GRAMYA VIKAS SANGATHAN,NABARANGPUR vs. CIT (EXEMPTIONS), HYDERABAD

आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM आयकर अपीऱ सं./ITA No.38/CTK/2019 (नििाारण वषा / Assessment Year :NA) Gramya Vikas Sangathan, Vs. CIT(Exemptions), AT-Tota Sahi, Hyderabad-500004 PO/Dist-Nabarangapur, Odisha-764059 स्थायी लेखा सं./PANNo. : AAATG 7179 A (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee by : Shri G.Naik/Rajat Kar,Advocates िाजस्व की ओर से /Revenue by : Shri S.M.Keshkamat, CITDR

सुनवाई की तािीख / Date of Hearing : 06/11/2019 घोषणा की तािीख/Date of Pronouncement : 08/11/2019 आदेश / O R D E R Per L.P.Sahu, AM: This appeal has been filed by the assessee against the order of Commissioner of Income Tax (Exemptions), Hyderabad, dated 28.12.2018. 2. The sole issue involved in this appeal is with regard to rejection of application filed by the assessee for registration u/s.80G(5)(vi) of the Act, 1961. 3. The assessee filed an application in Form 10G which was rejected by the CIT(E) holding that assessee has not carried out any charitable

2 ITA No.38/CTK/2019 activities and, therefore, the assessee is not eligible for the same and

rejected the application for approval u/s.80G(5)(vi) of the Act.

assessee has fulfilled the conditions laid down in clauses (i) to (v) of

sub-section (5) of Section 80G of the Act, the CIT(E) has erred in

observing that the assessee has not carried out any charitable

activities. To substantiate the activities, the assessee has filed the paper

book containing pages 1 to 235 and prayed for grant of approval

u/s.80G(5)(vi) of the Act for exemption.

available on record. The sole disputed issue is with respect to the

rejection of application for approval u/s.80G(5)(vi) of the Act. Ld. AR

during the course of hearing drew our attention to the audit reports

with audited financial statements and also drew our attention to the

byelaws of the Trust which are charitable in nature for the welfare

children, welfare of the aged and development of SC & ST and other

backward caste and minority community. We found that there is no

dispute in respect of maintenance of the books of accounts and the

activities carried out by the assessee but the fact that the CIT(E) has

rejected the application by mentioning that charitable activities

conducted by the assessee is not to the satisfaction and the assessee is

3 ITA No.38/CTK/2019 acting as a contractor for implementation of the work entrusted by a granting agency. We considering the observation of the CIT(E) and also submissions of the assessee along with financial statements filing in the paper book, are of the opinion that the ld. CIT(E) has to consider the provisions of law or there is any violation in respect of the provisions due to any activity, which is not in legality. The assessee, during the course of hearing, has filed the assessment order passed u/s.143(3) of the Act by the AO for A.Y.2016-2017, dated 31.10.2018 in which the AO has himself given benefit of Exemption u/s.11(1)(a) of the I.T.Act, 1961. Therefore, we are of the view that the matter needs further verification and examination on the part of CIT(E) to the documents filed in the form of paper book before us by the assessee. Accordingly, we direct the CIT(E) to verify and examine the bye-laws with the financial statements and pass order accordingly. Needless to say, reasonable opportunity of being heard shall be given to the assessee.

Sd/- Sd/- (C.M.GARG) (L.P.SAHU) न्यानयक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER कटक Cuttack; ददनांक Dated 08/11/2019 Prakash Kumar Mishra, Sr.P.S.

4 ITA No.38/CTK/2019 आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अऩीलाथी / The Appellant- 1. Gramya Vikas Sangathan, AT-Tota Sahi, PO/Dist-Nabarangapur, Odisha-764059 प्रत्यथी / The Respondent- 2. CIT(Exemptions), Hyderabad-500004 आयकि आयुक्त(अऩील) / The CIT(A), 3. आयकि आयुक्त / CIT 4. ववभागीय प्रनतननधध, आयकि अऩीलीय अधधकिण, कटक / DR, ITAT, 5. Cuttack गार्ा पाईल / Guard file. 6. सत्यावऩत प्रनत //True Copy// आदेशािुसार/ BY ORDER,

(Senior Private Secretary) ITAT Cuttack Bench, Cuttack