Income Tax Appellate Tribunal - Delhi
Child Health Foundation, New Delhi vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'B': NEW DELHI
BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND
SHRI A.N. PAHUJA, ACCOUNTANT MEMBER
I.T.A.Nos. 4508, 4509/Del/2011
Assessment Year : -
Child Health Foundation vs. DIT (Exemption)
C/o Dr. Panna Chaudhry, Plot No. 15, 3rd Floor,
D-11, M-2753, Netaji Nagar Aayakar Bhawan,
New Delhi 110 023. Laxmi Nagar, New Delhi.
AABTC1888M
(Appellant) (Respondent)
Appellant by : Shri B.S. Sistani, CA
Respondent by : Shri Rohit Garg, Sr. DR
ORDER
PER U.B.S. Bedi, J.M.
These two appeals of the assessee are directed against the order passed by Director of Income Tax (Exemption) dated 27th July, 2011 whereby assessee's applications seeking registration u/s 12A and exemption u/s 80G of the Income Tax Act have been rejected.
2. Facts indicate that assessee filed two applications on 12th January, 2011 in Form No, 10A and 10G for seeking registration u/s 12A and exemption u/s 80Gof the Income Tax Act respectively. The applicant was issued a letter dated 28th January, 2011 requesting therein to submit the following documents / explanation on 15.2.2011 :
i) Justify with the bills/vouchers of the Income applied for charitable activities along with proof of beneficiaries.2 ITA Nos. 4508,4509/Del/11
Asstt. year -
ii) Please file the undertaking that there shall be no infringement to the proviso to the section 2(15) of the IT Act.
iii) No objection certificate from the landlord along with the proof of ownership/occupancy.
iv) Copy of accounts for the period since the inception of the Trust / Society or last 5 years during which the trust has been in existence.
v) A note on activities carried out since inception / last 1/2/3/4 years with supporting documentary evidence.
vi) Please justify your claim of registration u/s 12A & exemption u/s 80G
vii) Please furnish the details of donation including corpus donations received & made giving Name, Address, PAN of donors
viii) Please furnish contact No. & E.mail Address of the Applicant & its members
ix) Copy of I.T. returns last assessment years
x) Original MOA & Registration certificate from Registrar/Trust deed for verification.
3. Ld. Director of Income Tax (Exemption) noted in the impugned order that the assessee had submitted certain documents in his office which are incomplete in nature and are not supported by the evidence regarding activity of the trust and passed the order to reject registration application as well as application for exemption u/s 80G as per para 3 & 4 of his order which is reproduced hereunder :-
3. "On perusal of the documents submitted in this office it is found that one of the main objectives of the society is to establish / start / run / takeover / manage /maintain schools. There is no proof or documents to show whether the society is actually running any school or taken any permission from the competent 3 ITA Nos. 4508,4509/Del/11 Asstt. year -
authority to establish a school. In the absence of documentary evidences, the genuineness of the claim regarding charitable activities could not be established. This is one of the conditions for granting registration u/s 12A of the I.T. Act. Accordingly, the application filed by the applicant for grant of registration u/s 12A is hereby rejected.
4. Since the applicant is not registered u/s 12A(a) of the Income Tax Act 1961, its application in form No. 10G seeking exemption u/s 80G is also rejected."
4. In appeal against such order Ld. Counsel for the assessee while furnishing copies of all the documents furnished before the Director (Exemptions), strongly pleaded that erstwhile Director of Income Tax (exemption) has not given any detail about incomplete documents nor has given the detail about the supportive evidence which was sought regarding activity of the trust and he has also not given any opportunity, if there was incompleteness of any evidence ,what was that and what was the detail of the evidence to support the activity of the trust, whether it is genuine trust whereas the material which was asked for has been submitted and further evidence could also be submitted in case there was specific demand in this regard. Therefore, it was pleaded that assessee's trust is genuine trust, doing charitable work and as such is entitled to registration as well as exemption. Therefore, same may be granted.
5. Ld. DR submitted that all the documents were not filed nor any supporting evidence was furnished regarding nature of the activity of 4 ITA Nos. 4508,4509/Del/11 Asstt. year -
the trust so the Ld. CIT(A) has rightly rejected both the applications of the assessee whose action should be confirmed.
6. We have heard both the sides and considered the material on record and find that one opportunity was given to the assessee to furnish certain documents and explanation which are stated to have been furnished before the Director (Exemption) but before rejecting the applications of the assessee, no further opportunity has been given if there was any deficiency in the documents / explanation furnished. Therefore, in the interest of justice and to have fair play in the matter we find it just and appropriate to set aside the order of Director of Income Tax (Exemptions) and restore the matter back on his file with the direction to redecide the applications of assessee afresh after giving due opportunity to the assessee. We hold and direct accordingly.
7. In the result the appeals are allowed for statistical purpose.
Order pronounced soon after the conclusion of hearing on 13.12.2011.
sd/- sd/-
(A.N. PAHUJA) (U.B.S. BEDI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 13.12.2011
Veena
5 ITA Nos. 4508,4509/Del/11
Asstt. year -
Copy of the order forwarded to:-
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR By Order
Deputy Registrar, ITAT