Jat Sewa Sangh, New Delhi V. CIT(E), New Delhi

ITA 8160/DEL/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6932 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Appeal Filed On: 14-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KULDIP SINGH, JUDICIAL MEM BER ITA NO. 8160/DEL/2019 [ASSESSMENT YEAR: 2019-20] JAT SEWA SANGH VS. THE J.C.I.T B-21, 2 ND FLOOR, RAJDHANI PARK RANGE - 30 40 FEET ROAD, MUNDKA, NANGLOI NEW DELHI NEW DELHI PAN : AACTJ 6647 E [APPELLANT] [RESPONDENT] DATE OF HEARING : 27.01.2021 DATE OF PRONOUNCEMENT : 27.01.2021 ASSESSEE BY : SHRI SATYAJIT GOEL, ADV REVENUE BY : MS. SUNITA SINGH, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(EXEMPTION), NEW DELHI DATED 29.06.2019 PERT AINING TO A.Y 2019-20. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT L D. CIT(E) WAS NOT JUSTIFIED IN NOT GRANTING APPROVAL U/S 80G OF THE I NCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT]. 3. REPRESENTATIVES OF BOTH THE SIDES WERE HEARD AT LENGTH. CASE RECORDS CAREFULLY PERUSED. 4. WE FIND THAT THE APPLICATION OF THE ASSESSEE WAS REJECTED BY THE LD. CIT(E) BY OBSERVING AS UNDER: SINCE THE APPLICANT IS NOT REGISTERED U/S 12A(A) OF THE INCOME TAX ACT, 1961, ITS APPLICATION IN FORM NO. 10 G SEEKING APPROVAL U/S 80G IS ALSO REJECTED AS CHARIT ABLE ACTIVITIES COULD NOT BE SUBSTANTIATED. 5. WE FIND THAT THIS TRIBUNAL IN ITA NO. 5817/DEL/2 019, VIDE ORDER DATED 23.09.2019 HAS GRANTED REGISTRATION U/S 12AA OF THE ACT TO THE APPELLANT. THE RELEVANT FINDINGS READ AS UNDER: 6. IT COULD BE SEEN FROM THE IMPUGNED ORDER THAT TH E LD. CIT(A) DOES NOT DISPUTE ANY OF THE OBJECTS TO BE CHARITABL E IN NATURE. ALL HIS OBJECTION, HOWEVER, REVOLVES ON THE FULCRUM OF THE SOURCE OF THE DONATIONS AND VERIFIABILITY OF THE SAME. AS RIG HTLY CONTENDED 3 BY THE LD. AR, THE SOURCE AND GENUINENESS OF DONATI ONS AND THE CONDUCT OF THE ACTIVITIES OF THE TRUST WOULD FALL F OR CONSIDERATION AT THE TIME OF ASSESSMENT AND IT IS NOT RELEVANT FA CTORS TO REJECT THE REGISTRATION UNDER SECTION 12AA OF THE ACT AS I S HELD IN THE DECISION HELD BY THE ASSESSEE ENUMERATED (SUPRA). F URTHER IN DIT VS. FOUNDATION OF OPTHALMIC & OPTOMETRY RESEARCH ED UCATION CENTRE (SUPRA), THE HONBLE JURISDICTIONAL HIGH COU RT CLEARLY HELD THAT WHILE EXAMINING APPLICATION UNDER SECTION 12AA , CONCERNED COMMISSIONER/DIRECTOR IS NOT REQUIRED TO EXAMINE TH E QUESTION WHETHER THE TRUST HAD ACTUALLY COMMENCED AND CARRIE D ON ITS CHARITABLE ACTIVITIES, AND STATUTE DOES NOT PRESCRI BE A WAITING PERIOD FOR REGISTRATION TILL THE TRUST COMMENCE ITS ACTIVITIES AND APPLIES THE DONATIONS PROPERLY. 7. IN VIEW OF THE SETTLED POSITION OF THE LAW, WE A RE OF THE CONSIDERED OPINION THAT THE LD. CIT(A) IS NOT JUSTI FIED IN REJECTING THE REGISTRATION AND THEREFORE, WE DIRECT THE LD. C IT(A) TO GRANT REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12 AA OF THE ACT. 6. SINCE THE SOLE BASIS FOR REJECTING THE APPLICATI ON U/S 80G OF THE ACT WAS THAT REGISTRATION U/S 12AA OF THE ACT WAS D ENIED AND SINCE THE REGISTRATION IS NOW GRANTED BY THE ORDER OF THIS TR IBUNAL [SUPRA], WE DO NOT FIND ANY MERIT IN THE ORDER OF THE LD. CIT(E), WE DIRECT THE LD. CIT(E) TO GRANT REGISTRATION U/S 80G OF THE ACT. 4 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IN ITA NO. 8160/DEL/2019 IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE REPRESENTATIVES ON 27.01.2021. SD/- SD/- [KULDIP SINGH] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27 TH JANUARY, 2021 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER