT THE CIT IS NOT CORRECT IN MENTIONING THAT THE ASSESSEE DID NOT FURNISH THE INFORMATION AND DID NOT CARRY OUT ANY CHARITABLE ACTIVITIES. THE LD. AUTHORISED REPRESENTATIVE DREW OUR ATTENTION TO PAGE NO.27 AND SUBMITTED THAT THE ENTIRE PROCEED INGS WERE CONDUCTED BY ACIT (JUDICIAL) AND NOT BY THE CIT HIMSELF. THE LD. AUT HORISED REPRESENTATIVE DREW OUR ITA NOS.469 & 470/AGR/2011 4 ATTENTION TO PAGE NO.27 OF THE PAPER BOOK WHERE COP Y OF ORDER SHEET DATED 28.11.2011 AND 29.11.2011 HAVE BEEN PLACED. THE RE LEVANT NOTING ARE REPRODUCED AS BELOW :- SINCE WHEN THE SOCIETY IS RUNNING THE SCHOOL IN LE ASED PREMISES, IT MIGHT HAVE PAID RENT ALSO. IT MEANS IT MUST BE HAV ING SOME INCOME OUT OF WHICH LEASE RENT AND OTHER EXPENSES SUCH AS INFRAST RUCTURE, SALARIES ETC. ARE BEING MET. ONLY BECAUSE IT DOES NOT OWN ITS OWN LA ND DOES NOT MATTER. PLEASE ASCERTAIN AND PUT UP. SD/- 28.11.11 ACIT (J) FILE IS PUT UP FOR REJECTION BEFORE YOUR HONOURS K IND PERUSAL AND FURTHER DIRECTION SD/- BOTH THE CLAIMS U/S 12AA AND 80-G OF THE SOCIETY AR E REJECTED UPON CAREFUL CONSIDERATION. PLEASE ISSUE ORDER AND NOTE IN REGI STER SD/- 29.11.11 ACIT (J) THE LD. AUTHORISED REPRESENTATIVE RELIED UPON THE F OLLOWING DECISIONS:- I) SHIKSHA SANKALP SOCIETY VS. CIT, 23 TAXMAN 152 ( AGRA) II) CIT VS. RED ROSE SCHOOL, 163 TAXMAN 19 (ALL) III) N.N. DESAI CHARITABLE TRUST VS. CIT, 246 ITR 4 52 IV) SONEPAT HINDU EDUCATIONAL VS. CIT, 147 TAXMAN 1 (P&H) 5. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER OF CIT. 6. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. WE FIND THAT THE CIT HAS RECORDED CONTRARY FACTS IN HIS ORDER AND ORDER SHEET AS ITA NOS.469 & 470/AGR/2011 5 POINTED OUT BY THE LD. AUTHORISED REPRESENTATIVE WI TH REFERENCE TO PAGE NO.26 OF THE PAPER BOOK. THE SUBMISSION OF THE ASSESSEE WAS THAT THE ASSESSEE HAS SUBMITTED ALL THE DETAILS IN RESPECT OF EDUCATIONAL ACTIVITIES CARRIED OUT BY THE SOCIETY WHEREAS THE CIT HAS WRONGLY STATED THAT NO CHARITABLE WORK WAS DONE BY THE SOCIETY AS THE SOCIETY DID NOT PRODUCE BOOKS OF ACCOUNTS. HOWEVER, WE NOTICE THAT THE CIT HAS REJECTED BOTH THE APPLICATIONS FOR GRANT OF REGISTRATION UNDER SECTION 12AA AND APPROVAL FOR DEDUCTION UNDER SECTI ON 80G OF THE ACT WITHOUT RECORDING THE CORRECT AND COMPLETE FACTS OF THE CAS E. IT IS ALSO RELEVANT TO STATE THAT WHEN THE CIT DID NOT EXAMINE SUCH CASES IN THE LIGH T OF SECTION 12AA OF THE ACT AND THE SAME IS EXAMINED BY THE ACIT WHO IS NOT AUT HORIZED TO EXAMINE UNDER SECTION 12AA OF THE ACT, SUCH ORDER OF REJECTION OF APPLICATION U/S. 12AA & REJECTION OF APPROVAL U/S. 80G ARE NOT SUSTAINABLE IN LAW. IN THIS REGARD, WE MAY REFER TO ORDER OF I.T.A.T. IN THE CASE OF SMT. BIML A DEVI GOPAL PRASAD PRESS WALE CHARITABLE TRUST VS. CIT-1, ITA NOS.288 & 289/AGR/2 012, ORDER DATED 23.11.2012, WHEREIN ON NON-EXAMINATION OF THE APPLICATION FILED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA AND APPROVAL FOR DEDUCTION UNDER SECTION 80G OF THE ACT BY THE CIT, THE I.T.A.T. DIRECTED THE CIT TO GRANT REG ISTRATION UNDER SECTION 12AA AND APPROVAL FOR DEDUCTION UNDER SECTION 80G OF THE ACT . BUT IN THE CASE UNDER CONSIDERATION THERE ARE SOME LAPSES ON THE PART OF THE ASSESSEE ALSO FOR NOT FURNISHING THE BOOKS OF ACCOUNT BEFORE THE CIT. IN THE LIGHT OF THE FACT, WE THINK IT PROPER TO SEND BACK THE ISSUES TO THE FILE OF CIT W ITH THE DIRECTION TO DECIDE BOTH ITA NOS.469 & 470/AGR/2011 6 THE ISSUES AFRESH IN ACCORDANCE WITH LAW, KEEPING I N VIEW THE ABOVE DISCUSSION, AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING T O THE ASSESSEE. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY