Kasturi Poornachandra Foundation Managing Trusstee, Hyderabad V. Commissioner Of Income Tax(Exemptions), Hyderabad

ITA 717/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2319 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: misc
• Appeal Filed On: 25-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Keywords: Charitable institution
• Section: 80G; 12A; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 717 /H/20 20 KASTURI POORNACHANDRA FOUNDATION, HYDERABAD. PAN A A DTK 0368G VS. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) , HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: NONE REVENUE BY: S HRI YVST SAI DATE OF HEARING: 29 /0 9 /2021 DATE OF PRONOUNCEMENT: 25 / 10 /2021 O R D E R PER L.P. SAHU, A.M. : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT( EXEMPTIONS ) , HYDERABAD S ORDER DATED 23 / 0 9 / 20 20 FOR INVOLVING PROCEEDINGS U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT , ON THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF CIT(E), HYDERABAD DENYING APPROVAL U/S 80G OF THE IT ACT, 1961 IS NOT SUSTAINABLE IN LAW AS IT IS CONTRARY TO FACTS ON RECORD, EVIDENCE FILED AND THE LAW ON THE ISSUE. I TA NO. 717 /HYD /20 20 KASTURI POORNACHANDRA FOUNDATION, HYD. : - 2 - : 2. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD OUGHT TO HAVE CONSIDERED THE FACT THAT THE APPELLANT WAS GRANTED REGISTRATION U/S 12 A OF THE ACT ON 18 - 08 - 2017 ITSELF AFTER VERIFYING THE CHARITABLE OBJECTS OF THE FOUNDATION. 3. THE COMMISSIONE R OF INCOME TAX (EXEMPTIONS), HYDERABAD OUGHT TO HAVE CONSIDERED THE FACT THAT THE APPELLANT DID NOT VIOLATE ANY OF THE CONDITIONS SPECIFIED U/S 80G (5) OF THE ACT. 4. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD OUGHT TO HAVE CONSIDERED THE FA CT THAT THE ENTIRE EXPENDITURE FOR CHARITABLE PURPOSES WERE MADE THROUGH THE BANKING CHANNELS. 5. THE APPELLANT SUBMITS THAT THE FACT THAT THE ACTIVITIES CARRIED OUT BY THE ASSESSEE ARE MEAGER CAN'T BE A GROUND FOR REJECTING THE APPROVAL. 6. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE APPELLANT PRAYS TO GRANT APPROVAL TO THE APPELLANT UNDER SECTION 80 G (5) (VI) OF THE INCOME TAX ACT 1961 FROM THE DATE OF APPLICATION . 2 . NONE APPEARED ON BEHALF OF THE ASSESSEE AT TH E TIME OF HEARING OF THIS APPEAL, THEREFORE, WE PROCEED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. DR AND CONSIDERING THE FACTS AVAILABLE ON RECORD. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED APPLICATION IN FORM NO. 10G SEEKING APPR OVAL U/S 80G OF THE IT ACT ON 06/02/2020. I TA NO. 717 /HYD /20 20 KASTURI POORNACHANDRA FOUNDATION, HYD. : - 3 - : 3.1 THE CIT(E) OBSERVED THAT THE ASSESSEE HAS BEEN CONSTITUTED IN JANUARY, 2017 AND WAS GRANTED REGISTRATION U/S 12A OF THE ACT IN 18/08/2017. HE FURTHER OBSERVED THAT AS SEEN FROM THE DOCUMENTARY EVIDENCE FILED, THE ASSESSEE SUBMITTED THAT IT HAS CONDUCTED DISTRIBUTION OF BOOKS, UNIFORMS, SHOES, AID TOWARDS HEALTH OF POOR, PAYMENT OF SCHOOL FEES, FINANCIAL AID FOR CREMATION OF POOR ETC., AND TO THIS EFFECT, THE ASSESSEE SUBMITTED THE INCOME & EXPENDITURE ACCOUNT. THE CIT(E) NOTED THAT THE EXPENSES WERE NOT SUPPORTED WITH BILLS & VOUCHERS IN RESPECT OF CHARITABLE ACTIVITIES AND, THEREFORE , THE ACTIVITIES CARRIED OUT BY THE ASSESSEE WERE MEAGRE, HENCE, IT WAS NOT POSSIBLE TO VERIFY THE CHARITABLE NATURE OF THE ACTIV ITIES OF THE ASSESSEE, WHICH IS A PRE - CONDITION FOR GRANTING REGISTRATION U/S 80G. IN VIEW OF THE ABOVE OBSERVATIONS, THE CIT(E) REFUSED TO GRANT APPROVAL U/S 80G TO THE ASSESSEE. 4. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 5. AFTER HEARING THE LD. DR AND PERUSING THE MATERIAL AVAILABLE ON RECORD AS WELL AS THE ORDERS OF REVENUE AUTHORITIES, WE FIND THAT THE LD. CIT( E ) REFUSED TO GRANT APPROVAL U/S 80G TO THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED SUBSTANTIATE THE EXPENSES WITH THE BILLS AND VOUCHERS INCURRED IN RESPECT OF CHARITABLE ACTIVITIES. WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE SERVED IF ONE M ORE OPPORTUNITY IS GIVEN TO THE ASSESSEE TO SUBSTANTIATE I TA NO. 717 /HYD /20 20 KASTURI POORNACHANDRA FOUNDATION, HYD. : - 4 - : ITS CASE FOR APPROVAL U/S 80G WITH DOCUMENTARY EVIDENCE BEFORE THE CIT(E). THEREFORE, THE MATTER IS RESTORED TO THE FILE OF CIT(E) TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO FILE THE DOCUMENTA RY EVIDENCE TOWARDS THE EXPENDITURE INCURRED IN RESPECT OF CHARITABLE ACTIVITIES. WE DIRECT THE ASSESSEE TO APPEAR BEFORE CIT( E ) WITH ALL THE RELEVANT EVIDENCES TO SUBSTANTIATE ITS CASE ; AT ITS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. 4 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 25 TH OCTOBER , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 25 TH OCTOBER , 20 2 1 . K V C OPY TO : 1 KASTURI POORNACHANDRA FOUNDATION, D.NO. 40 - 5 - 6E, VALLURU POORNACHANDRA RAO STREET, BRUNDAVAN COLONY, LABBIPET, VIJAYAWADA, AP 520 010 2 C IT (E) , HYDERABAD. 3 THE ITO (E), HYDERABAD 4 ITAT, DR, HYDERABAD. 5 GUARD FILE. I TA NO. 717 /HYD /20 20 KASTURI POORNACHANDRA FOUNDATION, HYD. : - 5 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER