Sports Foundation, Pune V. Commissioner of Income-Tax, Exemption, Pune

ITA 635/PUN/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2474 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-03-2021
• Assessment Year: misc
• Appeal Filed On: 02-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARI KRISHAN
• Keywords: Corroborative evidences; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, J UDICIAL M EMBER . / I TA NO. 635 /PUN/20 20 SPORTS FOUNDATION PUNE FLAT NO.27, ASHIYANA APARTMENT, SHANTA BHAU PATIL ROAD, PUNE - 411 020. PAN : AARTS8676D ....... / APPELLANT / V/S. THE COMMISSIONER OF INCOME TAX (EXEMPTION) PUNE. / RESPONDENT A SSESSEE BY : SHRI HARI KRISHAN REVENUE BY : SHRI DEEPAK GARG / DATE OF HEARING : 25 . 0 6 .202 1 / DATE OF PRONOUNCEMENT : 25 . 06 .2021 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(EXEMPTION), PUNE DATED 03 .10.2020 PASSED U/S.80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AS PER THE FOLLOWING GROUNDS OF APPEAL ON RECORD : 1. THE LEARNED CIT( EXEMPTION) ERRED ON FACTS AND IN LAW IN REJECTING APPROVAL U/S.80G OF THE ACT. HE FAI LED TO APPRECIATE THE FACTS AND SUBMISSIONS MADE BY THE ASSESSEE IN ITS PROPER PERSPECTIVE. 2 ITA NO. 635 /PUN/20 20 SPORTS FOUNDATION PUNE 2. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ALL OR ANY OF THE ABOVE GROUNDS OF APPEAL. 2. IN THIS CASE, AT THE VERY OUTSET, THE ASSESSEE HAS FILED AN ADJOURNMENT PETITION WHICH WAS REJECTED. THAT ON MERITS, IT IS SEEN THAT THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THE REJECTION OF APPROVAL FOR EXEMPTION U/S.80G OF THE ACT BY THE LD. CIT(EXEMPTI ON) VIDE ORDER DATED 03.10.2020. 3. THE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE/APPLICANT MADE AN ONLINE APPLICATION IN FORM NO.10G FOR GRANT OF RECOGNITION U/S.80G(5)(VI) OF THE ACT ON 12.02.2020 AS PER THE PRESCRIBED TIME LIMIT EXTENDED TO 31.03. 2021 AS PER CBDT NOTIFICATION NO. S.O. 2033(E) DATED 24.06.2020 READ WITH PROVISIONS OF THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE 2020, NO.2 OF 2020 DATED 31.03.2020. THE ASSESSEE/APPLICANT IS REGISTERED UNDER SECTION 12AA OF THE ACT VIDE ORDER DATED 15.04.2019. 4. THAT ON PERUSAL OF THE ORDER OF THE LD. CIT(EXEMPTION), AT PARA 3, IT IS NOTICED THAT THE ASSESSEE HAD CLAIMED TO HAVE CARRIED OUT VARIOUS ACTIVITIES AS PER ITS OBJECTS AND CLAIMED EXPENDITURE ON THE SAME IN ITS F INANCIAL STATEMENTS. THE LD. CIT(EXEMPTION)S OFFICE HAD REQUESTED THE ASSESSEE TO FURNISH SUPPORTING EVIDENCES IN THIS REGARD. HOWEVER, THE ASSESSEE DID NOT COMPLY WITH THE SAID NOTICE AND CONSEQUENTLY, ANOTHER NOTICE WAS ISSUED SPECIFICALLY REQUESTING T HE ASSESSEE TO FURNISH THE COPIES OF BILLS/VOUCHERS IN SUPPORT OF ITS CLAIM OF EXPENDITURE ON ACTIVITIES. THAT AS IDENTIFIED BY THE LD. CIT(EXEMPTION), THE ASSESSEE HAD SUBMITTED SOME SELF - MADE VOUCHERS WHICH WERE NOT VERIFIABLE. IN ABSENCE OF NECESSARY SU PPORTING CREDIBLE EVIDENCE, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED BY THE LD. CIT(EXEMPTION) 3 ITA NO. 635 /PUN/20 20 SPORTS FOUNDATION PUNE AND ACCORDINGLY, THE APPLICATION FOR GETTING APPROVAL U/S.80G OF THE ACT IN RESPECT TO THE ASSESSE WAS REJECTED. 5. WE THEREFORE OBSERVE THAT IN ORDER TO GRANT EXEMPTION U/S.80G OF THE ACT, IT IS VERY ESSENTIAL FOR THE LD. CIT(EXEMPTION) TO SATISFY HIMSELF AS PER SECTION 80G(5) R.W.R.11AA OF THE INCOME TAX RULES, 1962. THAT THE GENUINENESS OF THE CHARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSEE TRU ST/INSTITUTION SHOULD HAS TO BE ASCERTAINED. THE ASSESSEE IN THIS CASE WAS UNABLE TO FURNISH CREDIBLE EVIDENCES SPECIFICALLY THE BILLS/VOUCHERS IN RESPECT OF THE EXPENDITURE CLAIMED WITH REGARD TO ACTIVITIES PERFORMED AS PER OBJECT CLAUSE OF THE ASSESSEE T RUST/INSTITUTION. IN ALL FAIRNESS, WE ARE OF THE CONSIDERED VIEW, ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE FOR THE VERY FACT THAT INCOME TAX LEGISL ATIONS ARE WELFARE LEGISLATION AND NOT PENAL LEGISLATION AND THEREFORE, ADJUDICATION ON MERITS BEFORE THE LD. CIT(EXEMPTION) IS REQUIRED. THE LD. DR DID NOT RAISE ANY OBJECTION. THUS, WE SET ASIDE THE ORDER OF THE LD. CIT(EXEMPTION) AND REMAND THE MATTER BACK TO HIS FILE TO RE - ADJUDICATE THE ISSUE AS PER LAW AND AT THE SAME TIME, WE DIRECT THE ASSES SEE/ APPLICANT TO FILE NECESSARY EVIDENCES/DOCUMENTS BEFORE THE LD. CIT(EXEMPTION) AS WOULD BE CALLED FOR SO THAT THE REQUIREMENTS OF SECTION 80G(5) R.W.R.11AA OF THE RULES WOULD BE SATISFIED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATI STICAL PURPOSES. ORDER PRO NOUNCED ON 25 TH DAY OF JUNE , 20 2 1 . S D/ - S D/ - INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 25 TH JUNE , 202 1 SB 4 ITA NO. 635 /PUN/20 20 SPORTS FOUNDATION PUNE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (EXEMPTION), PUNE 4 . , , , / DR, ITAT, B BENCH, PUNE. 5 . / GUARD FILE. / BY ORDER, // T RUE C OPY // / PRIVATE SECRETARY , / ITAT, PUNE . 5 ITA NO. 635 /PUN/20 20 SPORTS FOUNDATION PUNE DATE 1 DRAFT DICTATED ON 2 5 .06 .202 1 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 25 .06 .202 1 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER