IMDAD, New Delhi V. CIT(E), New Delhi

ITA 4918/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6965 (ITAT-DELHI)
• Duration Of Justice: 3 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 30-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

ITA NO. 4918/DEL/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 4918/DEL/2015 ASSESSMENT YEA R: IMDAD, VS. CIT (E), 206, PRAKASH DEEP, 26 TH FLOOR, 7, TOLSTOY MARG, PRATYAKSH KAR BHAWAN, NEW DELHI-110001 CIVIC CENTRE, J.L.N. M ARG, (PAN: AAAAI7049C) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI W.A. KHAN, ADV. RESPONDENT BY : SHRI S.S. RANA, CIT DR DATE OF HEARING: 31.07.2018 DATE OF PRONOUNCEMENT: 31.07.2018 ORDER PER SUDHANSHU SRIVASTAVA, J.M. THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGA INST THE ORDER DATED 28.05.2015 PASSED BY THE LD. CIT (E), N EW DELHI WHEREIN, VIDE THE IMPUGNED ORDER, THE LD. CIT (E) H AS REFUSED GRANT OF APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') TO THE ASSES SEE SOCIETY. 2. ADMITTEDLY, THE ASSESSEE SOCIETY ENJOYS REGISTRA TION U/S 12A OF THE ACT W.E.F. 17.07.2014. THE APPLICATION FOR GRANT OF APPROVAL U/S 80G(5)(VI) HAS BEEN REFUSED ON THE GRO UND THAT THE ITA NO. 4918/DEL/2015 2 ASSESSEE HAD RECEIVED DONATIONS OF RS. 1,11,000/- E ACH FROM 36 PARTIES AND WHEN THE LD. CIT (E) REQUIRED THE ASSES SEE SOCIETY TO GIVE CONCLUSIVE EVIDENCE OF DONORS, THE ASSESSEE SO CIETY COULD NOT PROVIDE CONFIRMATION EVEN FROM A SINGLE DONOR. THE LD. CIT (E) HAS ALSO NOTED THAT ON PERUSAL OF THE ACCOUNTS OF T HE ASSESSEE SOCIETY FOR THE YEAR ENDING 31.3.2014, IT IS REVEAL ED THAT AN AMOUNT OF RS. 33,43,734/- I.E. ALMOST THE ENTIRE AM OUNT HAD BEEN FURTHER DONATED TO OTHER SOCIETIES. THE LD. C IT (E) WAS OF THE OPINION THAT THE GENUINENESS OF THE CHARITABLE ACTIVITIES COULD NOT BE VERIFIED. 3. THE LD. AR APPEARING ON BEHALF OF THE ASSESSEE H AS SUBMITTED THAT THE ASSESSEE HAD PROVIDED COMPLETE D ETAILS OF THE AGENT THROUGH WHOM THE DONATIONS WERE RECEIVED ALON G WITH THE PAN AND AFFIDAVITS OF THE 36 DONORS. IT WAS SUBMIT TED THAT THESE EVIDENCES CAN BE DIRECTED TO BE RE-EXAMINED BY THE LD. CIT (E) IF SO REQUIRED. IT WAS ALSO SUBMITTED THAT MAKING DON ATION TO SOCIETIES HAVING SIMILAR OBJECTS WAS COVERED BY THE OBJECT CLAUSE OF THE ASSESSEE SOCIETY AND, THEREFORE, THE SAME AL SO WOULD NOT BE A VALID GROUND FOR REFUSAL OF APPROVAL U/S 80G OF T HE ACT. 4. IN RESPONSE, THE LD. CIT DR SUBMITTED THAT ADEQU ATE OPPORTUNITY HAD ALREADY BEEN GIVEN BY THE LD. CIT ( E) BUT THE ITA NO. 4918/DEL/2015 3 ASSESSEE HAD FAILED TO FURNISH THE DOCUMENTARY EVID ENCES. IT WAS ALSO SUBMITTED THAT SINCE THE ENTIRE DONATION RECEI VED HAD BEEN DONATED TO OTHER SOCIETIES, NO CHARITABLE ACTIVITY HAD BEEN CARRIED OUT BY THE ASSESSEE AND, THEREFORE, IT WAS NOT A FI T CASE FOR GRANT OF RECOGNITION U/S 80G(5) OF THE ACT. THE LD. CIT DR PLACED RELIANCE ON THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF KIRTI CHAND TARAWATI CHARITABLE TRUST VS. D IT REPORTED IN 232 ITR 11 (DEL) AND OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. RAMA EDUCATIONAL SOCIETY REPORTED I N 396 ITR 16 (ALL) WHEREIN THE HONBLE COURTS HAD HELD THAT APPR OVAL U/S 80G COULD NOT BE GRANTED UNLESS CARRYING OUT OF CHARITA BLE ACTIVITY IS CLEARLY DEMONSTRATED. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE SUBMIS SIONS OF THE LD. AR THAT THE DOCUMENTARY EVIDENCES WILL BE FURNISHED BEFORE THE LD. CIT (E) IF AN OPPORTUNITY FOR THE SAME IS GIVEN , IN THE INTEREST OF JUSTICE, WE DEEM IT FIT TO RESTORE THE ISSUE TO THE FILE OF THE LD. CIT (E) TO RECONSIDER THE APPLICATION OF THE AND, T HEREAFTER, PASS THE ORDER IN ACCORDANCE WITH LAW. NEEDLESS TO SAY, THE ASSESSEE WILL BE AFFORDED PROPER OPPORTUNITY TO PRESENT ITS CASE. ITA NO. 4918/DEL/2015 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STAND S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2018. SD/- SD/- (N.K. SAINI) (S UDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31 ST JULY, 2018 GS COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT(A) 4. DR, ITAT BY ORDER ASSTT. REGISTRAR DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 1 ITA NO. 4918/DEL/2015 5