M/s Nicodemus Trust, New Delhi V. DIT (Exemptions), New Delhi

ITA 5675/DEL/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81777 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 18-09-2014
• Assessment Year: misc
• Appeal Filed On: 15-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GUNJAN PRASHAD
• Assessee Lawyers: ASHWANI TANEJA
• Section: 80G; 12A; 12AA

Judgement Text

ITA NO. 5675/DEL/ 2010 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `E NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER I.T.A.NO. 5675/DEL/2010 ASSESSMENT YEAR : -------- NICODEMUS TRUST, VS DIT( EXEMPTIONS), 575, RAVI DAS NAGAR AAY AKAR BHAWAN, (PANA UDYAN), DISTT. CENTRE, LAXMI NAGAR, NARELA, NEW DELHI-110092 NEW DELHI-110040 (PAN: AABTN1250A) (APPELLANT) (RESPONDENT) A PPELLANT BY: SHRI ASHWANI TANEJA RESPONDENT BY : SHRI GUNJAN PRASHAD ( CIT DR) O R D E R PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THE ABOVE APPEAL HAS BEEN FILED BY THE ASSESSEE AGA INST THE ORDER OF DIT(EXEMPTIONS), DELHI DATED 27.10.2010 PASSED U/S 12AA(1)(B) R/W SECTION 12A OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) 2. THE APPELLANT HAS RAISED FOLLOWING GROUNDS IN TH IS APPEAL:- 1. THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTION) IS NOT CORRECT AND ACCEPTABLE. 2. THE HONOURABLE DIRECTOR OF INCOME TAX( EXEMPTION ) WOULD NOT HAVE REJECTED THE APPLICATION WITHOUT PRO PERLY VERIFYING THE ACTIVITIES CARRIED OUT BY THE TRUST. ITA NO. 5675/DEL/ 2010 PAGE 2 OF 5 3. THE DIRECTOR DID NOT APPRECIATE THE FACT THAT SO MANY DONORS FROM INDIA AND ABROAD INCLUDING GOVERNMENT PARTICIPATED WITH THE DEVELOPMENT AND CHARITABLE WO RKS. 4. THE DIRECTOR OF INCOME TAX QUESTION THE GENUINEN ESS OF THE INSTITUTIONS UNREASONABLE AND NOT BONAFIDE 5. THE HONOURABLE DIRECTOR OF INCOME TAX- OUGHT TO HAVE BEEN VERIFIED AGREEMENTS MADE WITH THE DONORS GOVER NMENT AND AGENCIES. 6. THE DIRECTOR OF THE INCOME TAX DID NOT SEE THE F ACT THAT CHARITY IS DONE WITH THE HELP OF MANY PHILANTHROPIS TS AND DONORS. 7. ANY OTHER GROUND THAT MAY EMERGE AT THE TIME OF HEARING. 3. BRIEFLY STATED THE FACTS GIVING RISE TO THIS APP EAL ARE THAT THE APPELLANT TRUST FILED APPLICATION WITH DIT(E), DELHI TO REGISTER TH E ORGANISATION U/S 12A AND 80G OF THE ACT ON 23.4.2010. THE DIT(E) REJECTED T HE SAID APPLICATIONS ON THE GROUND THAT TRUST IS NOT GENUINE AND DID NOT CARRY OUT ANY SOCIAL WORK. NOW, THE APPELLANT IS BEFORE THIS TRIBUNAL WITH THE GROUNDS AS MENTIONED ABOVE. 4. APROPOS ABOVE GROUNDS, THE LD. COUNSEL OF THE AP PELLANT SUBMITTED THAT THE DIT(E) DID NOT EXAMINE THE DETAILS AND DOCUMENT S FILED BY THE APPELLANT OBJECTIVELY TO RECORD SATISFACTION AS REQUIRED UNDE R SECTION 12AA OF THE ACT FOR GRANT OF REGISTRATION US/ 12A OF THE ACT. THE LD. COUNSEL HAS ALSO DRAWN OUR ATTENTION TOWARDS OPERATIVE PART OF THE IMPUGNED OR DER AND SUBMITTED THAT THE DIT(E) PASSED A SLIPSHOD AND CRYPTIC ORDER WITHOUT GIVING REASONS TO SUPPORT THE CONCLUSION DRAWN THEREIN. ITA NO. 5675/DEL/ 2010 PAGE 3 OF 5 5. LD. DR CONTENDED THAT THE APPELLANT HAD TO SUBMI T ALL THE REQUIRED DETAILS TO SUPPORT ITS APPLICATION AND IF THE ACTIVITIES OF APPELLANT TRUST ARE NOT FOUND TO BE CHARITABLE, THEN IT IS NOT ENTITLED FOR GRANT OF REGISTRATION U/S 12A OF THE ACT. HOWEVER, THE LD. DR SUBMITTED THAT IF IT IS FOUND J UST AND PROPER TO RESTORE THE CASE TO THE FILE OF DIT(E) FOR FRESH ADJUDICATION, THEN HE HAS NO SERIOUS OBJECTION TO THAT. 6. ON CAREFUL CONSIDERATION OF ABOVE SUBMISSIONS, W E OBSERVE THAT THE DIT(E) HAS REJECTED THE APPLICATION OF THE TRUST WI TH THE FOLLOWING CONCLUSION:- 3. ON PERUSAL OF THE DETAILS, IT IS SEEN THAT THE APPLICANT HAS NOT BEEN ABLE TO SUBSTANTIATE THE EXP ENSES WITH BILLS, VOUCHERS ARID OTHER EVIDENCES. FURTHER, THE ACTIVITIES CARRIED OUT ARE NOT ITS OWN AND THE ACTI VITIES ARE DONE ON BEHALF OF OTHER GOVERNMENT/NON-GOVERNMENT BODIES FOR A FEE. THUS, IT CANNOT BE SAID THAT THE SERVICES RENDERED FOR GRANTS IN AID FROM DIFFERENT ORGANIZAT IONS ARE CHARITABLE ACTIVITIES OF THE TRUST. MOREOVER, THEY 'ARE CARRYING ON PROJECTS BY UTILIZING THE FUNDS RECEIVE D FROM ABROAD: THEREBY ARE NOT DOING ANY VOLUNTARY WORK. 4. THE PROVISIONS OF SECTION 12M STIPULATE THE FOLL OWING CONDITIONS FOR REGISTRATION U/S 12A OF THE I. T. AC T, 1961:- (I) THE OBJECTS OF THE SOCIETY SHOULD BE OF CHARITA BLE IN NATURE; (II) THE ACTIVITIES OF THE SOCIETY SHOULD BE GENUIN E. 5. THEREFORE, THE GENUINENESS OF THE CLAIM OF THE SOCIETY TO BE A CHARITABLE SOCIETY IS NOT ESTABLISHED. ACCORD INGLY, THE APPLICATION FILED BY THE APPLICANT FOR GRANT OF REG ISTRATION U/S 12AA IS HEREBY REJECTED. ITA NO. 5675/DEL/ 2010 PAGE 4 OF 5 7. FROM BARE READING OF ABOVE CONTENTIONS AND RELEV ANT PART OF IMPUGNED ORDER, WE OBSERVE THAT THE DIT(E) PASSED A CRYPTIC AND BRIEF ORDER WITHOUT ADHERING TO THE LETTER AND SPIRIT OF SECTION 12AA O F THE ACT. THE DIT(E) OUGHT TO HAVE EXAMINED AND VERIFIED AGREEMENT MADE BY THE TRUST WITH DONORS AND GOVERNMENT AND OTHER RELEVANT AGENCIES. THE DIT(E) OUGHT TO HAVE EXAMINED THE OBJECTIVES AND MODUS OPERANDI OF THE SAID CHARI TABLE ACTIVITIES OF THE TRUST TO RECORD HIS SATISFACTION AS REQUIRED BY SECTION 12AA OF THE ACT. HENCE, IMPUGNED ORDER IS NOT SUSTAINABLE AND WE SET ASIDE THE SAME AND THE ISSUE OF GRANT OF REGISTRATION U/S 12A OF THE ACT IS RESTORE D TO THE FILE OF DIT(E) WITH THE DIRECTION THAT THE DIT(E) SHALL DECIDE THE APPLICAT ION OF THE ASSESSEE FILED U/S 12AA OF THE ACT AFRESH BY AFFORDING DUE OPPORTUNITY OF HEARING FOR THE APPELLANT. ACCORDINGLY, MAIN EFFECTIVE GROUND OF T HE ASSESSEE IS ALLOWED AS INDICATED ABOVE. 8. IN THE RESULT, APPEAL OF THE APPELLANT TRUST IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.09.2014. SD/- SD/- (G.D. AGRAWAL) (CHANDRAMOHAN GARG) VICE PRESIDENT JUDICIAL MEMBER DT. 30 TH SEPTEMBER, 2014 GS ITA NO. 5675/DEL/ 2010 PAGE 5 OF 5 COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. C.I.T.(A) 4. C.I.T. 5. DR BY ORDER ASSTT.REGISTRAR