Delhi Police Education Fund , New Delhi V. CIT (Exemption), New Delhi

ITA 7652/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7897 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Charitable institution
• Section: 12AA; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (E-COURT MODULE) ITA NO. 7652/DEL/2018 : ASSTT. YEAR : DELHI POLICE EDUCATION FUND, C/O KAPIL GOEL, ADV., F-26/124, SECTOR-7, ROHINI, NEW DELHI-110085 VS CIT(EXEMPTION), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A CAD8780F ASSESSEE BY : SH. KAPIL GOEL, ADV. REVENUE BY : MS. NIDHI SRIVASTAVA, CIT DR DATE OF HEARING: 17.08.2020 DATE OF PRONOUNCEMENT: 18.08.2020 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(EXEMPTION), NEW DELHI DATE D 28.09.2018. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT ORDERS PASSED BY LD. CIT(E) DATED 28.09.20 18 REJECTING APPLICATION OF REGISTRATION U/S 12AA IS UNSUSTAINABLE AND INVALID WHERE APPLICANT IS INCORP ORATED FOR PURPOSE TO GRANT SCHOLARSHIP AND HELP IN FIELD OF EDUCATION WHICH OBJECT FULFILS THE TEST OF SECTIN 2 (15) (DEFINITION OF CHARITABLE PURPOSE) AND REASONING OF LD. CIT(E) THAT APPLICANT /FUND DOES NOT CATER TO BENEF IT OF GENERAL PUBLIC OR SECTION OF PUBLIC IS CLEARLY MISC ONCEIVED AS PROVIDING SCHOLARSHIP AND HELD IN FIELD OF EDUCA TION IS DULY A OBJECT OF GENERAL PUBLIC UTILITY AND ALSO FA LLS IN LIMB OF EDUCATIONAL ACTIVITY. ITA NO. 7652/DEL/2018 DELHI POLICE EDUCATION FUND 2 3. THE APPLICANT FILED AN ONLINE APPLICATION ON 28. 03.2018 IN FORM NO. 10A SEEKING REGISTRATION U/S 12AA OF THE I NCOME TAX ACT, 1961. THE APPLICANT WAS INCORPORATED IN THE YE AR 1989 VIDE THE ORDER OF COMMISSIONER OF DELHI POLICE. THE OBJE CTS OF THE ASSESSEE INCLUDE PROVISION OF EDUCATIONAL ASSISTANC E TO CHILDREN OF DELHI POLICE PERSONNEL FROM THE RANK OF CONSTABL E TO ACP. 4. THE LD. CIT(E) DENIED THE REGISTRATION U/S 12AA OF THE ACT ON THE GROUNDS THAT THE ASSESSEE IS NOT INVOLVED IN WELFARE OF GENERAL PUBLIC UTILITY AND IS LIMITED TO THE WARDS OF THE DELHI POLICE PERSONNEL ONLY. 5. DURING THE HEARING BEFORE US, THE LD. AR ARGUED THAT THE ASSESSEE IS INVOLVED IN PROMOTING THE POST HIGHER S ECONDARY EDUCATION AND FULFILS THE TEST OF SECTION 2(15) OF THE ACT, THE DEFINITION OF CHARITABLE PURPOSE. HE ALSO RELIED ON THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE PHD CHA MBER OF COMMERCE & INDUSTRY VS DIT DATED 19.10.2012. ON THE ISSUE OF GENERAL PUBLIC OR SECTION OF PUBLIC, HE RELIED ON T HE JUDGMENT OF BANK OF INDIA EMPLOYEES WELFARE TRUST. 6. ON THE OTHER HAND, THE LD. DR ARGUED THAT THE AS SESSEES ACTIVITIES ARE LIMITED TO THE WARDS OF THE POLICE P ERSONNEL. HENCE, IT IS NOT A WIDER PUBLIC CHARITABLE TRUST. S HE ALSO RELIED ON THE ORDER OF HONBLE SUPREME COURT IN THE CASE O F AHMADABAD RANA CASTE ASSOCIATION 1972 AIR 273. 7. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 8. IN THE CASE OF BANK OF INDIA EMPLOYEES SCHEME, T HE REGISTRATION U/S 12AA OF THE ACT HAS BEEN GRANTED T REATING ITA NO. 7652/DEL/2018 DELHI POLICE EDUCATION FUND 3 PROVISION OF ASSISTANCE TOWARDS THE MEDICAL NEEDS OF THE EMPLOYEES IS CHARITABLE PURPOSE AS DEFINED U/S 2( 15) OF THE ACT. 9. SECTION 2(15) OF THE ACT READS AS UNDER: CHARITABLE PURPOSE INCLUDES, RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF------ AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY. THE SECTION ALSO PROVIDES FOR AS TO WHAT SHALL NOT BE CONSIDERED AS A CHARITABLE PURPOSE. 10. THE CASE OF AHMADABAD RANA CASTE ASSOCIATION (S UPRA) RELIED BY THE LD. DR RATHER SUPPORTS THE CASE OF TH E ASSESSEE AS THE HONBLE APEX COURT. IT WAS HELD AN OBJECT BENEF ICIAL TO A SECTION OF PUBLIC IS AN OBJECT OF GENERAL PUBLIC UT ILITY. 11. SINCE, AS PER THE DEFINITION OF SECTION 2(15) O F THE ACT, EDUCATION IS CONSIDERED AS CHARITABLE PURPOSE AND SINCE THE ASSESSEE STANDS INVOLVED IN PROVIDING SCHOLARSHIP A ND HELP IN FIELD OF EDUCATION, IS ELIGIBLE FOR REGISTRATION U/ S 12AA OF THE ACT. 12. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/08/2020. SD/- SD/- (BHAVNESH SAINI) (D R. B. R. R. KUMAR) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED: 18/08/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR