Appeal details
Counselvise Citation
[2017] 127 COUNSELVISE.COM (IT) 2127 (ITAT-JAIPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 27 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
10-08-2017
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Assessment Year
2017-2018
Appeal Filed On
13-06-2017
Judgement Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 535/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2017-18. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWAR. CUKE VS. THE CIT(EXEMPTION), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACTG 5364 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ROLLY AGARWAL (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 10/08/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(E), JAIPUR DATED 27.04.2017 PERTAINING TO A.Y. 2017-18. THE SOLITARY GROUND HAS RAISED IN THIS APPEAL THAT READS AS UNDER:- THAT THE LD. CIT(EXEMPTION), JAIPUR HAS ERRED IN L AW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN REJECTING THE APPL ICATION OF THE ASSESSEE TRUST FOR GRANTING OF REGISTRATION CERTIFICATE U/S 80G OF THE INCOME TAX ACT, 1961. THE LD. CIT(EXEMPTION) HAS REJECTED THE APPL ICATION ON FRIVOLOUS GROUNDS, WHICH HAVE NO BEARING ON THE ON GRANTING O F EXEMPTION U/S 80G OF THE INCOME TAX ACT 1961. 2. THE ASSESSEE HAS FILED AN APPLICATION ON 21/10/2 016 IN FORM NO. 10G FOR SEEKING APPROVAL OF U/S 80G(5)(VI) OF THE INCOME TA X ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2 ITA NO. 535/JP/2017. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWA R. 3. THE LD. CIT AFTER CONSIDERING THE SUBMISSIONS AN D THE OBJECTS OF THE SOCIETY REJECTED THE APPLICATION ON THE GROUND THAT THE ASS ESSEE HAS NOT CARRIED OUT ANY SIGNIFICANT CHARITABLE ACTIVITIES. AGAINST THIS, T HE ASSESSEE PREFERRED THE PRESENT APPEAL. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT AND HAS CARRIED OU T CHARITABLE ACTIVITIES WHICH HAVE BEEN REPRODUCED BY THE LD. CIT. THE ONLY OBJECTION OF THE LD. CIT IS THAT NO SIGNIFICANT CHARITABLE ACTIVITY WAS CARRIED OUT. H E CONTENDED THAT, THERE IS NO REQUIREMENT OF LAW FOR CARRYING OUT OF SIGNIFICANT CHARITABLE ACTIVITY. HE IS SUBMITTED UNDER THESE FACTS WHEN LD. CIT HAS NOT GIVEN ANY AD VERSE FINDING REGARDING THE ACTIVITIES CARRIED OUT BY THE ASSESSEE, THE APPROVA L U/S 80G(5)(VI) OF THE ACT. 5. ON THE CONTRARY, LD. DEPARTMENTAL REPRESENTATIVE S VEHEMENTLY OPPOSED THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE AND SUPPORTED THE ORDER OF THE LD. CIT. 6. WE HAVE HEARD THE RIVAL CONTENTION, PERUSED THE MATERIAL AVAILABLE ON RECORD. LD. CIT IN PARA 4 HAS RECORDED THE FACT WITH REGARD TO THE ACTIVITY CARRIED OUT BY THE ASSESSEE. IT IS OBSERVED BY THE LD. CIT THAT THE A CTIVITY WHICH HAS BEEN CARRIED OUT BY THE ASSESSEE IS NOT THE SIGNIFICANT CHARITABLE A CTIVITY. THEREFORE, HE WAS OF THE VIEW THAT THE CASE IS NOT FIT FOR GRANTING EXEMPTIO N U/S 80G AT THIS STAGE. IN THE SAKE OF CLARITY THE OBSERVATION OF THE LD. CIT HAS RECOR D IN PARA 5 OF HIS IMPUGNED ORDER ARE REPRODUCED HEREIN BELOW:- 5. ON EXAMINATION OF THE ABOVE CHARITY ACCOUNT, IT IS SEEN THAT NO SIGNIFICANT ACTIVITIES HAS BEEN STARTED BY THE APPL ICANT AS PER THE OBJECTS. THE TRUST CAME INTO EXISTENCE ON 21/07/20 16 AND IN PERIOD OF MORE THAN EIGHT MONTHS NO SIGNIFICANT CHARITABLE AC TIVITY HAS BEEN 3 ITA NO. 535/JP/2017. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWA R. COMMENCED. SEEING THE INSIGNIFICANT NATURE OF ACTI VITY THE CASE DOES NOT SEEMS TO BE FIT FOR GRANTING EXEMPTION U/S 80G AT THIS STAGE. 6.1 FROM THE ABOVE IT CAN BE INFERRED THAT THERE WA S NO OBJECTION WITH REGARD TO THE GENUINITY OF THE ACTIVITY. IT IS ONLY THE VOLU ME OF ACTIVITY CARRIED OUT BY THE ASSESSEE. LD. CITS OBJECTION IS THAT IN 8 MONTHS NO SIGNIFICANT CHARITABLE ACTIVITY HAS BEEN CARRIED OUT. IN THE LIGHT OF THESE UNDISP UTED FACTS, WE NEED TO EXAMINE WHETHER THE LAW MANDATES SIGNIFICANT CHARITABLE ACT IVITIES TO BE CARRIED OUT FOR BECOME ELIGIBLE TO BE REGISTERED U/S 80G(5)(VI) OF THE ACT. 6.2 AS PER 80G(5), THE PROVISIONS OF SECTION APPLIE S TO DONATIONS TO ANY INSTITUTION OR FUND REFERRED TO IN SUB CLAUSE (IV) OF CLAUSE (A ) OF SUB-SECTION(2), ONLY IF IT IS ESTABLISHED IN INDIA FOR A CHARITABLE PURPOSE AND I F IT FULFILLS THE FOLLOWINGS CONDITIONS. (I) WHERE THE INSTITUTION OR FUND DERIVES ANY INCOME, S UCH INCOME WOULD NOT BE LIABLE TO INCLUSION IN ITS TOTAL INCOME UNDE R THE PROVISIONS OF SECTION 11 AND 12 OF SECTION 10. [PROVIDED THAT WHERE AN INSTITUTION OR FUND DERIVES ANY INCOME, BEING PROFITS AND GAINS OF BUSINESS, THE CONDITION THAT S UCH INCOME WOULD NOT BE LIABLE TO INCLUSION IN ITS TOTAL INCOME UNDER TH E PROVISIONS OF SECTION 11 SHALL NOT APPLY IN RELATION TO SUCH INCOME, IF- (A) THE INSTITUTION OR FUND MAINTAINS SEPARATE BOOKS OF ACCOUNTS IN RESPECT OF SUCH BUSINESS. (B) THE DONATION MADE TO THE INSTITUTION OR FUND ARE NO T USED BY IT, DIRECTLY OR INDIRECTLY, FOR THE PURPOSE OF SUCH BUSINESS AND (C) THE INSTITUTION OF FUND ISSUED TO A PERSON MAKING T HE DONATION A CERTIFICATE TO THE EFFECT THAT IT MAINTA INS SEPARATE BOOKS OF AMOUNT IN RESPECT OF SUCH BUSINESS AND THA T THE DONATIONS RECEIVED BY IT WILL NOT BE USED, DIRECTLY OR INDIRECTLY, FOR THE PURPOSE OF SUCH BUSINESS. 4 ITA NO. 535/JP/2017. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWA R. (II) THE INSTRUMENT UNDER WHICH THE INSTITUTION OR FUND IS CONSTITUTED DOES NOT, OR THE RULES GOVERNING THE INSTITUTION OF FUND DO NOT, CONTAIN ANY PROVISION FOR THE TRANSFER OR APPLICATION AT ANY TI ME OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS OF THE INSTITUTION OR FUND FOR ANY PURPOSE OTHER THAN A CHARITABLE PURPOSE. (III) THE INSTITUTION OR FUND IS NOT EXPRESSED TO BE FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASE; (IV) THE INSTITUTION OF FUND MAINTAINS REGULAR ACCOUNTS OF ITS RECEIPTS AND EXPENDITURE. (V) THE INSTITUTIONS OF FUND IS EITHER CONSTITUTED AS A PUBLIC CHARITABLE TRUST OR THIS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 (21 OF 1860), OR UNDER ANY LAW CORRESPONDING TO THAT ACT I N FORCE IN ANY PART OF INDIA OR UNDER SECTION 25 OF THE COMPANIES ACT, 1956 (1 OF 1956), OR IS A UNIVERSITY ESTABLISHED BY LAW, OR IS ANY OTHER EDUCATIONAL INSTITUTION RECOGNIZED BY THE GOVERNMENT OR BY A UN IVERSITY ESTABLISHED BY LAW, OR AFFILIATED TO ANY UNIVERSITY ESTABLISHED BY LAW, OR IS AN INSTITUTION FINANCED WHOLLY OR IN PART BY THE GOVER NMENT OR A LOCAL AUTHORITY. (VI) IN RELATION TO DONATIONS MADE AFTER THE 31 ST DAY OF MARCH, 1992, THE INSTITUTION OR FUND IS FOR THE TIME BEING APPROVED BY THE COMMISSIONER IN ACCORDANCE WITH THE RULES MADE IN THIS BEHALF. 6.3 FURTHER, AS PER RULE 11AA(3) OF INCOME TAX RULE S, 1962, THE COMMISSIONER MAY CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE INSTITUTIONS OR FUNDS OR CAUSE SUCH INQUIRIES TO BE MADE AS HE MAY DEEM NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF SUCH INS TITUTIONS OR FUNDS. AS PER RULE 11AA(5), THE COMMISSIONER MAY REJECT THE APPLICATIO N FOR APPROVAL, AFTER RECORDING THE REASONS FOR SUCH REJECTION IN WRITING, WHERE HE SATISFIED THAT ONE OR MORE CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SUB-S ECTION (5) OF SECTION 80G ARE NOT 5 ITA NO. 535/JP/2017. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWA R. FULFILLED. FROM THE ABOVE STATUTORY PROVISIONS IT IS CLEAR THAT THE COMMISSIONER CAN REJECT THE APPLICATION FOR APPROVAL IF HE IS SATISF IED THAT ONE OR MORE CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) SUB-SECTION (5) OF SECTI ON 80G ARE NOT FULFILLED. IN THE PRESENT CASE, LD. CIT HAS NOT RECORDED ANY R EASON THAT THE ASSESSEE HAS FAILED TO FULFILL THE CONDITIONS LAID DOWN IN CLAUS ES (I) TO (V) OF SUB-SECTION (5) OF SECTION 80G ARE NOT FULFILLED. UNDER THESE UNDISPU TED FACTS, WE ARE UNABLE TO AFFIRM THE VIEW OF THE LD. CIT, THEREFORE, WE DIRECT HIM T O GRANT APPROVAL U/S 80G(5) OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO. 535/JP/2017 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER IS PRONOUNCED IN THE OPEN COURT ON THURSDAY, THE 10 TH DAY OF AUGUST 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/08/2017 POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- GANGADEEN NIRANJAN LAL DATA CHARI TABLE TRUST. 2. THE RESPONDENT THE CIT (EXEMPTION), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 535/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 6 ITA NO. 535/JP/2017. GANGADEEN NIRANJAN LAL DATA CHARITABLE TRUST, ALWA R.
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