RADHALEELA CHARITABLE TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 5080/MUM/2010

• Counselvise Citation: 508019914 RSA 2010
• Duration Of Justice: 3 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-11-2013
• Assessment Year: misc
• Appeal Filed On: 17-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A C TEJPAL
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI , / ! ! ! ! ' . . # . . !$ , % BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER /. ITA NO. 5080/MUM/2010 $& $& $& $& !'& !'& !'& !'& / ASSESSMENT YEAR: 2010 SMT. RADHALEELA CHARITABLE TRUST C/O. SAI LEELA HOTEL PVT. LTD 9-B, SAMANT ESTATE, SONAWALA X ROAD, GOREGAON (E) MUMBAI-400 063 $ $ $ $ / VS. DIT (EXEMPTION) MUMBAI. ( () / APPELLANT) ( *+() / RESPONDENT) PERMANENT ACCOUNT NO. :- AABTK 0552 K $&,- . / ASSESSEE BY : SHRI BHUPENDRA SHAH ! / . / REVENUE BY : SHRI A.C. TEJPAL 0 / O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD.DIT (EXEMPTION), MUMBAI DATED 09.04.2010 IN REJECTING T HE APPLICATION FOR THE GRANT OF APPROVAL TO THE ASSESSEES TRUST U/S 80G OF THE INC OME TAX ACT. 2. BRIEFLY STATED, THE ASSESSEES TRUST FILED AN AP PLICATION ON 22.05.2009 FOR GRANT OF CERTIFICATE U/S 80G OF THE INCOME-TAX ACT AND TH E SAID APPLICATION WAS MADE IN THE PRESCRIBED FORM 10G WHICH WAS ACCOMPANIED WITH CERT AIN DETAILS. THE TRUST WAS $! / - / DATE OF HEARING : 20.02.2014 12' / - / DATE OF PRONOUNCEMENT : 26.02.2014 ITA NO. 5080/MUM/2010 SMT. RADHALEELA CHARITABLE TRUST. ASSESSMENT YEAR: 2010 2 FORMED FOR THE OBJECTS DETAILED IN THE TRUST DEED D ATED 22.11.2005 AND THE TRUST WAS ACCORDED APPROVAL U/S 12A VIDE ORDER DATED 19.12.20 06. SINCE THE ASSESSEES TRUST HAD NOT CARRIED OUT ANY CHARITABLE ACTIVITIES DURIN G THE LAST THREE YEAR, THE LD.DIT (EXEMPTION) DENIED THE GRANT OF APPROVAL U/S 80G OF THE INCOME-TAX ACT. AGGRIEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS IN APPEAL BE FORE US. 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, THE FACT THAT THE ASSESSEES TRUST HAS NOT CARRIED OUT ANY CHARIT ABLE ACTIVITIES DURING THE LAST THREE YEARS IS NOT IN DISPUTE. IT IS OBSERVED THAT THE SA ME IS EVIDENT AND CORROBORATED FROM THE RETURN OF INCOME AND MORE PARTICULARLY THE EXPE NDITURE ACCOUNT WHEREIN NO EXPENDITURE ON ACCOUNT OF OBJECT OF THE TRUST HAS B EEN INCURRED/DEBITED BY THE ASSESSEES TRUST. IT IS PERTINENT TO MENTION THAT T HIS PARTICULAR ASPECT HAS BEEN NOTED BY THE LD.DIT (EXEMPTION) WHILE DENYING THE GRANT O F APPROVAL U/S 80G OF THE ACT. IT IS RELEVANT TO MENTION THAT THE INTENTION BEHIND EN ACTING THE BENEFICIAL PROVISIONS OF SECTION 80G IS TO GRANT INCENTIVES TO THE TRUST WHO ARE ENGAGED IN THE CARRYING OUT CHARITABLE ACTIVITIES FOR THE BENEFIT OF PUBLIC IN GENERAL. WHEN NO SUCH ACTIVITIES OF PUBLIC UTILITY HAVE BEEN CARRIED OUT, IT WOULD BE A FUTILE EXERCISE IF THE APPROVAL U/S 80G IS GRANTED WHICH WOULD OTHERWISE DEFEAT THE VER Y OBJECT OF THE BENEFICIAL PROVISION. MOREOVER, WHEN THE ASSESSEES TRUST HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITY, THE VERY PURPOSE OF GRANTING THE CERTIFIC ATE U/S 80G WOULD NOT SERVE ANY PURPOSE TO THE ASSESSEES TRUST. IN THIS CONNECTION , THE DECISION RELIED ON BY THE LD. AR, NAMELY THE DECISIONS OF THE TRIBUNAL IN THE CAS E OF SHELTER FOUNDATION IN ITA NO. 5725/MUM/2011 AND SHIV SHANKAR MEMORIAL EDUCATION SOCIETY [21 TAXMAN.COM 12 (DEL)] WILL NOT BE OF ANY HELP TO THE ASSESSEE IN S UPPORT OF THE CLAIM IN GETTING THE GRANT OF APPROVAL AS THE FACTS INVOLVED IN THE SAID CASES ARE ENTIRELY DIFFERENT FROM THAT OF THE PRESENT ASSESSEES CASE. IN VIEW OF THA T MATTER, WE DO NOT FIND ANY JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF T HE LD.DIT (EXEMPTION) DENYING THE GRANT OF APPROVAL U/S 80G AND THEREFORE, THE SAME I S UPHELD. HOWEVER, WHEN THE ASSESSEES CHARITABLE TRUST ESTABLISHES THAT IT CAR RIES ON THE CHARITABLE ACTIVITIES IN ACCORDANCE WITH THE OBJECT OF THE TRUST, THEN THE A SSESSEES TRUST IS AT LIBERTY TO FILE THE APPLICATION AFRESH BEFORE THE LD.DIT (EXEMPTION ) SEEKING THE APPROVAL U/S 80G. THE ISSUE RAISED IN THIS APPEAL IS DISPOSED OFF WIT H THE ABOVE OBSERVATION. ITA NO. 5080/MUM/2010 SMT. RADHALEELA CHARITABLE TRUST. ASSESSMENT YEAR: 2010 3 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 0 / 12' 3$ 26 TH 4! , 201 4 2 / 5 ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH FEBRUARY, 2014. SD/- SD/- ( / RAJENDRA ) ( ' ' ' ' . . # # # # . . !$ !$ !$ !$ / DR. S.T.M. PAVALAN) / ACCOUNTANT MEMBER / JUDICIAL MEMBER /MUMBAI, 3$ /DATED: 26.02.2014. $ . ./ P.S.*SRIVASTAVA COPY TO: () / THE APPELLANT *+() / THE RESPONDENT 7 8 / THE CIT, CONCERNED, MUMBAI 7 8 / THE CIT(A) CONCERNED, MUMBAI 9!:5 *-$ /THE DR D BENCH 5 & ; / GUARD FILE. +9- *- //TRUE COPY// 0$ / BY ORDER < / = DY/ASSTT. REGISTRAR, , / ITAT, MUMBAI.