Vishvas, Chandigarh V. CIT-I, Chandigarh

ITA 856/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2350 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-04-2013
• Assessment Year: misc
• Appeal Filed On: 14-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMARVEER SINGH
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 856/CHD/2012 VISHVAS, V CIT-I, 1006, SECTOR 19-B, CHANDIGARH. CHANDIGARH. PAN: AABAV-0145K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI JASPAL SHARMA RESPONDENT BY : SHRI AMARVEER SINGH DATE OF HEARING : 11.04.2013 DATE OF PRONOUNCEMENT : 17.04.2013 ORDER PER HARI OM MARATHA,JM THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(ADMN) CHANDIGARH DATED 29.06.2012 PASSED U/S 12AA OF THE INCOME-TAX ACT, 1961 ( 'THE ACT' FOR SH ORT). 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E APPELLANT APPLIED FOR REGISTRATION U/S 12A OF THE A CT ON 14.12.2011 IN FORM NO.10A. THE ASSESSEE ALSO SUBMI TTED THE REQUISITE RELEVANT DOCUMENTS INCLUDING THE OBJE CTS OF THE APPELLANT INSTITUTION. THE LD. COMMISSIONER MADE E NQUIRIES THROUGH HIS AO AND HAS FINALLY FOUND THAT THE ASSES SEE HAS NOT BEEN CARRYING ON ITS CHARITABLE ACTIVITIES AND, THEREFORE, HE HAS REJECTED THIS APPLICATION. THE ASSESSEE I S AGGRIEVED 2 AND HAS FILED THIS APPEAL BY TAKING THE FOLLOWING G ROUNDS: 1. THE IMPUGNED ORDER IS BOTH AGAINST FACTS AND ER RONEOUS IN LAW. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.COMMISSIONER OF INCOME-TAX-I, CHANDIGARH, HAS ER RED IN HAVING REJECTED THE ASSESSEE'S APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT, WITHOUT ANY BASIS. 3. AS ALL THE CONDITIONS OF SECTION 12A R/W RULE 17A A ND 17B OF THE INCOME TAX ACT, ARE FULFILLED, THE LD.CIT-I, CHANDIGARH, HAS GROSSLY ERRED IN REJECTING THE APPL ICATION U/S 12A IN A ROUTINE MANNER MERELY ON IRRELEVANT REASONS. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE CAREFUL LY PERUSED THE ENTIRE RECORD. FROM THE OBJECTS FILED AND ENCLOSED IN THE PAPER BOOK, IT IS NOTICED THAT ALL THE OBJECTS OF THE APPELLANT INSTITUTION ARE CHARITABLE IN NATU RE AND NONE OF THE OBJECTS IS OTHERWISE THAN CHARITABLE IN NATURE. EVEN THE AO, VIDE HIS REPORT DATED 25.06.2012 HAS RECOMMENDED THAT THE APPELLANT SHOULD BE GRANTED REGISTRATION U/S 12A. IN OUR CONSIDERED OPINION, T HE CARRYING ON OF CHARITABLE ACTIVITIES AT THE TIME OF REGISTRATION AND THE UTILIZATION OF THE FUNDS ETC. ARE NOT RELEVANT AND ONCE THE OBJECTS OF THE INSTITUTION AR E FOUND TO BE CHARITABLE IN NATURE, REGISTRATION U/S 12AA HAS TO BE GRANTED. WE HAVE FOUND THAT THERE IS NO MERIT IN T HE REASONING GIVEN BY LD. COMMISSIONER TO REJECT REGIS TRATION. THE APPLICANT SOCIETY IS NOT REQUIRED TO PROVE ITS CASE THAT THE PROJECT IS TO BE RUN UNDER ITS NAME IN A CHARIT ABLE MANNER. THE GENUINITY OF THE SOCIETY IS NOT, AT AL L, IN 3 DOUBT. THE GENUINITY OF ITS FINANCIAL ACTIVITIES I S NOT TO BE CONSIDERED AT THIS STAGE. THEREFORE, THE REASONS G IVEN BY LD. COMMISSIONER FOR REFUSING REGISTRATION U/S 12A ARE NOT LEGALLY VALID. THEREFORE, WE DIRECT THE LD. COMMIS SIONER TO GRANT REGISTRATION TO THE APPLICANT SOCIETY U/S 12A OF THE ACT, AS PER APPLICATION FILED IN FORM NO.10. 5. IN THE RESULT, APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH APRIL,2013. SD/- SD/- (N.K.SAINI) (HARI OM MARATHA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 17 TH APRIL,2013. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH