SEWA FOUNDATION, Jaipur V. CIT(EXEMPTIONS), Jaipur

ITA 774/JPR/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5585 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 02-11-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA- @ ITA NO. 774/JP/2015 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2015-16. M/S. SEVVA FOUNDATION, D-82-B, SIWAD AREA, BAPU NAGAR, JAIPUR CUKE VS. THE CIT (EXEMPTIONS) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAKAS 9490 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI JAVED KHAN (ADVOCATE) JKTLO DH VKSJ LS @ REVENUE BY : SHRI AMRESH BEDI CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 14/02/2017 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 20/02/2017 VKNS'K@ ORDER PER SHRI KUL BHARAT, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT (EXEMPTIONS) DATED 24.08.2015 PERTAINING TO A.Y. 20 15-16. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (EXEMPTIONS) HAS GROSSLY ER4RED IN NOT GRANTING REG ISTRATION U/S 12A(A) OF THE INCOME TAX ACT, 1961 WITHOUT PROPERLY APPRECIATING THE PRIME OBJECTIVES OF THE APPELLANT SOCIETY BEING PROVIDING RELIEF TO THE POOR AND EDUCATION. THUS, THE ORDER OF LD. CIT DESERVES TO BE HELD BAD IN LAW AND THE REGISTRATION U/S 12A(A) DES ERVES TO BE GRANTED TO APPELLANT. 2 ITA NO. 774/JP/2015 SEVVA FOUNDATION 1.1 THAT THE LD. CIT HAS FURTHER ERRED IN REJECTING THE APPLICATION OF APPELLANT MERELY ON THE GROUND THAT ONE OF THE OBJE CTIVES OF APPELLANT SOCIETY IS TO RUN COACHING INSTITUTIONS, WITHOUT APPRECIATING THE FACT THAT THIS IS AN ANCILLARY OBJ ECT AND NO ACTIVITY HAS BEEN UNDERTAKEN BY APPELLANT TOWARD THIS END SO AS TO ALLEGE THAT APPELLANT SOCIETYS ACTIVITIES ARE NOT CHARITA BLE IN NATURE. THUS, THE ORDER OF LD. CIT DESERVES TO BE HELD BAD IN LAW. 1.2 THAT, THE APPELLANT SOCIETY IS YET TO COMMENCE ITS ACTIVITIES WHICH FACT STANDS ADMITTED BY LD. CIT AND THEREFORE, THE QUESTION AS TO WHETHER THE ACTIVITIES OF APPELLANT WERE CHARITABLE OR NOT CANNOT BE DECIDED AT THIS STAGE. THEREFORE, THE ORDER OF L D. CIT REJECTING THE APPELLANTS APPLICATION WAS COMPLETELY PREMATUR E AND UNCALLED FOR AND HENCE, DESERVES TO BE QUASHED. WITHOUT PREJUDICE TO THE GROUNDS OF APPEAL NOS. 01 TO 1.2 AND IN THE ALTERNATIVE : 1.3. THAT, THE LD. CIT HAS FURTHER ERRED IN IGNORIN G THE FACT THAT THE RECEIPTS OF APPELLANT DURING THE PERIOD 2014-15 ARE MUCH BELOW RS. 25 LACS AND THEREFORE, EVEN IF THE ACTIVITIES OF ASSES SEE ( WHICH HAVENT COMMENCED YET) ARE TREATED AS COMMERCIAL IN NATURE , THEN BY VIRTUE OF SECOND PROVISO TO SECTION 2(15) OF THE ACT, THE ACT IVITIES OF APPELLANT SHALL STILL BE CONSIDERED AS FOR CHARITABLE PURPOS E IN AS MUCH AS FIRST PROVISO SHALL HAVE NO APPLICATION. THEREFORE, THE I MPUGNED ORDER DESERVES TO BE QUASHED AND REGISTRATION AS PRAYED F OR DESERVES TO BE ALLOWED. 2. THAT THE APPELLANT CRAVES THE RIGHT TO ADD, DELE TE, AMEND OR ABANDON ANY OF THE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF APPEAL. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE FILED AN APPLICATION ON 02.02.2015 IN FORM 10A SEEKING REGISTRATION UNDER S ECTION 12A(A) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS TH E ACT). THE LD. CIT (E) 3 ITA NO. 774/JP/2015 SEVVA FOUNDATION AFTER GIVING OPPORTUNITY TO THE ASSESSEE, REJECTED THE APPLICATION ON THE GROUND THAT ONE OF THE OBJECTS OF THE ASSESSEE SOCI ETY IS TO CONDUCT COACHING CLASSES FOR PREPARATION OF VARIOUS COMPETITIVE EXAM INATIONS AND ALSO ON THE BASIS THAT THE ASSESSEE HAD NOT CARRIED OUT ANY OTH ER ACTIVITY. AGGRIEVED BY THIS, THE ASSESSEE HAS COME IN APPEAL BEFORE THIS T RIBUNAL. 3. THE LD. COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN BRIEF. THE LD. COUNSEL SUBMITTE D THAT CLAUSE (FF) WHICH WAS OBJECTED TO BY THE LD. CIT (E) HAS BEEN REMOVED FROM THE OBJECTS OF THE SOCIETY. HE FURTHER SUBMITTED THAT AT THE TIME OF SEEKING REGISTRATION, THE ISSUE OF ACTIVITIES CARRIED OUT BY THE ASSESSEE SHO ULD NOT BE THE GROUND FOR REJECTION. HE SUBMITTED THAT THE LD. CIT (A) HAS NO T DOUBTED ABOUT THE ACTIVITIES OF THE ASSESSEE. 3.1. ON THE CONTRARY, THE LD. D/R SUPPORTED THE ORD ER OF THE LD. CIT (E). 3.2. WE HAVE HEARD RIVAL CONTENTIONS. AFTER CONSID ERING THE SUBMISSIONS AND THE CASE LAWS RELIED ON BY THE LD. COUNSEL FOR THE ASSESSEE IN HIS WRITTEN BRIEF, WE DEEM IT PROPER TO RESTORE THE APPLICATION SEEKIN G REGISTRATION TO THE FILE OF LD. CIT (E) FOR DECISION AFRESH IN VIEW OF THE FACT THAT THE ASSESSEE HAS AMENDED ITS OBJECTS. GROUNDS RAISED IN THE APPEAL A RE ALLOWED FOR STATISTICAL PURPOSES. 4 ITA NO. 774/JP/2015 SEVVA FOUNDATION 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20/02/201 7. SD/- SD/- FOE FLAG ;KNO DQY HKKJR (VIKRAM SINGH YADAV) (KUL BHARAT) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20/02/2017. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. SEVVA FOUNDATION, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- THE CIT(EXEMPTIONS), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 774/JP/2015} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR