Sant Sujan Singh Ji Keertaniya Welfare Trust, New Delhi v. DIT(E), New Delhi

ITA 191/DEL/2010 | misc
Pronouncement Date: 30-03-2012 | Result: Partly Allowed

Appeal Details

RSA Number 19120114 RSA 2010
Assessee PAN AAITS2564B
Bench Delhi
Appeal Number ITA 191/DEL/2010
Duration Of Justice 2 year(s) 2 month(s) 16 day(s)
Appellant Sant Sujan Singh Ji Keertaniya Welfare Trust, New Delhi
Respondent DIT(E), New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2012
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted G
Tribunal Order Date 30-03-2012
Date Of Final Hearing 26-03-2012
Next Hearing Date 26-03-2012
Assessment Year misc
Appeal Filed On 13-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI S.V. MEHROTRA ACCOUNTANT MEMBER AND SMT. DIVA SINGH JUDICIAL MEMBER ITA NO. 191/DEL/2010 ASSESSMENT YEAR: - SANT SUJAN SINGH JI KEERTANIYA WELFARE TRUST 24 PARK AREA KAROL BAGH NEW DELHI. AAITS2564B VS. DIT(E) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : M.K. MADAN CA RESPONDENT BY : S. MOHANTY DR O R D E R PER S.V. MEHROTRA A.M. THIS APPEAL IS FILED BY THE ASSESSEE AND DIRECTED AGAINST THE ORDER OF LD. DIT(EXEMPTIONS) DATED 08.09.2009. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE ORDER PASSED BY THE DIRECTOR OF INCOM E TAX (EXEMPTIONS) DELHI DENYING THE REGISTRATION U/S 12A(A) OF THE IN COME TAX ACT 1961 AND CONSEQUENTLY REJECTING THE APPLICATION SEEKING EXEMPTION U/S 80G IS BAD IN LAW AND ON FACTS. 2. (A)THAT LD. DIT(E) HAS WRONGLY HELD THAT THE AP PELLANT HAD NOT FILED NOTE ON ACTIVITIES ACCOUNTS & DOCUMENTARY EVIDENCE OF C HARITABLE ACTIVITIES. (B) THAT LD. DIT(E) HAS OMITTED TO CONSIDER THA T THE TRUST WAS FORMED ON 22.01.09 AND FILED THE APPLICATION FOR REGISTRATION U/S 12A AND FOR SEEKING EXEMPTION U/S 80G ON 20.03.09 AND THE TRUST HAD NOT CARRIED ANY ACTIVITY BY THAT DATE. 3. THAT THE LD. DIT(E) HAS OMITTED TO CONSIDER THE OBJECTS OF THE TRUST THAT IT WAS ESTABLISHED FOR CHARITABLE PURPOSES WIT HIN THE MEANING OF ITA NO. 191/D/2010 2 SECTION 2(15) OF THE I.T. ACT 1961 I.E. FOR PROMOT ION OF EDUCATION AND OTHER CHARITABLE ACTIVITIES ENSHRINED IN THE TRUST. RELIANCE IS PLACED ON THE JUDGMENT OF GUJARAT HIGH COURT IN THE CASE O F CIT VS. GUJARAT MARITINRE BOARD [2007] 289 ITR 139 (GUJ.). 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE TRUST HAD FILED TWO APPLICATIONS ON 20.03.09 IN FORM NOS. 10A & 10G SEE KING REGISTRATION U/S 12A AND EXEMPTION U/S 80G OF THE INCOME TAX ACT 19 61 RESPECTIVELY. A LETTER DATED 23 RD MAY 2009 WAS ISSUED TO ASSESSEE REQUESTING IT TO SUBMIT THE FOLLOWING DOCUMENTS/EXPLANATIONS: - I. ORIGINAL MOA & REGISTRATION CERTIFICATE FROM REGI STRAR/TRUST DEED FOR VERIFICATION. II. NO OBJECTION CERTIFICATE FROM THE LANDLORD ALONGWIT H THE PROOF OF OWNERSHIP/OCCUPANCY. III. A NOTE CLARIFYING WHAT IS THE FOCUS AREA OF YOUR CH ARITABLE ACTIVITIES AND GIVING A PROTECTION/PLAN OF ACTION FOR THE MAIN CHARITABLE ACTIVITIES TO BE UNDERTAKEN BY YOU DURING THE NEXT TWO YEARS. IV. PLEASE INSERT A CLAUSE IN THE DEED/MOA PROVIDING TH AT THE FUNDS/PROPERTY OF THE TRUST WILL BE USED ONLY FOR T HE OBJECTIVES OF THE TRUST/SOCIETY. V. PLEASE INSERT A PROVISION RELATING TO THE DISSOLUTI ON OF THE TRUST/SOCIETY PROVIDING INTER ALIA THAT IN THE EVEN T OF DISSOLUTION OF FUNDS/ASSETS WILL BE TRANSFERRED ONLY TO SOME OTHER TRUST HAVING SIMILAR OBJECTIVES. VI. A NOTE ON ACTIVITIES CARRIED OUT SINCE INCEPTION/LA ST TILL DATE WITH SUPPORTING DOCUMENTARY EVIDENCE. VII. PLEASE JUSTIFY YOUR CLAIM OF REGISTRATION U/S 12A & EXEMPTION U/S 80G. VIII. PLEASE FURNISH THE DETAILS OF DONATION INCLUDING CO RPUS DONATIONS RECEIVED AND MADE GIVING NAME & ADDRESS PAN OF DON ORS. IX. PLEASE FURNISH CONTACT NO. & E-MAIL ADDRESS OF THE APPELLANT & ITS MEMBERS. 4. LD. DIT(E) HAS POINTED OUT THAT ON 12.06.2009 A REPLY WAS RECEIVED IN DAK. AFTER CONSIDERING THE REPLY DIT(E) REJECTE D THE ASSESSEES APPLICATION FOR EXEMPTION U/S 12A(A)OBSERVING AS UN DER: - 3. IT IS SEEN FROM THE DETAILS THAT THE APPLICANT HA S NOT FILED NOTE ON ACTIVITIES ACCOUNTS DOCUMENTARY EVIDENCES OF CHAR ITABLE ACTIVITIES. IN THE ABSENCE OF THESE DETAILS IT IS HELD THAT TH E APPLICANT HAS NOT CONDUCTED ANY CHARITABLE ACTIVITY. FURTHER THE AP PLICANT HAS ALSO NOT PRODUCED ORIGINAL TRUST DEED FOR VERIFICATION. ITA NO. 191/D/2010 3 4. THE PROVISIONS OF SECTION 12AA STIPULATE THE FOLLOW ING CONDITIONS FOR REGISTRATION U/S 12A OF THE I.T. ACT 1961: - I) THE OBJECTS OF THE TRUST SHOULD BE OF CHARITABLE IN NATURE; II) THE ACTIVITIES OF THE TRUST SHOULD BE GENUINE. 5. IN THE ABSENCE DOCUMENTARY EVIDENCES OF CHARITAB LE OF THE ACTIVITY THE GENUINENESS OF THE ACTIVITIES COULD NOT BE ESTA BLISHED. THEREFORE ONE OF THE CONDITIONS FOR GRANTING REGISTRATION U/S 12AA IS ALSO NOT SATISFIED. ACCORDINGLY THE APPLICATION FIELD BY T HE APPLICANT FOR GRANT OF REGISTRATION US/ 12AA IS HEREBY REJECTED. 5. HE ALSO REJECTED THE ASSESSEES APPLICATION FOR EXEMPTION U/S 80G. LD. COUNSEL FOR THE ASSESSEE REFERRED TO THE REPLY DATED 12.06.09 CONTAINED AT PAGE 8 TO 10 OF THE PAPER BOOK AND POI NTED OUT THAT PRIMARILY THE OBJECT OF THE TRUST WAS TO PROMOTE EDUCATION SP ECIALLY AMONGST THE LOWER STRATA AND TO PROMOTE HANDICRAFTS/ARTS/GRANT SCHOLARSHIP/STIPEND/PRIZES TO THE STUDENTS AND PENS ION TO THE DESERVING PERSONS SPECIALLY NEEDY SR. CITIZENS WHO HAD ATTAIN ED EXCELLENCE IN THE STREAM OF EDUCATION AND WHO WERE NEEDY. LD. COUNSE L SUBMITTED THAT THE TRUST WAS FORMED ON 20.01.09 AND THE APPLICATION FO R REGISTRATION WAS FILED ON 20.03.09. NO ACTIVITIES HAD BEEN UNDERTAKEN DUR ING THIS SHORT SPAN BUT NEVERTHELESS THE OBJECTS OF THE TRUST WERE CHARITAB LE IN NATURE. HE SUBMITTED THAT AT THE TIME OF GRANT OF REGISTRATION THE DIT(E) SHOULD ONLY BE SATISFIED ABOUT THE NATURE OF OBJECTS WHICH SHOU LD BE CHARITABLE AND GENUINENESS OF THE ACTIVITIES OF THE TRUST OR THE I NSTITUTION ACTUAL APPLICATION OF INCOME TO THESE OBJECTS COME WITHIN THE DOMAIN OF ENQUIRY DURING ASSESSMENT. HE RELIED ON THE DECISION OF 7 ITR (TRIB.) 804. HE ALSO RELIED ON JASODA DEVI CHARITABLE TRUST VS. CIT (2010) 4 JTR (TRIB.) 547 (JAIPUR). LD. COUNSEL POINTED OUT THAT IN THIS CASE ALSO THE ASSESSEE TRUST WAS DENIED REGISTRATION U/S 12A ON THE GROUND THAT THOUGH THE OBJECTIVES OF THE TRUST WERE CHARITABLE IN NATURE IT DID NOT CARRY OUT ANY CHARITABLE ACTIVITY. TRIBUNAL HELD THAT COMMISSION ER WAS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE DID NOT CARRY OUT ANY CHA RITABLE ACTIVITIES WITHOUT APPRECIATING THAT THE TRUST HAD BEEN CREATE D ONLY ON 6 TH MAY 2009 ITA NO. 191/D/2010 4 AND THE APPLICATION FOR REGISTRATION WAS FILED ON 2 9 TH AUGUST 2009. LD. COUNSEL FURTHER SUBMITTED THAT DIRECTION BE GIVEN T O LD. CIT FOR VERIFYING THE APPLICATION OF THE ASSESSEE FOR APPROVAL U/S 80 G(5)(VI) OF THE ACT AND ON SATISFACTION OF THE FULFILLMENT OF THE CONDITION S LAID DOWN THEREIN GRANT APPROVAL. 6. LD. DR RELIED ON THE ORDER OF DIT(E). 7. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PA RTIES AND HAVE PERUSED THE RECORD OF THE CASE. AS IS EVIDENT FROM THE ORDER OF LD. DIT(E) REGISTRATION HAS BEEN DENIED ON THE GROUND THAT THE ASSESSEE HAD NOT CONDUCTED ANY CHARITABLE ACTIVITIES. ADMITTEDLY TH E TRUST WAS REGISTERED ON 22.01.09 AND THE APPLICATION WAS FILED ON 20.03. 09. THEREFORE THERE WAS A TIME GAP OF ONLY TWO MONTHS WITHIN WHICH IT W AS NOT FEASIBLE FOR THE ASSESSEE TO DEMONSTRATE APPLICATION OF ITS INCOME T O THE CHARITABLE ACTIVITIES. AT THE TIME OF REGISTRATION THE DIT(E ) SHOULD SATISFY HIMSELF ABOUT THE TRUE NATURE OF ACTIVITIES TO BE CARRIED O N BY THE ASSESSEE WHICH SHOULD BE CHARITABLE IN NATURE AND ALSO ABOUT THE G ENUINENESS OF THE TRUST. ONCE HE IS SO SATISFIED HE IS REQUIRED TO GRANT REGISTRATION. ACTUAL APPLICATION OF INCOME CAN BE EXAMINED AT THE TIME O F ASSESSMENT OF THE TRUST. IN THE PRESENT CASE THE ONLY OBJECTION OF THE DIT(E) IS THAT THE ASSESSEE HAD NOT CONDUCTED ANY CHARITABLE ACTIVITY. CONSEQUENTLY HE HAD HELD THAT THE GENUINENESS OF THE ACTIVITIES COU LD NOT BE ESTABLISHED BUT HE AHS NOT DISPUTED THE GENUINENESS OF THE TRUS T PER SE. HE HAS NOT DISPUTED THAT THE OBJECTS OF THE TRUST WERE CHARITA BLE IN NATURE. THEREFORE REGISTRATION SHOULD HAVE BEEN GRANTED. HOWEVER WE FIND THAT LD. DIT(E) HAS ALSO POINTED OUT THAT THE APPLICANT HAD NOT PRO DUCED ORIGINAL TRUST DEED FOR VERIFICATION. FOR THIS LIMITED PURPOSE W E RESTORE THIS MATTER TO THE FILE OF DIT(E) FOR VERIFYING THE ORIGINAL TRUST DEED AND ON SUCH VERIFICATION THE REGISTRATION SHOULD BE GRANTED. ITA NO. 191/D/2010 5 8. AS FAR AS THE ASSESSEES PLEA REGARDING EXEMPTIO N U/S 80G IS CONCERNED THE SAME CANNOT BE ENTERTAINED IN THIS A PPEAL BECAUSE ASSESSEE SHOULD HAVE PREFERRED SEPARATE APPEAL UNDE R SECTION 253(1)(C) REGARDING REJECTION OF EXEMPTION U/S 80G. EVEN OTH ERWISE MERE GRANT OF REGISTRATION U/S 12A DOES NOT AUTOMATICALLY LEAD TO GRANT OF EXEMPTION U/S 80G AS THERE ARE OTHER CONDITIONS ALSO WHICH ARE RE QUIRED TO BE FULFILLED U/S 80G BEFORE EXEMPTION U/S 80G(5)(VI) CAN BE GRAN TED. 9. IN THE RESULT THE ASSESSEES APPEAL IS PARTLY A LLOWED FOR STATISTICAL PURPOSES IN TERMS OF AFOREMENTIONED DIRECTIONS. ORDER PRONOUNCED IN THE OPEN COURT ON 30.03.2012 SD/- SD/- (DIVA SINGH) JUDICIAL MEMBER (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 30.03.2012 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR