NLB Charitable Trust, Meerut V. CIT (Central), Kanpur

ITA 5640/DEL/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2665 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 06-05-2013
• Assessment Year: misc
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 80G; 12A; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E: NEW DELHI) BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO.5640/DEL/ 2012 (ASSESSMENT YEAR : ) NLB CHARITABLE TRUST VS. CIT (CEMTRAL) 5, AMBEDKAR BHAWAN, 7/81 B, N H 58, DELHI HARIDWAR BYE PASS ROAD. TILAK NAGAR MEERUT KANPUR. PAN: AABTN0664N (APPELLANT) (RESPONDENT) REVENUE BY : MRS. A. S. AWASTHI, SR.DR. ASSESSEE BY:SHRI K. SAMPATH, ADV. ORDER PER T. S. KAPOOR, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX PASSED U/S 80G OF INCOME TAX ACT. THE GROUNDS TAKEN BY THE ASSESSEE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE COMMISSIONER OF INCOME TAX HAS ERRED IN REJECTING P ETITION U/S 80G (5) OF THE INCOME TAX ACT, 1961. OBSERVATIONS M ADE, INFERENCES DRAWN AND FINDINGS RECORDED ARE BAD IN L AW. 2. THE CIT HAS WITHOUT CONSIDERATION OF THE FACTS O F THE CASES, TAKEN A DECISION IN A HURRY AND REACHED CONC LUSIONS ITA NO.5640 /DEL/2012 2 UNILATERALLY, WITHOUT PROVIDING ENOUGH OPPORTUNITY TO THE ASSESSEE TO EXPLAIN ITS AFFAIRS. 2. VIDE THIS APPEAL, THE ASSESSEE HAS RAISED ITS OB JECTIONS AGAINST DENIAL OF REGISTRATION U/S 80G OF THE INCOME TAX ACT, 1961 . AT THE OUTSET, THE LD. AR INVITED OUR ATTENTION TO APPELLATE ORDER PASSED BY ITAT, DELHI BENCH-F IN ITA NO.1707 VIDE ORDER DATED 12.03.2010, IN WHIC H THE REGISTRATION U/S 12A OF THE ACT WAS DIRECTED TO BE GIVEN. IN VIEW O F THE ABOVE ORDER, THE LD. AR SUBMITTED THAT INITIALLY THE REGISTRATION U/ S 12A WAS DENIED AND, THEREFORE, ASSESSEE DID LITTLE TOWARDS ITS ACTIVITI ES AND WAS WAITING FOR THE REGISTRATION WHICH WAS DIRECTED BY ITAT TO BE GIVEN AND, THEREAFTER, IT PURCHASED LANDS FOR CARRYING OUT CHARITABLE ACTIVIT IES AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO PAPER BOOK PAGE 53 TO 142 WHEREIN COPIES OF LAND PURCHASED WERE PLACED. 3. OUR ATTENTION WAS ALSO INVITED TO PAPER BOOK PAG E 45 WHICH IS A COPY OF APPROVAL AS ADMINISTRATIVE CONTROLLER ISSUED BY DIRECTORATE OF DISTANCE EDUCATION SWAMI VIVEKANAND SUBHARTI UNIVERSITY AND IT WAS PLEADED THAT ASSESSEE TRUST HAS BEEN ABLE TO GET APPROVAL FOR WO RKING AS ADMINISTRATIVE CONTROLLER AND, THEREFORE, THE REGISTRATION U/S 80 G SHOULD HAVE BEEN GRANTED TO IT. INVITING OUR ATTENTION TO CITS ORDE R IN THIS REGARD IN WHICH ITA NO.5640 /DEL/2012 3 HE HAD DENIED REGISTRATION U/S 80G ON THE BASIS OF UNEXPLAINED BANK ENTRIES, HE SUBMITTED THAT EXPLANATION OF CREDIT EN TRIES IN THE BANK ACCOUNT ARE AS PER PAPER BOOK PAGE 22 AND 23. IN SO FAR AS EXPLANATIONS OF UNSECURED LOANS AND DEPOSITS WERE CONCERNED HE SUBM ITTED THAT NECESSARY EXPLANATION COULD NOT BE GIVEN EARLIER AND IT WAS P RAYED THAT ASSESSEE WAS HAVING FULL RECORDS TO EXPLAIN EACH AND EVERY DEPOS ITS AND ENTRIES IN BANK ACCOUNT AND, THEREFORE, THE CASE OF THE ASSESSEE MA Y BE SENT BACK FOR FRESH HEARING. 4. LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAN D HAD NO OBJECTION TO THE PROPOSAL. 5. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE OBSERVE THAT APPLICATION U/S 8 0G WAS ORIGINALLY FILED ON 07.02.2011 WHICH WAS FIXED FOR HEARING ON 12.10. 2011 ON WHICH DATE LD. AR APPEARED ON BEHALF OF TRUST AND CASE WAS ADJ OURNED TO 11.11.2011 ON WHICH DATE NO BODY APPEARED ON BEHALF OF SSESSEE . THEREFORE, CASE WAS FIXED FOR HEARING ON 09.10.2012 AND FINALLY THE CAS E WAS HEARD ON 15.10.2012. THE ASSESSEE WAS REQUIRED TO FURNISH FI NAL ACCOUNTS FOR THE YEAR ENDING ON 31.03.2009 TO 31.03.2011 AND WAS REQ UIRED TO FURNISH THE ITA NO.5640 /DEL/2012 4 PROOF OF CHARITABLE ACTIVITIES CARRIED OUT BY THE T RUST. THE LD. COMMISSIONER OBSERVED THAT DESPITE A YEAR HAD PASSE D THE COMPLETE BOOKS OF ACCOUNTS WERE NOT FURNISHED AND ONLY A COPY OF B ANK ACCOUNT AND A LETTER FROM SWAMI VIVEKANAND SUBHARTI UNIVERSITY WA S FILED. THEREFORE, ON THE BASIS OF UNEXPLAINED ENTRIES IN THE BANK ACC OUNT AND ON THE BASIS THAT ASSESSEE HAD NOT PRODUCED SUFFICIENT MATERIAL TO SHOW THAT IT HAD CARRIED OUT CHARITABLE ACTIVITIES THE CIT REJECTED THE APPLICATION. WE FURTHER OBSERVE THAT ASSESSEE WAS GIVEN REGISTRATION U/S 12 A VIDE ORDER DATED 17.03.2010 AND IN THE MONTH OF OCTOBER, 2012, THE A SSESSEE RECEIVED A LETTER FROM DIRECTORATE OF DISTANT EDUCATION SWAMI VIVEKANAND SUBHARTI UNIVERSITY FOR APPROVAL AS ADMINISTRATIVE CONTROLLE R AND ASSESSEE ALSO PURCHASED LANDS THE EVIDENCE OF WHICH IS PLACED AT PAPER BOOK PAGE 53 TO 142. WE FURTHER OBSERVE THAT ASSESSEE HAD NOT SUBMI TTED COMPLETE BOOKS OF ACCOUNTS AND OTHER DOCUMENTS TO THE SATISFACTION OF CIT, WHICH IT NOW IS WILLING TO DO. 6. KEEPING IN VIEW THE ABOVE AND IN THE INTEREST OF JUSTICE, WE ARE OF THE OPINION THAT LD. COMMISSIONER SHOULD EXAMINE TH E CASE OF ASSESSEE AFRESH AND ON THE BASIS OF ALL FACTS AND CIRCUMSTAN CES OF THE CASE, HE SHOULD DECIDE REGARDING REGISTRATION U/S 80G OF THE ACT. ITA NO.5640 /DEL/2012 5 IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE ASSE SSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 5 TH /07/ 2013 SD/- SD/- (RAJPAL YADAV) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 5 TH DAY OF JULY, 2013 S.SINHA COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. CIT (ITAT), NEW DELHI. AR, ITAT NEW DELHI.