Income Tax Appellate Tribunal - Chandigarh
M/S Aggarwal Sabha (Regd.), Ambala City vs Cit (Exemptions), Chandigarh on 28 September, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH 'A', CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER
AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA Nos.91 & 92/Chd/2017
(Assessment Years : 2015-16 & 2017-18)
Aggarwal Sabha (Regd.), Vs. The C.I.T.(Exemptions),
Vikas Vihar, Sector - 17E,
Ambala City. Chandigarh.
P A N : AAETA5488J
(Appellant) (Respondent)
Appellant by : Shri Rohit Goel, CA
Respondent by : Shri Sandeep Dahiya, CI T DR
Date of hearing : 26.07.2017
Date of Pronouncement : 28.09.2017
ORDER
PER ANNAPURNA GUPTA, A.M.:
Th e s e t w o a p p e a l s h a v e b e e n pr e f e r r e d b y t he s a me a s s e s s e e ag a i n s t s e p a r a t e or d e rs o f L d . C o mm i s s i o n e r o f I n co m e Ta x ( E x em p t i o n s ) ( h e r e i na f t e r r e f er r e d t o a s C I T( E ) , C h a n d i g a rh d a te d 2 6 . 2 . 2 0 1 5 an d 2 7 . 1 0 . 2 0 1 6 r e l a t i n g t o a s s e s s m e nt y e a rs 2 0 1 5 - 1 6 a n d 20 1 7 - 1 8 , i n v ol v i ng c o m m o n i s s u e i . e . r e j e ct i o n o f g r a n t o f r e g i s t r a ti o n u / s 1 2 A o f t h e I n co m e Ta x A c t , 1 9 6 1 ( i n s h o r t ' th e A c t ' ) .
2. A t t h e o u t s e t , i t m a y b e s t a t e d th a t d u r i n g t h e co u r s e o f h e a ri n g be f o r e u s L d. c o un s e l f o r t h e a s s es s e e r e q u e s t e d f o r w i t h dr a w a l o f t h e a p p e al i n I TA N o . 9 1 / Ch d / 2 01 7 . L d . D R d i d n o t o b j e c t t o t h e s a me . Th e a p p e a l fi l e d by th e a s s e s se e i n I TA . N o . 9 1 / C hd / 2 0 1 7 i s, t h e re fo r e , t r e at e d a s d i s m i s s e d .
3. W e s h a l l n o w de a l w i t h t h e as se s s e e ' s a p pe a l i n I TA N o . 9 2 / C h d/ 2 0 1 7.
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4. Th e a s s e s s e e h as c h a l l e n g e d th e d e n i a l o f r e g i str a t i o n t o t h e a s s e s s e e t r u s t u / s 1 2 A A o f t h e A c t b y t he L d . CI T( E ) a n d h a s ra i s e d fo l l o w i n g g r o u n ds:
" 1 . T h e l e ar n e d C o m mi s s i o n e r o f In c o me T ax ( E x e mp t i o n s ) h as e r r e d in l a w an d f ac ts an d l a w i n n o t r e g is te r i n g th e ap p l ic an t T r us t u / s 1 2 A A.
2. T h e ap p e l l an t c r av e s l e av e to ad d , al te r , a me n d o r to s u b s ti tu te th e a b o v e g r o u n ds of ap p e al e i th e r b e f ore o r at th e t i me o f h e ar in g o f c as e . "
5. B r i e f l y st a t e d , th e a s s e s s ee h a d f i l e d a n ap p l i ca t i o n s e e k i n g r eg i s t r at i o n u / s 1 2 A of t h e A c t i n F o rm N o . 1 0 A. Th e a p p l i c a t i o n r e v e a l e d t h a t t he s o c i e t y w a s a n o n g o i ng e n t i t y t h a t ha d b e e n i n o p e r at i on s i n c e 6 . 1 . 20 15 . D u ri n g a s s e s s m e nt p r oce e d i n g s b e f o r e th e L d . CI T( E ) a l l n e c e s sa r y d o c u m e n t s a n d s u b m i s s i on s a s c a l l e d fo r w er e fi l e d b y t h e assessee which included M e mo r a n d u m of A s so c i a t i o n of society. Th e s a i d d o c u m e n t s r eve a l e d t h e a i m s an d o b j e c t s o f t h e s oc i e t y a s u n d e r :
4. Alms and objects of the Society
a) To distribute the books in the students of BPI families.
b) To run short terms courses like tailoring, beautician etc. for girls and woman.
c) To try the remove of villages problems like street water etc. tricity etc.
d) Promotion of arts education, Computer education, Health & Paramedical Education, science, literature, Philosophy, Regligion, Industries, Skill, Development, fine Arts etc.
e) Instruction and diffusion of any useful knowledge.
f) To work for the cause of enforcement of prohibition and initiate people's movement against smoking alcoholism and drug abuse.
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g) To create awareness and addressing some of the social evils such as female feticide, dowry, extravagant, expenditure on social functions like marriages, empowerment of women in decision making etc.
h) Establishment or maintenance of libraries or reading rooms.
i) To raise or acquire funds or property (Movable & Immovable) from Central or State Govt, Non Government Agencies byway of Donation/grants-or contribution for Sabha, construct maintain & run Public Utility institution for the benefits of General Public such as Bhawan/Dharamshala, Dispensary &.Other like deemed necessary from time to time or all the purpose or objects.
6. Th e L d . C I T( E ) after p e r u si n g the d o c u m e nt s filed b e f o r e i t a n d s ub m i s s i o n s m a d e b y t h e a s s es s e e h e l d t h at t h e g e nu i n e n e ss o f t h e a c t i v i t i e s o f t h e s o c i e t y cou l d n o t b e c o r r o b o r at e d with the stated aims and o b j e ct s for the f o l l o w i ng r e a s ons :
a) I t a pp e a r e d f ro m t h e a c c o u n t s t ha t t h e m a i n f o c us o f t h e a s s e ss e e w a s o n c r e a ti o n o f f i x ed a s se t i . e. l a nd a n d b u i l di n g .
b) Th a t i n e a r l i e r ye a r s i t ha d b e en c l a i m i n g m a j o r e x p e n s e s o n a c co u n t o f A g g a r s en J a y a n t i c e l e b ra t i on which is a function o r g a n i z ed by community of A g g a r w a l s a n d re g i s t r a ti o n fo r wh i c h h ad b ee n r ef u s ed e a r l i e r a n d t h e a s s e s s e e h a d c ha n g e d i t s s t r at e g y a n d h a d c l a i m ed t he s a m e o n a cc ou n t o f m i sc e l l an e o u s expenses.
c) Th e persons f r om whom l o a ns were taken f or purchase of l an d and b u i l d i ng were r e s t r i c te d to communities wh i c h were followers of B ha g w a n 4 A g g a r s e n w h i ch l e d t o t h e c o n c l u s i o n th a t on l y p e r s on o f a p a r t i c u l a r co m m u n i t y h a d c on t r i b u t e d s o t h a t t h e y c o u l d o r ga n i z e th e i r f e st i v a l l i k e A g g a r w a l J a y a n ti.
d) Th a t b a n k s t a t e m e n t s r e v e a l ed t h a t m o s t o f t h e c r e d i t s w e re i n c a s h w h i c h w a s i n v i o l a t i on o f s e c t i on 2 6 9 S S o f t h e A ct.
e) No e x p e n se s w er e i n c u r re d on account of t he s t a t e d ob j e c t s o f t h e a ss e s s e e t o r u n a di s p e n s ar y a n d a d o p t 50 p o or c h i l d r e n f o r p a yi n g t h ei r sc h o o l f e es e v e r y y e a r an d a l s o p r o v i d i n g sc h o l a r s h i p f o r ge t t i n g m e r i t i n 1 0 t h a n d 1 2 t h f o r ha r d w o rk i n g c h i l d r e n .
f) Th e total receipts shown in the r e c e i pt a nd p a y m e n t a c c ou n t d i d n o t m a t c h wi t h t h a t s h o w n i n t h e b a n k s t at e m e n t s a n d s i mi l a r l y th e p a y m e nt s m ad e to H U D A d i d n o t m a t c h w i t h t h at s h o w n i n t h e b a n k statement a nd several o t h er such d i s cr e pa n c i e s b e t w e e n th e a c cou n t b o o k s o f t he b a n k s t a te m e n t s.
7. Th e r e l e v a n t f i n di n g o f t h e Ld . CI T( E ) a t p a r a s 6 t o 9 of h i s o r d e r i s a s un d e r :
6. On 19.10.2016 Sh. Karan Jain, C.A, and Sh. Ramesh Singla, President of the filed response to the show-
cause letter dated 13.10.2016. On perusal of accounts it reveals that main focus of the society is on creation of fixed assets i.e Land & building. Booking of expenses on account of chowkidar corroborates the intention of the applicant. On perusal of accounts it reveals that prior to F.Y. 2015-16 the applicant society was claiming major expense on account of Aggarsain Jayanti Expense which is a function being specifically organized by community of Aggarwals and on this ground the earlier application for registration was rejected by this office. Now the applicant has changed the strategy and claimed the same on account of Misc. Expenses though the same in the absence of any documentary evidence 5 could not be accepted. Moreover the persons from whom the loans were taken for purchase of Land Building are restricted to communities which are followers of Bhagwan Aggarsain which leads one to conclude that people of particular community with an interest to create an building has contributed so that they could organize various festival like Aggarsain Jayanti etc. It is pertinent to mention bank statement reveals that most of credits are in cash which compulsorily needs to be through check or draft as the amount involved in more than 20,000/- which is again vio0lation of section 269SS of Income Tax Act, 1961. Notwithstanding the above the predominance of cash transactions in the absence of further details to that extent further exacerbates the case of the applicant as the genuineness of such transactions don't get corroborated.
7. As regards the activities the applicant stated that applicant is successfully running a Dispensary and every year Aggarwal Sabha adopts 50 poor children for paying their school fees. However no expense which could substantiate both of the claims has been shown in the Income & Expenditure account. Similarly the claim of the applicant that every year it is providing scholarship for getting merit in 10th and 12th to hardworking children is again not backed up by evidence that could corroborate the claims of the applicant.
8. Moreover, perusal of audited accounts reveals that as on 31.03.2014 the total receipts shown in Receipts and Payment account was 1830,81 ~t I - though as per the bank statement the receipts were 20,74,024/-. Similarly the payment made for HUDA plot was booked at Rs. 3,30 ,194/- whereas the bank statement reveals the sum as Rs. 9,90,694/-. All these discrepancies in the accounts do not bolster the case of the applicant. Similarly an examination of various payments claimed further reveals that none of the expenses get corroborated to have been made through the bank account. This issue also gets exacerbated by the fact that in F.Y 2014-15 no payment on account of HUDA has been shown in bank account though the same was booked in Receipt and Payment account.
9. In the instant case, given the above, there is no way the genuineness of activities of the society can be corroborated with the stated aims and objects. Moreover, the c of the applicant had been rejected earlier and no fresh grounds have been projected that would necessitate examination of the case afresh. This would amount to subversion of the judicial process that entails appeals against orders of rejection. The application under section 12A for grant of registration is accordingly rejected."
