Income Tax Appellate Tribunal - Delhi
Pave, New Delhi vs Assessee on 27 October, 2010
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH 'F' : NEW DELHI)
SHRI C.L. SETHI, JUDICIAL MEMBER
and
BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER
ITA No.6057/Del./2010
M/s. PAVE, vs DIT (Exemptions)
B - 3/79, 1st Floor, Sector 16, Delhi.
Rohini, New Delhi - 110 089.
(PAN : AABTP6288N)
(APPELLANT) (RESPONDENT)
ASSESSEE BY : Shri Vinay Kumar Singh, Managing Trustee
REVENUE by : Smt. Pratima Kaushik, Senior DR
ORDER
PER B.C. MEENA, ACCOUNTANT MEMBER :
This appeal filed by the assessee arises out of the order of Director of Income-tax (Exemptions), Delhi dated 27.10.2010.
2. The assessee is a trust registered by trust deed dated 27.04.2007. As per the trust deed, the name of the Trust is PAVE and the registered office is at B-3/79, First Floor, Sector 16, Rohini, Delhi-110 089 and the operation area of the trust is any where within the Indian territory. As per clause 5 of the trust deed, the various aims and objects of the trust have been narrated.
The trust applied for registration u/s 12A and sought exemption u/s 80G of the Income-tax Act and filed an application with the Director of Income-tax 2 ITA No.6057/Del./2010 (Exemptions), Delhi on 23.04.2010. In the application, his claim was that the trust is a public charitable and deserves to be registered u/s 12A of the Income-tax Act. The DIT (Exemptions) rejected the assessee's application for registration as well as for exemption u/s 80G by holding as under :-
"3. On perusal of the details filed it is seen that the applicant has not furnished full details with evidence in the form of bills, voucher or other evidence in support of the total expenses incurred. Further the funds have been received from Govt organization as grant in Aid for specific purpose to be utilized on the work / activities of the Govt. Rendering of services to other organization without having any charitable activity of its own cannot establish that the trust is for charitable purpose. On examination of the income & Expenditure A/c it is seen that the only receipts is from Govt. of U.P amounting Rs.2,199000 and the beneficiaries have contributed Rs.3,20,000 towards the construction of toilets. The auditors have in the report under the heads to Notes on Accounts have clearly stated as under the trust has entered into an agreement with different departments /local bodies of U.P Government to construct/ toilets with superstructures as per guidelines of ILCS scheme. The state Government bodies will be giving them advance under the scheme to complete the project. As per understanding an amount of Rs.1500/- per unit will be given to the trust after completion of the project. Therefore the advances and expenditure on the project are shown through receipt and payment account and the balances are reflected under the head current liabilities in the balance sheet. The Income of the trust as and hin will be received from the state Government local bodies will be treated as income of the trust in the year it is received. This clearly establishes the fact that the trust is rendering services for a fee to other Govt. and non-Govt bodies Who are possibly doing charity such rendering of services for the fee shows that the motive behind the activity is profit and is against the profit of section 2(15) of the Act which defines "Charitable purpose" in other preceding years the trust has failed to furnish complete and concrete evidence with respect to expenses claim to have been incurred on different activities 3 ITA No.6057/Del./2010 as per the Income & Expenditure A/c furnished. Therefore, the trust cannot said to be doing charitable activities.
I. T. Act. 1961:-
(i) The objects of the society should be of charitable in nature;
(ii) The activities of the society should be genuine.
4 Therefore, the genuineness of the claim of the society to be a charitable society is not established. Their activities are clearly hit by proviso to section 2(15), thereby not charitable as per law. Accordingly, the application filed by the applicant for grant of registration u/s 12AA is hereby rejected.
5 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."
3. We have heard both the sides in detail and we have also perused the documents submitted before us. The copy of the trust deed is submitted along with balance-sheet and income & expenditure account for the financial year ending on 31.3.2009 and 31.3.2010. The Aims and Objects of the Trust are as under :-
i) The trust is being organized for the purpose of relieving the poverty, misfortune, destitution, disadvantage, distress, dispassion and suffering of Indian citizens by promotion of spiritual, physical, mental, educational development and upliftment of adults and children of all without any distinction in caste, creed, sex or religion and to empower the physically challenged and down-
trodden.
ii) To establish, develop, maintain and grant aid in cash or in kind to hospitals, medical schools, medical colleges, nursing institutions, dispensaries, maternity homes, child welfare centers and/or such 4 ITA No.6057/Del./2010 other similar charitable institutions in India for the benefit and use of the general public.
iii) To establish, run support and grant aid or other financial assistance to schools, colleges, libraries, reading rooms, universities, laboratories, research and other institutions of the like nature in India, for use of the students and the staff and also for the development and advancement of education and diffusion of knowledge amongst the public in general.
iv) To establish, maintain and run studentships, scholarships and render other kind of aid to students including supply of books, stipends, medals and other incentives to study, without any distinction as to caste color, race, creed or sex.
v) To promote, establish, support, maintain or grant aid to institutions for the promotion of science, literature, music, drama and fine arts, for the preservation of historical monuments and for the research and other institutions, in India, having similar objects for the benefit of the public in general.
vi) To create unifying educational, artistic and cultural events and activities, that promote the trust's objects and general funds for the purposes related to the Trust's object.
vii) To establish, maintain or grant aid for the establishment and/or maintenance of perks, gardens gymnasiums, sports clubs, dharamshalas and rest houses, for use by public in general.
viii) To promote spiritual studies and open spiritual training and Yoga centers for general public and to increase the natural spiritual fellowship among all persons and to take affiliation from international organizations and to organise spirituals programmes and functions for general participations
ix) To establish, maintain or grant aid to those for the ages, orphanages or other establishments for the relief and help to the poor, needy and destitute people, .orphans, widows and old ages persons.
x) To establish run, maintain and develop institutions for the physically handicapped and disabled or mentally retarded persons and to provide them education, food, clothing or other help and to provide facilities including procurement and/or manufacturing of 5 ITA No.6057/Del./2010 artificial links (prosthetics) and Orthodontic appliances, including fitting and training in use of prosthetics.
xi) To grant relief and assistance to the needy victims during natural calamities such as famine, earthquake, flood, fire, pestilence, etc, and to give donations and other assistance to institutions, establishments or persons engaged in such relief work.
xii) To establish permanent exhibits and live displays and community based educational facilities for courses, workshops, conference, seminar, training programme and educational tours.
xiii) To construct, repair and manage the marghats, cemeteries and burial grounds.
xiv) To grant aid or render assistance to other public charitable trusts or institutions.
xv) To implement community based reproductive and child health and family planning programme, national health programme as per guidelines of government of India and Millennium Development Goals of UN.
xvi) To implements projects on environment conservation, social foresting and to carry out awareness compares regarding degrading environment, pollution research, education and communication programme.
xvii) To initiate socio-legal development and to promote small economic activity development, health and nutrition, urban development, SCs and Tribal Empowerment, agricultural and natural resources, girl child education, emergency response, large scale and rural savings and credit projects, encourages access to financial services; through self-managed and controlled self help groups.
xviii) Production of multi-media information material, library, training on issues of patriarchy, violence sexuality, health and development, advocacy and campaigning in all issues related to women, child old aged, handicapped, disabled and marginalized sections of the society.
xix) To provide professional training in zari to facilitate income generation, printing and embroidery to women of deprived classes, 6 ITA No.6057/Del./2010 financial assistance to needy SCs/STs/OBCs /Minorities /depressed groups.
xx) To support equal opportunity for visually impaired and physically disabled, education, training and rehabilitation, counseling center for aids, visually imparted and physically disabled.
xxi) Dealing with population explosion through medical services media in rural, urban, tribal zones as well as hutment areas of Indian City, provides free medical facilities in conducting camps for immunization, Aids control awakening programme~, supports education-cum-motivational efforts with quality family planning and mother and child Health services, AIDS care services and general include prevention education, access to prevention technology, voluntary testing and counseling and care for persons with HIV/AIDS xxii) Leprosy eradication and rehabilitation in tribal areas, only reconstruction surgery hospital, home for physically disabled and mentally disabled children, women linked to' community based rehabilitation and vocational training, education and vocational training for children of leprosy patients, to provide health care facilities to families by training local personnel on suitable basis, training of women on economical developmental activities and providing them loans, implementing reproductive and health programme.
xxiii) To establish social justice protection of the underprivileged encouragement of rural industry and industrial training programmes, protection of women and children, training and garment making unit, a typewriting and shorthand center, toy unit, and training in automobile engineering, medical research center, i.e. Ayurvedic, Homeopathy, Naturopathy, Allopathic, Natural Health Care facilities on the charity basis.
xxiv) To generate genetic resource conservation to protect different stains and types of grain, workshop and seminar on seeds, horticulture, patenting and organic farming, livestock development, water resource development tree based farming, SCs/STs/ OBCs / Minority Rehabilitation through Agri-Horti- Forestry.
xxv) To start crech facilities in slum-areas, mid-day meal, regular medical check-ups and a non-formal education, orthopedic center for mentally and physically handicapped children specialist 7 ITA No.6057/Del./2010 training for Aanganwadi, workers to help mothers and children in the community, home for abandoned children that locates adoptive families, finds placements and helps returns children to their families xxvi) To integrate blind children into society by empowering them with relevant skills, educational facilities for blind children and to start book library, hostels, computer training, electronic development programme and vocational training for the blind and development of disadvantaged blind children.
xxvii) To undertake scientific research in the field of socio-legal consumer. Human rights, women's empowerment, SCs/STs/ OBCs /Minorities for their economic uplifment development to provide cheap and safe hostel accommodation to employed of women and girl living socially and economically weaker section of the society.
xxviii) To promote physical, mental and educational empowerment of public in general, and especially socially educationally backward section of the society public, including children, orphans, poor, widows, women, physical1y and mentally challenged people and for the purpose of assist, setup, manage, run and aid preparatory schools Primary Schools, Higher Secondary Schools, colleges, Technical institutes, Universities, Computer education, Adult education centers, vocational institutes, dance and music institutes, libraries, boarding houses and hostels.
xxix) To provide for economic environment public in general, and especially women, unemployed youths, poor socially, educationally and economically backward sections of public, and for that purpose initiate, organize, run, establish and facilitate in developing income restoration, credit and shrift self employment, entrepreneurial and small scale industries.
xxx) To provide sustenance and shelter to abandoned children, orphans, poor, widows, women, old· homeless, physically and mentally challenged people and for that purpose scups, manage, run and aid shelter homes, creches, relief homes, old aged homes, juvenile homes and Nari Kendras.
xxxi) To provide for social and legal empowerment of public in general and especially women, poor, illiterate, schedule caste and schedule tribes and other disadvantaged strata of public and for this purpose establish create and run a legal resource center for dissemination of law, legal counseling and legal aid, conduct legal literacy and 8 ITA No.6057/Del./2010 legal awareness programmes and workshop, research, investigate, analyze, monitor and evaluate the efficacy of law, legal institutions and judicial system.
xxxii) To provide· health care to rural, semi-rural, resettlement colonies, slum and squatter settlements, pertaining to detection, treatment, and prevention and cure of disease and for that purpose to assist, setup, manage, run and aid hospitals, dispensaries mobile dispensaries, and also setup, aid and support education institutions for promoting better health and to conduct awareness programmes throwing light upon the problems of health, sanitation, drug abuse, HIY/Sexual diseases, alcoholism and other socio-medical ailments .
xxxiii) To provide safe and sustainable human settlements for the communities ensuring basis amenities and public facilities, and for that purpose promote, facilitate, aid, support, integrate, develop and create plans and proposals for physical infrastructure, viz. housing, water supply, sanitation, solid waste management, roads and highways, and also, environmental projects; forestry, wild life and water ways and road safety programmes xxxiv) To undertake scientific research in the field of Socio, legal, Human Rights, Women's empowerment & Economic development and to start establish, run, take over or manage and maintain schools, with an object to provide sound pre-primary, primary, middle, secondary, senior secondary and higher education to children by seeking recognition and to arrange and manage the training institutions in typing, short hand, computer, find arts, crafts, music, painting, modeling, dancing, yoga, physical education and in other professional training subjects.
xxxv) To conduct research in education and other disciplines on the different subject relating to education and legal and to promote literacy, cultural, and other social activities by Awareness Programmes, Adult Educational classes, Lectures, Essay Competitions, Exhibitions, Symposiums, Cultural Programmes, Press Conferences and Seminars.
xxxvi) To provide food, cloths, medical aid, stationery, transportation, libraries, laboratories, reading rooms, hostels, play grounds, swimming pool and other possible facilities to the students and also to the members of the society and to engage, employ or hire appropriate staff, workers, legal experts and other professionals, attorneys, managers and agents for the wok and furtherance of the 9 ITA No.6057/Del./2010 aims and objects of the society and to pay their wages, salaries, stipends or fees.
xxxvii) To arrange and organize various kinds of child Welfare programmes/ Activities and to purchase/acquire the land and /or the building in the name of the society and make construction thereupon, to do such other things/ acts / activities which are necessary and which may be incidental or conductive to the attainment of any of the object of the society and all the activities shall be Non Profitable and shall be done on "No Profit-No Loss"
basis.
xxxviii) To conduct research among SCs /STs/ OBCs and rural people and initiate action oriented programs for their development and to organize, mobilize, and train people for community participation, local self-governance (Panchayati Raj Institutions), capacity and leadership, building, gender sensitization and women's empowerment xxxix) To generate and increase employment potential by locating indigenous recourse and developing methods like Self-help groups and to assess and generate awareness and provide services relating to issues such as electronics, health, education, sanitation, communication, housing income and co-operative schemes.
xl) To analyze and improve social conditions of women, youth and children through informative programs and to impart training in local handicrafts and skill to women and other needy persons and extend scientific and technological know-how to tribal and rural people, to document data and bring out publications and to undertake evaluation studies for government and other agencies.
xli) To make the people conscious of their problems and mobilize them for their socio-economic development and to create awareness and facilities for rural services oriented education regardless of caste, linguistic groups or religion to their responsibility for society as a whole.
xlii) To create awareness and give them facilities for health problems and to establish, maintain, manage and run charitable dispensaries, nursing homes, spiritual healing center and hospitals to provide free medical facilities, cloths, blankets, cycles, blazers, book and other necessary needs to the person living in slum areas and from rural poor families, to organize de-addiction camps, educate and help people for prevention and treatment of HIV/AIDS, to provide 10 ITA No.6057/Del./2010 nursing training and other type of paramedical services, family planning, to help prenatal and postnatal women, blood donation, eye donation and work for chronic diseases (leprosy and cancers).
xliii) To provide cheap and safe hostel accommodation to employed women and living out there homes and to rehabilitate the Women and girls living socially and economic by provisions of skills training and counseling and to encourage study intellectual property right (IPRS), and to promote peoples participation is development programmes, Mentally retarded, Disabled, Deaf, Handicapped and to established rehabilitation center for the same.
xliv) The role of legal aid and advice Boards and free legal aid and to sensitize Women, Gild and Children about the right and duties and to promote and protect the welfare of the consumers and strengthen the voluntary consumer movement in the country particularly in urban, rural and tribal areas and to provide training for skill up gradation.
xlv) Scientific interventions to make the market place better and consumer oriented to provide legal advocacy and guidance networking with the other consumer groups on public interest issues and spreading the consumer movements to new area to benefit the poor and disadvantaged consumer & to Empower Women consumer to exercise their rights for improving employment conditions of Women.
xlvi) To establish educational, environmental, medical, ayurvedic, agricultural, dairy, women & children empowerment training center in urban, rural & tribal areas and to provide basic needs to the downtrodden people to promote family welfare, reproduction Health Education, counseling on problems related to various aspects of life.
xlvii) To preserve and promote Science & Technologies, folk arts, fine arts, Handicrafts training center, communications, and to maintain libraries and to study of cultural and natural heritage. To encourages service minded people to serve their community without personal financial reward, and to encourages efficiency and promote high ethical standards in commerce, industry professions, public works and private endeavors.
xlviii) To co-operate with foreign and Indian exercise and organization similar to this National to international with a view to promoting socio, legal, economic, development, National Integration, 11 ITA No.6057/Del./2010 Communal Harmony and brotherhood and to create awareness about Environmental pollutions conservations, waste land, AIDS/HIV sexually transmitted diseases, and conduct anti-drugs abuse programme for the masses.
xlix) To promote wild life preservation acts to rehabilitation of cows, monkey, dog, tigers and all animals of the society and also provide shell or houses for them.
l) To take an active interest in the civic cultural social and moral welfare of the community and foster a spirit of understanding among the people of the India and abroad.
li) To foster scheme for Yoga, games and sports in schools and to make it possible for poor people to act in ways that will lead to long term improvements in their income and health, in the environment, and in education of children and women from depressed classes.
lii) To stimulate research in matters of conservation, environment, wasteland development as much as technical and scientific plans as on doctrinal and to coach train candidate belonging to weaker sections to enable them to complete to equal terms in various competitive / entrance examinations and admissions to technical, vocational, engineering medical, agricultural institutions.
liii) To undertake welfare programme for woken, promotion of entrepreneurship, working women's hostel, children, youth, land less laborers, destitute, disabled, widows, old aged hope and the programme for the people affected by natural calamities and disasters.
liv) To establish technical, craft colleges, Management institutions, center for film demonstration for the development of the center, ayurvedic pharmacy, health education, naturopathy center, charitable dispensaries for the welfare of the massed and to print and publish books, magazines and such other materials and to bring out audio-visual centers, cassettes, music cassettes and to create awareness to the people through mass media, culture, communication and electronic developments.
lv) To provide support to communities / groups consisting of the poor people who wish to organize themselves or have organized themselves, either on their own or due to efforts of a voluntary organizations for a cause which is sufficiently just or serious and 12 ITA No.6057/Del./2010 sustain their campaign/struggle for betterment of their economic status and social power and elimination of attitudinal, cultural and physical barriers.
lvi) Development and strengthening of a self help group movement of people with disabilities in rural India and encouragement of mutual support and partnership among NGOs concerned with the rural poor and those concerned with handicapped and disabled persons lvii) To support people with disabilities in project with environments friendly and Eco promotive to support effort to ensure protection of human, civil and consumer rights to persons with disabilities and women and to support legal literacy, including legal counseling, legal aid and analysis and evaluation and existing laws and to support the conduct of service and other forms of epidemiological studies.
lviii) To promote research in various development areas innovative strategies, assistive, devices and enabling technologies and support production such devices ensuring quality control.
lix) Increase the production base of carpet weaving to meet growing international demand for hand knotted crafts and undertake training programme and handicrafts artisans the advances of formation of co-operative societies for their protection and better returns for the sale of their products and to apprise about various schemes and programmes for promotion of handicrafts.
lx) Action research /experimental/innovative activities with the objectives of environmental orientation and adopting innovative practices for the purposes.
lxi) To provide basic educational infrastructure and facilitate in areas of concentration of educationally, backward which do not have adequate provision of elementary and secondary education.
lxii) To provide technical training in agriculture and allied areas to women farmers and increase their managerial, organizational, entrepreneurial and decision making skills and to check up deforestation, conservation of fuel wood, elimination / reduction of smoke and reduction drudgery of women and girl children form cooking in smoky kitchen and collection of fuel wood, employment generation in rural and tribal areas.
13 ITA No.6057/Del./2010lxiii) Dissemination of information on various renewable energy devices and system in the educational institution and to promote use of solar lanterns and solar home lighting systems and the trust will liaison with Charitable Organizations of the Indian Territory, with a view to strengthen them, making them able to avail funds and Grants-in-Aid for running all the people developmental programmes.
lxiv) To construct, establish, maintain, run, develop, improve, extend grant for and to aid and assist in the construction, establishment, maintenance, running, development, improvement and extensions of hospitals, clinics, dispensaries, maternity homes, orphanage, rescue homes and similar institutions and societies affording medical treatment, cure, rest recuperation or engaged in other social services by way of alleviation the suffering of human.
lxv) To construct, establish, maintain, run, develop, improve, extend make donations to and to aid and assist in, the establishment, maintenance, running, and developing and extensions of educational institutions, technical industrial or other wise institutions, technical, industrial or other wise including schools, colleges, polytechnics, research associations, institutions, laboratories, workshops and hostels expenditure and to provide moral instruction to children and others and to meet the expenditure on clothing, books, teaching, etc, therefore.
lxvi) To give grants in cash or kind for marriages of poor people without any distinction of caste, color, creed or religion and to grant donations and subscriptions to other institutions, society for fulfillment of activities which are similar to the object of the society.
lxvii) To organize programmes, workshops, seminars, conferences, rallies, etc. in furtherance of all or anyone of the objects and to open, found, establish, maintain and assist vocational training institute, free coaching center, computer training center, Radio/TV presentation institute etc. lxviii) To start maintain and assist in relief measures in those parts which are or become subjects to natural calamities like famine, epidemics, fire, floor, death or water, earthquakes and disaster management.
lxix) To established food processing unit, grain processing, meat, poultry and egg, dairy, fish, fruit and vegetable, consumer food, 14 ITA No.6057/Del./2010 aerated soft drinks, packaged drinking water, alcoholic beverages, backward linkages, food fortification, , export, WTO, scheme for human resource department, food processing and training centers (FPTCs), entrepreneur development programme, assistance to HRD institution, research and development, assistance to R & D projects.
lxx) Promotion, support, exhibition, seminar and workshops, studies/surveys and to lay more emphasis on international interaction, networking of food testing laboratories, technology mission for integrated development of horticulture with the permission of government where required.
lxxi) To established planning development and control of and assistance to industries relating to bread, oil seeds, breakfast foods, biscuits, confectionary (including cocoa processing and chocolate making, established and servicing of the development councils for fish, meat processing industries with the permission of the Government of India where required) lxxii) To undertake programs or projects for assisting in the physical and psychological rehabilitation of the children families or other victims of communal, caste, ethnic and any other form of violence/clashes which fracture social harmony and to undertake activities which highlights and strengthen the bands of unity and affinity between different religious and other groups in the country.
lxxiii) Projects which aim to developing / strengthening the skill of grass root level workers for community health management and information dissemination and participative decentralized micro- planning and review of relevant scientific information and setting up facilities for training and research in consumer education and spreading consumer literacy and awareness building programmes for consumer education, complaint handling, counseling, guidance mechanisms like consumer guidance bureau, setting up of consumer product testing laboratories.
lxxiv) To disseminate all information regarding legal services, authority, national legal service who provide full range of legal service free of cost and maintain liaison and constructions of hostels for SCs/STs / OBCs/ Minorities and educational complex in low literacy pockets for development of women's literacy in sub-urban, rural, tribal and underdeveloped areas.
15 ITA No.6057/Del./2010lxxv) To provide and promote health education activities particularly in the rural, urban slums, tribal area to set up early cancer, HIV / AIDS, leprosy, TB, detection facilities and hold for the same camp and extensive propaganda for educating and motivating people for voluntary blood donation and blood transplantation unit and to prevent and control of blindness contract surgery, eye health education and care, many power training and operational research, to set up allopathic, ayurvedic, homeopathic and naturopathy, yoga, new hospital dispensaries in rural, urban tribal areas, medical care facilities to provide improved medical services for the masses.
lxxvi) To improve to life and status of women though application of science and technology by creating gainful employment awareness for them especially in tribal and rural area such as research and development on post harvest technology and agricultural implements used by women, low-cost and preservation and processing of horticultural produce, association of women and waste land development involvement of women in indigenous health practices and cultivation of medicinal plants, research, development and demonstration programmes to minimize occupational hazards of women and tribal women.
lxxvii) Projects which aim at improving the quality of life of the poor and needy people living in the rural, urban and tribal areas, especially in the underserved and backward areas and to promote the propagation of scientific temper and to develop programmes aimed at reinforcing and sustaining the literacy movement both through direct services as well as extension activities and awareness building and evolving programmes geared towards development of post-literacy skills and entrepreneurship in the field of education, science and technology, consumer, health and sanitation and rural development.
lxxviii) Development of rehabilitation and counseling facilities for street children, widows, disabled, handicapped, deaf, dumb to open school, college and training center through education, counseling etc. to help them reach their fullest potentials and initiatives to control, reduce and eliminate child, women labor in industries and empowerment for the same. To provide work and wages to the economically backward, physically handicapped, disabled and socially maladjusted such as the destitute, widows, old-ages homes and the deserted.
16 ITA No.6057/Del./2010lxxix) To establish and maintain religious worship places, spiritual retreat and meditation centers and seminaries, ordain people of integrity, character for religious work and rites such as solemnizing the marriages, dedication of children, baptism and burial ceremonies.
lxxx) To establish handicrafts training centers and procurement units, came and bamboo articles, mat weaving etc. Traditional embroidery work etcetera, dyeing and cloth painting, toy making, handloom to provides good scope for employment of needy masses, blind and even orthopaedically handicapped, disabled, deaf, dumb and orphanages.
lxxxi) To establish working women hostel, dharmsala, sports, playground, conference hall, family counseling centers, vocational training for rural, urban and tribal women.
lxxxii) To co-operate with and secure the co-operation of the central government state government union territory administration, international funding agencies, industrial and commercial organization and NGOs voluntary and other organization and bodies in promoting the object of the society."
3. The assessee has filed an appeal before us by taking the following grounds :-
"1. The order of the Director of Income Tax (Exemption) is not correct and acceptable.
2. The Honourable Director of Income Tax (Exemption) would not have rejected the application with out properly verifying the activities carried out by the Trust.
3. The Director did not appreciate the fact that so many Donors from India and abroad including Government participated with the development and charitable works.
4. The Director of income tax question the genuiness - of the institutions unreasonable and not bonafide.17 ITA No.6057/Del./2010
5. The Honourable Director of Income tax- ought to have been verified agreements made with the donors government and agencies.
6. The Director of the Income tax did not see the fad that charity is done with the help of many Philanthorapists and donors.
7. Any other ground that may be urges at the time of hearing."
The aims and objects of the trust are charitable. From details, we find that the assessee is constructing toilets for public which is also a charitable work.
These public toilets are made out of the grants from Government of Uttar Pradesh and also some petty contribution from the beneficiaries. The contribution from beneficiaries cannot be said a commercial activity. After close perusal of these facts and taking the pleadings into consideration, we hold that the assessee trust is a genuine trust registered for charitable purpose, hence deserves registration u/s 12A of the Income-tax Act and the exemption u/s 80G. Therefore, we set aside the order of the DIT (Exemptions) and direct to grant the registration u/s 12A and also to grant exemption u/s 80G.
5. In the result, the appeal of the assessee is allowed.
Order pronounced in open court on this 16th day of September, 2011.
Sd/- sd/-
(C.L. SETHI) (B.C. MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated the 16th day of September, 2011/TS
18 ITA No.6057/Del./2010
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.DIT (E), Delhi.
5.CIT(ITAT), New Delhi.
AR, ITAT
NEW DELHI.