Shradha Saburi Bio-Life Welfare Society, JAIPUR v. CIT, JODHPUR

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR BEFORE SHRI S.V. MEHROTRA ACCOUNTANT MEMBER AND SHRI V.D. RAO JUDICIAL MEMBER ITA NO. 197/JU/2010 SHARDHA SABURI BIO-LIFE WELFARE SOCIETY VS. COMMI SSIONER OF INCOME-TAX-I BISALPUR BALI DISTT. PALI. JODHPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VARUN BANSAL A.R. RESPONDENT BY : SHRI AVADHESH KUMAR D.R. O R D E R PER S.V. MEHROTRA A.M : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.02.2010 OF LEARNED COMMISSIONER OF INCOME-TAX I JODHPUR RE FUSING THE REGISTRATION U/S. 80G OF THE INCOME-TAX ACT. THE ONLY GROUND OF APPEAL TAKEN BY THE ASSESSEE READS AS UNDER :- UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE LD. COMMISSIONER OF INCOME TAX-I JODHPUR HAS ERRED IN REJECTING THE ASSESSEE TRUSTS APPLICATION SEEKING APPROVAL U/S. 80G OF THE INCOME TAX ACT 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-TR UST HAD FILED AN APPLICATION IN FORM 10G ON 04.08.2009 SEEKING APPROVAL U/S. 80G SUB-SEC TION (5) OF THE INCOME-TAX ACT CLAIMING IT TO BE FOR CHARITABLE PURPOSE. THE LEARN ED CIT HOWEVER REJECTED THE APPLICATION FOR THE FOLLOWING REASONS : (I). THERE IS NO CORPUS FUND OF TRUST TO SHOW THE SERIOUSNESS OF THE TRUSTEE ABOUT THE OBJECTS OF THE TRUST. (II). NO DETAILS OF ANY CHARITABLE ACTIVITIES HAVE BEEN CARRIED OUT OR NO SUCH DETAILS OF THIS NATURE IS PROVIDED WITH THE AP PLICATION TO JUSTIFY THEIR CLAIM. 2 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE IS A REGISTERED SOCIETY. THE ASSESSEE-TRUST HAS ALREADY BEEN GRANTE D REGISTRATION U/S. 12A(A) VIDE ORDER DATED 31.12.2009 AND THE REGISTRATION CERTIFICATE I S ENCLOSED AT PAGE NO. 1 OF THE PAPER BOOK. HE FURTHER SUBMITTED THAT LEARNED CIT NEVER G AVE AN OPPORTUNITY TO THE ASSESSEE BEFORE REJECTING THE APPLICATION AND SUBMITTED THAT FROM PAGE NO. 2 TO 27 OF THE PAPER BOOK HE HAS FILED THE PAPERS WHICH WOULD CLEARLY D EMONSTRATE THAT THE ASSESSEE HAD BEEN CARRYING ON CHARITABLE ACTIVITIES. HE REFERRED TO T HE BY-LAWS OF THE SOCIETY CONTAINED IN THE PAPER BOOK AND POINTED OUT THAT IN PAGE 10 OF THE B Y-LAWS IT IS CLEARLY MENTIONED THAT FOLLOWING MEMBERS OF THE SOCIETY CAN ACCEPT THE AMO UNTS WHICH PRIMARILY CONSTITUTE THE CORPUS OF THE TRUST. : (I). PRESIDENT ` 5000/- (II). SECRETARY ` 2000/- (III). TREASURER ` 2000/- 4. THE LEARNED DR RELIED ON THE ORDER OF LEARNED CO MMISSIONER OF INCOME-TAX. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORD OF THE CASE. WE FIND THAT THE LEARNED CIT HA S DRAWN HIS CONCLUSIONS NOTED EARLIER WITHOUT AFFORDING ANY OPPORTUNITY TO THE ASSESSEE AS HE HIMSELF OBSERVED IN THE ORDER IN ABSENCE OF THE ABOVE DETAILS OR INFORMATION THE VA LIDITY OF THE CLAIM OF TRUST CANNOT BE VERIFIED. IN THE PAPER BOOK THE LEARNED COUNSEL H AS FILED THE DETAILS TO SUBSTANTIATE ITS CLAIM. THEREFORE WE CONSIDER IT IN THE INTEREST OF JUSTICE THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF LEARNED COMMISSIONER OF INCOME- TAX FOR DE NOVO ADJUDICATION AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 3 ITA NO. 197/JU/2010 6. IN THE RESULT THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09.02.11. SD/- SD/- (V.D. RAO) (S.V. MEHROTRA) JUDICIAL MEMBER ACCO UNTANT MEMBER DATED : 9 TH FEBRUARY 2011 *AKS/- COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. INCOME-TAX OFFICER 4. CIT 5. D/R 6. GUARD FILE