8. A g g r i e v e d b y t h e s a m e th e a ss e ss e e h a s f i l e d p re s e n t appeal be f o r e us. Th e Ld. counsel for as se s s e e h as c h a l l e n g ed t h e r e j e c t i o n o f r egi s t r a t i o n s ta t i n g t h a t t h e r e a s o n s f o r re j ec t i o n d o n o t ma k e t h e a c t i vi t i e s o f t h e 6 a s s e s s e e tr u s t i n g e n u i n e . Th e L d . c o u n s e l for a s s e s s e e p o i n t e d o u t t ha t t h e r e as o n s e nu m e r a t e d b y t he L d . CI T( E ) d e a l i n g w i t h t h e d i s c r ep a n c i e s i n t h e b o o k s o f ac c o u n t v i s - à-vis the bank statement or p e r t a i n i ng to violation of p r o v i s i o ns o f s e ct i o n 2 6 9 S S o f the A c t c a n b e m a tt e r s t o b e taken into c o ns i d e r a t i on while computing t he exempt i n c o m e o f t h e a ss e s s e e a s p e r p ro v i s i o n s o f s e c ti o n s 1 1 a n d 1 2 o f t he A c t bu t c a n n o t b e con s i d e r e d f o r th e p u r p o s e o f determining the g e n u i n e ne s s of the ac t i v i ti es of the assessee t ru s t for g r a n t i ng r eg i s t r a t i o n . S i mi l a r l y , Ld. c o u n s e l f o r a sse s s e e s t a t ed t ha t t h e a l l e g a ti on t h a t t h e a s s e s s e wa s i n cu r r i n g e xp e n s e s o n c e l e b ra t i o n s w h i c h w e re organized for th e benefit of a specific c o m mu n i t y w as baseless. Th e L d . c o u n s el f o r as s e s s e e po i n t e d o u t t h a t in e a r l i e r y e a rs w h e n t h e e x p e n s e s w e r e b o o k e d o n a c c o u n t o f Aggarsain Ja y an t i c e l e b ra t i o n i.e. in the ye a r ending 3 1 . 3 . 2 0 1 3 a n d 31 . 3 . 2 0 1 4 , t h e d et a i l s o f su c h e xp e n s e s no w h e r e b r o u gh t ou t t h i s f a c t th a t t h e e x p e n s es w e re i n c u r r e d t o b e n e fi t t he m em b e r s o f a p ar t i cu l a r c o mm u n i t y o n l y . Th e L d . c o u n s e l fo r as s e s s e e p o i n t e d o u t f r o m t h e d eta i l s p l a c e d a t P a p er B o ok p ag e N o . 24 f o r t h e y e a r e nd i n g 3 1 . 3. 2 0 1 3 a nd a t P a p e r B o o k p a g e N o .3 1 f or t h e y e a r e n d i ng 3 1 . 3 . 2 01 4 t h a t i t i n d u l g e d i n i n c u r r i n g e x p e n s e s f o r t he b e n e f i t o f p u b l i c a t l a rg e i n c l u d i n g d i s t r i bu t i o n o f f r u i t s an d s w e e t s t o p o o r p e o p l e, r a ti o n t o p o o r f a mi l y , d i s t ri b u t i on o f s t u d y m a t e r i a l a n d u ni f o r m a nd b a gs , e t c . Th e s a i d d e t a i l s f o r t h e y e a r en d i n g 3 1 . 3 . 2 0 1 3, w h i ch i s i d e n ti c a l f or t h e e n d i ng 3 1 . 3 . 2 0 1 4 a l s o ar e a s u n de r :
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1. Distribution of Study material, Uniform and Books 35050.00
2. Expenses. on compaign 8070.00
3. Free computer education 15000.00
4. Exp. on Introductory meet 12615.00
5. Workshop exp. 26480.00
6. Physiotherapy /Medicine Distribution 18000.00
7. Fruits/Sweets to poor people 26500.00
8. Ration to Poor families 19210.00
9. Festival Exp. 1090.00
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162015.00
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9. Th u s t h e L d . co u n s e l f o r a s s es s e e s t a t ed t h at the a l l e g a t i on s o f t he l d C I T( E ) t h a t th e a s s e s s e e s o cie t y w a s f o r t h e b e n e fi t o f a pa r t i c u l a r c o m m un i t y w a s w i t h o ut a n y b a s i s and ought to be rejected. E v en o t h e r w i s e, t h e Ld . c o u n s el for assessee s ta t e d that even if it was held that the a c t i v i t i e s w e re u n d e r t a k en f o r t h e b e n e fi t o f a p a r t i c ul a r community the provisions of section 13 w ere a t t r a ct e d w h i c h p r ov i d e d th a t t h e b e n e f i t of e x e m p ti o n u / s 1 1 o f t he A c t w o u l d n ot b e g r a n t e d t o an y p a r t o f t h e i n c om e f r o m t h e p r o p e r t y o f a t r us t i f i t i s es t a b l i s h e d f o r t h e b ene f i t o f a n y p a r t i c u l ar r e l i g i o u s c o m m u n i t y o r c a s t e . Th e L d . c o u n s el f o r a s s es s e e p o i n t e d o u t t h a t t he p r o v i si o n s o f s e c t i o n 1 3 c o m e i n t o p l a y o n c e t h e r e g i st r a t i o n u / s 1 2 A h a s b e e n g r a n t e d a n d t h e s i t u a ti o n en u me r a t e d u / s 13 de n y i n g t h e e x e m p t i o n o f i n co m e s c a n n o t b e c o n s i d e r ed f o r t h e p u r p o se o f g r a n t o f e x emp t i o n u / s 1 2 A of t h e A c t . I n s up p o r t , t he Ld. c o u n s el for assessee r e l i ed on the d ec i si o n of the Hon'ble j ur i s d i c t i o n a l Hi g h Court in t he case of C I T( E x e m pt i o n s ) V s . M / s S r i S h i rd i S a i D a r b ar i n I TA N o .3 8 8 o f 2 0 1 7 d a te d 27 . 7 . 2 0 1 7 . Th e re a f t e r t h e L d . co u n s e l f o r a s s e s s e e s t a t e d th a t t h e al l e g a ti on o f t h e L d . CI T( E ) t h a t th e a s s e s s e e tr u s t ha d i n c u r r ed n o e x p e n d i t ur e o n i t s s t a t e d o b j e c t i v es of ru n n i n g d i s p e n sa r y or ad o p t i ng 50 p o or children or p ro v i d i n g s c h o l ars h i p w as a l so f a c t u al l y i n c o r r e c t a n d d re w o u r a t t e nt i o n t o t he d e ta i l s o f A g g a r s ai n J a y a n t i e x pe n s es r e f e r r e d to ab o v e f o r t h e yea r s e n d i n g 31.3.2013 a nd 31.3.2014 a nd details of mi s c e l l a n eo u s e x p e n s e s f o r t h e y e a r e n d i n g 3 1 .3 . 2 0 1 5 a t P ap e r B o o k p age No.38 and p o i nt e d out t h e r e f ro m that the s ai d details i n c l u d e d e x p en se s o f s t u d y m a t e r i a l , u n i f or m , b o o k s , f r ee computer e d uc a t i o n , p h y s i ot h e r a p y and m e d i c i ne d i s t r i b u ti o n . I n v i e w of t h e ab o v e , t he L d . co u n s e l fo r a s s e s s e e s u b m i tte d t h a t al l t h e re a s o n s e n um e r a te d b y t h e L d . CI T( E ) for re f u s i n g gr a n t of r e g i s t ra t i o n we r e of no c o n s e q u e nc e a n d L d . CI T( E ) h a d th e r e b y e rr e d i n r e f u s i n g t o g r a n t r e gi s t r a ti on u / s 1 2 A o f t he A c t .
10. Th e L d . D R o n th e o t h e r ha n d r el i e d u p o n t h e o rd e r of t h e L d . CI T( E ) .
11. W e h a v e h e a r d bo t h t h e p a r t i es a n d g o n e t h r o u gh t h e d o c u m e n t s r e f e rr e d to b e fo r e us . We f i n d m e ri t in t he c o n t e n t i on s o f th e L d . c o u n s e l fo r t h e a s s e s s ee . Th e i s s u e b e f o r e u s p er t a i n s t o g r a n t o f reg i s t r a t i o n u / s 12 A a n d t h e L e g i s l a t ur e h a s p r e s c r i b ed t h e sa t i s f a c ti o n o f t wo c o n d i t i o n s b y t h e g r a n t i n g a u t h o r i t y w h i l e g r a n t i n g r e g i st r a t i o n ; i ) w h e t h e r th e o b jec t s o f t he a s s es se e a r e c ha r i t a bl e i n n a t u re a n d ; i i ) w h e t he r t h e a c t i v i t i es un d e r t a k e n a re ge n u i n e . In 9 t h e p r e s e n t c a s e w e f i n d t h a t n o a d v e r s e r e m ar k s h a v e b e en recorded by the L d . CI T( E ) wi th regard to t he o b j e c ts c o n t a i n e d i n t h e M e m o r a nd u m of a s s e s s ee t r us t . M o r e o v er , w e f i n d t h a t t he r e a s o ns e n ume r a t e d by t h e Ld . CI T( E ) i n h o l d i n g t h a t t h e a c t i v i t i e s o f t he a s s e s s e e t r u s t w e r e n o t genuine in fact h a v e n o r ef l e ct i o n o n t h e g e nu i n e n e s s of t h e a c t i v i t i e s of th e a s s e s s ee t r u st a t a l l . As r i g h tl y p o i n t e d o u t b y t h e L d . c ou n s e l fo r a ss e s se e , m o st o f t h e re a s o n s a r e v a l i d f o r th e p ur p o s e o f c om p u ti n g t h e i n co m e e l i g i b l e f o r e x e m p t i o n u / s 11 o f t h e A c t , l i k e t h e v i o l a t i o n of c o n d i t i on u / s 2 6 9 S S o r an o m a l y b et w e e n t h e b o o ks o f ac c o u n t a nd bank s t a t em e n ts but c a n n ot be c o n s i d e re d r el e v a n t f or refusing g r a n t o f r e g i s t r a ti o n u/ s 1 2 A since they have no r e f l e c t i o n o n t h e g e n u i n e n es s o f th e a c t i v i t i e s c a r ri e d o u t b y t h e a s se s s e e . F u r t h e r w e ag r ee w i t h t h e L d . c o u n s e l f o r assessee that th e fact t h at t he a s s e ss e e ha d i n c u r re d e x p e n s e s o n Ag ga r s a i n Ja y a n t i i n t h e fi r s t p l a c e d o e s no t e s t a b l i s h t h a t t he a s s e s s ee s o c i e t y h a s b e en e s t abl i s h e d f or t h e b e n e f i t o f a p a r t i c u l a r c o mm u n i t y o n l y . A s h a s b e en r e v e a l e d f r o m t he I n c o me & E x pe n d i t u r e A c c o unt , B a l an c e S h e e t a n d S t a t em e n t o f A f f a i rs o f t h e a s s e s s ee t r u s t f o r v a r i o u s ye a r s , the e x p e n d i t u r e o n A g g a r s a i n J a y an t i i s o n l y o f s m a l l p o rt i o n o f t h e t o t a l e xp e n d i t u r e i n c u r re d b y t h e a s s e s s e e . Th u s o n t h i s b a s i s a l o n e i t c a n n o t b e s a i d t h a t the a s se s s e e t ru s t was e s t ab l i s h e d f or the be n e f i t of p a r t i c u l ar c o m mu n i t y o n l y . E v e n o t h e r w i s e , w e ag r e e w i t h the Ld. c o u n se l for as s e s s ee th a t even if held so th e a s s e s s e e i s l i a bl e t o b e c ov e r ed u n d e r t h e p ro v i s i o n s of 10 s e c t i o n 1 3 ( 1 ) ( b ) o f th e Ac t whi c h o u tl i n e s s i tu a t i o n s o r c a s e s i n w h i c h e x e m p t i o n u/ s 1 1 w o u l d n o t a p p l y a n d p r o v i s i o ns of se c t i o n 13 h a ve to be looked into while c a l c u l a t i n g t he e x e m p t i nc o m e o f t h e a s s es s e e u / s 1 1 w h i c h i s c a l c u l at e d a f te r t h e g r a nt o f re g i s t r a ti o n u / s 1 2 A o f t he Act. Th e r e f o r e , t h e s e c o n d i ti o n s c a n n o t b e c o n si d e r e d f or t h e p u r p os e o f gr a n t i n g e x e m p t i on u / s 1 2 A o f t h e A c t . Th e r e l i a n c e p l a ce d b y t h e L d . c o u n s e l f o r a s s e ss e e o n t h e d e c i s i o n o f t he Ho n ' b l e ju r i s d i c t i on a l H i g h C o u r t in t h e c as e o f M / s S r i S h i rd i S a i D a r b a r ( s u p r a ) i s a p t wh e r e i n t h e H o n ' b l e C o u r t ha s c a t e g or i c a l l y u p h e l d t he f i n di n g s o f th e Tr i b u n a l t h a t s ec t i o n 1 3 w o u l d n o t c o m e i n t o pl a y a t th e t i m e o f gr a n t i ng r e g i s t r a ti o n u /s 1 2 A o f t he A c t . Moreover, t h e a l l e ga t i o n s o f t h e L d .CI T( E ) t h a t t h e a s s e s se e h a s n ot e x p e n d e d on i t s s t a t e d o bj e c t s of r u n n i n g a f r e e d i s p e n s a r y and adopting children for ed u c a t i o n has also been d e m o n s t r at e d be f o r e us to be false from the f i n a n c i al s t a t e m e n t o f t h e a s s e s s e e t r u s t w h i c h w a s p r o d uc e d b e f o re t h e L d . CI T( E ) al so .
12. I n v i e w of t h e a bo v e , w e fi n d t ha t t h e L d . CI T( E ) ha d n o b a s i s a t a l l f o r h o l d i n g t ha t t h e a c t i v i t i es o f t he a s s e s s e e t r u s t w e r e g e n u i n e a n d , t h e re f o re , w e s e t a si d e th e o r d e r o f the L d . CI T( E ) d i r e c t i ng him to grant the assessee r e g i s t r a ti o n u /s 1 2 A o f t he A c t .
13. Th e a p p e a l o f the a s s e s s ee s t a nds a l l o w ed 11
14. In t he r e s u l t, the appeal of the a s s e s s ee in I TA N o . 9 1 / C h d/ 2 0 1 7 is d i s m i s s ed and the a p pe a l of the a s s e s s e e i n I TA N o . 9 2 / C h d/ 2 0 1 7 i s a l l o w e d .
O r d e r p r on o u n c ed i n t h e O p e n Cou r t .
Sd/- Sd/-
(SANJAY GARG) (ANNAPURNA GUPTA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 28 t h September, 2017
*Rati*
Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT
5. The DR
Assistant Registrar,
ITAT, Chandigarh