Shri Dharmik Ramlila Samiti, Ghaziabad V. CIT(Examption), Lucknow

ITA 5798/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8609 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 11-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Assessee Lawyers: J P JAIN
• Keywords: Charitable institution
• Section: 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER I.T.A. NO. 5798/DEL/2017 SHRI DHARMIK RAMLILA SAMITI, VS. CIT(EXEMPTION) RAMLILA GROUND, KAVI NAGAR, LUCKNOW. GHAZIABAD. PAN: AARAS 0122P (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI J.P. JAIN, CA RESPONDENT BY: MS. NIDHI SRIVASTAVA, CIT/DR DATE OF HEARING: 15/01/2020 DATE OF PRONOUNCEMENT: 20/01/2020 ORDER PER K. NARASIMHA CHARY, JM CHALLENGING THE ORDER DATED 17/08/2017 PASSED BY LE ARNED COMMISSIONER OF INCOME-TAX (EXEMPTION), LUCKNOW ( LD. CIT(E)) REJECTING THE APPLICATION UNDER SECTION 12A FOR GRA NT OF REGISTRATION U/S. 12AA, SHRI DHARMIK RAMLILA SAMITI(THE ASSESSEE), PREFERRED THIS APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, N AMELY, SH. DHARMIK RAMLEELA SAMITI WAS FORMED WITH THE MAIN OBJECT OF RUNNING DISPENSARIES, SHELTER HOME, SCHOOLS, LIBRARY AND PHYSIOTHERAPY CL ASSES BESIDES SPREADING THE RELIGIOUS AWARENESS AMONG THE SOCIETY AND WORKI NG FOR THE SOCIAL WELFARE OF THE SOCIETY. THEY HAVE FILED AN APPLICAT ION FOR REGISTRATION UNDER SECTION 12A (A) OF THE INCOME TAX ACT, 1961 ( FOR SHORT THE ACT) 2 WITH THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), L UCKNOW (LD. CIT (E)) ON 30/3/2017. 3. BY WAY OF IMPUGNED ORDER, LD. CIT(E) OBSERVED TH AT AS PER THE PROVISIONS OF SECTION 12AA (1) (B)OF THE ACT, TWO F ACTORS, NAMELY, THE OBJECT OF CHARITABLE PURPOSE AND THE GENUINENESS OF ACTIVITIES HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION, BUT THE AS SESSEE SOCIETY HAS NOT BEEN ABLE TO PRODUCE THE BOOKS OF ACCOUNTS, BANK ST ATEMENT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSESSEE FOR VERIFICATION OF OBJECTS AND ACTIVITIES OF THE TRUST, IN THE ABSENCE OF WHIC H THE GENUINENESS OF ACTIVITIES COULD NOT BE VERIFIED. BASING ON THE MAT ERIAL AVAILABLE BEFORE HIM, LD. CIT(E) REACHED A CONCLUSION THAT THE ASSES SEE SOCIETY IS NOT CARRYING OUT ANY ACTIVITIES OF CHARITABLE NATURE. H E THEREFORE, BY WAY OF IMPUGNED ORDER REJECTED THE APPLICATION UNDER SECTI ON 12A (1) OF THE ACT. 4. AGGRIEVED BY SUCH AN ORDER ASSESSEE PREFERRED TH IS APPEAL STATING THAT THE ASSESSEE HAD UNDERTAKEN THE CHARITABLE ACT IVITIES LIKE SHAV VAHAN OPERATIONS FOR CARRYING THE DEAD BODIES TO CREMATIO N GROUND, SHELTER HOME FOR THE HOMELESS PERSONS, AMBULANCE OPERATIONS FOR SICK PERSONS, PROVISION OF FREE FOOD AND ARRANGEMENT OF DRINKING WATER BOTTLES WITH THE HELP OF MEMBERS, BESIDES ORGANISING RAMLEELA ON FAM OUS RAMLEELA GROUND AT GAZIABAD. LD. AR SUBMITTED THAT THE OBSER VATIONS OF THE LD. CIT(E) THAT THE SOCIETY HAS NOT PRODUCED THE BOOKS OF ACCOUNTS AND VOUCHERS IS FACTUALLY INCORRECT AND AS A MATTER OF FACT, ALL SUCH MATERIAL WAS SUBMITTED BEFORE THE LD. CIT(E) ON 10/7/2017 AL ONG WITH THE COMPLETE SUBMISSIONS ACCORDING TO THE QUESTIONNAIRE RECEIVED BY THEM. IT IS FURTHER SUBMITTED THAT IN THE SAME SET OF FACTS AND CIRCUMSTANCES AND 3 BASING ON THE VERY SAME MATERIAL, LD. CIT(E) GRANTE D EXEMPTION UNDER SECTION 10(23C)(V) OF THE ACT IN THE VERY NEXT YEAR . 5. PER CONTRA, THE LD. DR WHILE PLACING RELIANCE ON THE IMPUGNED ORDER VEHEMENTLY CONTENDED THAT NONE OF THE OBJECTS ARE A CTIVITIES OF THE ASSESSEE AMOUNTED TO CHARITABLE PURPOSE AND THE CON CEPT OF CHARITABLE PURPOSE WOULD BE MANIFESTED DIFFERENT FORMS LIKE RE LIEF OF THE POOR, EDUCATION, MEDICAL RELIEF ETC AND RUNNING A THEATRE GROUP OR RAMLEELA SAMITI BY ITSELF CANNOT MODEL ITSELF AS CHARITY PUR POSE AND UNLESS CERTAIN INITIATIVE IS TAKEN BY SUCH INSTITUTIONS TO CARRY O UT THE ACTS OF CHARITY FROM THE RECEIPTS OF THEIR COMMERCIAL ENGAGEMENTS, THE S OCIETIES LIKE ASSESSEE ARE NOT ENTITLED TO THE REGISTRATION UNDER SECTION 12A(1) OF THE ACT. HE FURTHER SUBMITTED THAT THE IMPUGNED ORDER REVEALS T HAT THE ASSESSEE SOCIETY HAD NOT PRODUCED THE BOOKS OF ACCOUNTS, BAN K STATEMENT AND VOUCHERS IN RESPECT OF EXPENSES CLAIMED BY THE ASSE SSEE FOR VERIFICATION OF OBJECTS AND ACTIVITIES OF THE TRUST AND IN THE ABSE NCE OF SUCH A MATERIAL IT WAS NOT POSSIBLE FOR THE LD. CIT(E) TO VERIFY THE G ENUINENESS OF THE ACTIVITIES, WITHOUT WHICH THERE WAS NO PROPER COMPL IANCE WITH SECTION 12 AA (1) (B) OF THE ACT. SHE THEREFORE SUBMITS THAT T HE LD. CIT(E) IS JUSTIFIED IN DECLINING THE REGISTRATION. 6. WE HAVE GONE THROUGH THE RECORD IN THE LIGHT OF THE SUBMISSIONS MADE ON EITHER SIDE. BY WAY OF PAPER BOOK THE ASSES SEE SUBMITTED THE COPY OF LETTER DATED 10/7/2017 ADVANCED TO THE LD. CIT(E) WHEREIN THE ASSESSEE MADE DETAILED SUBMISSIONS TO THE QUESTIONN AIRE ISSUED BY THE LD. CIT(E) AND ALSO ENCLOSING THE COPY OF BANK STATEMEN T, BOOKS OF ACCOUNTS ALONG WITH BILLS AND VOUCHERS ETC. ALL THESE DOCUME NTS ARE CERTIFIED TO BE 4 TRUE COPIES BY THE DEPARTMENT. LD. DR DOES NOT CONT ROVERT THE GENUINENESS OF THESE DOCUMENTS WITH REFERENCE TO AN Y RECORD. 7. FURTHER IT COULD BE SEEN THAT THE VERY SAME OFFI CER GRANTED APPROVAL UNDER SECTION 10(23C) (V) OF THE ACT ON 21/08/2018 ON THE APPLICATION OF THE ASSESSEE FILED ON 19/08/2017, AND SUCH REGISTRA TION TAKES PLACE WITHIN TWO DAYS AFTER PASSING THE IMPUGNED ORDER. ASSESSEE SUBMITS THAT BASING ON THE VERY SAME DOCUMENTS AS ARE AVAILABLE BEFORE THE LD. CIT(E) IN RESPECT OF THEIR APPLICATION OF SECTION 12A(1) OF T HE ACT, THE REGISTRATION UNDER SECTION 10(23C)(V) OF THE ACT WAS GRANTED. 8. BE THAT AS IT MAY, HAVING REGARD TO THE ENTIRE F ACTUAL MATRIX AND IN VIEW OF THE MATERIAL PRODUCED IN THIS MATTER AND CE RTIFIED TO BE TRUE COPIES OF THE DOCUMENTS PRODUCED BEFORE THE LD. CIT (E), WE ARE OF THE CONSIDERED OPINION THAT IT IS A FIT CASE TO SET ASI DE THE IMPUGNED ORDER AND REMAND THE ISSUE TO THE FILE OF THE LD. CIT(E) FOR CONSIDERING THE APPLICATION OF THE ASSESSEE IN THE LIGHT OF THIS MA TERIAL. WE ACCORDINGLY REMAND THE ISSUE TO THE FILE OF THE LD. CIT(E) TO C ONSIDER THESE DOCUMENTS AND TO DECIDE THE ISSUE AFRESH ACCORDING TO LAW. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JANUARY, 2020. SD/- SD/- (PRASHANT MAHARISHI) (K.NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20/01/2020 . AKS