Ek Umeed Welfare Society, Fazilka V. The Income tax Officer, Bathinda

ITA 615/ASR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85940 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-03-2015
• Assessment Year: misc
• Appeal Filed On: 18-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12AA; 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.615(ASR)/2013 PAN :AAATE4816C M/S. EK UMEED WELFARE SOCIETY, VS. COMMISSIONER OF INCOME TAX, FAZILKA. BATHINDA. (APPELLANT) (RESPONDENT) APPELLANT BY:SH.SUDHIR SEHGAL RESPONDENT BY:SH.TARSEM LAL, DR DATE OF HEARING:09/03/2015 DATE OF PRONOUNCEMENT:17/03/2015 ORDER PER B.P. JAIN, AM: THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE COMMISSIONER OF INCOME TAX (IN SHORT, CIT), BATHINDA, DATED 13 .08.2013 AGAINST REJECTION OF REGISTRATION U/S 12AA OF THE INCOME TA X ACT, 1961 ( IN SHORT, THE ACT) . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE WORTHY CIT, BATHINDA, HAS ERRED IN NOT ALLOWING REGISTRATION U/S 12AA OF THE ACT WHICH IS TOTALLY U NJUSTIFIED AND NOT ACCORDING TO LAW. 2. THAT THE WORTHY CIT, BATHINDA, HAS ALSO ERRED IN GIVING ITS FINDING THAT THE APPLICATION OF SOCIETY FOR GRANT O F REGISTRATION U/S 12AA OF THE ACT IS PREMATURE IN ABSENCE OF ANY ADVERSE ITA NO.615(ASR)/2013 2 FINDING REGARDING THE AIMS, OBJECTS AND GENUINENESS OF ACTIVITIES OF THE SOCIETY. 3. THAT THE APPEAL IS WITHIN THE TIME AND COPY OF O RDER OF CIT, BATHINDA IN ORIGINAL ALONG WITH RECEIPT OF RS.500/- DEPOSITED AS APPEAL FEE ARE ALSO ENCLOSED. 2. THE BRIEF FACTS OF THE CASE AS ARISING FROM THE ORDER OF THE LD. CIT, BATHINDA, ARE REPRODUCED FOR THE SAKE OF CONVENIENC E: AN APPLICATION FOR REGISTRATION U/S 12AA OF THE IN COME TAX ACT, 1961 WAS FILED BY EK UMEED WELFARE SOCIETY, SHAKTI NAGAR , COLLEGE ROAD, FAZIKA IN FORM NO.10A U/S 12A (1) (A) OF THE INCOME TAX ACT, 1961 ON 22.03.2013. 2. IN ORDER TO VERIFY THE GENUINENESS OF THE ACTIVITIE S OF THE APPLICANT SOCIETY/TRUST, THE APPLICATION WAS REQUIRED TO ATTE ND ON 28.05.2013 AND ON FURTHER DATES ALONGWITH COMPLETE SET OF BOOKS OF ACCOUNTS AND OTHER RELEVANT DOCUMENTS FOR THE LAST THREE YEARS. SH. A. K. PERIWAL CA ATTENDED THE PROCEEDINGS FROM TIME TO TIME AND REQU ISITE INFORMATION WAS FURNISHED BY HIM. 3. THE JOINT COMMISSIONER OF INCOME TAX, RANGE-II, BAT HINDA HAS NOT RECOMMENDED THE REGISTRATION OF THE APPLICATION U/S 12AA OF THE INCOME TAX ACT, 1961 IN HIS REPORT SUBMITTED VIDE N O. 12AA/13/2013- 14/276 DATED 03.05.2013. 4. IN THIS CASE, THE TRUST WAS CREATED VIDE MEMORANDU M OF ASSOCIATION DATED NIL AS DATE DOES NOT APPEAR THEREON AND WAS R EGISTERED WITH THE REGISTRAR OF SOCIETIES ON 09.11.2012. THE APPLICATI ON FOR REGISTRATION U/S 12AA WAS RECEIVED IN THIS OFFICE ON 22.03.2013. IT HAS BEEN NOTICED THAT TILL THE DATE OF APPLICATION NO WORTHWHILE CHA RITABLE ACTIVITIES WERE CARRIED OUT BY THE APPLICATION SOCIETY W.R.T. CHARI TABLE OBJECTS SHOWN IN THE MEMORANDUM OF ASSOCIATION AS IS EVIDENT FROM TH E INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED ON 31.03.201 3 WHICH IS REPRODUCED AS UNDER: INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED ON 31.03.2013 TO FUNCTION EXPENSES 3899.00 BY DONATIONS 39225 .00 BY BANK INTEREST 10.00 TO HELP NEEDY PERSON ITA NO.615(ASR)/2013 3 AID TO NEEDY PERSON 500.00 AID TO WIDOWS & NEEDY FAMILIES 4400.00 RATION DISTRIBUTION TO WIDOWS 8388.00 CLOTHES & FOOTWEAR TO LADIES 1100.00 14388.00 TO HELP TO STUDENTS STATIONARY & BOOKS TO STUDENTS 950.00 SCHOOL DRESSES & SUITS 6484.00 FOOTWEAR TO STUDENTS 2950.00 1100.00 TO SOCIETY EXPENSES ADVERTISEMENT 4250.00 MISC. EXPENSES 1600.00 2 15.00 6065.00 TO EXCESS OF INCOME OVER EXPENDITURE 4499.00 --------- --------- --- 39235.00 39235.00 5. FROM THE ABOVE INCOME & EXPENDITURE ACCOUNT FOR PER IOD ENDING 31.03.2013, IT IS NOTICED THAT THE TOTAL DONATIONS HAVE BEEN SHOWN AT A NEGLIGIBLE FIGURE I.E. RS.39.235/-. IN VIEW OF THE ABOVE, IT IS VERY MUCH CLEAR THAT THERE WERE NEGLIGIBLE ACTIVITIES TILL TH E DATE OF APPLICATION AND, THEREFORE, NO REASONABLE SATISFACTION CAN BE R ECORDED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST WHICH IS A PRE-REQUISITE U/S 12AA(1)9A) OF THE INCOME TAX ACT,1961 FOR GRANT OF REGISTRATION U/S 12AA. 6. IN VIEW OF THE FACTS ON RECORD, THE APPLICANT INSTI TUTION DOES NOT QUALIFY TO BE TREATED AS CHARITABLE INSTITUTION. MOREOVER, IN VIEW OF NOMINAL FIGURE OF RECEIPTS, THE APPLICATION OF THE SOCIETY FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 IS PREMATURE. HENCE, ITS REQUEST FOR GRANT OF REGISTRATION U/S 12AA IS NOT ALLOWED AND THE APPLICATION OF EK UMEED WELFARE SOCIETY, SHAKTI NAGAR, COLLEGE RO AD, FAZIKA FILED ON 22.03.2013 IS HEREBY REJECTED KEEPING IN VIEW TH E ABOVE FACTS AND RELYING ON THE JUDGMENT OF HONBLE ITAT, AMRITS AR IN THE CASE OF M/S SIDANA EDUCATIONAL AND WELFARE SOCIETY, AMRITSA R VS. CIT-II, AMRITSAR IN ITA NO.431/ASR/2009 DATED 18.12.2009. ITA NO.615(ASR)/2013 4 3. THE LD. COUNSEL FOR THE ASSESSEE, MR. SUDHIR SEH GAL, ARGUED THAT THE ASSESSEE HAS FILED BEFORE THE LD. CIT, A COPY OF ME MORANDUM OF ASSOCIATION AND RULES & REGULATION OF THE SOCIETY (PLACED AT PB 3-5 & 6-10) ALONGWITH COPY OF STATEMENT OF AFFAIRS AND INCOME & EXPENDITU RE ACCOUNT FROM 01.11.2012 TO 06.03.2013 FOR THE YEAR ON 31.03.2013 (PACED AT PB 11 & 13- 21). THE LD. CIT, HAS NOT POINTED OUT ANY OF THE OB JECT OF THE ASSESSEE TRUST OR ANY ACTIVITY OF THE ASSESSEE TRUST AS NON-CHARIT ABLE. THE INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING 31.03.2013 HAS BEEN REPRODUCED BY THE LD. CIT AT PAGE 2 OF THE ORDER AND IS A MATTER OF RECORD. THE ASSESSEE HAS ALSO FILED NECESSARY VOUCHERS OF THE ACTIVITIES CAR RIED OUT DURING THE YEAR ENDING 31.03.2013. THE ACTIVITIES ARE W.R.T. AID TO NEEDY PERSONS, WIDOWS AND NEEDED FAMILY, RATION DISTRIBUTION TO WIDOWS, C LOTHES, SHOES, CHAPPLE TO LADIES AND HELP TO STUDENTS AND OTHER SOCIETY EXPEN SES. MOREOVER, THE ASSESSEE HAS ALSO FILED BEFORE THE LD. CIT, THE BR IEF NOTES OF THE ACTIVITIES OF THE SOCIETY ALONG WITH NEWSPAPER CUTTINGS TO S UBSTANTIATE THE FACT THAT THE ACTIVITIES OF THE SOCIETY HAVE BEEN WIDELY RE PORTED IN VARIOUS NEWSPAPERS/MEDIA (PLACED AT PB 27-40). THE CONTRIBU TION OF CORPUS FUNDS BY SH. ROSHAN LAL KHUNGER AND SMT. RAKESH RANI W/O SH. ROSHAN LAL KHUNGER ALONGWITH THEIR AFFIDAVITS AND THE SOURCES WERE ALSO FILED BEFORE THE LD. CIT (PB 41-42). THE ASSESSEE IS A REGISTERE D SOCIETY WITH THE ITA NO.615(ASR)/2013 5 REGISTRAR OF SOCIETY DATED 09.11.2013 AND THE APPLI CATION BEFORE THE LD. CIT WAS FILED IN FORM NO.10A AND NO DEFECT IN ANY OF TH E DOCUMENT FILED BEFORE HIM HAS BEEN POINTED OUT IN THE ORDER DATED 13.02.2 013. THE DEFECT POINTED OUT BY THE LD. CIT IN PARA 5 IS THAT THE DONATIONS HAVE BEEN SHOWN AT A NEGLIGIBLE FIGURE OF RS.39,235/- AND THE ACTIVITIES TILL THE DATE OF APPLICATION WERE NEGLIGIBLE AND THEREFORE, REASONABLE SATISFAC TION CAN NOT BE RECORDED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE SOCI ETY. IN THIS REGARD, THE LD. CIT HIMSELF ADMITTED IN HIS ORDER THAT THE ASSESSEE HAS CARRIED OUT CERTAIN ACTIVITIES WHICH AS A MATTER OF FACT ARE ON RECORD BUT FOR THE YEAR ENDING 31.03.2013 AVAILABLE AT PAGE-2 OF LD. CITS ORDER. ALL THE ACTIVITIES CARRIED OUT BY THE ASSESSEE ARE IN CONSONANCE WITH THE OBJE CTS OF THE TRUST WHICH ARE CHARITABLE IN NATURE. IF THE ACTIVITIES ARE NEGLIGI BLE ACCORDING TO THE VIEW POINT OF THE LD. CIT, THEN THE LD. CIT HAS NO POWER TO REFUSE REGISTRATION U/S 12AA OF THE ACT. 3.1. THE LD. COUNSEL FOR THE ASSESSEE, MR. SUDHIR S EHGAL, RELIED UPON THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE C ASE OF COMMISSIONER OF INCOME TAX-1, VS. KUTCHI DASA OSWAL MOTOR PARIWAR A MBAMA TRUST, REPORTED IN (2012) 362 ITR 192 (GUJ.) AND THE DECIS ION OF THE HONBLE MADRAS HIGH COURT, IN THE CASE OF DIRECTOR OF INCO ME-TAX (EXEMPTIONS) VS. R.J.B.V. VASUDEVAN EDUCATIONAL AND CHARITABLE TRUST , REPORTED IN (2015) ITA NO.615(ASR)/2013 6 370 ITR 517 (MAD) AND THE RELEVANT PARTS OF THE DEC ISIONS WERE READ WHICH ARE APPLICABLE TO THE PRESENT FACTS AND CIRCUMSTANC ES OF THE CASE. ACCORDINGLY, THE LD. COUNSEL FOR THE ASSESSEE PRAYE D TO REVERSE THE ORDER OF THE LD. CIT(A) AND ALLOW THE REGISTRATION SO APPLIE D. 4. THE LD. DR, MR. TARSEM LAL, ON THE OTHER HAND, R ELIED UPON THE ORDER OF THE LD. CIT AND ARGUED THAT THERE ARE NEGLIGIBLE ACTIVITIES AND THEREFORE, NO REASONABLE SATISFACTION CAN BE RECORDED ABOUT THE G ENUINENESS OF THE ACTIVITIES OF THE TRUST. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE PER USED THE FACTS OF THE CASE. THE UNDISPUTED FACTS IN THE PRESENT CASE ARE THAT THE ASSESSEE HAS FILED THE APPLICATION FOR REGISTRATION IN FORM 10A ON 22. 03.2013 ALONGWITH CERTIFICATE OF REGISTRATION OF SOCIETIES, DATED 09 .11.2012, COPY OF MEMORANDUM OF ASSOCIATION, COPY OF RULES AND REGULA TION OF THE SOCIETY AND COPY OF STATEMENT OF AFFAIRS UPTO 06.03.2013. THE ASSESSEE ALSO FILED THE BALANCE SHEET, INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING 31.03.2013, WHICH IS A MATTER OF RECORD. THE INCOME & EXPENDITURE ACCOUNT HAS BEEN REPRODUCED BY THE LD. CIT AT PAGE 2 OF HIS ORDER, WHILE GRANTING REGISTRATION U/S 12AA (1) OF THE ACT. THE LD. CIT H AS TO SATISFY ABOUT THE OBJECTS OF THE TRUST AND GENUINENESS OF ITS ACTIVIT IES. THE LD. CIT(A) HAS NOT POINTED OUT ANY OF THE OBJECT OF NON-CHARITABLE OR ANY NON-GENUINE ACTIVITY. ITA NO.615(ASR)/2013 7 THE ASSESSEE HAS FILED BRIEF NOTES OF THE ACTIVITI ES OF THE SOCIETY ALONG WITH NEWSPAPER CUTTINGS TO SUBSTANTIATE THAT THE ACTIVIT IES OF THE SOCIETY HAVE BEEN WIDELY REPORTED IN VARIOUS NEWS PAPERS/MEDIA (PB 27 -40), ALONG WITH VARIOUS VOUCHERS FOR THE EXPENDITURE INCURRED. DURI NG THE YEAR ENDING 31.03.2013 STARTING FROM 01.11.2012 FOR FIVE MONTHS , THE ASSESSEE HAS INCURRED EXPENDITURE OF RS.34,726/- OUT OF DONATION S RECEIVED. THE INCOME & EXPENDITURE HAS BEEN INCURRED TO HELP THE NEEDY P ERSONS, WIDOWS & NEEDY FAMILIES, STUDENTS AND SOCIETY EXPENSES ETC., WHICH IN FACT, ARE IN CONSONANCE WITH THE OBJECTS OF THE SOCIETY AVAILABLE AT PB 3 T O 5. ON PERUSAL OF THE SAME ALONGWITH BRIEF NOTES OF THE ACTIVITIES OF THE SOC IETY AND NEWSPAPERS CUTTINGS ETC., PLACED ON RECORD, WE FIND THAT NONE OF THE EXPENDITURE IS FOUND TO BE OF NON-CHARITABLE NATURE AND THEREFORE, EVEN IF THE ACTIVITIES OF THE ASSESSEE SOCIETY AND THE DONATIONS ARE NEGLIGIBLE A CCORDING TO THE LD. CIT, THE LD. CIT CANNOT REFUSE REGISTRATION U/S 12AA(1) OF THE ACT. THE RELIANCE IS PLACED ON THE DECISION OF THE HONBLE MADRAS HIGH C OURT, IN THE CASE OF DIRECTOR OF INCOME-TAX (EXEMPTIONS) VS. R.J.B.V. VA SUDEVAN EDUCATIONAL AND CHARITABLE TRUST (SUPRA), WHERE THE FACTS OF TH E CASE AND DECISION OF THE COURT IS REPRODUCED HEREINBELOW: THE ASSESSEE-TRUST FILED AN APPLICATION IN FORM 1 0A FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX A CT, 1961. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) FOUND FAULT WIT H THE LANGUAGE IN THE TRUST DEED HOLDING THAT THE ASSESSEE-TRUST COUL D NOT ACT AS A TRUSTEE ITA NO.615(ASR)/2013 8 IN ANOTHER TRUST OR INSTITUTION. HE ALSO FOUND THAT FOR MORE THAN FOUR YEARS, THERE WAS NO ACTIVITY WORTH ITS NAME UNDERTA KEN BY THE ASSESSEE-TRUST EXCEPT SOME SMALL AMOUNT OF DONATION S AND THE ACCOUNTS SUBMITTED ALONG WITH FORM 10A WERE NOT THE AUDITED ACCOUNTS FOR THREE YEARS, AS PRESCRIBED IN FORM 10B AND, THEREFORE, HE REJECTED THE APPLICATION FOR REGISTRATION. THE T RIBUNAL HELD THAT THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) HAD NOT POINTED OUT HOW THE OBJECTS OF THE TRUST WERE NOT CHARITABLE OR THE ACT IVITIES OF THE TRUST WERE NOT GENUINE. IN SO FAR AS THE ISSUE RELATING T O FILING OF AUDITED ACCOUNTS FOR THREE YEARS AS REQUIRED IN FORM 10B, T HE TRIBUNAL HELD THAT NON-FILING OF THE AUDITED ACCOUNTS DID NOT MAK E ANY DIFFERENCE AND THAT DID NOT MAKE THE TRUST INELIGIBLE FOR REGI STRATION. ON APPEAL. HELD, DISMISSING THE APPEAL, THAT AT THE TIME OF AP PLICATION FOR REGISTRATION THE TRUST OR THE INSTITUTION SHOULD PR ODUCE THE CERTIFIED DOCUMENT EVIDENCING CREATION OF THE TRUST WITH TWO COPIES OF THE ACCOUNTS OF THE TRUST OR THE INSTITUTION RELATING T O THE PREVIOUS YEAR OR YEARS. THE ASSESSEE HAD SUBMITTED THE ACCOUNTS IN F ORM 10A. THE INVOCATION OF RULE 17B WOULD APPLY, IN A CASE WHERE THE CHARITABLE INSTITUTION WAS REGISTERED UNDER SECTION 12AA. THE ASSESSEE WAS YET TO OBTAIN REGISTRATION UNDER SECTION 12AA AND, HENCE, RULE 17B HAD NO APPLICATION. IF THE ASSESSEE SATISFIED THE REQUIREM ENT OF RULE 17A AND HAD SUBMITTED FORM 10A ALONG WITH REQUISITE DOCUMEN TS, THE ASSESSEE WAS ENTITLED TO SEEK REGISTRATION UNDER SECTION 12A A UNLESS THERE WAS SOME MATERIAL TO DECLINE SUCH REGISTRATION AS IS PR OVIDED IN THE SECTION. THE ORIGINAL AUTHORITY HAD NOT RECORDED HI S SUBJECTIVE SATISFACTION IN THIS CASE. ALSO, THE REASONING GIVE N BY HIM WAS NOT IN CONSONANCE WITH THE PROVISIONS OF LAW. HE DECLINED REGISTRATION ON THE GROUND THAT THE ASSESSEE HAD SPENT ONLY SMALL A MOUNTS TOWARDS CHARITABLE ACTIVITIES. THE BONA FIDES OF THE TRUST SHOULD NOT BE DOUBTED ON THIS GROUND. THE AUTHORITY HAS TO TEST THE NATUR E AND THE ACTIVITY OF THE TRUST TO GRANT REGISTRATION. THE ORIGINAL AUTHO RITY HAD NOT DOUBTED THE BONA FIDES OF THE TRUST OR THE ACTIVITY OF THE TRUST BUT ON THE GROUND THAT THE TRUST HAD SPENT LOW QUANTUM TOWARDS CHARIT ABLE ACTIVITY, THE AUTHORITY HAD DECLINED REGISTRATION OF THE TRUST. A TRUST CAN ONLY DO ACTIVITIES WITHIN ITS FINANCIAL CAPABILITY. A TRUST IS NOT MEASURED BY ITS FINANCIAL CLOUT BUT BY ITS PHILANTHROPIC DISPOSITIO N. THEREFORE, THE INTERPRETATION GIVEN BY THE ORIGINAL AUTHORITY DECL INING TO REGISTER THE TRUST HAS NO LEGAL BASIS. HENCE, THE TRIBUNAL WAS J USTIFIED IN SETTING ASIDE THE ORDER OF THE ORIGINAL AUTHORITY. ITA NO.615(ASR)/2013 9 6. FURTHER, RELIANCE IS PLACED ON THE DECISION OF T HE HONBLE GUJARAT HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME TAX-1, VS. KUTCHI DASA OSWAL MOTOR PARIWAR AMBAMA TRUST, (SUPRA) AND THE RELEVAN T DECISION IN PARA 5 IS REPRODUCED HEREINBELOW: 5. IT CAN THUS BE SEEN THAT U/S 12AA OF THE ACT, C OMMISSIONER HAS TO SATISFY HIMSELF ABOUT THE OBJECTIVES OF THE TRUS T AND THE GENUINENESS OF ITS ACTIVITIES. FOR SUCH PURPOSE, HE HAS THE POW ER TO CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST AS HE THINK ARE NECESSARY. HOWEVER, THIS DOES NOT MEAN THAT IF THE ACTIVITIES OF THE TRUST HAVE NOT COMMENCED, THE COMMISSIONER HAS AUTHORITY TO REJECT ITS APPLICATION FOR REGISTRATION ON THE GROUND THAT THE TRUST FAILE D TO CONVINCE HIM ABOUT THE GENUINENESS OF THE ACTIVITIES. THAT IS W HAT UNFORTUNATELY THE COMMISSIONER DID IN THE PRESENT CASE. IN THAT VIEW OF THE MATTER, WE SEE NO ERROR IN THE TRIBUNALS IMPUGNED ORDER REVER SING THE ORDER OF THE COMMISSIONER. IT IS OF COURSE TRUE THAT EVEN IF THE ACTIVITIES OF THE TRUST HAVE NOT COMMENCED, IF THE COMMISSIONER HAS S UFFICIENT MATERIAL IN HIS COMMAND, HE MAY STILL COME TO THE CONCLUSION THAT HE IS NOT SATISFIED ABOUT THE OBJECTIVES OF THE TRUST OR THE GENUINENESS OF ITS ACTIVITIES. WE UNDERSTAND THE DECISION OF THE TRIBU NAL ACCORDINGLY. 6. IN THE PRESENT CASE, HOWEVER, MERELY ON THE GRO UND THAT THE ACTIVITIES OF THE TRUST HAD NOT COMMENCED, THE COMM ISSIONER WAS PERSUADED TO REJECT ITS APPLICATION FOR REGISTRATIO N, WHICH IN OUR OPINION, WAS NOT APPROPRIATE AND THEREFORE, RIGHTLY INTERFERED BY THE TRIBUNAL. 7. IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CA SE AND IN VIEW OF OUR FINDINGS HEREINABOVE AND THE DECISIONS RELIED UPON OF VARIOUS COURTS OF LAW REFERRED TO HEREIABOVE, THE LD. CIT(A) IS NOT JUST IFIED IN REFUSING REGISTRATION U/S 12AA(1) OF THE ACT AND ACCORDINGLY THE ORDER OF THE LD. ITA NO.615(ASR)/2013 10 CIT(A) IS CANCELLED AND LD. CIT(A) IS DIRECTED TO GRANT REGISTRATION TO THE SOCIETY, AS APPLIED U/S 12AA(1) OF THE ACT. THUS, A LL THE GROUNDS OF THE ASSESSEE ARE ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO.615(ASR)/2013 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17TH MARCH, 2015. SD/- SD/- (A.D.JAIN) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17TH MARCH, 2015 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:EK UMEED WELFARE SOCIETY, FAZILKA. 2. THE CIT, BATHNDA. 3. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.