JEELA UPBHOKTA JAGARAN SAMITI,SIKAR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

None appeared on behalf of the assessee on the last two schedule date of hearing. Subsequently, written submissions were filed with the Registry with a request to consider the same while deciding the matter. It was accordingly decided to proceed with the matter considering the written submissions filed by the assessee.

In its written submissions, the assessee society has submitted that the ld. CIT(E) has referred to one of the objects of the assessee society as per its Jeela Upbhokta Jagaran Samiti, Sikar Vs. CIT(Exemptions), memorandum of association dated 11.12.2013 and has held that the object of the society is not that of charitable nature and object is to supply labour on contract to Government/Private/Co-operative Societies etc. In this regard, it was submitted that the object of the society is not to make available any labour on contract to any person as the assessee society has no such manpower to supply on contract to various persons. It was submitted that the intention behind stating the said object in the memorandum of association is to provide its services and help educated unemployed youth persons in getting jobs to earn their livelihood. In support, reliance was placed on the receipt and payment account for the year ended 31st March, 2014, 31st March, 2015 and 31st March, 2016 wherein there is no receipt from supply of labour on contract to any persons. It was further submitted that the reliance placed by the ld CIT(E) on the decision of the Co-ordinate Bench in case of M/s Multipurpose Action for Rural Development Sansthan (ITA No. 1005/JP/2017 dated 28/02/2018) is not correct as the facts in that case were entirely different from facts of the case of the assessee society. It was submitted that in that case, the assessee had shown major receipts from providing placement services to various Government Department and banks. However, in the present case, there are no such receipts from providing of placement services to various government department and bank. It was accordingly submitted that all the objects of the assessee society under appeal are completely in the nature of charity and for the betterment of human being and therefore, the assessee should be granted registration u/s 12AA of the Act.

In his submissions, the ld. CIT DR relied on the findings of the ld. CIT(E) in his order dated 27.07.2018. Referring to one of the objects stated at point No. 12 of the memorandum of the association dated 18.12.2013, the ld. CIT DR submitted that the object is to supply labour on contract to Government/Private/Co-operative Societies etc. which means that the assessee 2 Jeela Upbhokta Jagaran Samiti, Sikar Vs. CIT(Exemptions), society intended to run placements centres/ agency which are clearly business activities and cannot be held charitable within the meaning of section 2(15) of the Act. Further, our reference was drawn to para 10 of the CIT(E) order wherein it has been stated that the assessee society has provided placement services to various government, semi-government/co-operative and private sector. Accordingly, it was submitted that the objects as well as the actual activities of the assessee society are not charitable in nature. Therefore, the ld. CIT(E) has rightly denied the registration u/s 12AA of the Act which should be confirmed and the appeal of the assessee society should be dismissed.

We have heard the rival contentions and pursued the material available on record. Firstly, it is noted that none appeared on behalf of the assessee and even the submissions so filed by the assessee society are not sufficient enough for us to decide the matter under appeal. It is important that the basic documentation in terms of the memorandum of the association and bye- laws of the assessee society should have been submitted before the Bench besides the activities which have actually been carried out by the assessee society in the past. Merely submitting copies of the yearly receipt and payment account is not sufficient enough for us to take a view in the matter. Further, the ld. CIT(E) has referred to one of the objects of the assessee society and on review of the same has observed that the object of the assessee society is to supply labour on contract to various persons and to run placements centres/agencies and further in para 10 of his order, he has stated that the assessee society has provided placement services to various government, semi-government/co- operative and private sector. However, the assessee society has contested the said finding stating that the intention behind the said object is to help support educated unemployed youth persons in finding suitable employment and not to provide any placement services to the various government and private agencies as stated by the ld CIT(E) and referring to its yearly receipt and payment 3 Jeela Upbhokta Jagaran Samiti, Sikar Vs. CIT(Exemptions), account, has submitted that there are no receipts from such activities. In our view, this is again a matter of examination as to whether there are any activities which have been actually carried out by the assessee in form of such services and what is the exact nature of such activities. Even on this account, the matter need examination by the ld. CIT(E). Accordingly, we deem it appropriate to remand the matter back to the file of the ld. CIT(E) to consider the matter afresh after giving reasonable opportunity to the assessee.