CANCER PATIENTS AID SOCIETY, MUMBAI V. DIT (E), MUMBAI

ITA 5565/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92785 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 27-08-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: A K MEHTA
• Keywords: Charitable institution
• Section: 12A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI N.K . BILLAIYA, A CCOUNTANT M EMBER / I .T.A. NO . 5565 /MUM/ 2013 ( / ASSESSMENT YEAR : 2013 - 14 CANCER PATIENTS AID SOCIETY B - 606, MANSI PLAZA, I.C. COLONY, BORIVALI (W), MUMBAI - 400 103 / VS. THE DIT(EXEM.), PIRAMAL CHAMBERS, 6 TH FLOOR, PAREL, MUMBAI - 400 012 ./ ./ PAN/GIR NO. : AABAC 3830G ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI A.K. MEHTA / RESPONDENT BY : SHRI SRINIVAS RAO / DATE OF HEARING : 0 3 . 0 6 .2015 / DATE OF PRONOUNCEMENT : 0 3 .0 6 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE DIT(EXEMPTION) , MUMBAI DT. 2 6 . 6 .201 3. 2. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE DIT (EXEM) BY WHICH HE HAS REJECTED THE APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION U/S. 12A OF THE AC T. THE ASSESSEE IS ITA. NO. 5565/M/2013 2 CONSTITUTED BY A MEMORANDUM OF ASSOCIATION REGISTERED WITH THE ASSTT. REGISTRAR OF SOCIETIES ON 18.6.2012 AND WITH THE CHARITY COMMISSIONER, MUMBAI ON 5.12.2012. ON RECEIVING THE APPLICATION FOR REGISTRATION, THE DIT (EXEM.) ASKED THE ASSESSEE TO FURNISH CERTAIN DETAILS/DOCUMENTS. A PERUSAL OF THE TRUST DEED REVEALS THAT THE ASSESSEE HAS CHARITABLE AS WELL AS NON - CHARITABLE/COMMERCIAL OBJECTS. 3.1. AFTER CAREFULLY PERUSING THE OBJECTS OF THE ASSESSEE AND THE RELATED DOCUMENTS FILE D DURING THE COURSE OF THE PROCEEDINGS, THE DIT(EXEM) OBSERVED THAT THE ASSESSEE HAS NOT BROUGHT OUT THE PARTICULAR HEAD OF CHARITABLE PURPOSE AS DEFINED IN 2(15) UNDER WHICH THE AFORESAID OBJECTS ARE COVERED. THE DIT (EXEM) FURTHER OBSERVED THAT THERE IS NO ROOM FOR NON CHARITABLE/COMMERCIAL OBJECTS IN A MEMORANDUM OF ASSOCIATION CREATING A PUBLIC CHARITABLE INSTITUTION. THE DIT (EXEM.) WAS OF THE FIRM BELIEF THAT ONCE AN OBJECT IS FOUND TO BE OF NON CHARITABLE NATURE, ITS CHARACTER WILL NOT CHANGE ME RELY BECAUSE THERE IS NO MOTIVE OF EARNING PROFIT. ON FURTHER VERIFICATION OF THE BANK STATEMENT, THE DIT (EXEM.) OBSERVED THAT AROUND RS. 23.98 LAKHS HAVE BEEN PAID TO SHRI SUNIL KUMAR VAISH WHO HAPPENS TO BE THE HUSBAND OF SMT. RENU SUNIL VAISH WHO IS SECRETARY AND SHRI SHRI SUNIL KUMAR VAISH WAS ALSO HAPPENS TO BE THE FOUNDER TRUSTEE OF THE ASSESSEE. THE DIT(EXEM.) FURTHER OBSERVED THAT SHRI SUNIL KUMAR VAISH WAS DRAWING MONTHLY REMUNERATION. THE ASSESSEE APPLICANT FAILED TO ESTABLISH THE NEXUS BETW EEN THE REMUNERATION PAID TO SHRI SUNIL KUMAR VAISH AND WORK DONE BY HIM. AFTER MAKING ALL THESE OBSERVATIONS, THE DI (EXEM.) DECLINE TO GIVE REGISTRATION TO THE ASSESSEE. 4. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. ITA. NO. 5565/M/2013 3 5. THE LD. COUNSEL FOR THE ASS ESSEE COULD NOT BRING ANY DISTINGUISHING FACT NOR WAS IN A POSITION TO CONTROVERT THE OBSERVATIONS MADE BY DIT(EXEM.). 6. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDER OF THE DIT (EXEM.) 7. WE HAVE CAREFULLY PERUSED THE ORDER OF THE DIT (EXEM.). A PERUSAL OF THE FINANCIAL STATEMENT OF THE ASSESSEE, WE FIND THAT SUBSTANTIAL PART OF THE INCOME OF THE ASSESSEE HAS BEEN DIVERTED IN FAVOUR OF SHRI SUNIL KUMAR VAISH WHO HAPPENS TO BE THE HUSBAND OF THE FOUNDER TRUSTEE. PAYME NTS MADE TO SHRI SUNIL KUMAR VAISH ACCOUNT FOR OVER 77% OF THE DONATIONS RECEIVED BY THE ASSESSEE. THERE ARE ALSO PAYMENTS MADE TO SHRI SANSKAR SUNIL VAISH AND SHRI JAGDISH VAISH IS THE SON OF SMT. RENU VAISH. WE FURTHER FIND THAT ONE OF THE CAR PURCHA SED BY THE ASSESSEE IS FROM SHRI SUNIL KUMAR VAISH WHO HAS TRANSFERRED HIS OLD CAR TO THE ASSESSEE. AFTER CONSIDERING ALL THESE FACTS IN TOTALITY, IN OUR CONSIDERED OPINION, THE ENTIRE DONATION RECEIVED BY THE ASSESSEE IS DIVERTED TO THE FAMILY OF SHRI S UNIL KUMAR VAISH AND SMT. RENU VAISH IN THE GUISE OF CREATING CANCER AWARENESS. THE ASSESSEE IS MISAPPROPRIATING THE FUNDS AND THEREFORE THE DIT (EXEM.) HAS RIGHTLY DENIED REGISTRATION TO THE ASSESSEE. WE DECLINE TO INTERFERE. 8. IN THE RESULT, THE APP EAL FILED BY THE ASSESSEE IS DISMISSED. OR DER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 3 RD JUNE , 2015 . SD/ - SD/ - ( JOGINDER SING H ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 3 RD JUNE , 2015 . . ./ RJ , SR. PS ITA. NO. 5565/M/2013 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI