Shri Ganesh Sewa Samiti, Bahraich V. Commissioner of Income Tax (Exemption), Lucknow

ITA 673/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4667 (ITAT-LUCKNOW)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-02-2016
• Assessment Year: misc
• Appeal Filed On: 30-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.672 & 673/LKW/2015 CIT(EXEMPTIONS), LUCKNOW VS. SHRI GANESH SEWA SAMITI AZAD ROAD, RUPAIDEEHA, KEWALPUR, NANPARA, BAHRAICH (U.P.) 271 881 PAN AAMAS 6896 D (RESPONDENT) (APPELLANT) SHRI DHARMENDRA KUMAR, CA APPELLANT BY SHRI A.K. SINGH, CIT DR RESPONDENT BY 04 /0 2 /2016 DATE OF HEARING 04/03/2016 DATE OF PRONOUNCEMENT O R D E R PER SUNIL KUMAR YADAV, JM. 1. THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAI NST THE RESPECTIVE ORDERS OF THE LD. CIT(EXEMPTIONS), LUCKNOW, DENYING THE RE GISTRATION U/S 12AA AND APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT). HOWEVER, WE EXTRACT THE GROUNDS RAISED IN TH ESE APPEALS ARE AS UNDER:- ITA NO.672/LKW/2015 1. THAT LEARNED CIT ERRED IN FACTS AND LEGAL ASPE CTS OF THE CASE IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SE CTION 12AA OF THE INCOME TAX ACT, 1961. 2. THAT APPELLANT, A CHARITABLE ORGANIZATION FORM ED AND REGISTERED ON 31-03-2015 ONLY AND APPLICATION FOR REGISTRATION UN DER SECTION 12A(AA) OF INCOME TAX ACT, 1961 WAS FILED ON 13-04- 2015. IN THE 2 CIRCUMSTANCES, THE OBJECTS OF APPELLANT SHOULD HAVE BEEN CONSIDERED FOR GRANTING REGISTRATION UNDER SECTION 12AA OF INCOME TAX ACT, 1961. 3. THAT THE OBJECTS OF APPELLANT ARE CHARITABLE IN NATURE AND APPELLANT IS ENGAGED IN CHARITABLE ACTIVITIES. 4. THAT NON-MAINTENANCE OF ACCOUNTS PROPERLY CAN NOT BE THE REASON TO DENY REGISTRATION UNDER SECTION 12A. LD.CIT(EXEM PTION) REJECTED THE APPLICATION OF APPELLANT-SOCIETY TRUST FOR NOT CARRYING OUT ANY CHARITABLE ACTIVITY, WHILE IGNORING THE FACT THAT A PPELLANT-SOCIETY FORMED AND REGISTERED ON 31-03-2015 ONLY AND APPLIC ATION FOR REGISTRATION WAS FILED ON 13-04-2015, HENCE, DENYIN G THE REGISTRATION FOR ABOVE REASONS ARE AGAINST THE FACT S AND ILLEGAL. 5. THAT THE APPELLANT SEEKS PERMISSION TO MODIFY AND/OR ADD ANY OTHER GROUNDS OF APPEAL AS THE CIRCUMSTANCES OF THE CASE MIGHT REQUIRE OR JUSTIFY. ITA NO.673/LKW/2015 1. THAT LEARNED CIT ERRED IN FACTS AND LEGAL ASPE CTS OF THE CASE IN REJECTING THE APPROVAL UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961. 2. THAT APPELLANT, A CHARITABLE ORGANIZATION FORM ED AND REGISTERED ON 31-03-2015 ONLY AND APPLICATION FOR REGISTRATION UN DER SECTION 80G(5)(VI) OF INCOME TAX ACT, 1961 WAS FILED ON 13- 04-2015. IN THE CIRCUMSTANCES, THE OBJECTS OF APPELLANT SHOULD HAVE BEEN CONSIDERED FOR GRANTING APPROVAL UNDER SECTION 80G( 5)(VI) OF INCOME TAX ACT, 1961. 3. THAT THE OBJECTS OF APPELLANT ARE CHARITABLE I N NATURE AND APPELLANT IS ENGAGED IN CHARITABLE ACTIVITIES. AT TIME OF GRA NTING APPROVAL FOR EXEMPTION UNDER SECTION 80G, OBJECT OF TRUST IS REQ UIRED TO BE EXAMINED. 4. THAT LD.CIT(EXEMPTION) REJECTED THE APPLICATION OF APPELLANT FOR APPROVAL UNDER SECTION 80G(5)(VI) OF INCOME TAX ACT FOR NOT FILING COPY OF REGISTRATION CERTIFICATE UNDER SECTION 12AA /10(23C) OF INCOME TAX ACT, 1961, WHILE IGNORING THE FACT THAT APPELLANT-SOCIETY FORMED AND REGISTERED ON 31-03-2015 ONLY AND APPLIC ATION FOR REGISTRATION UNDER SECTION 12A(AA) AND APPLICATION FOR APPROVAL UNDER SECTION 80G(5)(VI) WERE FILED SIMULTANEOUSLY ON 13-04-2015, 3 HENCE, DENYING THE APPROVAL FOR ABOVE REASON IS AGA INST THE FACTS AND ILLEGAL. 5. THAT THE APPELLANT SEEKS PERMISSION TO MODIFY AND/OR ADD ANY OTHER GROUNDS OF APPEAL AS THE CIRCUMSTANCES OF THE CASE MIGHT REQUIRE OR JUSTIFY. 2. DURING THE COURSE OF HEARING, OUR ATTENTION WAS INVITED TO THE ORDER OF CIT(EXEMPTIONS) THAT THE ASSESSEE HAS FILED AN APPL ICATION FOR REGISTRATION U/S 12AA AND FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF TH E ACT ON 13.04.2015. THIS APPLICATION WAS KEPT PENDING WITH THE CIT(EXEMPTION S) AND VIDE LETTER DATED 20.08.2015, THE CIT(EXEMPTIONS) ISSUED A NOTICE CAL LING SPECIFIC QUERIES REGARDING THIS APPLICATION FOR REGISTRATION FOR 01. 10.2015. LD. COUNSEL FOR THE ASSESSEE APPEARED AND FURNISHED THE COMPLETE DETAIL S OF THE ASSESSEE TRUST I.E. BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT AND T HE EVIDENCES RELATING TO CHARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSEE. B UT THE CIT(EXEMPTIONS), ON THE VERY SAME DAY, HAS PASSED AN ORDER DENYING THE REGISTRATION U/S 12AA OF THE ACT AND ALSO DENIED THE APPROVAL CLAIMED U/S 80 G OF THE ACT. WHILE DOING SO, THE CIT(EXEMPTIONS) HAS RECORDED IN HIS ORDER THAT THE APPLICANT SOCIETY COULD NOT PRODUCE BOOKS AND VOUCHERS IN RESPECT OF EXPENS ES CLAIMED BY THE APPLICANT FOR VERIFICATION OF ACTIVITIES OF THE SOCIETY. IT IS ALSO OBSERVED THAT THE ASSESSEE SOCIETY IS NOT CARRYING OUT ANY CHARITABLE ACTIVITI ES WHEREAS DURING THE COURSE OF HEARING OF THE APPEAL, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT THE ASSESSEE HAS FURNISHED THE TRUST DEED, BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT AND LETTERS RECEIVED FROM DIFFE RENT AUTHORITIES WITH REGARD TO THE CHARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSE E AND ALSO PHOTOGRAPHS DEPICTING THAT ASSESSEE WAS PERFORMING CHARITABLE A CTIVITIES. 3. ALL THESE DOCUMENTS ARE PLACED BEFORE US AT PAGE S 1 TO 45 OF THE COMPILATION OF THE ASSESSEE. DURING THE COURSE OF H EARING, LD. DR OF THE REVENUE HAS DENIED THAT THESE EVIDENCES ARE NOT FIL ED BEFORE THE 4 CIT(EXEMPTIONS) AS THE CIT(EXEMPTIONS) HAS CATEGORI CALLY OBSERVED IN HIS ORDER THAT THE BOOKS OF ACCOUNT AND DETAILS WERE NOT PROD UCED BEFORE HIM. 4. IN ORDER TO RESOLVE THE CONTROVERSY, WE DIRECTED THE DR TO PRODUCE THE CIT(EXEMPTIONS) FOLDER TO VERIFY THE FACTS. ACCORDI NGLY, FOLDER WAS PRODUCED AND IT WAS VERIFIED THAT THE ASSESSEE HAS FILED ALL THE SE EVIDENCES BEFORE THE CIT(EXEMPTIONS), WHICH ARE FILED BEFORE US. IT IS U NFORTUNATE THAT THE CIT(EXEMPTIONS) HAS NOT APPLIED HIS MIND TO THE EVI DENCES PLACED BEFORE HIM. ASSESSEE SOCIETY HAS FILED AN APPLICATION FOR REGIS TRATION ON 13.04.2015 AND CIT(EXEMPTIONS) SET OVER IT AND FINALLY ON 20.08.20 15 HE ISSUED NOTICE CALLING FOR SPECIFIC QUERIES AND FIXED THE HEARING ON 01.10.201 5. ON THAT DATE, THOUGH THE ASSESSEE HAS FILED ALL RELEVANT EVIDENCES, BUT THE CIT(EXEMPTIONS) DID NOT TAKE ANY PAIN TO LOOK INTO IT AND OUT RIGHTLY DENIED THE REGISTRATION BY PASSING AN ORDER ON THE SAME DATE I.E. 01.10.2015. THE APPROAC H OF THE CIT(EXEMPTIONS) CANNOT BE APPRECIATED. IF HE WANTS THE SOME MORE IN FORMATION TO SATISFY HIMSELF WITH THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE, HE COULD AFFORD SOME MORE TIME TO THE ASSESSEE BUT HE DID NOT DO SO. THE ASSESSEE SOCIETY WAS REGISTERED ON 31.03.2015 AND APPLICATION FOR REGISTRATION WAS MOV ED ON 13.04.2015 AND THE CIT(EXEMPTIONS) HAS TAKEN UP THE MATTER FOR CONSIDE RATION ON 01.10.2015. THE TIME GAP WAS VERY SHORT FOR WHICH COMPLETE ACCOUNT COULD NOT BE PRODUCED. BUT IN ANY CASE, THE ASSESSEE HAS FILED THE INCOME AND EXPENDITURE ACCOUNT AND OTHER EVIDENCES TO SHOW THAT HE WAS ENGAGED IN CHAR ITABLE ACTIVITIES. 5. MOREOVER, IT IS SETTLED POSITION OF LAW THAT WHI LE GRANTING REGISTRATION U/S 12AA OF THE ACT, THE CIT(EXEMPTIONS) SHOULD EXAMINE THE OBJECT OF THE SOCIETY, IF THE SOCIETY IS FORMED RECENTLY AND IF THE OBJECT OF THE SOCIETY IS CHARITABLE, THE REGISTRATION SHOULD BE GRANTED. BUT IN THE INSTANT CASE, THOUGH THE SOCIETY WAS FORMED ON 31.03.2015 AND APPLICATION WAS MOVED ON 1 3.04.2015, YET THE CIT(EXEMPTIONS) DID NOT EXAMINE THE OBJECT OF THE A SSESSEE TRUST AND HAS DENIED THE REGISTRATION BY MAKING A BALD ALLEGATION . WE, THEREFORE, DO NOT FIND 5 OURSELVES AN AGREEMENT WITH THE ORDER OF CIT(EXEMPT IONS). ACCORDINGLY, WE SET ASIDE HIS ORDER AND DIRECT HIM TO GRANT REGISTRATIO N U/S 12AA OF THE ACT AND APPROVAL U/S 80G(5)(VI) TO THE ASSESSEE SOCIETY WIT HIN A PERIOD OF ONE MONTH FROM THE DATE OF RECEIPT OF THIS ORDER. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 04/03/2016 AKS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR