Bhartiya Kisan Sangh, Dehradun V. CIT (Exemptions), Lucknow

ITA 6721/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5004 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: misc
• Appeal Filed On: 21-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY VARMA
• Keywords: Charitable institution; Condonation of delay
• Section: 12A; 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A.NO.6721/DEL/2015 A.Y. : ------------ BHARTIYA KISAN SANGH SEWA NIKETAN, HARIDWAR ROAD, NEHRU GRAM DEHRADUN UTTARAKHAND 248005 (PAN: AACAB0793N) VS. CIT(EXEMPTIONS), 5, ASHOK MARG, LUCKNOW 226001 (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. PIYUSH KAUSHIK, ADV. DEPARTMENT BY : SH. VIJAY VARMA, CIT(DR) ORDER PER H.S. SIDHU, JM THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 16/06/2015 PASSED BY THE LD. COMMISSIO NER OF INCOME TAX (EXEMPTIONS), LUCKNOW ON THE FOLLOWING GROUNDS:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE LAW, THE CIT(EXEMPTIONS) HAS GROSSLY ERRED I N DENYING REGISTRATION TO THE ASSESSEE SOCIETY U/S. 12A(A) OF THE INCOME TAX ACT, 1961 AS CLAIMED. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE LAW, THE CIT(EXEMPTIONS) HAS GROSSLY ERRED I N 2 DENYING REGISTRATION TO THE ASSESSEE SOCIETY U/S. 12A(A) OF THE INCOME TAX ACT, 1961 AS CLAIMED BEING IN GROSS VIOLATION TO THE PRINCIPLES OF NATUR AL JUSTICE AND FAIRNESS. THAT THE APPELLANT CRAVES LEAVE TO ADD TO AND / OR AMEND, MODIFY OR WITHDRAW THE GROUNDS OUTLINED ABOVE BEFORE OR AT THE TIME OF HEARING OF THE APPE AL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED AN APPLICATION FOR REGISTRATION U/S. 12A(A) OF THE INCOME TAX ACT , 1961 (HEREINAFTER REFERRED AS THE ACT) ON 07.4.2015 BEFORE THE LD. CI T(EXEMPTIONS), LUCKNOW. ACCORDINGLY, THE ASSESSEE WAS SERVED THE N OTICE DATED 01.6.2015 BY THE SAID LD. CIT(E) FOR FURNISHING TH E INFORMATION / DETAILS ON 16.6.2015. ON 16.6.2015 THE A.R. OF THE APPLICAN T/ASSESSEE ATTENDED AND FILED WRITTEN SUBMISSIONS. LD. CIT(E) PERUSED THE RECORDS WHICH WAS AVAILABLE WITH HIM, HAS OBSERVED THAT ASSESSEE SOC IETY IS NOT CARRYING OUT ANY CHARITABLE ACTIVITIES. HE FURTHER OBSERVED THAT AS PER THE PROVISIONS OF SECTION 12AA(1)(B) OF THE ACT, TWO FA CTORS NAMELY THE OBJECT OF CHARITABLE PURPOSE AND THE GENUINENESS OF ACTIVI TIES HAVE TO BE PROVED BEFORE GRANTING THE REGISTRATION AND APPLICANT FAIL ED TO PROVE THE SAME AND THEREFORE, LD. CIT(E) WAS NOT SATISFIED FOR GRA NTING THE REGISTRATION U/S. 12A(A) OF THE ACT. LD. CIT(E) ALSO RELIED UP ON VARIOUS CASE LAWS MENTIONED AT PAGE NO. 1 AND 2 OF THE IMPUGNED ORDER DATED 16.6.2015. 3 3. AGGRIEVED WITH THE AFORESAID IMPUGNED ORDER DATE D 16.06.2015 ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. DURING THE HEARING, LD. COUNSEL OF THE ASSESSE E FILED TWO PAPER BOOKS, ONE IS CONTAINING PAGES 1 TO 48 IN WHICH H E HAS ATTACHED THE COPY OF SUBMISSION DATED 16.2.2015 BEFORE THE CIT; COPY OF APPLICATION IN FORM 10A FOR REGISTRATION ALONGWITH LIST OF MANA GEMENT COMMITTEE; AUDITED ACCOUNTS FOR FINANCIAL YEAR 2011-12, 2012-1 3 AND 2013-14; SUBMISSION DATED 15.6.2015 BEFORE THE CIT; REGISTRA TION CERTIFICATE UNDER SOCIETIES REGISTRATION ACT, 1860; MEMORANDUM & ART ICLES OF ASSOCIATION TOGETHER WITH ENGLISH TRANSLATED VERSION OF OBJECT S CLAUSE AS PER MEMORANDUM; DETAILS OF CHARITABLE WORKS UNDERTAKEN WITH RESPECT TO PROTECTION OF INTEREST OF FARMERS; CORRESPONDENCES WITH THE OFFICES OF HONBLE PRESIDENT OF INDIA & PMO WITH RESPECT OF PR OTECTION OF INTEREST OF FARMERS AND LETTER DATED 3.6.2015 BEFORE THE PARLI AMENTARY COMMITTEE WITH RESPECT TO PROTECTION OF INTERESTS OF FARMERS. IN ANOTHER PAPER BOOK WHICH IS CONTAINING PAGES 1 TO 48 THE LD. COUNSEL O F THE ASSESSEE HAS ATTACHED THE COPIES OF VARIOUS DECISIONS AND RELIED ON THE SAME WITH REGARD TO SUBMISSIONS THAT OBJET BENEFICIAL FOR A S ECTION OF PUBLIC (PROTECTION OF INTEREST OF FARMERS IN THE PRESENT C ASE) IS AN OBJECT OF GENERAL PUBLIC UTILITY I.E. DECISION OF HONBLE SUP REME COURT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION VS. CIT 82 ITR 704 SC; DECISION OF SUPREME COURT IN THE CASE OF CIT VS. ANDHRA CHAMBER OF COMMERCE 55 ITR 722 SC. HE ALSO ATTACHED THE COPY OF DECISIONS HOLDING THAT AT THE STAGE OF GRANT OF REGISTRATION U/S. 12A THE OBJECTS ARE TO BE SEEN AND IT IS 4 NOT APPROPRIATE ON PART OF CIT TO EXAMINE THE ASPEC T OF APPLICATION OF INCOME I.E. THE DECISION OF HONBLE RAJASTHAN HIGH COURT IN THE CASE OF CIT VS. GOPI RAM GOYAL CHARITABLE TRUST (2017) 392 ITR 285 (RAJ); DECISION OF KERALA HIGH COURT IN THE CASE OF SHREE ANJANEYA MEDICAL TRUST VS. CIT (2012) 382 ITR 399 (KER.); DECISION OF ALLA HABAD HIGH COURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT 185 ITR 634 (ALL.); DECISION OF PUNJAB & HARYANA HIGH COURT IN THE CAS E OF CIT VS. BKK MEMORIAL TRUST (2013) 213 TAXMANN 1; DECISION OF KA RNATAKA HIGH COURT IN THE CASE OF CIT VS. AS KUPPARAJU BROTHERS CHARIT ABLE FOUNDATION TRUST (2012) 205 TAXMAN 9 AND DECISION OF MADHYA PRADESH HIGH C OURT IN THE CASE OF CIT VS. DTR CHARITABLE TRUST 61 DTR 410. HE FURTHER STATED THAT AS PER MEMORANDUM OF ASSESSEE SOCIETY AT PAGE NO. 3 6 & 37B OF THE PB AND ALSO AS PER THE SUBMISSION MADE BEFORE THE LD. CIT(E) DATED 15.6.2015 RELEVANT PAGE 38 & 39 OF THE PAPER BOOK, THE ASSESSEE SOCIETY IS ESSENTIALLY INVOLVED IN THE UPLIFTMENT OF FARM ERS BY WAY OF PROVIDING THEM VARIOUS FACILITIES AND PROTECTING THEIR INTERE STS AT THE NATIONAL LEVEL AND UNDERTAKINGS OPERATIONS ON THE COUNTRY WIDE BA SIS AND FOCUSED AT PROTECTING THE INTEREST OF FARMERS IN VARIOUS MAN NERS. HE FURTHER DRAW OUR ATTENTION TOWARDS PAGE NO. 38 & 39 OF THE PB WH ICH IS THE COPY OF SUBMISSION DATED 15.6.2015 MENTIONED THEREIN THAT C HARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSEE/SOCIETY AND THE SAME QUA LIFY WITHIN THE PRVIEW OF GENERAL PUBLIC UTILITY BEING A CHARTABL E PURPOSE U/S. 2(15) OF THE ACT. IN VIEW OF THE ABOVE, HE REQUESTED THAT TH E ISSUE IN DISPUTE MAY 5 BE DECIDED IN FAVOR OF THE ASSESSEE AND APPEAL FIL ED BY THE ASSESSEE MAY BE ALLOWED BY ALLOWING REGISTRATION U/S. 12A(A) OF THE ACT. 4.1 ON THE CONTRARY, DR RELIED UPON THE ORDERS OF THE LD. CIT(E) AND ALSO RELIED UPON THE CASE LAWS AS MENTIONED IN THE IMPUGNED ORDER. FURTHER, HE STRONGLY OBJECTED THE REQUEST OF THE LD . COUNSEL OF THE ASSESSEE AND ALSO STATED THAT ASSESSEE REMAINED NON -COOPERATIVE BEFORE THE LD. CIT(E) AND DID NOT FILE ANY DOCUMENTARY EVI DENCE FOR SUBSTANTIATING ITS CLAIM BEFORE THE LD. CIT(E), HEN CE, HE REQUESTED THAT THE ISSUE IN DISPUTE MAY BE SET ASIDE TO THE FILE O F THE LD. CIT(E) TO DECIDE THE SAME AFRESH. 5. FROM THE RECORDS, WE FIND THAT REGISTRY HAS ISSU ED DEFECT NOTICE POINTING OUT THAT THE APPEAL IS TIME BARRED BY 106 DAYS. IN THIS BEHALF THE ASSESSEE HAS FILED THE APPLICATION DATED 16.12.2015 FOR CONDONATION OF DELAY WHICH IS PLACED ON RECORD. WE HAVE PERUSED TH E APPLICATION FOR CONDONATION OF DELAY AND WE ARE OF THE VIEW THAT TH E REASONS MENTIONED IN THE APPLICATION FOR CONDONATION OF DELAY IS QUIT E GENUINE, HENCE, THE DELAY IN DISPUTE IS CONDONED. 6. WE HAVE HEARD THE BOTH PARTIES AND PERUSED AN D CONSIDERED THE RELEVANT RECORDS AVAILABLE WITH US ESPECIALLY THE IMPUGNED ORDER PASSED BY THE LD. CIT(E), THE PAPER BOOKS FILED BY THE A SSESSEES COUNSEL I.E. CONTAINING PAGES 1 TO 48 IN WHICH HE HAS ATTACHED T HE COPY OF SUBMISSION DATED 16.2.2015 BEFORE THE CIT; COPY OF APPLICATIO N IN FORM 10A FOR 6 REGISTRATION ALONGWITH LIST OF MANAGEMENT COMMITTEE ; AUDITED ACCOUNTS FOR FINANCIAL YEAR 2011-12, 2012-13 AND 2013-14; SU BMISSION DATED 15.6.2015 BEFORE THE CIT; REGISTRATION CERTIFICATE UNDER SOCIETIES REGISTRATION ACT, 1860; MEMORANDUM & ARTICLES OF AS SOCIATION TOGETHER WITH ENGLISH TRANSLATED VERSION OF OBJECTS CLAUSE AS PER MEMORANDUM; DETAILS OF CHARITABLE WORKS UNDERTAKEN WITH RESPECT TO PROTECTION OF INTEREST OF FARMERS; CORRESPONDENCES WITH THE OFFIC ES OF HONBLE PRESIDENT OF INDIA & PMO WITH RESPECT OF PROTECTION OF INTERE ST OF FARMERS AND LETTER DATED 3.6.2015 BEFORE THE PARLIAMENTARY COMMITTEE WITH RESPECT TO PROTECTION OF INTERESTS OF FARMERS AND ALSO THE SEC OND PAPER BOOK WHICH IS CONTAINING PAGES 1 TO 48 IN WHICH THE ASSESSEES COUNSEL HAS ATTACHED THE COPIES OF VARIOUS DECISIONS AND RELIED ON THE S AME WITH REGARD TO SUBMISSIONS THAT OBJET BENEFICIAL FOR A SECTION OF PUBLIC (PROTECTION OF INTEREST OF FARMERS IN THE PRESENT CASE) IS AN OBJE CT OF GENERAL PUBLIC UTILITY I.E. DECISION OF HONBLE SUPREME COURT IN T HE CASE OF AHMEDABAD RANA CASTE ASSOCIATION VS. CIT 82 ITR 704 SC; DECIS ION OF SUPREME COURT IN THE CASE OF CIT VS. ANDHRA CHAMBER OF COMMERCE 5 5 ITR 722 SC AND ALSO ATTACHED THE COPY OF DECISIONS HOLDING THAT AT THE STAGE OF GRANT OF REGISTRATION U/S. 12A THE OBJECTS ARE TO BE SEEN AN D IT IS NOT APPROPRIATE ON PART OF CIT TO EXAMINE THE ASPECT OF APPLICATIO N OF INCOME AT THE STAGE OF GRANTING REGISTRATION U/S. 12AA I.E. DECIS ION OF RAJASTHAN HIGH COURT IN THE CASE OF CIT VS. GOPI RAM GOYAL CHARITA BLE TRUST (2017) 392 ITR 285 (RAJ); DECISION OF KERALA HIGH COURT IN THE CASE OF SHREE ANJANEYA MEDICAL TRUST VS. CIT (2012) 382 ITR 399 ( KER.); DECISION OF 7 ALLAHABAD HIGH COURT IN THE CASE OF FIFTH GENERATIO N EDUCATION SOCIETY VS. CIT 185 ITR 634 (ALL.); DECISION OF PUNJAB & HA RYANA HIGH COURT IN THE CASE OF CIT VS. BKK MEMORIAL TRUST (2013) 213 TAXMANN 1; DECISION OF KARNATAKA HIGH COURT IN THE CASE OF CIT VS. AS KUPPARAJU BROTHERS CHARITABLE FOUNDATION TRUST (2012) 205 TAXMAN 9 AND DECISION OF MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. DT R CHARITABLE TRUST 61 DTR 410. 6.1 WE FIND THAT THE ASSESSEE IS A SOCIETY REGISTER ED UNDER THE PROVISIONS OF SOCIETIES REGISTRATION ACT, 1860. AS DETAILED BEFORE THE LD. CIT VIDE SUBMISSION DATED 15/06/15 RELEVANT AT PAG ES 38 & 39 PB THE ASSESSEE SOCIETY IS ESSENTIALLY INVOLVED IN THE UPL IFTMENT OF FARMERS BY WAY OF PROVIDING THEM VARIOUS FACILITIES AND PROTEC TING THEIR INTERESTS AT THE NATIONAL LEVEL. IT IS UNDERTAKING OPERATIONS ON THE COUNTRY WIDE BASIS AND FOCUSED AT PROTECTING THE INTERESTS OF FARMERS IN VARIOUS MANNERS. WE ALSO NOTE THAT AS PER THE MEMORANDUM OF ASSESSEE SO CIETY DULY ON RECORD (PAGES 36 & 37PB), THE ASSESSEE IS INCORPORATED TO CARRY OUT THE FOLLOWING OBJECTIVES ALL OF WHICH ARE ESSENTIALLY DIRECTED AT PROTECTING THE INTERESTS OF FARMERS ON THE COUNTRY WIDE BASIS: I. 'TO PROVIDE HELP IN NATIONAL DEVELOPMENT PROJECT S BY HELPING AND SUPPORTING EVERY FARMER WHO IS READY TO HELP IN OVERALL DEVELOPMENT OF THE NATION AND INSTEAD OF GROUP STRU GGLE, CREATE CO-ORDINATION AND FAMILY FEELINGS. TO PROVID E SECURITY OF FARMERS AND MAKE ARRANGEMENTS FOR AVAILABILITY O F SEEDS, 8 MANURE, WATER, ELECTRICITY AND CONSTRUCTION OF ROAD S CONNECTING VILLAGES. TO WORK FOR DEVELOPMENT OF THE FARMERS BY TAKING SUPPORT FROM THE GOVERNMENT. II. TO FORM NON POLITICAL ORGANIZATION OF FARMERS FOR THE NATIONAL INTEREST OF THE COUNTRY. TO FORM AND RUN ORGANIZATI ONS WORKING FOR FINANCIAL, SOCIAL, CULTURAL AND EDUCATIONAL DEV ELOPMENT. OF THE FARMERS. III. TO DEVELOP INDIAN FARMERS BY INTRODUCING THEM TO ADVANCED AGRICULTURAL SCIENCE AND METHODS AND BY PROVIDING K NOWLEDGE OF APPROPRIATE ADVANCED RESOURCES TO THE FARMERS, ENCOURAGING THEM FOR THEIR DIRECT USE SO THAT ADVAN TAGES OF LARGE SCALE PRODUCTION CAN BE ACHIEVED. IV. TO MAKE RESEARCH AND DEVELOPMENT IN THE. FIELD OF ANCIENT AGRICULTURE SHASTRA. V. TO COLLECT INFORMATION ABOUT FARMERS' PROBLEMS A ND MAKE ARRANGEMENTS FOR ORGANIZING CONFERENCES, TRAINING C LASSES, DISCUSSION, SEMINAR, AGRICULTURAL RESEARCH; TRAVEL, EXHIBITION AND PROGRAM FOR THE FARMERS. VI. TO ESTABLISH CONTACTS WITH AGRICULTURAL ORGANI ZATIONS, PROVIDING AND TAKING HELP FROM THEM. 9 VII TO PROVIDE AND TAKE SUITABLE HELP FROM LABOUR U NIONS, EDUCATIONAL ORGANIZATIONS, VARIOUS GOVERNMENTS, SOC IAL ORGANIZATION, PUBLIC ORGANIZATION; ETC. VIII. TO WORKING FOR PROTECTION OF CATTLE, AGRICULT URAL SUBSIDIZED LIVESTOCK, VEGETATION, ETC. IX. TO GUIDE, ASSIST AND FORM PROCESSING ORGANIZA TION. X. TO MAKE AGRICULTURAL PRODUCE AVAILABLE TO THE MA RKETS AND ESTABLISH WORTHWHILE METHODS FOR GETTING BEST VALUE ACCORDING TO THE COST OF THE AGRICULTURAL PRODUCE. XI. TO PLAN AND WORK FOR FINANCIAL AND SOCIAL DEVE LOPMENT OF FARMER, FARM OWNERS, AGRICULTURAL LABOUR, BLACKSMIT H, CARPENTER, POTTER AND THOSE COMMUNITIES WHOSE FINAN CIAL LIVELIHOOD IS DEPENDENT ON AGRICULTURE. XII. TO ESTABLISH, GUIDE AND ASSIST IN HEALTH EDUC ATION AND OTHER ESSENTIAL ARRANGEMENT OF VILLAGE LIFE. XIII. TO WORK FOR ACHIEVING GOALS LIKE SELF SUPPOR TING FARMERS, DEVELOPED VILLAGES, COMPETENT INDIA. XIV. TO WORK FOR COLLECTION AND CONSERVATION OF WA TER AND PROMOTION OF WATER. XV. TO WORK FOR PROTECTION OF THE ENVIRONMENT. 10 XVI. TO MAKE AFFILIATION WITH ORGANIZATIONS WHO WO RK FOR THE ABOVE MENTIONED OBJECTS OF THE ORGANIZATION AND GUIDE THE M & WORK TOGETHER TO FULFILL THE ABOVE MENTIONED OBJECTS. XVII. TO WORK FOR FULFILLMENT OF ABOVE OBJECTS AND TO DO ALL SUCH ACTS WHICH ARE OF NATIONAL INTEREST AND ARE NOT AGAINST SOCIETY REGISTRATION ACT, 1860.' 6.2 AFTER PERUSING THE AFORESAID OBJECTIVES, WE FI ND THAT THE ASSESSEES MAIN OBJECTIVE ARE CARRYING OUT CHARITABLE ACTIVIT IES. ON PERUSAL OF PAGE NO. 38 & 39 OF THE PAPER BOOK WHICH IS A SUBMISSION DATED 15.6.2015, ASSESSEE HAS DIRECTED SEVERAL ACTIVITIES ALL OF WHI CH ARE DIRECTED TOWARDS PROTECTION OF INTERESTS OF FARMERS AT A NATIONAL LE VEL AND SOME OF THE SIGNIFICANT ACHIEVEMENTS OF ASSESSEE IN THIS REGARD ARE AS UNDER:- I. WITH THE EFFORTS OF ASSESSEE THE GOVERNMENT HAS SANCTIONED RS. 6,000 CRORES TO SUGAR MILL OWNERS AS LOAN TO MAKE PAYMENTS TO THE FARMERS GROWING SUGARCANE AND THIS AMOUNT WILL BE DIRECTLY REMITTED INTO THE BANK ACCO UNT OF THE FARMERS; II. IT HAS BEEN RESOLVED BY THE GOVERNMENT THAT F ARMERS WILL BE PROVIDED RELIEF BY THE GOVERNMENT IF THE LO SS INCURRED DUE TO NATURAL CALAMITIES IS IN EXCESS OF 33% INSTE AD OF EARLIER BEING 50%; 11 III. THE GOVERNMENT HAS AGREED FOR PURCHASING THE WHEAT WHICH HAS BEEN DESTROYED DUE TO RAINFALL WHICH WOUL D AGAIN BENEFIT THE FARMERS. 6.3 WE FURTHER FIND THAT FROM TIME TO TIME THE ASS ESSEE SOCIETY HAS BEEN MAKING REPRESENTATIONS BEFORE THE HIGHEST LEVE L I.E. BEFORE THE HON'BLE PRESIDENT OF INDIA & THE PMO IN FURTHERANCE OF OBJECTIVES OF ASSESSEE SOCIETY. SOME OF SUCH REPRESENTATIONS MADE ARE ANNEXED IN THE PAPER BOOK FROM PAGE NO. 40 TO 48 I.E. REPRESENTATI ON DATED 29/04/13 BEFORE THE HON'BLE PRESIDENT OF INDIA IN CONNEC TION WITH DEMAND OF FARMERS, INTER ALIA, IN CONNECTION WITH PR ICES OF AGRICULTURAL PRODUCE; LAND ACQUISITION ETC.; REPRESENTATION DATE D 28/02/15 BEFORE THE HON'BLE PRIME MINISTER IN CONNECTION WITH DEMAND O F FARMERS PERTAINING TO LAND ACQUISITION ETC.; REPRESENTATION DATED 11/0 5/15 BEFORE THE HON'BLE PRIME MINISTER IN CONNECTION WITH DEMAND OF FARMERS PERTAINING TO LAND ACQUISITION ETC.; REPRESENTATION DATED 12/0 9/13 BEFORE THE HON'BLE PRESIDENT OF INDIA IN CONNECTION WITH DEM AND OF FARMERS; REPRESENTATION DATED 03/06/15 BEFORE THE JOINT PA RLIAMENTARY COMMITTEE IN CONNECTION WITH DEMAND OF FARMERS. WE FURTHER NOTE THAT THE ASSESSEE FROM TIME TO TIME APPEARED BEFORE THE LD. CIT(E) AND SUBMITTED THE DETAILS AS UNDER:- FIRSTLY VIDE SUBMISSION DATED 16/02/15 (PG 1 PB) TH E ASSESSEE HAS SUBMITTED, INTERALIA, THE FOLLOWING DOCUMENTS: I. LIST OF MANAGEMENT COMMITTEE (PAGE 3 PB); 12 II. COPY OF MEMORANDUM & ARTICLES OF ASSOCIATI ON (PAGES 22-37 PB); III. COPIES OF AUDITED ACCOUNTS FOR FY 2011-12; F Y 2012-13 & FY 2013-14 (PAGES 4-18 PB). THEREAFTER VIDE SUBMISSION DATED 15/06/15 THE ASSES SEE HAS SUBMITTED, INTER ALIA, THE FOLLOWING DOCUMENTS: I. AUDITED ACCOUNTS FOR FY 2011-12; FY 2012-13 & FY 2013-14 WERE RE-SUBMITTED. II. COPIES OF BANK STATEMENTS FOR LAST THREE YEARS WERE SUBMITTED; III. DETAILED NOTE ON CHARITABLE ACTIVITIES CARRI ED OUT BY ASSESSEE SOCIETY TOGETHER WITH VARIOUS REPRESENTATI ONS SUBMITTED FOR PROTECTION OF INTERESTS OF FARMERS (S UPRA) WERE SUBMITTED (PAGES 38-49 PB); & IV. IMPORTANTLY THE BOOKS OF ACCOUNTS WERE ALSO SU BMITTED VIDE THE SAID SUBMISSION IN RESPONSE TO QUERY NO. 1 1 OF THE CIT (EXEMPTIONS) LETTER DATED 01/06/15. 6.4 WE ALSO FIND THAT LD. CIT(EXEMPTIONS) BY WAY OF HIS ORDER REJECTED ASSESSEE'S APPLICATION FOR REGISTRATION U/S 12A OF THE ACT. THE CIT (E.) HAS MADE AN ALLEGATION TO THE EFFECT THAT THE ASSESSEE HAS NOT SUBMITTED 13 BOOKS OF ACCOUNTS. HOWEVER, THE NECESSARY DETAILS WERE VERY MUCH SUBMITTED VIDE SUBMISSION DATED 15/06/15 IN RESPONS E TO QUERY NO. 11 OF CIT (EXEM.)(SUPRA). APART FROM THE SAME THE ASSESS EE HAS AGAIN SUBMITTED ITS SUBMISSION DATED 16/02/15 (SUPRA) & A NOTHER SUBMISSION DATED 15/06/15 (SUPRA). ALL DETAILS ARE VERY MUCH A PART OF RECORD AND THE CIT(EXEM.) COULD NOT POINT ANY SORT OF DISCREPANCY IN THE SAME. HENCE, THE DECISIONS RELIED UPON BY LD. CIT(E) ARE NOT AP PLICABLE ON THE FACTS AND CIRCUMSTANCES OF PRESENT CASE. 6.5 IN VIEW OF THE ABOVE, IN OUR CONSIDERED VIEW ASSESSEE'S OBJECTIVES DULY QUALIFY WITHIN THE PURVIEW OF 'GENERAL PUBLIC UTILITY' BEING A CHARITABLE PURPOSE UNDER SECTION 2(15) OF THE ACT. SECTION 2(15) OF THE ACT DEFINES CHARITABLE PURPOSE IN AN INCLUSIVE MANN ER AS UNDER: '(15) 'CHARITABLE PURPOSE' INCLUDES RELIEF OF THE POOR, EDUCATION, YOGA, MEDICAL RELIEF, PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST, AND TH E ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY.' 6.6 WE FURTHER FIND THAT THE EXPRESSION 'GENERAL PU BLIC UTILITY' HAS BEEN WELL ESTABLISHED FROM AUTHORITATIVE PRONOUNCEMENTS FROM THE HONBLE SUPREME COURT. THE HONBLE SUPREME COURT IN ITS SIG NIFICANT DECISIONS IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION VS CI T 82 ITR 704 SC & CIT VS ANDHRA CHAMBER OF COMMERCE 55 ITR 722 SC HAS HELD THAT AN OBJECT BENEFICIAL TO A SECTION OF PUBLIC IS AN OBJE CT OF GENERAL PUBLIC UTILITY. 14 IT WOULD BE PERTINENT TO QUOTE THE FOLLOWING FROM T HE SAID DECISIONS OF HONBLE SUPREME COURT: 'THAT THE EXPRESSION 'OBJECT OF GENERAL PUBLIC UTIL ITY' WAS NOT RESTRICTED TO OBJECTS BENEFICIAL TO THE WHO LE OF MANKIND. AN OBJECT BENEFICIAL TO A SECTION OF THE P UBLIC WAS A N OBJECT OF GENERAL PUBLIC UTILITY. TO SERVE AS A CHARITABLE PURPOSE, IT WAS NOT NECESSARY THAT THE O BJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OR EVEN A LL PERSONS LIVING IN A PARTICULAR COUNTRY OR PROVINCE. IT WAS SUFFICIENT IF THE INTENTION WAS TO BENEFIT A SECTIO N OF THE PUBLIC AS DISTINGUISHED FROM SPECIFIED INDIVIDUALS ', 6.7 ON THE FACTS OF THE PRESENT CASE, THE SECTION OF PUBLIC TO WHOM BENEFIT IS INTENDED IS FARMERS CONSTITUTING APPROX. 60% - 70% OF POPULATION OF COUNTRY AND THE PROTECTION OF INTERES TS OF FARMERS WILL INVARIABLY CONFER SEVERAL BENEFITS. THESE POINTS WE RE CLEARLY HIGHLIGHTED VIDE SUBMISSION DATED 15/06/15 BEFORE THE CIT(EXEM. ) WHICH ESTABLISHES BEYOND ANY DOUBT THAT THE OBJECT OF ASSESSEE IS OF GENERAL PUBLIC UTILITY WITHIN THE MEANING OF SECTION 2(15), WHICH READS AS UNDER:- I. UPLIFTMENT OF FARMERS BY WAY OF PROVIDING THEM F ACILITIES LIKE BETTER SEEDS, FERTILIZERS, AVAILABILITY OF WAT ER AND ELECTRICITY; CONNECTING VILLAGES WITH ROADS ETC; II. ASSESSEE SOCIETY WORKS IN THE FIELD OF IMPROVIN G FINANCIAL; CULTURAL; SOCIAL AND EDUCATIONAL UPLIFTMENT OF FARM ERS; 15 III. PROVIDING FARMERS WITH THE KNOWLEDGE OF MODERN AGRICULTURAL TECHNIQUES AND EQUIPMENTS; IV. IMPLEMENTATION OF LATEST TECHNIQUES IN FARMING; V. ORGANIZING MEETINGS, TRAININGS, SESSIONS, EXHIBI TIONS ETC FOR THE BENEFIT OF FARMERS; VI. PROVIDING A MARKET FOR AGRICULTURAL PRODUCES PR ODUCED BY THE FARMERS AT REASONABLE PRICES; VII. WITH THE EFFORTS OF ASSESSEE THE GOVERNMENT HA S SANCTIONED RS. 6,000 CRORES TO SUGAR MILL OWNERS AS LOAN TO MAKE PAYMENTS TO THE FARMERS GROWING SUGARCANE AND THIS AMOUNT WILL BE DIRECTLY REMITTED INTO THE BANK ACCO UNT OF THE FARMERS; VIII. IT HAS BEEN RESOLVED BY THE GOVERNMENT THAT F ARMERS WILL BE PROVIDED RELIEF BY THE GOVERNMENT IF THE LOSS IN CURRED DUE TO NATURAL CALAMITIES IS IN EXCESS OF 33% INSTEAD O F EARLIER BEING 50%; IX. THE GOVERNMENT HAS AGREED FOR PURCHASING THE WH EAT WHICH HAS BEEN DESTROYED DUE TO RAINFALL WHICH WOUL D AGAIN BENEFIT THE FARMERS. 6.8 BESIDES ABOVE, WE FIND THAT THE DECISIONS RELI ED UPON BY THE CIT(E) VIDE PARAS 4-7 OF HIS ORDER ARE NOT AT ALL APPLICAB LE ON THE FACTS AND CIRCUMSTANCES OF PRESENT CASE IN VIEW OF FOLLOWING REASONS: I. IN THE CASES OF CHARITABLE SOCIETY VS DIT (EXEMP TION) 232 ITR 11 & SELF EMPLOYERS SERVICE SOCIETY VS CIT 247 ITR 18 (KER.) AS REFERRED BY THE CIT(EXEM.) VIDE PARA 4 OF ITS ORDER THE FINDINGS ON THE FACTS OF THOSE CASES WERE THAT THERE 16 HAS BEEN A MIS-UTILISATION OF DONATIONS RECEIVED FO R CHARITABLE PURPOSES AND THE ONLY ACTIVITY CARRIED ON BY SOCIET Y WAS EARNING INCOME FOR MEMBERS. NO SUCH SITUATION EXIST S ON THE FACTS OF PRESENT CASE; II. IN THE CASE OF CIT VS NATIONAL INSTITUTE OF AER ONAUTICAL ENGINEERING EDUCATION SOCIETY 181 TAXMAN 205 (UTTAR AKHAND) THE REASONING FRAMED IN DENYING EXEMPTION WAS THAT THE OBJECTIVE OF SOCIETY WAS TO EARN PROFITS UNDER THE GARB OF EDUCATION. NO SUCH SITUATION EXISTS .ON THE FACTS O F PRESENT CASE AND IN ANY CASE THIS DECISION FROM UTTARAKHAND HIGH COURT HAS BEEN REVERSED BY SUPREME COURT IN THE CAS E OF QUEENS EDUCATIONAL SOCIETY VS CIT (2015) 372 ITR 69 9 (SC) AS NOTED IN VARIOUS CASES FOR INSTANCE IN THE DECIS ION OF CO- ORDINATE BENCH OF DELHI ITAT IN THE CASE OF SHREE B ALAJI EDUCATIONAL TRUST VS CIT (2016) 47 ITR (TRIB.) 595 ETC; III. IN THE DECISION IN CASE OF CIT VS JAMUNA LAL B AJAJ SEVA TRUST 171 ITR 568 AS RELIED BY CIT(EXEM.) VIDE PARA 6 OF ITS ORDER THERE WAS A FINDING THAT INCOME IS APPLIED FO R THE BENEFIT OF INTERESTED PERSONS WHEREAS NO SUCH SITUA TION EXISTS ON THE FACTS OF PRESENT CASE. TO SIMILAR EFFECT WER E THE FACTS OF CASE RELIED BY THE CIT VIDE PARA 7 OF ITS ORDER. NO SUCH SITUATION EXISTS ON THE FACTS OF PRESENT CASE. 6.9 WE FURTHER OF THE VIEW THAT AT THE STAGE OF GR ANTING REGISTRATION U/S 12A THE LD. CIT(E) HAS REQUIRED TO SEE THE OBJECTS OF SOCIETY AND NOT REQUIRED TO EXAMINE ON THE APPLICATION OF INCOME WH ICH WILL HAVE TO BE UNDERTAKEN BY THE ASSESSING OFFICER (AO) ON A YEAR TO YEAR BASIS AFTER ASSESSEE FILES RETURN OF INCOME CLAIMING EXEMPTION U/S 11. THIS POSITION IS NOW WELL SETTLED BY SEVERAL AUTHORITATIVE PRONOU NCEMENTS ON THE 17 SUBJECT. ON THE FACTS OF PRESENT CASE THERE CANNOT BE EVEN AN IOTA OF DOUBT THAT THE OBJECTIVES OF ASSESSEE SOCIETY ARE C HARITABLE IN NATURE BEING AN OBJECTIVE OF GENERAL PUBLIC UTILITY WITHIN THE MEANING OF SECTION 2(15) OF THE ACT AS DETAILED HEREIN ABOVE. 7. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE AS EXPLAINED ABOVE AND RESPECTFULLY FOLLOWING THE LEGA L POSITION AS DISCUSSED ABOVE, WE ARE OF THE CONSIDERED OPINION THAT THE AS SESSEE IS ENTITLED FOR REGISTRATION U/S. 12A OF THE ACT. THEREFORE, WE S ET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(EXEMPTIONS), LUCKNOW A ND ACCORDINGLY, DIRECT THE LD. CIT(E), LUCKNOW TO GRANT REGISTRATIO N UNDER SECTION 12A OF THE ACT TO THE APPLICANT. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/08/2017. SD/- SD/- [PRASHANT MAHARISHI] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 25/08/2017 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 18