Vikat Educational Trust , Lucknow V. Commissioner of Income Tax-I, Lucknow

ITA 474/LKW/2013

• Counselvise Citation: 47423714 RSA 2013
• Duration Of Justice: 1 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-10-2014
• Assessment Year: 2012-2013
• Appeal Filed On: 01-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VIVEK MISHRA
• Keywords: Charitable institution; Fair market value
• Section: 80G; 12A; 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NOS.474 & 475/LKW/2013 ASSESSMENT YEAR:2012 - 13 C.I.T. - 1, LUCKNOW. VS. VIKAT EDUCATIONAL TRUST, 32A, CHANDRALOK ALIGANJ, LUCKNOW. PAN:AABTV6124D (RESPONDENT) (APPELLANT) ITA NOS.585 & 586/LKW/2013 ASSESSMENT YEAR:2012 - 13 C.I.T. - 1, LUCKNOW. VS. VINAYAK EDUCATIONAL TRUST, 530/121 CHHOTA SHAIKHAPUR, OPP. L.D.A. COMPLEX, ALIGANJ, LUCKNOW. PAN:AABTV6122F (RESPONDENT) (APPELLANT) SHRI SHYAM LAL L , C. A. APPELLANT BY SHRI VIVEK MISHRA, CIT, D. R. RESPONDENT BY 15/10/2014 DATE OF HEARING 10 /12/2014 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. ALL THESE APPEALS ARE FILED BY TWO DIFFERENT ASSESSEE S I.E. TWO APPEALS OF VIKAT EDUCATIONAL TRUST AND TWO APPEALS OF VINAYAK EDUCATIONAL TRUST , WHICH ARE DIRECTED AGAINST FOUR SEPARATE ORDERS PASSED BY CIT - I, LUCKNOW ALL DATED 2 8 /0 5 /201 3 U/S 12AA AND 80G(5) OF THE ACT IN EACH CASE. ALL THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2 2. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE MAIN BASIS OF THE ORDER OF LEARNED CIT IS THAT BOTH THESE TRUSTS RECEIVED DONATION OF RS.40 LACS EACH FROM A THIRD TRUST I.E. BHALCHANDRA EDUCATIONAL TRUST. IN THIS REGARD , IT WAS THE SUBMISSION THAT IN FACT , THIS RECEIPT OF RS.40 LACS BY BOTH THESE TRUSTS FROM BHALCHANDRA EDUCATIONAL TRUST IS NOT DON ATION INCOME BUT IT IS A LOAN GIVEN BY THA T TRUST TO THESE TWO TRUSTS. IN SUPPORT OF THIS CONTENTION, HE SUBMITTED A COPY OF BALANCE SHEET OF ALL THE THREE TRUSTS I.E. VIKAT EDUCATIONAL TRUST, VINAYAK EDUCATIONAL TRUST BEING THE TWO ASSESSEES BEFORE US AN D BHALCHANDRA EDUCATIONAL TRUST WHO HAS PROVIDED THIS MONEY TO THESE TWO TRUSTS. HE POINTED OUT THAT ON PAGE NO. 3 OF THE PAPER BOOK IS THE COPY OF BALANCE SHEET OF BHALCHANDRA EDUCATIONAL TRUST AS ON 31/03/2013 AND AS PER THE SAME, ON THE ASSETS SIDE OF THE BALANCE SHEET, THERE ARE TWO ITEMS APPEARING UNDER THE HEADING LOANS & ADVANCES GIVEN TO THESE TWO ASSESSEES AND AMOUNT IS RS.40 LACS EACH. HE ALSO SUBMITTED THAT BHALCHANDRA EDUCATIONAL TRUST IS ALREADY REGISTERED U/S 12AA AND 80G OF THE ACT. 3. RE GARDING THE DONATION RECEIVED BY VIKAT EDUCATIONAL TRUST OF RS.44,72,800/ - , IT WAS SUBMITTED THAT THE COMPLETE LIST OF 1084 PERSONS BEING THE DONORS IS AVAILABLE ON PAGE 1 TO 16 OF THE PAPER BOOK WHICH CONTAINS THE NAME, ADDRESS AND AMOUNT OF DONATION. SI MILARLY, REGARDING THE DONATION RECEIVED BY VINAYAK EDUCATIONAL TRUST OF RS.44,23,100/ - ALSO, IT WAS SUBMITTED THAT COMPLETE LIST OF DONORS ALONG WITH THE NAME, ADDRESS AND AMOUNT OF DONATION IS AVAILABLE ON PAGES 1 TO 18 OF THE PAPER BOOK OF THIS ASSESSEE . HE FURTHER SUBMITTED THAT IT IS NOTED BY LEARNED CIT IN HIS ORDER THAT THE RECEIPTS ACKNOWLEDGING DONATIONS WERE PRODUCED BEFORE HIM AND WERE EXAMINED. THE OBJECTION OF LEARNED CIT IS THAT THE CASH DONATIONS WERE RECEIVED ALMOST DAILY FROM DIFFERENT PE RSONS AND PRECISE ADDRESSES ARE NOT MENTIONED. IN THIS REGARD, HE SUBMITTED THAT THE ADDRESSES ARE AVAILABLE IN THE PAPER BOOK FOR EACH OF THE DONOR. HE ALSO SUBMITTED THAT THE SECOND OBJECTION OF LEARNED CIT IS THAT IF THE CLAIM OF THE ASSESSEE IS TO B E BELIEVED, 3 IT WILL SUGGEST THAT THESE ALLEGED DONORS WERE PREPARED WITH READY CASH TO BE DONATED ON A GIVEN DATE AT DIFFERENT PLACES. HE SUBMITTED THAT IT CAN BE SEEN THAT THE DONATION OF EACH PERSON IS BELOW RS.5,000/ - AND THEREFORE, THIS IS NOT UNNATUR AL. IT WAS HIS SUBMISSION THAT THE REASONING GIVEN BY CIT IS NOT PROPER FOR REJECTING THE CLAIM OF THE ASSESSEE REGARDING REGISTRATION U/S 12AA AND 80G OF THE ACT. IT WAS HIS CONTENTION THAT FOR THE PURPOSE OF GRANTING REGISTRATION U/S 12AA, THE CIT IS R EQUIRED TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. HE SUBMITTED THAT IN THE PRESENT CASE, THE CIT IS NOT DOUBTING THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST AND THEREFORE, HIS ORDER SHOULD BE SET ASIDE AND REGIST RATION SHOULD BE GRANTED TO THE ASSESSEE. RELIANCE WAS PLACED BY HIM ON A JUDGMENT OF HON'BLE JURISDICTION HIGH COURT IN THE CASE OF CIT VS. R. S. BAJAJ SOCIETY [2014] 42 TAXMANN.COM 573 (ALLAHABAD). IT WAS SUBMITTED THAT THE COPY OF THIS JUDGMENT IS AVA ILABLE ON PAGE 16 & 17 AND IN THIS CASE , IT WAS HELD THAT ONLY GENUINENESS OF THE OBJECT WAS TO BE TES TED AT THE TIME OF REGISTRATION. HE ALSO PLACED RELIANCE ON THE JUDGMENT OF HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. JANKI JI EDUCATIO N SOCIETY. HE ALSO SUBMITTED THAT THE COPY OF THE ORDER IS AVAILABLE ON PAGE 14 & 15 OF THE PAPER BOOK AND IN THIS CASE ALSO , IT WAS HELD THAT FOR GRANTING REGISTRATION UNDER SECTION 12AA , ONLY OBJECT IS TO BE EXAMINED ALONG WITH THE GENUINENESS OF ACTIVITIES AND NOT THE INCOME OF THE TRUST FOR CHARITABLE OR RELIGIOUS PURPOSES. AT THIS JUNCTURE, THE BENCH ASKED LEARNED A.R. OF THE ASSESSEE TO FURNISH THE NAME AND ADDRESS OF THE TRUSTEES IN ALL THE THREE TRUSTS I.E. VIKAT EDUCATIONAL TRUST, VINAYA K EDUCATIONAL TRUST AND BHALCHANDRA EDUCATIONAL TRUST . LEARNED A.R. OF THE ASSESSEE HAS FURNISHED THE DETAILS OF THE TRUSTEES FOR THESE THREE TRUSTS AND FROM THOSE DETAILS, IT IS SEEN THAT TWO TRUSTEES ARE COMMON IN ALL THE THREE TRUSTS I.E. SHRI SUBODH C HAWLA AND SMT. MONA CHAWLA BOTH RESIDENT OF 32A, CHANDRA LOK ALIGANJ, LUCKNOW. IN THE CASE OF BHALCHANDRA EDUCATIONAL TRUST, THERE IS NO OTHER TRUSTEE BUT IN THE VIKAT EDUCATIONAL TRUST, THERE IS ONE 4 MORE TRUSTEE I.E. SHRI PORAS CHAWLA WITH SAME ADDRESS A ND IN THE CASE OF VINAYAK EDUCATIONAL TRUST, THERE IS ONE MORE TRUSTEE SHRI DUSHYANT CHAWLA WITH SAME ADDRESS. 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT IN ALL THESE CASES AND PLACED RELIANCE ON THE JUDGMENT OF HON'BLE PUNJAB & HA RYANA HIGH COURT RENDERED IN THE CASE OF CIT VS. SAVIOR CHARITABLE TRUST. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD IN ALL THESE CASES. WE FIND THAT THE FACTS IN ALL THE CASES ARE ALMOST SIMILAR AND THEREFOR E, WE REPRODUCE THE RELEVANT PARA OF THE ORDER OF LEARNED CIT FROM THE ORDER PASSED BY HIM U/S 12AA IN THE CASE OF VIKAT EDUCATIONAL TRUST I.E. I.T.A. NO.474/LKW/2013. THESE PARAS ARE PARA NO. 2 TO 5 AND THE SAME ARE REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE: - 2. AS PER THE DETAILS FURNISHED, THE APPLICANT CLAIMS TO HAVE RECEIVED TWO DONATIONS OF RS 10 LAC AND RS. 30 LACS FROM BHALCHANDRA EDUCATIONAL TRUST, 32 - A, CHANDRALOK, ALIGANJ, LUCKNOW ON 04.02.2013 AND 22.03.2013 RESPECTIVELY, INCIDENTALL Y THE ADDRESS OF THIS ALLEGED DONORS TRUST HAPPENS TO BE THE SAME AS THAT OF THE APPLICANT TRUST. IT WILL NOT BE OUT OF PLACE TO MENTION THAT ON 28.09.2012 I.E. THE DATE OF CREATION OF THE APPLICANT TRUST, TWO MORE TRUSTS NAMELY VINAYAK EDUCATIONAL TRUST A ND VINDHANRAJ EDUCATIONAL TRUST HAVE BEEN CREATED BY THE SAME AUTHOR/FOUNDER NAMELY SMT. MONA CHAWLA AND SEPARATE APPLICATIONS BY THESE TWO TRUSTS WERE ALSO FILED SEEKING REGISTRATION U/S 12A AND APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT 1961. THE APPL ICANT TRUST AND THE ABOVE MENTIONED OTHER TWO TRUSTS ARE SEEN TO HAVE IDENTICAL OBJECTS. THE LEARNED AUTHORIZED REPRESENTATIVE DID NOT EXPLAIN AS TO WHY THREE TRUSTS (INCLUSIVE OF THE APPLICANT TRUST) WITH IDENTICAL OBJECTS WERE CREATED BY ONE AND THE SAME AUTHOR/FOUNDER ON THE SAME DATE I.E. 28.09.2012. 3. THE RECEIPTS ACKNOWLEDGING THE ALLEGED DONATIONS WHICH WERE PRODUCED ON 15.05.2013 AND WERE EXAMINED, REVEAL THAT ALL DONATIONS RANGING BETWEEN RS.3500/ - AND RS.4600/ - WERE RECEIVED IN CASH FROM LARGE NU MBER OF PERSONS AND THE TOTAL OF 5 SUCH DONATIONS AMOUNTED TO RS.44,72,800/ - . ON GOING THROUGH THE LIST OF THESE ALLEGED DONORS, IT IS SEEN THAT THE CASH DONATIONS WERE RECEIVED ALMOST DAILY FROM DIFFERENT PERSONS WHOSE PRECISE ADDRESSES ARE NOT MENTIONED. IF THE CLAIM OF THE APPLICANT REGARDING THESE DONATIONS WERE TO BE BELIEVED, IT WILL SUGGEST THAT THESE ALLEGED DONORS WERE PREPARED WITH READY CASH TO BE DONATED ON A GIVEN DATE AT DIFFERENT PLACES. A FEW EXAMPLES O F THE ADDRESS OF THE ALLEGED DONORS AS APPEARING IN THE LIST SUBMITTED READ AS DALIGANJ , BALAGANJ, SAADATGANJ, TELIBAGH, HAYATGANJ , KAISARBAGH, CHARBAGH , MUNSHIPULIYA LUCKNOW . AS ALREADY MENTIONED THE ADDRESSES HAVE NO HOUSE NUMBERS OR OTHER DETAILS. A COPY OF THE LIST OF ALLEGED DONATIONS AS SUBMITTED BY THE APPLICANT IS ENCLOSED WITH THIS ORDER, WHICH WILL GIVE A CORRECT PICTURE IN THIS REGARD AND WILL AMPLY INDICATE THAT THE ALLEGED DONATIONS ARE EITHER NOT GENUINE OR THEY CANNOT BE ACCEPTED AS GENUINE, S INCE THEY ARE NOT VERIFIABLE. THIS LIST ENCLOSED WITH THIS ORDER IS MARKED ANNEXURE - [A ], WHIC H RUNS INTO SIXTEEN PAGES AND EACH PAGE HAS BEEN INITIALED BY THIS AUTHORITY AS A MARK OF AUTHENTICATION 3.1 LOOKING TO THE PRIMA FACIE SUSPICIOUS NATURE O F THE D ONATIONS, THE APPLICANT WAS ASKED TO FURNISH WRITTEN CONFIRMATIONS FROM THE ALLEGED DONORS PROOF OF THEIR ADDRESS AND RESIDENCE AND THEIR ASSESSMENT PARTICULARS. HOWEVER, AS ALREADY MENTIONED, THESE WERE NOT FURNISHED BY THE APPLICANT . 3.2 THE RECEIPTS PR ODUCED SHOW THAT THE PERSON INCHARGE OF COLLECTING DONATIONS WAS PRESENT AT DISTANT LOCATIONS ON A PARTICULAR DAY THIS WOULD HAVE INVOLVED EXTENSIVE TRAVEL, WHICH WAS NOT POSSIBLE ON A SINGLE DAY BY NORMAL MODE OF TRANSPORTATION. EXTENSIVE TRAVELLING ON A CONTINUOUS BASIS IS ALSO NOT CORROBORATED BY THE ACCOUNTS IN AS MUCH AS THE TRAVEL EXPENSES AMOUNT TO A PALTRY SUM OF RS.570/ - FOR THE PERIOD DURING WHICH THE DONATIONS WERE ALLEGEDLY MOBILISED AND FOR WHICH TRAVELLING WOULD HAVE BEEN UNDERTAKEN. EVEN THE IDENTITY OF SHRI PAWAN, WHO IS SEEN TO HAVE ISSUED THE RECEIPTS IS NOT KNOWN. IT MAY BE POINTED OUT HERE THAT NO AMOUNT IS DEBITED AS SALARY OR WAGES IN THE ACCOUNTS. 3.3 AS REGARDS THE ALLEGED DONATIONS FROM BHALCHANDRA EDUCATIONAL TRUST, THE APPLICANT DID NOT REVEAL AS TO WHETHER THIS DONOR TRUST IS REGISTERED U/S 12A AND HOW IT GENERATED HUGE FUNDS FOR MAKING DONATION OF RS.40,00,000/ - TO THE 6 APPLICANT TRUST. INCIDENTALLY THIS TRUST HAS THE SAME ADDRESS AS THAT OF THE APPLICANT TRUST AND IS SHOWN TO HA VE DONATED TWO AMOUNTS OF RS.10,00.000/ - AND RS.30,00,000 / - ON 04.02.2013 AND 22.03.2013 TO THE OTHER TRUST NAMELY VINAYAK EDUCATIONAL TRUST (SUPRA) CREATED VIDE TRUST DEED ON 28.09.2012. THE DATES AND AMOUNTS OF DONATION ARE THUS IDENTICAL TO THE DATES AN D AMOUNTS OF ALLEGED DONATION TO THE APPLICANT TRUST . 4. THE APPLICANT TRUST IS SEEN TO HAVE PURCHASED A LAND - BEARING KHASRA NO 960, VILLAGE SIKRORI , PARGANA LUCKNOW FOR A CONSIDERATION OF RS 88 LACS FROM SMT. SUDESH KUMARI, WHO, AS STATED BY THE AR, IS THE MOTHER OF SHRI SUBODH CHAWLA, WHO IN TURN HAPPENS TO BE THE MANAGING TRUSTEE/LIFE TIME CHAIRMAN OF THE APPLICANT TRUST. A PERUSAL OF THE SALE DEED, AS FURNISHED, SHOWS THE STAMP DUTY VALUATION OF THE PROPERTY AT RS.53,67,600. WHICH HAS BEEN PURCHASED FOR RS 88 LACS BY THE APPLICANT TRUST THUS AN EXCESSIVE CONSIDERATION MUCH MORE THAN THE FAIR MARKET VALUE, HAS BEEN PASSED ON TO THE MOTHER OF ONE OF T HE TRUSTEES. IT IS STARTLING TO NOTE THAT THE CHEQUES ISSUED FOR THE PAYMENT OF SALE CONSIDERATION TO SMT. SUDESH KUMARI HAVE STILL NOT BEEN ENCASHED BY HER THOUGH AS PER THE SALE DEED THESE CHEQUES WERE ISSUED AS EARLY AS IN NOVEMBER 2012 THE APPLICANT TR UST IN ITS PROVISIONAL FINAL ACCOUNTS AS ON 28.02 2012 STILL SHOWS THE AMOUNT OF RS 88 LAC AS OUTSTANDING LIABILITY . IT WAS ALSO GIVEN TO UNDERSTAND BY THE LEARNED AR, SMT. SUDESH KUMARI HAS NOT PAID ANY TAXES, WHICH MIGHT HAVE BEEN PAYABLE BY HER ON THE CAPITAL GAINS ARISING LO HER . 5. THE F ACTS AS DISCUSSED ABOVE DO INDICATE THAT THE APPLICANT TRUST IS NOT GENUINE AND THAT IT HAS BEEN CREATED ONLY TO CHANN A LISE UNACCOUNTED AND UNEXPLAINED MONEY AND TO ENRICH THE RELATIVE OF ONE OF THE TRUSTEES USING THE TRUST AS A CONDUIT. THE FUNDS CLAIMED TO HAVE BEEN MOBILIZED ALLEGEDLY BY DONATIONS ARE NOT EXPLAINED AND THE FACTS EXAMINED LEAD TO THE STRONG INFERENCE THAT THE TRUST IS NEITHER GENUINE NOR DOES IT HAVE ANY GENUINE INTENTION TO HONESTLY PURSUE THE OBJEC TS DECLARED WITH PRETENDED SOLEMNITY THE GENUINENESS OF TRUST IS A MATTER OF SUBSTANTIVE REALITY AND NOT MERELY A MATTER OF COSMETIC DOCUMENTATION. I AM, THEREFORE, NOT SATISFIED THAT THE APPLICANT HAS THE REQUIRED ELIGIBILITY TO BE REGISTERED U/S 12A SO A S TO CONFER ON IT THE EXALTED STATUS OF A CHARITABLE INSTITUTION AND TO ALLOW ANY EXEMPTION IN RESPECT OF ITS INCOME. THE APPLICATION FILED IN FORM NO. 10A IS REJECTED. 7 5.1 FROM THE ABOVE PARAS FROM THE ORDER OF LEARNED CIT, IT IS SEEN THAT HIS MAIN OBJECTION IS THAT THE ASSESSEE HAS CLAIMED RECEIPT OF CASH DONATION OF RS.44.73 LACS AND HE IS NOT SATISFIED ABOUT THE DETAILS PROVIDED IN RESPECT OF THESE DONATIONS. HIS SECOND OBJECTION IS THAT THE ASSESSEE HAS SHOWN RECEIPT OF DONATION OF RS.40 LACS FROM VINAYAK EDUCATIONAL TRUST HAVING SAME TRUSTEES AND SAME OBJECTIVES. WE ALSO FIND THAT THERE IS NO OBJECTION OF CIT REGARDING THE OBJECTS OF THESE ASSESSEE TRUSTS . WE ALSO FI ND THAT THE BASIS OF CIT IN DOUBTING THE GENUINENESS OF CASH DONATION IS THAT THE IDENTITY OF S HRI PAWAN, WHO HAS ISSUED THE RECEIPTS IS NOT KNOWN AND NO SALARY WAS DEBITED IN THE BOOKS OF ACCOUNT ON ACCOUNT OF PAYMENT TO SHRI PAWAN. IN OUR CONSIDERED OPI NION, THIS IS NOT VALID FOR DECIDING THE CLAIM OF THE ASSESSEE REGARDING REGISTRATION. AS PER THE JUDGMENT S CITED BY LEARNED A.R. OF THE ASSESSEE BEING THE JUDGMENT S OF HON'BLE ALLAHABAD HIGH COURT AND HON'BLE PUNJAB & HARYANA , FOR GRANTING REGISTRATION U/S 12AA, THE ONLY THING WHICH IS TO BE EXAMINED BY THE CIT IS GENUINENESS OF THE OBJECTIVES OF THE ASSESSEE. IN THE CASE OF CIT VS. SAVIOR CHARITABLE TRUST (SUPRA) CITED BY LEARNED DR ALSO, THIS WAS AN OBJECTION OF CIT THAT AS PER THE COUNTERFOIL OF THE DONATION, RECEIVED BY THE ASSESSEE, THERE WAS NO SPECIFIC DIRECTION THAT THIS DONATION IS TOWARDS CORPUS AND THE COUNTERFOIL OF THE DONATION DID NOT BEAR THE COMPLETE ADDRESS AND PAN. IT WAS NOTED THAT THE LIST OF 87 DONORS SHOWED ONLY NAMES WITHOUT ANY ADDRESS. IT WAS HELD THAT THE LACK OF INFORMATION IN RESPECT OF PERCENTAGE, AGE, ADDRESS OR PAN NUMBERS IN THE LIST OF DONORS ARE THE GOOD REASONS FOR DECLINING THE REGISTRATIO N TO THE ASSESSEE AS A CHARITABLE TRUST BUT IN THE PRESENT CASE, WE FIND THAT T HE LIST OF DONORS CONTAINS THESE DETAILS I.E. NAME ADDRESS AND AMOUNT OF DONATION. IN OUR CONSIDERED OPINION FOR SUCH SMALL AMOUNT OF DONATION BELOW RS.5,000/ - EACH, NON GETTING OF PAN IS NOT IMPORTANT. HENCE, IN THE FACTS OF THE PRESENT CASE, THIS JUDGM ENT IS NOT APPLICABLE. 8 5.2 THE OTHER TWO JUDGMENTS CITED BY LEARNED A.R. OF THE ASSESSEE ARE HELPING THE CASE OF THE ASSESSEE BECAUSE IN TH ESE CASE S, IT WAS HELD BY HON'BLE ALLAHABAD HIGH COURT AND HON'BLE PUNJAB & HARYANA HIGH COURT THAT ONLY GENUINENESS OF THE OBJECT WAS TO BE DECIDED AT THE TIME OF REGISTRATION. REGARDING THE ACTIVITY OF THE TRUST ALSO, WE FIND THAT REGARDING THE RECEIPT OF DONATION FROM VARIOUS PERSONS BELOW RS.5,000/ - EACH, ALTHOUGH SOME DOUBT ARE RAISED BY LEARNED CIT BUT IN THE LIGHT OF THESE FACTS THAT NAMES AND ADDRESSES OF THE DONORS ARE