Income Tax Appellate Tribunal - Ahmedabad
Diamond Merchants & Cutters Welfare ... vs Assessee on 7 November, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "B" BENCH AHMADABAD
Before Shri D.K.Tyagi, Judicial Member and
Shri T.R. Meena, Accountant Member
ITA No. 2917/Ahd/2012
Assessment Year :N.A.
The Diamond Merchants & V/s. CIT-I,
Cutters W elfare Association Aykar Bhavan, 2 n d Floor,
nd
Vir Bhagatsinh Complex, 2 Annexee Building,
Floor Paniyari, Nr. Madla Race Course Circle,
Talao, Khambhat - 388620 Baroda.
Dist Anand
PAN No. AABTT7883R
(Appellant) .. (Respondent)
अपीलाथȸ कȧ ओर से Smt. Urvashi Shodhan, A.R.
By Appellant
ू×यथȸ कȧ ओर से/By Respondent Shri O. P. Vaishnavi, CIT. D.R.
सुनवाई कȧ तारȣख/Date of Hearing
21.08.2013
घोषणा कȧ तारȣख/Date of Pronouncement 04.10.2013
ORDER
PER : Shri T.R.Meena, Accountant Member
This is an appeal at the behest of the assessee which has emanated from the order of CIT-I, Baroda, dated 07.11.2012 for assessment where exemption u/s. 80G(5)(vi) of the Act was rejected by the CIT.
2. The ld. CIT gave the notice to furnish the following information to verify the genuineness of the activities of the trust:
I T A No . 2 91 7 /A h d/ 1 2 A. Y. N. A . Page 2
(i) No objection certificate from the owners of premises being utilised by the trust.
(ii) If the trust is for educational purpose, please submit the approval certificate of the competent authority.
(iii) Whether the trust is revocable/irrevocable.
(iv) Whether any demand is outstanding.
(v) Who are the beneficiaries of the trust.
(vi) A copy of bank account from the date of inception of the trust.
(vii) Audited copy of accounts for the F.Y. 2011-12.
(viii) Furnish the evidences/documentary proof of the activities carried out by the trust from the date of inception.
(ix) Copy of Form No. 10 submitted to the Assessing-Officer for accumulation of income and surplus carried over in excess of 15% of the income if any.
(x) In respect of all trustees of the trust, the following further information may please be given.
Sr. Name of Address PAN State whether they Is the trustee
No. trustees of trustees assessed to tax. If are related
yes, the ward in with one-
which they have another, if
filed the return of so, state the
income. relationship.
1 2 3 4 5 6
The ld. CIT observed that the appellant had received grants of Rs. 90,668/- in F.Y. 2010-11. In F.Y. 10-11, the appellant had applied the funds for medical help was less than 85% out of Rs.1,24,576/-. The appellant had given notebooks in K.K. Prathmik Shala and the trust had organized mega eye camp on 19.12.2010 & in F.Y. 2011-12. The assessee was given reasonable opportunity on these points, which was not replied by the appellant properly. The ld. CIT observed as under:
"i. In support of its contention the trust has filed a detailed list of beneficiaries to whom specs was given by the trust. On perusal of the list of beneficiaries in respect of camp conducted on 19.12.2010 it is seen that on behalf of several I T A No . 2 91 7 /A h d/ 1 2 A. Y. N. A . Page 3 group of recipients of specs, single signature is found which is incredible to believe.
ii. Although the trust could not obtain the detailed address of all the beneficiaries who were stated to be moving labourers, it could have obtained the address of some labourers who were residing at the native place. In the absence, the contention of the trust is not believable.
iii. Also it needs to be mentioned here that the camp was said to be conducted on 19.12.2010. However, the date of purchase of specs bill was issued on 19.3.2011 which is incredible to believe.
iv. In the absence of detailed address etc. as called for vide this office letter dated 16.10.2012, the genuineness of the charitable activities said to be carried out is not verifiable."
As appellant had not submitted required details to the CIT, thus, he held that no genuine activity had been carried out by the trust and it was not a fit case for granting approval u/s. 80G(5)(vi) of the Act.
3. Now the assessee is before us. Ld. Counsel for the appellant contended that the assessee trust is a charitable trust has organized eye camp in the surrounding area for labourers. Besides this, this trust also organized blood donation camp for this ld. A.R. filed a copy of pamphlet issued by the trust. The appellant had received grant from Zila Udyog Kendra, Anand, for which she referred page nos. 3 & 4 of the paper book for Rs. 90,668/-. The appellant further filed copy of register in which recipients of specs had signed which proved that assessee was doing charity work. It was argued that assessee's charity activity was genuine. Thus, she requested to I T A No . 2 91 7 /A h d/ 1 2 A. Y. N. A . Page 4 set aside the issue to the CIT to grant u/s. 80G approval. At the outset, ld. CIT D.R. supported the order of the CIT.
4. We have heard the rival contentions and perused the material on record. It appears that appellant had not submitted required details before the CIT but paper book filed before us, shows that assessee was in charitable activity in F.Y. 10-11. Therefore, the matter is set aside to the CIT to decide the 80G approval after considering the evidence available with assessee. The appellant is also directed to submit all the evidences before the CIT to decide the case.
5. In the result, the assessee's appeal is allowed for statistical purpose. This Order pronounced in open Court on 04.10.2013 Sd/- Sd/-
(D.K.Tyagi) (T.R. Meena)
Judicial Member Accountant Member
True Copy
S.K.Sinha
आदे श कȧ ूितिलǒप अमेǒषत / Copy of Order Forwarded to:-
1. अपीलाथȸ / Appellant
2. ू×यथȸ / Respondent
3. संबंिधत आयकर आयुƠ / Concerned CIT
4. आयकर आयुƠ- अपील / CIT (A)
5. ǒवभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड[ फाइल / Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद ।