SOCIETY ON PROMOTHI ACTIVATION & RESEARCH FOR SCIENTIFIC SOCIAL HELPS,NEW DELHI vs. CIT EXEMPTION , DELHI
Income Tax Appellate Tribunal, DELHI BENCH, ‘G’: NEW DELHI
Before: SHRI YOGESH KUMAR US & SHRI BRAJESH KUMAR SINGH
PER BRAJESH KUMAR SINGH, AM, These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax-(Exemption), Delhi (hereinafter referred to ‘CIT(E)), both dated 29.08.2024 rejecting the application filed by the assessee in Form 10AB seeking approval u/s 80G(5)(iii) of the IT Act 1961 (hereinafter referred as ‘the Act’) and rejecting the application filed in for No. 10AB for grant of registration u/s 12A (1) (ac)(iii) of the Act respectively. Since, both the appeals are inter-related both the appeals were heard together, and are being disposed of by this common order for the sake of convenience and brevity. 2. First we take up ITA No.4549/Del/2024 against the rejection of the application u/s 12A(1)(ac)(iii) of the IT Act. 3. Brief facts of the case:- The applicant had filed an application dated 08.02.2024 in Form 10AB for registration u/s 12A(1)(ac)(iii) which was rejected by the ld. CIT(E) vide order dated 29.08.2024 which is reproduced as under: The applicant has filed an application dated 08.02.2024 in Form 10AB for registration u/s 12A(1 )(ac)(iii) of the Income Tax Act, 1961. The applicant was issued a questionnaire dated 19.03.2024 with a request to furnish certain details I documents / clarifications in support of its claim of registration u/s 12A(1 )(ac)(iii). The case was fixed for compliance on 03.04.2024. 2. In response, the applicant filed part details by way of financials, declarations, NOC, trust deed, Balance Sheet and Income & Expenditure for the year ending 31.03.2021 to 31.03.2023 etc. on 02.04.2024 and 19.04.2024. Hence, further opportunity was afforded vide letter dated 14.06.2024 to file pending details and some additional details / clarification / documents by 20.06.2024. It was also mentioned that in case of failure, the proceedings shall be decided on the basis of information available on record and no further opportunity will be granted being limitation matter. The applicant comply with this notice on 19.06.2024 and submitted Balance Sheet and Income & Expenditure for the year ending 31.03.2023 to year ending 31.03.2024, form 10AC for 12A and 80G, photos, bank statement, etc.
On perusal of the documents and financials filed by the applicant, it is noted that the main expenses incurred by applicant trust is on seminar & camp, which is not mentioned in its objects and also not in nature of charity. Further the bills submitted are mainly raised by hotels/resorts on account of food/banquet/rooms etc, which are again not in nature of charity. Further, the trustees as per submission made are medical practitioners and doctors. At the same time donors are all pharmaceutical companies and they have deducted TDS u/s 194C on the payment made to the assessee trust. Thus it has failed to prove that activities for charitable purpose, as mentioned in section 2(15) of IT Act, are actually being undertaken by it. 4. In light of the above, the application filed in Form 10AB for grant of registration u/s 12A(1 )(ac)(iii) is hereby rejected. 5. Since, the application filed in Form 10AB seeking registration u/s 12A(1 )(ac)(iii) is rejected, the provisional registration granted vide order dated 23.01.2024 having Unique Registration Number AAQTS7319JE20221 issued for the period from A. Y. 2023-24 to A.Y. 2025-26 is also cancelled. 3.1 Thus, it is seen that the AO for the reason mainly mentioned in Para 3 of his order rejected the application filed in Form No. 10AB for grant of registration u/s 12A(1)(ac)(iii) of the Act, by holding that the assessee failed to prove that activities for charitable purpose as mentioned in section 2(15) of the Act were actually undertaken by it. 4. Against the said order, the assessee has filed an appeal with the following grounds of appeal: “That under the facts and circumstances, ld. CIT(Exemption) grossly erred in law as well as on merits in holding that the assessee has failed to prove that the activities of trust are for charitable purposes as per Sec.2(15) of the I.T. Act and consequently erred in rejecting the application filed in Form- 10AB seeking registration u/s 12A(1)(ac)(iii)”. 5. During the course of hearing, the assessee filed a written submission and paper book (pages 1 to 197). The assessee certified that the said documents were also filed before the ld. CIT(E). The written submission of the assessee is reproduced as under: “Denial of exemption certificate U/S.12A The assessee, a charitable society, came into existence vide trust deed Dtd. 18.04.15, got registered on 30.12.15 with Sub-