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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
आदेश / O R D E R PER KUL BHARAT, J.M: This appeal by the assessee is directed against order of the CIT(Exemption), Bhopal dated 26.3.2018. Assessee has raised following grounds of appeal:
[ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore]
That the learned CIT (Exemption), erred in law in rejecting the application u/s 80G of the Act on presumptions and surmises without appreciating the fact that activities being carried out by the Trust are solely for charitable purposes.
That the learned CIT (Exemption) grossly erred in presuming that provisions of section 80G will be musused just because some of the trustees were also directors of M/s. Rajratan Global Wires Ltd., a public limited company, from whom donations were received by the Trust without appreciating the fact that the donations received were applied solely for charitable purposes. 3. That the learned CIT (Exemption) further erred in law in ignoring the explanations that the tentative accounts were submitted earlier while the audited accounts for the year ending on 31st March 2018, were submitted during proceedings u/s 80G after necessary corrections, and the mismatch as alleged, was properly explained. 4. That the learned CIT (Exemption) erred in ignoring the facts that the donations given to other institutions who are not registered under 12A were specific for payment of school fees of needy students or medical assistance to patients admitted in the hospital. 5. That the rejection of application u/s 80G is unjustified, improper and bad in law and the same please be granted or the Ld. CIT(Exemption) may be directed to grant the same. 6. The appellant further craves leave to add, alter, and/or to amend the aforesaid grounds of appeal
as when necessary.
2. The facts giving rise to the present appeal are that the assessee society had filed an application for exemption u/s 80G of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) in form No.10G on 29.9.2017. The Ld. CIT(Exemption) sought verification as embodied in para-3 of his order which reproduced as under:
[ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore]
Further, Ld. CIT(A) declared to grant registration on the following grounds:
[ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore]
Ld. Counsel for the assessee submitted that the so called mismatch purchase figures have been reconciled.
The assessee has also filed evidences regarding donations to various organizations and their details. Ld. Counsel submitted that these details were not before Ld. CIT(E) as were not available with the assessee. Ld. Counsel for the assessee reiterated the submissions as made in the written synopsis which is reproduced as under:
[ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore] [ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore] [ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore]
Per contra, Ld. D.R. opposed these submissions and supported the order of the Ld. CIT(E).
We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. After considering the totality of the facts and the material placed before us, we find that the assessee has filed certain evidences to explain the queries made by the Ld. CIT(E). Therefore, we set aside the [ITA No.422/Ind/2018] [M/s. Rajratan Foundation, Indore] order of the Ld. CIT (E) and restore the application seeking registration for decision afresh. Ld. CIT(E) would consider the evidences as placed by the assessee and decide in accordance with law. Grounds raised in this appeals are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order was pronounced in the open court on 27.09.2019.