CIT(Exemption), New Delhi V. Shree Seo Chand Dharmarth Sansthan, New Delhi

MA 109/DEL/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2538 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-05-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 27-02-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANISH K. DABAS
• Assessee Lawyers: RAJAT RAM GUPTA
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHE “G”, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member MA No. 109/Del/2023 (in ITA No. 9184/Del/2019) CIT(Exemption), New Delhi Vs Shree Seo Chand Dharmarth Sansthan, C-245A, Vikaspuri, New Delhi-110018 (APPELLANT) (RESPONDENT) PAN No. AAVTS5775R Assessee by : Sh. Rajat Ram Gupta, CA Revenue by : Sh. Manish K. Dabas, Sr. DR Date of Hearing: 08.03.2024 Date of Pronouncement: 03.05.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: Heard the arguments of both the parties and perused the material available on record. 2. The Miscellaneous Application of the department is reproduced in toto for the sake of ready reference: “Subject: Administrative approval for filing of Miscellaneous Application before Hon'ble ITAT in the case of "Shree Seo Chand Dharmarth Sansthan" (PAN: AAVTS5775R), ITA No. 9184/Del/2019 and 9185/Del/2019 dated 18.05.2022- regarding. Kind reference to the order Hon'ble ITAT in the case of "Shree Seo Chand Dharmarth Sansthan" (PAN: AAVTS5775R), ITA No. 9184/Del/2019 and 9185/Del/2019 dated 18.05.2022. MA No. 109/Del/2023 Shree Seo Chand Dharmarth Sansthan 2 In this regard, the Hon'ble ITAT has allowed the appeal of the assessee. The decision of Hon'ble ITAT is not acceptable. The Hon'ble ITAT has allowed the appeal filed by the assessee vide order dated 18.05.2022 stating as under:- “The observation of the ld. CIT(E) that receipt of rents not charitable in nature as the surplus is not being used towards other objects of the trust but deposited in banks for earning interest is incorrect based on the facts on record as mentioned in the table above. Since, the rent receipts were the prima facie reason to reject the registration by the Id. CIT(E) which was found to be incorrect, we hereby direct the Id. CIT(E) to examine this fact afresh along with other objects of memorandum and grant registration u/s 12AA and u/s 80G to the assessee.” From the order of the Hon'ble ITAT, it may be seen that one hand the CIT(E) has been directed to examine the facts of rent received by the assessee along with other objects of the memorandum and on the other hand directions have been issued to grant registration to the assessee. Since it is not evident whether the registration is to be granted to the assessee or the issue to be adjudicated afresh in light of observations of ITAT. ....................” Yours faithfully, Sd/- (Raman Kant Garg) Commissioner of Income Tax (Exemptions) New Delhi. 3. The relevant para 16 of the order of ITAT is as under: “16. The observation of the ld. CIT(E) that receipt of rents not charitable in nature as the surplus is not being used towards other objects of the trust but deposited in banks for earning interest is incorrect based on the facts on record as mentioned in the table above. Since, the rent receipts were the prima facie reason to reject the registration by MA No. 109/Del/2023 Shree Seo Chand Dharmarth Sansthan 3 the ld. CIT(E) which was found to be incorrect, w e he reby dire ct th e ld. CIT (E ) to ex amin e th is fact a fres h alon g w it h othe r obje cts of mem oran du m and grant registration u/s 12AA and u/s 80G to the assessee.” 4. Directions to the ld. CIT(E): To adjudicate de-novo. 5. In the result, the Miscellaneous Application of the Revenue is allowed. Order Pronounced in the Open Court on 03/05/2024. Sd/- Sd/- (Saktijit Dey) (Dr. B. R. R. Kumar) Vice President Accountant Member Dated: 03/05/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR