Sahyog Sarvodaya Mandal, New Delhi v. CIT, Muzaffarnagar

ITA 310/DEL/2010 | misc
Pronouncement Date: 22-03-2010 | Result: Allowed

Appeal Details

RSA Number 31020114 RSA 2010
Bench Delhi
Appeal Number ITA 310/DEL/2010
Duration Of Justice 2 month(s)
Appellant Sahyog Sarvodaya Mandal, New Delhi
Respondent CIT, Muzaffarnagar
Appeal Type Income Tax Appeal
Pronouncement Date 22-03-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 22-03-2010
Assessment Year misc
Appeal Filed On 21-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G DELHI) BEFORE SHRI A.D. JAIN AND SHRI SHAMIM YAHYA ITA NO. 310(DEL)2010 ASSESSMENT YEAR: SAHYOG SARVODAYA MANDAL COMMISSIONER OF INCO ME TAX VILL.& POST MIRZAPUR POLI V. MUZAFFARNAGAR. SAHARANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY: S/SHRI ANIL JAIN & RISHAB JAIN ADV. RESPONDENT BY: SHRI T. VASANTHAN SR. DR ORDER PER A.D. JAIN J.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE LD. CITS ACTION IN DENYING CONTINUATION OF EXEMPTION U/S 80 G(5)(VI) O F THE INCOME TAX ACT TO THE ASSESSEE SOCIETY. 2. THE FACTS AS PER THE STATEMENT OF FACTS FILED BE FORE US ARE THAT THE ASSESSEE IS A REGISTERED SOCIETY IN THE NAME OF SAHYOG SARVODAYA MANDAL SAHARANPUR W.E.F. 7.3.90 AND THE REGISTRATI ON U/S 12A HAS BEEN GRANTED BY THE CIT MEERUT ON 1.4.98 VIDE LETT ER DATED 23.6.08; THAT EXEMPTION U/S 80 G HAS BEEN GRANTED FROM 30. 12.05 TO 31.3.09; THAT THE ASSESSEE SOCIETY WAS FILING ITS INCOME TAX RETURNS REGULARLY ITA 310(DEL)2010 2 AND THERE WAS NO DEFAULT IN THE COMPLIANCES; THAT T HE ASSESSEE SOCIETY IS ENGAGED IN THE PUBLIC CHARITABLE ACTIVITIES OF R UNNING AND MAINTENANCE OF GOSHALA IN WHICH THE OLD AND ILL COW S WHICH ARE SEIZED BY THE POLICE FOR SLAUGHTER ARE MAINTAINED B Y THE SOCIETY PRESERVATION OF ENVIRONMENT BY PLANTATION OF TREES TO CREATE PUBLIC AWARENESS OF PULSE POLIO PROGRAMMES AND OTHER GOVT. PROGRAMMES OF GENERAL PUBLIC UTILITY; THAT THE ASSESSEE APPLIED F OR THE RENEWAL OF EXEMPTION U/S 80 G BEFORE THE CIT MUZAFFARNAGAR WH O HAS REFERRED THE MATTER TO THE ADDL. CIT SAHARANPUR FOR HIS REP ORT AND ALSO GET PHYSICAL VERIFICATION OF THE ACTIVITIES OF THE SOCI ETY EXAMINED THROUGH THE INCOME TAX INSPECTOR; THAT THE ADDL. CIT SAHAR ANPUR ISSUED A NOTICE TO THE ASSESSEE SOCIETY IN RESPONSE TO WHICH THE DOCUMENTS IN SUPPORT OF THE CHARITABLE ACTIVITIES OF THE SOCIETY WERE FILED BEFORE HIM AND IT IS UNDERSTOOD THAT HE HAS SUBMITTED A FAVOUR ABLE REPORT TO THE CIT MUZAFFARNAGAR AS THE COPY OF THE REPORT IS NOT GIVEN TO THE ASSESSEE; THAT THE INSPECTOR OF INCOME TAX HAS PHYS ICALLY INSPECTED THE PREMISES OF THE ASSESSEE SOCIETY AND ALSO THE A CTIVITIES UNDERTAKEN BY THEM AND HIS REPORT WAS SENT TO THE CIT; THAT T HE CIT MUZAFFARNAGAR CONDUCTED PROCEEDINGS WHICH WERE ATTE NDED BY SHRI G.S. LAMBA PRESIDENT OF THE SOCIETY 3-4 TIMES AND HIS ATTENDANCE WAS ITA 310(DEL)2010 3 DULY MARKED ON THE ORDER SHEET OF THE FILE OF THE C IT. HE HAD FILED ALL THE DOCUMENTS TO JUSTIFY THE CHARITABLE ACTIVITIES OF THE SOCIETY AND BEING NOT MUCH EDUCATED THE DOCUMENTS SUBMITTED O N THE FILE WERE WITHOUT ANY COVERING LETTER AND HIS ATTENDANCE WAS MARKED ON THE ORDER SHEET; AND THAT THE CIT HAS PASSED ORDER DATE D 11.11.2009 REJECTING THE RENEWAL OF EXEMPTION U/S 80 G ON THE GROUND THAT THE ASSESSEE HAD NOT FILED ANY EVIDENCE TO PROVE THE CH ARITABLE WORK DONE BY THE SOCIETY WHEREAS ALL THE EVIDENCES HAD BEEN D ULY SUBMITTED BEFORE THE ADDL. CIT SAHARANPUR AS WELL AS BEFORE THE CIT MUZAFFARNAGAR WHICH COULD BE EXAMINED BY CALLING TH E RECORDS AS THE ASSESSEE WAS NOT HAVING ANY COVERING LETTER TO JUST IFY THE SAME. 3. THE LEARNED COUNSEL FOR THE ASSESSEE HAS BROADL Y REITERATED THE STAND OF THE ASSESSEE AS MENTIONED IN THE STATEMEN T OF FACTS FILED BEFORE US. IT HAS BEEN STATED THAT THOUGH ALL THE EVIDENCES WHICH THE ASSESSEE SOCIETY WAS REQUIRED TO FILE TO JUSTIFY IT S CHARITABLE ACTIVITY WERE DULY FILED BEFORE THE ADDL. CIT AND ALSO BEFOR E THE LD. CIT THE LD. CIT HAS ERRED IN REJECTING THE ASSESSEES APPLI CATION FOR GRANT OF EXEMPTION U/S 80 G(5)(VI) OF THE ACT ON THE BASIS T HAT THE ASSESSEE HAD FAILED TO FILE ANY EVIDENCE TO SUPPORT ITS CLAI M. ITA 310(DEL)2010 4 4. THE LEARNED DR ON THE OTHER HAND HAS STRONGLY SUPPORTED THE IMPUGNED ORDER. IT HAS BEEN SUBMITTED THAT THE LD. CIT HAS CATEGORICALLY OBSERVED IN HIS ORDER THAT THE ASSESS EE HAD FAILED TO PRODUCE EVIDENCE IN SUPPORT OF ITS CASE; THAT THERE FORE THE APPLICATION OF THE ASSESSEE WAS RIGHTLY REJECTED BY THE LD. CIT ; AND THAT AS SUCH THERE BEING NO MERIT THEREIN THE APPEAL FILED BY T HE ASSESSEE HAD ORDERED TO BE DISMISSED. 5. WE HAVE HEARD THE PARTIES AND HAVE PERUSED THE M ATERIAL ON RECORD. THE ORDER UNDER APPEAL IS A SHORT ONE AND IT WOULD BE APPROPRIATE TO REPRODUCE IT HERE:- THE ASSESSEE SOCIETY FILED THE APPLICATION FOR G R ANT OF FUND U/S 80 G IN FORM 10 C ON 13.04.2009. SEVERAL LETTERS WERE ISSUED BY THIS OFFICE TO THE SOCIETY I.E. 23.06.2009 25. 08.2009 23.10.2009 AND 04.11.2009 WITH SPECIFIC REQUIREMENT S TO FURNISH THE EVIDENCES OF CHARITABLE WORK DONE BY TH E SOCIETY AS CLAIMED BY THE SOCIETY. BUT NO EVIDENCES HAVE BEE N FURNISHED BY THE SOCIETY EVEN AFTER REPEATED REQUESTS. THE SOCIETY WAS ASKED TO FURNISH BOOKS OF ACCOUNTS ALONG WITH ALL V OUCHERS ETC. BUT ONLY CASH BOOK WAS PRODUCED AND NO BILLS VOUCH ERS ETC. HAVE BEEN FURNISHED TO SUBSTANTIATE/AUTHENTICATE TH E BOOKS OF ACCOUNTS. THE SOCIETY WAS ALSO ASKED TO EXPLAIN H OW THE ACTIVITIES OF THE SOCIETY ARE CALLED CHARITABLE AND FOR PUBLIC UTILITY AS PER SECTION 2(15) OF THE I.T. ACT 1961. NO EXPLANATIONS/EVIDENCES HAVE BEEN FURNISHED IN THIS REGARD. IN VIEW OF ABOVE REASONS I AM OF THE OPINION THAT THE SOCIETY IS NOT INVOLVED IN ANY CHARITABLE AND ANY PUBLIC UTILI TY WORK. THEREFORE THE APPLICATION FOR GRANT OF FUND U/S 80 G(5) OF THE I.T. ACT 1961 IS HEREBY REJECTED. ITA 310(DEL)2010 5 6. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT THE L D. CIT HAS OBSERVED THAT DESPITE OPPORTUNITIES THE ASSESSEE S OCIETY DID NOT FILE EVIDENCE TO SUPPORT ITS CLAIM FOR EXEMPTION U/S 80G (5)(VI) OF THE ACT. AS PER THE LD. CIT NO BILLS VOUCHERS ETC. WERE FILED TO SUBSTANTIATE/AUTHENTICATE THE BOOKS OF ACCOUNT. IT WAS ALSO OBSERVED THAT THE ASSESSEE HAS FAILED TO FURNISH EVIDENCE RE GARDING THE CHARITABLE ACTIVITIES OF THE ASSESSEE AS PER SECTIO N 2(15) OF THE ACT. 7. JUXTAPOSED WITH THE ABOVE THE ASSESSEE HAS MAIN TAINED THAT THE PROCEEDINGS BEFORE THE LD. CIT WERE ATTENDED BY SHR I G.S. LAMBA PRESIDENT OF THE ASSESSEE SOCIETY; THAT HIS ATTENDA NCE HAS DULY MARKED IN THE FILE OF THE LD. CIT; THAT HE HAD FILED ALL T HE DOCUMENTS TO JUSTIFY THE CHARITABLE ACTIVITY OF THE ASSESSEE SOCIETY; TH AT BEING NOT MUCH EDUCATED HE HAD SUBMITTED THE DOCUMENTS WITHOUT AN Y COVERING LETTER; AND THAT THE EVIDENCE WAS ALSO FILED BEFORE THE ADD L.CIT. IN SUPPORT OF THIS CONTENTION THE ASSESSEE HAS ALSO FURNISHED ON RECORD BEFORE US AN AFFIDAVIT OF SHRI G.S. LAMBA PRESIDENT OF THE A SSESSEE SOCIETY. 8. AS SUCH THE ASSESSEE HAS GONE ON RECORD BY WAY OF AVERMENT IN THE STATEMENT OF THE FACTS THE ORAL ARGUMENTS AND THE AFFIDAVIT OF THE PRESIDENT OF THE ASSESSEE SOCIETY TO CONTEND REIT ERATE AND STRESS THAT ALL THE EVIDENCES SUPPORTING THE ASSESSEES CLAIM O F EXEMPTION U/S 80 ITA 310(DEL)2010 6 G(5)(VI) OF THE ACT WAS DULY FILED NOT ONLY BEFORE THE LD. CIT BUT ALSO BEFORE THE ADDL. CIT. 9. IN THE GIVEN SITUATION WE DEEM IT APPROPRIATE T O REMIT THIS MATTER TO THE FILE OF THE LD. CIT TO EXAMINE IT AFR ESH AND TO DECIDE IT DE NOVO IN ACCORDANCE WITH LAW ON CONSIDERING THE SITU ATION AS DISCUSSED HEREINABOVE PARTICULARLY IN THE LIGHT OF THE AFFID AVIT FILED BY THE ASSESSEE. WE WOULD LIKE TO POINT OUT HERE THAT IN CASE THE LD. CIT CONSIDERS THE EVIDENCE TO BE DEFICIENT IN ANY REGAR D HE WOULD ALLOW THE ASSESSEE AN OPPORTUNITY TO MAKE GOOD THE SAME A ND TO DECIDE THE MATTER IN THE LIGHT THEREOF. THE ASSESSEE NO DOU BT SHALL COOPERATE WITH THE LD. CIT(A). 10. IN THE RESULT FOR STATISTICAL PURPOSES THE AP PEAL OF THE ASSESSEE IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.03.2010. SD/- SD/- (SHAMIM YAHYA) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22.03.2010 *RM ITA 310(DEL)2010 7 COPY FORWARDED TO: 1. SAHYOG SARVODAYA MANDAL VILL.& POST MIRZAPUR POLI SAHARANPUR. 2. CIT MUZAFFARNAGAR. 3. CIT(A) 4. ADDL. CIT 5. DR TRUE COPY BY ORDER DEPUTY REGISTRAR