CIT, ROHTAK V. SEWA BHARTI HARYANA PRADESH ROHTAK

ITA/707/2009

AI Insights

The case revolves around an appeal by the Commissioner of Income Tax, Rohtak against the decision of the Income Tax Appellate Tribunal, which had renewed the exemption under Section 80G of the Income Tax Act for Sewa Bharti Haryana Pradesh. The Tribunal's decision was based on the organization's extensive involvement in charitable activities, including education, healthcare, and social welfare, without any financial gain to its members. The High Court examined the Tribunal's findings and the substantial documentation provided by the respondent, including certificates of registration, audited financial statements, and details of various charitable activities. The court concluded that the Tribunal's decision was justified and dismissed the appeal.

• Counselvise Citation: [2010] 140 COUNSELVISE.COM (IT) 689602 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 30-03-2010
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Respondent
• Court: HIGH COURT
• Assessee Lawyers: AMAN BANSAL
• Keywords: Charity; Exemption; Income Tax; Section 80G; Social welfare
• Section: 80G; 260A; 80G(5)(vi)

Judgement Text

"ITA 707 of 2009 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No.707 of 2009 Date of decision 30 .3.2010 The Commissioner of Income Tax, Rohtak ..Appellant Versus Sewa Bharti Haryana Pradesh ... Respondent CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE JITENDRA CHAUHAN Present: Mr. Aman Bansal ,Advocate for the appellant 1.To be referred to the Reporter or not ? 2.Whether the judgement should be reported in the Digest ? M.M.KUMAR, J. The Revenue has approached this Court by filing the instant appeal under Section 260A of the Income Tax Act, 1961 (for brevity 'the Act') challenging order dated 8.4.2009 (A.2) passed by the Income Tax Appellate Tribunal Delhi Bench “G”, Delhi (for brevity 'the Tribunal') in ITA No. 4272(Del) 2007 granting renewal of exemption under Section 80G of the Act upto 31.3.2007. The Tribunal has examined the different activities of the assessee- respondent showing imparting of education, running of Mahila Prashikshana Kendra (Female Education Centre) etc.. The other activities include health care and social welfare. There is a categorical finding that no payment was made by the assessee- respondent to any of its member on account of salary or wages and that the assessee is purely a social organisation carrying out social activities. The assessee has been found to running 295 centers which are devoted to various activities as is evident from the following table: ITA 707 of 2009 2 “ 1. Bal Sanskar Kendra 89 2. Mahila Sewing Centre 92 3. Balwari and Aganwari 3 4. Coaching Centre 10 5. Jhola Pustkalaya 16 6. Watchnalya 2 7. Primary Std.School 11 8. Adult Education Center 1 9. Day Care Centre 3 10.Dispensary 12 11.Free Milk Distributor Centre 3 12. Mahila Satsang Kendra 31 13. Medical Campus at different places 22 295 The Tribunal has also found that the assessee- respondent has filed certificate of registration, memorandum of association, its rules and regulations, initial certificate granting exemption under Section 80G of the Act, the renewals of exemption granted earlier, notes on activities annexed with Form 10G, consolidated audited balance sheet, receipts of payments etc. It has also filed income and expenditure account for the year ending 31.3.2001 and consolidated audited report for the years ending 31.3.2002, 31.3.2003, 31.3.2004, 31.3.2005 and 31.3.2006 alongwith computation of income for the assessment years 2004-05, 2005-06 and 2006-07. It has also filed notes on activities for the financial year 2003-04 and number of other things. The Tribunal after noticing all the activities and the documents, had concluded that the CIT was not justified in declining the renewal granted to the assessee under Section 80 G(5)(vi) of the Act and accordingly the ITA 707 of 2009 3 Tribunal found that the assessee- respondent was entitled for continuation of entitlement under Section 80(G)(5)(vi) of the Act. We have heard learned counsel for the revenue at a considerable length and find that no violation of any provision has been pointed out warranting admission of the appeal. The activities of the respondent- society are devoted to charity and social welfare activities. Even in the earlier years similar activities have been accepted by the Revenue. Therefore, the Tribunal has rightly continued the benefits to the assessee- respondent under Section 80 G(5)(vi) of the Act. The appeal is wholly without merit and the same is accordingly dismissed. (M.M.Kumar) Judge (Jitendra Chauhan) 30.3.2010 Judge okg "