M/s Global Hands for Rural Development, Kangra V. CIT (Exemptions), Chandigarh

ITA 823/CHANDI/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5107 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 29-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 812 & 823/CHD/2016 U/S 12AA / 80G (5)(VI) M/S GLOBAL HANDS FOR RURAL VS. THE CIT (EXEMPTION S), DEVELOPMENT, H.NO. 41(1), CHANDIGARH VPO GARH JAMULA, TEHSIL PALAMPUR, DISTT. KANGRA PAN NO. AACTG3456G (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ASHWANI KUMAR RESPONDENT BY : SH. GULSTHAN RAJ, CIT DR DATE OF HEARING : 26.03.2018 DATE OF PRONOUNCEMENT: 26.03.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE ABOVE CAPTIONED APPEALS HAVE BEEN PREFERRED BY THE ASSESSEE AGAINST THE SEPARATE ORDERS DATED 28.04.20 16 OF COMMISSIONER OF INCOME TAX (EXEMPTIONS), [HEREINAFTER REFERRED T O AS CIT(E)], CHANDIGARH. 2. IN ITA NO. 812/CHD/2016, THE ASSESSEE HAS CONTES TED THE ACTION OF THE LD. CIT(E) IN DENYING THE REGISTRATION U/S 12A TO THE APPLICANT WHEREIN IN ITA NO. 823/CHD/2016, THE ASSESSEE HAS C ONTESTED THE DENIAL OF APPROVAL U/S 80G OF THE INCOME-TAX ACT, 1961 (IN SH ORT 'THE ACT'). ITA NOS. 812 & 823/CHD/2016 GLOBAL HANDS FOR RURAL DEVELOPMENT, KANGRA 2 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE TRUST CLAIMS ITSELF TO BE A CHARITABLE TRU ST WITH ITS AIMS AND OBJECTS TO PROMOTE ALL ASPECT OF SOCIAL WORK AND IN PARTICU LAR TO ENSURE PARTICIPATION AND COORDINATION OF VOLUNTEERS OF DIF FERENT DISCIPLINES IN DEVELOPMENT OF COMMUNITIES IN RURAL DEVELOPMENT. TH E OBJECTS FURTHER INTEND INTER ALIA TO PROMOTE SOCIAL AND GENDER EQUA LITY THROUGH SOCIAL AWARENESS CAMPAIGNS, TO ORGANIZE PEOPLE AGAINST EXP LOITATION AND SOCIAL EVILS ESPECIALLY THOSE WHO ARE BACKWARDS, TO PROMOT E THE CAUSE OF NATIONAL INTEGRATION AND NATIONAL RECONSTRUCTION, TO PROTECT THE CULTURAL HERITAGE AND TO PROMOTE THEIR SCIENTIFIC TEMPER. THE STATED AIMS FURTHER PROFESS TO ESTABLISH, PROMOTE, SET UP, RUN, MAINTAIN, ASSIST, FINANCIAL SUPPORT AND OR AID TO OR HELP IN SETTING UP AND / OR RUNNING SCHOO LS OR OTHER INSTITUTIONS, ORPHANAGE, WIDOW HOMES, LUNATIC ASYLUM, POOR HOUSES OR OTHER ESTABLISHMENT FOR RELIEF AND / OR HELP TO POOR, OLD AND INFIRM PEOPLE AND / OR DESTITUTE. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(E) HAS DENIED THE REGISTRATION U/S 12A TO THE A PPLICANT MAINLY ON THE GROUND THAT THE ASSESSEE COULD NOT DEMONSTRATE WIT H CONVINCING EVIDENCE ABOUT THE CHARITABLE ACTIVITIES CARRIED OUT BY THE ASSESSEE TRUST SINCE ITS INCEPTION. FURTHER, LD. CIT(E) ALSO DOUBTED THE INF RASTRUCTURE AVAILABLE TO THE ASSESSEE FOR CARRYING OUT THE ACTIVITIES INCLUD ING THE RUNNING OF A ORPHANAGE HOUSE. THE LD. CIT(E) ALSO OBSERVED THAT THERE WAS NO DISSOLUTION CLAUSE IN THE TRUST DEED. THE LD. COUN SEL FOR THE ASSESSEE HAS FURTHER SUBMITTED THAT EARLIER THE ASSESSEE TRUST W AS IN ITS NASCENT YEARS, HENCE, COULD NOT DEMONSTRATE ABOUT THE VARIOUS ACT IVITIES CARRIED OUT BY IT. HOWEVER, BY THE TIME, THE TRUST HAS CARRIED OUT VAR IOUS CHARITABLE ACTIVITIES AND FURTHER THAT IT HAS ALSO AMENDED ITS DEED TO IN CLUDE THE DISSOLUTION ITA NOS. 812 & 823/CHD/2016 GLOBAL HANDS FOR RURAL DEVELOPMENT, KANGRA 3 CLAUSE. THE LD. COUNSEL, THEREFORE, HAS SUBMITTED T HAT THE APPLICANT TRUST BE GIVEN AN OPPORTUNITY TO DEMONSTRATE TO THE CIT(E) T HAT IT HAS BEEN ACTUALLY CARRYING OUT THE CHARITABLE ACTIVITIES. 4. THE LD. DR, ON THE OTHER HAND, HAS RELIED ON THE IMPUGNED ORDER OF THE CIT(A). 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ASSESSEE TRUST SHOULD BE GIVEN AN OPPORTUNITY TO DE MONSTRATE BEFORE THE CIT(E) ABOUT THE CHARITABLE ACTIVITIES CARRIED OUT BY IT TILL DATE. FURTHER, THE APPLICANT-TRUST ALSO WANTS TO FURNISH ABOUT THE EVIDENCES OF AMENDMENT OF TRUST DEED REGARDING THE DISSOLUTION CLAUSE AND FURTHER TO ADDRESS THE ARGUMENTS AS TO THE EFFECT OF INCORPORATION OR NON- CORPORATION OF THE DISSOLUTION CLAUSE IN THE TRUST DEED. WE, THEREFORE , RESTORE THE ISSUE TO THE FILE OF CIT(E) TO DECIDE IT AFRESH. THE LD. CIT(E) WILL TAKE INTO CONSIDERATION THE CHARITABLE ACTIVITIES, IF ANY, CA RRIED OUT BY THE ASSESSEE TILL DATE AND WILL ALSO CONSIDER THE OTHER RELEVANT SUBMISSIONS AND WILL PASS AN ORDER REGARDING THE ENTITLEMENT OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12A OF THE ACT, IN ACCORDANCE WITH LAW. IT IS DIRECTED THAT THE ASSESSEE WILL PRESENT ITSELF BEFORE THE CIT(E), AS AND WHEN CALLED FOR, AND FURNISH THE NECESSARY EVIDENCES AND WILL NOT CONTRIBUTE IN DELAYING THE DISPOSAL OF THE CASE. THE LD. CIT(E) WILL DECIDE THE APPLICATIO N OF THE ASSESSEE WITHIN THREE MONTHS FROM THE DATE OF RECEIPT OF THE COPY O F THIS ORDER. 6. NOW COMING TO ITA NO. 823/CHD/2016 . BOTH THE LD. REPRESENTATIVES OF THE PARTIES HAVE SUBMITTED THAT THIS APPEAL BE ALSO RESTORED TO THE FILE OF THE CIT(E) AS THIS CASE CAN BE ADJUDICATED UPON AFT ER DECISION OF THE CIT(E) ON THE APPLICATION FOR REGISTRATION U/S 12A OF THE ACT. ACCORDINGLY, ITA NOS. 812 & 823/CHD/2016 GLOBAL HANDS FOR RURAL DEVELOPMENT, KANGRA 4 THIS APPEAL IS ALSO RESTORED TO THE FILE OF THE LD. CIT(E) FOR DECISION AFRESH IN ACCORDANCE WITH LAW, TO BE ADJUDICATED AFTER THE DECISION ON THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12 A OF THE ACT. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.03.2018. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26. 03.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR