Gobind Ram Kahan Chand Trust, New Delhi V. CIT (Exemption), New Delhi

ITA 82/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4469 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 05-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NITIN CHOWLA
• Section: 80G; 12AA; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SH. H. S. SIDHU, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 82/DEL/2017 : ASSTT. YEAR : GOBIND RAM KAHAN CHAND TRUST, B-27, LAWRENCE ROAD, INDUSTRIAL AREA, NEW DELHI-110035 VS COMMISSIONER OF INCOME TAX(E), E-2, 6 TH FLOOR, PRATYAKSH KAR BHAWAN, DR. SHYAMA PRASAD MUKHERJEE CIVIC CENTRE NEW DELHI - 110002 (APPELLANTT (RESPONDENT) PAN NO. AACTG3570D ASSESSEE BY : SH. NITIN CHOWLA, CA REVENUE BY : SH. J. K. MISHRA, CIT DR DATE OF HEAR ING: 25 .02 .20 20 DATE OF PRONOUNCEMENT: 26 .0 2 .20 20 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDERS OF THE LD. CIT(E), NEW DELHI DATED 21.11 .2016. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE ASSESSEE TRUSTS CASE THE LEARNED COMMISSIONER OF I NCOME TAX (EXEMPTIONS) WAS WRONG IN PASSING ORDER UNDER SECTION 80G(5)(VI) OF THE ACT. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E ASSESSEE TRUSTS CASE THE LEARNED COMMISSIONER OF I NCOME TAX (EXEMPTIONS)WAS WRONG IN PASSING ORDER UNDER SE CTION 80G5(VI) OF THE ACT ON THE GROUND THAT NO CHARITABL E ACTIVITIES HAVE BEEN CARRIED OUT EXCEPT PURCHASE OF LAND. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E ASSESSEE TRUSTS CASE THE LEARNED COMMISSIONER OF I NCOME TAX (EXEMPTIONS) HAS GRIEVOUSLY ERRED IN LAW IN NOT GRANTING APPROVAL UNDER SECTION 80G OF THE ACT AS I T IS WELL ITA NO. 82/DEL/2017 GOBIND RAM KAHAN CHAND TRUST 2 SETTLED THAT AT THE STAGE OF GRANTING APPROVAL, NON - COMMENCEMENT OF ACTIVITIES BY THE TRUST CANNOT BE A GROUND FOR NOT GRANTING THE APPROVAL AND MOREOVER ASSESSE TRUST HAS ALREADY PURCHASED LAND OF RS. 7,8 6,000 FOR CARRYING OUT THE OBJECTIVES OF THE TRUST, REGIS TRATION UNDER SECTION 12A/12AA WAS ALREADY GRANTED AND TRUS T OBJECTIVES WERE NEVER DOUBTED. 3. THE ORDER OF THE LD. CIT (E) DATED 21.11.2016 IS AS UNDER: 1. THE APPLICANT HAS FILED AN APPLICATION ON 30.05 .2016 IN FORM NO.10G SEEKING APPROVAL FOR EXEMPTION U/S 800 OF THE INCOME TAX ACT. 1961. SUBSEQUENTLY, LETTER/NOTI CE DATED 30.05.2015 WAS ISSUED TO THE APPLICANT REQUI RING IT TO SUBMIT THE DOCUMENTS/ EXPLANATIONS IN SUPPORT OF ITS CLAIM FOR EXEMPTION U/S 80G OF THE ACT ON 30/06/201 6 NEITHER ANYBODY ATTENDED THE PROCEEDINGS NOR ANY RE PLY RECEIVED IN THIS OFFICE. 2. THE APPLICANT HAS FILED DETAILS/DOCUMENTS WHICH HAVE BEEN PERUSED AND PLACED ON RECORD. 3. AS PER QUESTIONNAIRE ISSUED VIDE LETTER NO. CIT(E)/2016-17/DEL-GER45660-30052016 DATED 30.05.2016 THE APPLICANT WAS ASKED TO FILE DOCUMENT S WITH REGARDS TO CHARITABLE ACTIVITIES CARRIED OUT BY IT ALONG WITH PROOF OF BENEFICIARIES AND OTHER SUPPORTING DOCUMEN TARY EVIDENCES VIZ. BILLS, IN Q.NO.12. THE APPLICANT HAS FAILED TO FURNISH ANY DOCUMENTARY EVIDENCES FOR THE SAME. FUR THER, THE APPLICANT HAS STATED VIDE ITS REPLY DATED 0409, 201 THAT NEGLIGIBLE ACTIVITIES HAS BEEN CARRIED OUT BY THE TRUST SINCE INCEPTION. 4. THE TRUST HAS PURCHASED A LAND OF RS.7,86,000 AN D NO CHARITABLE ACTIVITIES HAVE BEEN CARRIED OUT BY THE APPLICANT AS MENTIONED ABOVE, THE APPLICATION FILED BY THE AP PLICANT FOR GIANT OF APPROVAL FOR EXEMPTION U/S 80G IS HERE BY REJECTED. 4. DURING THE ARGUMENTS BEFORE US, THE LD. AR SUBMI TTED THAT THE REGISTRATION U/S 12AA HAS BEEN GRANTED BY THE L D. CIT (E) ON 19.05.2016 VIDE REGISTRATION NO. DEL-GR25129-190520 16. IT WAS SUBMITTED THAT THE ASSESSEE HAS FILED ALL THE D ETAILS REQUIRED BY THE LD. CIT (E) IN CONNECTION WITH SEEK ING APPROVAL FOR EXEMPTION U/S 80G OF THE INCOME TAX ACT, 1961. THE LD. AR ITA NO. 82/DEL/2017 GOBIND RAM KAHAN CHAND TRUST 3 HAS SUBMITTED THE DETAILS IN THE PAPER BOOK FILED B EFORE US. THE LD. AR SUBMITTED THAT GIVEN AN OPPORTUNITY, HE WOUL D MAKE ALL THE COMPLIANCE BEFORE THE LD. CIT (E). 5. THE LD. DR OPPOSED TO THE REMAND OF THE MATTER B ACK TO THE FILE OF THE LD. CIT (E). 6. WE FIND THAT THE EXEMPTION WAS DENIED BY THE LD. CIT (E) AS THE ASSESSEE HAS NOT CARRIED ANY CHARITABLE ACTI VITIES AS WELL AS FAILED TO FILE DOCUMENTS WITH REGARD TO CHARITAB LE ACTIVITIES. WE FEEL THAT INTEREST OF JUSTICE WOULD MET IF THE A SSESSEE IS GIVEN AN OPPORTUNITY TO PRESENT HIS CASE BEFORE THE LD. CIT (E) AND THE MATTER IS REMANDED BACK TO THE FILE OF THE LD. CIT (E) TO CONSIDER THE MATTER AFRESH. WE ALSO DIRECT THAT THE ASSESSEE WOULD COMPLY TO ALL THE NOTICES ISSUED BY THE REVEN UE AUTHORITIES WITHOUT SEEKING UNNECESSARY ADJOURNMENT S. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26/02/2020. SD/- SD/- (H. S. SIDHU) (DR. B . R. R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 26/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR