M/S. MADHYA PRADESH RAJYA AJEEVIKA FOURM (MPRAF), Bhopal V. THE CIT, Bhopal

ITA 625/IND/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5851 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 25-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VARSHNEY
• Assessee Lawyers: GIRISH AGRAWAL
• Section: 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T.GARASIA, HON'BLE JUDICIAL MEMBER AN D SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER ITA NO. 625/IND/2013 (ASST. YEAR : ) MADHYA PRADESH RAJYA AJEEVIKA FORUM (MPRAF), BHOPAL VS. CIT, BHOPAL PAN NO.AABAM9666N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GIRISH AGRAWAL, CA DEPARTMENT BY : SHRI RAJEEV VARSHNEY, CIT DR DATE OF HEARING : 11/07/2016. DATE OF PRONOUNCEMENT : 11/07/2016. O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX, BHOPAL DATED 29/08/2013 . 2. THE SOLD GROUND OF APPEAL TAKEN BY THE ASSESSEE IN THIS APPEAL IS THAT THE LD. CIT ERRED IN NOT GRANTING REGISTRATION U/S 12A/12AA OF THE INCOME-TAX ACT, 1961. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE HAD APPLIED FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961, O N 14.02.2013 IN FORM NO.10A TO CIT, BHOPAL. THE CIT OBSERVED THAT T HE AUTHORIZED 2 MADHYA PRADESH RAJYA AJEEVIKA FORUM, VS. CIT, BHOPA L - I.T.A.NO. 625/IND/2013 REPRESENTATIVE OF THE SOCIETY APPEARING BEFORE HIM STATED THAT THE SOCIETY WAS FULLY FUNDED BY THE MADHYA PRADESH GOV ERNMENT AND RECEIVED GRANT FROM CENTRAL GOVERNMENT. THE SOCIETY IS DOING WELFARE ACTIVITY FOR IMPROVING THE LIVELIHOOD OF TARGETED G ROUPS. 4. THE CIT REJECTED GRANTING OF REGISTRATION U/S 12 AA OF THE INCOME- TAX ACT, 1961, ON THE GROUND THAT INDIA IS A WELFAR E STATE. THE DIRECTIVE PRINCIPLES OF STATE POLICY, CHAPTER IV OF THE CONS TITUTION OF INDIA ORDAINS THE STATE TO DO ACTIONS FOR WELFARE OF THE PEOPLE. THE STATE CONDUCTS WELFARE ACTIVITIES THROUGH VARIOUS AGENCIE S INCLUDING GOVERNMENT DEPARTMENT, PUBLIC SECTOR UNDERTAKINGS A ND SOCIETIES ETC. BY DOING WELFARE FUNCTIONS, THE STATE IS NOT DOING ANY CHARITY BUT IS PERFORMING ITS FUNCTIONS AS DIRECTED BY THE CONSTI TUTION. THIS SHOWS THAT THE ASSESSEE SOCIETY IS NOT DOING ANY CHARITY IN DOING WELFARE FUNCTIONS. HENCE, IS NOT ENTITLED FOR REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 1961. 5. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSE E SUBMITTED BEFORE US THAT OTHER SIMILAR SOCIETIES OF OTHER STA TES DOING SIMILAR ACTIVITIES HAVE BEEN GRANTED REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 1961. IN SUPPORT OF THE SAME, HE FILED COPY OF REGISTRATION CERTIFICATE GRANTED TO CHHATISGARH GRAMIN AJEEVIKA SAMVARDHAN SAMITI, RAIPUR VIDE REGISTRATION NO. 35/2013-14 AND BF AS 8 /2014-15 DATED 29.05.2014, SIGNED BY LD. CIT, RAIPUR, SHRI RAJEEV VARSHNEY AND REGISTRATION CERTIFICATE U/S 12AA BIHAR RURAL LIVEL IHOOD PROMOTION 3 MADHYA PRADESH RAJYA AJEEVIKA FORUM, VS. CIT, BHOPA L - I.T.A.NO. 625/IND/2013 SOCIETY, PATNA VIDE REGISTRATION NO. 36/2008-09 DAT ED 2.7.2008. HENCE, IT WAS HIS PRAYER THAT THE REGISTRATION U/S 12AA SHOULD BE GRANTED TO THE ASSESSEE. 6. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESEN TATIVE SUPPORTED THE ORDER OF THE LD. CIT. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE ORDERS OF THE LOWER AUTHORITIES AND MATERIAL AVAILABLE ON REC ORD, WE FIND THAT THE LD. CIT IN OTHER STATES SUCH AS CHHATTISGARH AND PA TNA HAVE GRANTED REGISTRATION TO SIMILAR SOCIETIES CARRYING ON ACTIV ITIES OF PROVIDING EDUCATION, EMPLOYMENT AND RELIEF TO THE POOR. WE FI ND THAT IN THE PRESENT APPEAL BEFORE US ALSO, THE ASSESSEE IS CARR YING ON WELFARE ACTIVITY FOR IMPROVING LIVELIHOOD OF TARGETED GROUP S. IT IS FURTHER OBSERVED THAT THE LD. CIT HAS NOT GIVEN ANY FINDING TO THE EFFECT THAT THE ACTIVITIES OF THE SOCIETY ARE NOT GENUINE AND ARE N OT CHARITABLE. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS FILED BEFORE US COPIES OF REGISTRATION CERTIFICATES U/S 12AA GRANTED TO CHHAT ISGARH GRAMIN AJEEVIKA SAMVARDHAN SAMITI, RAIPUR AND BIHAR RURAL LIVELIHOOD PROMOTION SOCIETY, PATNA. 8. THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT BEEN ABLE TO CONTROVERT THE SUBMISSION OF THE LD. AUTHORIZED REP RESENTATIVE OF THE ASSESSEE. WE, THEREFORE, ARE OF THE CONSIDERED VIEW THAT CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE, REGISTR ATION SHOULD HAVE BEEN GRANTED TO THE ASSESSEE. WE, THEREFORE, SET-AS IDE THE ORDER OF THE 4 MADHYA PRADESH RAJYA AJEEVIKA FORUM, VS. CIT, BHOPA L - I.T.A.NO. 625/IND/2013 CIT(A) AND DIRECT HIM TO GRANT REGISTRATION U/S 12A A AND ALLOW THIS APPEAL OF THE ASSESSEE. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON MONDAY, THE 11 TH DAY OF JULY, 2016 AT INDORE. SD/- SD/- (D.T.GARASIA) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 11 TH JULY, 2016. CPU COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., INDORE