BROUGHT ON RECORD BY THE ASSESSEE AND THE AMOUNT OF DONATION FROM EACH DONOR BEING VERY SMALL BEING LESS THAN RS.5,000/ - EACH, WE DO NOT FIND ANY MERIT IN THIS OBJECTION OF CIT IN REJECTING THE CLAIM OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT. 5.3 REGARDING THE SECOND DONATION OF RECEIPT OF DONATION OF RS.40 LACS EACH FROM THIRD TRUST I.E. BHALCHANDRA EDUCATIONAL TRUST, WE FIND THAT THIS FINDING OF LEARNED CIT IS NOT CORRECT BECAUSE THIS AMOUNT OF RS.40 LACS WAS GIVEN BY BHALCHANDRA EDUCATIONAL TRUST TO BOTH THE ASSESSES TRUSTS AS A LOAN AND NOT AS DONATION AND MOREOVER , THE THIRD TRUST HAS ALREADY BEEN GRANTED REGISTRATION ON 08/12/2009 U/S 12AA AND THEREFORE, NO ADVERSE INFERENCE CAN BE DRAWN ON THIS ACCOUNT. IN FACT, IT IS STATED BY LEARNED CIT THAT TRUSTEES AND OBJECTS OF THIS TRUST IS IDENTICAL WITH THESE TWO TRUSTS. THIS FINDING OF FACT GIVEN BY LEARNED CIT ITSELF IS SUFFICIENT TO HOLD THAT REGISTRATION SHOULD BE GRANTED TO THESE TWO TRUSTS ALSO BECAUSE WHEN UNDER IDENTICAL FACTS, REGISTRATION IS ALREADY GRANTED BY LEARNED CIT HIMSELF TO BHALCHANDRA EDUCATIONAL TRUST, THERE IS NO REASON TO DENY REGISTRATION TO THESE TWO TRUSTS. 5.4 MOREOV ER, A S PER THE BALANCE SHEET OF VIKAT EDUCATIONAL TRUST AS ON 31/03/2013 AVAILABLE IN PAPER BOOK, WE FIND THAT THIS ASSESSEE HAS INVESTED AN AMOUNT OF RS.94.28 LACS ON ACQUIRING THE LAND AND RS.21.13 LACS ON ACCOUNT OF BUILDING (UNDER CONSTRUCTION). SIMIL ARLY, AS PER THE BALANCE SHEET OF VINAYAK EDUCATIONAL TRUST AS ON 31/03/2013, AN AMOUNT OF RS.94.28 LACS 9 WAS INVESTED ON ACQUISITION OF LAND AND FURTHER AMOUNT OF RS.22.50 LACS WAS INVESTED ON ACCOUNT OF CONSTRUCTION OF BUILDING. IT IS ALSO SUBMITTED BEFO RE US THAT APPLICATION IS ALREADY SUBMITTED WITH REGIONAL DIRECTOR, NRC ON 29/12/2012 FOR APPROVAL OF D.ELED (BTC) PROGRAMME. THE COLLEGE BUILDING IS UNDER CONSTRUCTION. HENCE, THESE TWO TRUST HAVE ALREADY UNDERTAKEN ACTIVITIES TO FULFILL THEIR CHARITABL E OBJECTS IN A BIG WAY. CONSIDERING ALL THESE FACTS, IN OUR CONSIDERED OPINION, CIT WAS NOT JUSTIFIED IN REJECTING THE CLAIM OF THE ASSESSEE S FOR REGISTRATION U/S 12AA AND 80G(5) OF THE ACT AND HENCE, HE IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE U/ S 12AA AS WELL AS U/S 80G(5) OF THE ACT TO BOTH THE ASSESSEES. 6. IN THE RESULT, ALL THE FOUR APPEALS OF THE ASSESSEE ARE ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 /1 2 /2014 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1 . THE APPELLANT 2 . THE RESPONDENT. 3 . CONCERNED CIT 4 . THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR