M/S. SANSTHA AGRASEN SEWA, Indore V. THE CIT, Ujjain

ITA 710/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5322 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-12-2016
• Assessment Year: misc
• Appeal Filed On: 02-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Section: 80G

Judgement Text

ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .., ..!', #$ # !% BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER I.T.A. NO.710/IND/2015 SANSTHA AGRASEN SEWA INDORE PAN AANTS 8686H :: APPELLANT VS CIT (EXEMPTION) BHOPAL :: RESPONDENT REVENUE BY SHRI LALCHAND ASSESSEE BY SHRI PRANAY GOYAL !' DATE OF HEARING 7.12.2016 #$%&'( !' DATE OF PRONOUNCEMENT 15.12.2016 * O R D E R PER SHRI D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT EXEMPTIONS, BHOPAL DATED 21.9.2015. ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 2 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE SANSTHA HAS APPLIED FOR EXEMPTION U/S 80G OF THE ACT I N FORM NO. 10G. THE EXPRESS OBJECTION OF THE SOCIETY AS PER TRUEST DEED FILED WITH REGISTRAR OF THE PUBLIC TRUS T OF INDORE INDICATE THAT MAHARAJA AGRASEN WAS A LEGENDARY INDIAN KING OF AGROHA IN INDIA, A CITY OF TRADERS, FROM WHOM THE AGRAWAL COMMUNITY IS DESCENT. AGRAWALS ARE BASICALLY A COMMERCIAL COMMUNITY. THEY ARE ONE OF THE MOST RESPECTABLE AND ENTERPRISING OF MERCANTILE CLASS IN IND IA. THE LEARNED CIT WAS OF THE VIEW THAT THE NAME OF THE SOCIETY INDICATES THAT THE ACTUAL ACTIVITIES ARE ORIENTED FOR THE BENEFIT OF A PARTICULAR COMMUNITY. THE INCOME AND EXPENDITURE ACCOUNT FOR THE F.Y. 2014-15 AND EARLIER Y EARS INDICATE THAT THE PAYMENTS CLAIMED TO HAVE BEEN MADE FOR THE MAIN OBJECTS OF THE SOCIETY ARE TOWARDS MEDICLAIM POLICIES FOR POOR PEOPLE. THE LEARNED CIT PERUSED TH E LIST OF BENEFICIARIES AND FOUND THAT ALL THE BENEFICIARIES ARE F ROM ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 3 AGRAWAL COMMUINITY ONLY. ONE PUMPHLET OF THE SOCIET Y UNDER CIRCULATION SHOWS THAT THEY ARE SUPPORTING THE P OOR FAMILIES OF AGRAWAL SAMAJ ONLY. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT WAS OF THE VIEW THAT THE ASSESSEE IS NOT ENTITLED TO EXEMPTI ON U/S 80G(5)(VI) OF THE ACT. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A PUBLIC TRUST DULY REGISTERED UNDER THE M.P. TRUST ACT, 1951. THE ASSES SEE SOCIETY WAS GRANTED REGISTRATION U/S 12AA(1)(B)(I) OF THE ACT. THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES SUCH AS ADVANCEMENT OF OBJECT OF GENERAL PUBLIC UTILITY, AS DEF INED UNDER SECTION 2(15) OF THE ACT. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT AS PER CLAUSE 3 OF THE REGISTER ED TRUST DEED, THE ORIGINAL NATURE OF THE TRUST IS TO SE RVE THE POOR, INCAPABLE AND UNABLE-HUMAN BEINGS AND TO PROVIDE THEM HELP, EDUCATION, HOUSE AND TO DEDICATE FOR SOCIAL ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 4 WELFARE TO THE PUBLIC AT LARGE. THE OBJECT OF THE TRU ST IS TO ENHANCE THE STANDARD OF LIVING OF THE POOR, NEEDY AND UNDER-PRIVILEGED PERSONS OF THE SOCIETY AND GIVE TH EM EDUCATION AND COACHING TO MERITORIOUS STUDENTS AND EMPLOYMENT GENERATION. THEREFORE, THE TRUST IS FOR T HE BENEFIT OF THE PUBLIC AT LAGE. THE LEARNED COUNSEL F OR THE ASSESSEE SUBMITTED THAT THE OBJECT OF THE TRUST IS TO ENHANCE THE STANDARD OF LIVING OF POOR AND NEEDY PEOPLE BY PROVIDING THEM MEDICAL ASSISTANCE IN THE FORM OF ISSUI NG MEDICLAIM POLICY WHEREOF THE PREMIUM IS PAID BY THE ASSESSEE. THE ASSESSEE HAS ISSUED THE POLICIES TO POOR AND NEEDY PEOPLE NOT ON THE BASIS OF CASTE AND COMMUNITY. THE COPIES OF THE POLICY INDICATE THAT SOME OF THE PREMIU M IS PAID FOR DIFFERENT COSTS OTHER THAN AGRAWALS. THEREFOR E, THE REGISTRATION MAY BE GRANTED. 4. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE LOWER AUTHORITIES. ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 5 5. WE HAVE HEARD BOTH THE SIDES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ASSESSEE TR UST HAS BEEN GRANTED REGISTRATION U/S 12AA(1)(B)(I) OF THE ACT BY THE LEARNED CIT. THE OBJECT OF THE TRUST IS CHARITABL E IN NATURE AND THE TRUSTS MAIN ACTIVITY WAS TO GIVE MEDICL AIM POLICIES TO THE PUBLIC AT LARGE AND THESE MEDICLAIM POL ICIES HAVE BEEN DISTRIBUTED TO ALL THE NEEDY PERSONS OF THE SOCIETY IRRESPECTIVE OF CASTE WHETHER THEY ARE FROM A GRAWAL COMMUNITY OR NOT. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED COPIES OF S UCH MEDICLAIM POLICIES BEFORE US AND THE ASSESSEE CLAIMED T HAT SUCH MEDICLAIM POLICIES HAVE BEEN GIVEN TO PUBLIC AT L ARGE. WE FIND THAT THIS SUBMISSION OF THE ASSESSEE WAS NOT B EFORE THE LEARNED CIT. THEREFORE, IT REQUIRES VERIFICATION AT THE END OF THE LEARNED CIT. WE, THEREFORE, DIRECT THE LEARNED CIT TO VERIFY THE ACCOUNTS OF THE ASSESSEE AS TO WHETH ER THE ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 6 MEDICLAIM POLICIES WERE GRANTED TO ALL THE COMMUNITIES OR NOT AND THEN TO PASS THE ORDER AS PER LAW. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 15 DECEMBER, 2016. SD/- SD/- ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 15 DECEMBER, 2016. DN/ ITA NO. 710/IND/2015 SANSTHA AGRAWAL SEWA 7