SHRI BABA BALAKPURI DHARMARTH AUSHDHALAYA ANF TRUST,ROHTAK vs. CIT(EXEMPTION), CHANDIGARH

per receipt and payment account for FY 2016-17, he submitted that there is no difference between the sum. With respect to the activities of Jan Sewa Samiti, he submitted that these activities of the charitable trusts are being carried out along with Jan Seva Samiti and therefore the activities are of the trust itself. He further referred to the provisions of the act and stated that at the time of registration u/s 12 AA of the act the activities of the trust has been examined and those activities are of charitable nature. He submitted that merely because some infirmities are pointed out which does not exist at all, it cannot be said that the activities of the trust are not charitable in nature. He further submitted that if the trust is granted registration u/s 12 AA of the act than at the time of assessment of the trust whether the assessee has spent money on charitable activities or not can be examined at the time of allowing benefit of Section 11 – 13 of the act. He therefore submitted that the learned CIT – E has not given a single instance where the activities of the trust cannot be said to be charitable in nature. Therefore, the trust should be allowed registration u/s 12AA of the act.The learned that AR also referred to the paper book filed by him and also relied upon several judgments placed therein. He also referred to several communications and replies of the assessee submitted before the learned CIT E. 07 The learned CIT DR vehemently supported the order of the learned CIT – E and submitted that there are certain infirmities pointed out by the registering authority and therefore the trust is denied registration u/s 12AA correctly. He extensively referred to paragraph number 7 of the order. 08 We have carefully considered the rival contention and perused the order of the learned and CIT – E passed on 31/8/2017 rejecting the application for registration u/s 12AA of the act of the trust. We have also considered the paper book filed by the learned authorised representative as well as several judicial precedents relied upon. The facts clearly shows that that assessee is a trust which is running (1) Dharmarath Aushadhalaya (2) 5 | P a g e

Guashala (3) Bhandara (4) Satsang (5) Bhakti Lectures . Assessee has also started constructing Satsang Bhavan . land & building sheds are owned by the trustee namely Baba Karanpuri Ji and same has been given to the trust without any lease rent for the use of charitable purposes. Building on the land is constructed by the Trust during the year 2016-17 out of corpus donation fund, to run its activities. That the gaushala and dharmarth ausdhalaya being run on the old building owned by the trustee. Ambulance has been purchased for a value of Rs 375400/- out of grant from the Haryana Govt received for Rs 3.09,000 and balance paid by the trust Rs 66,400/-. So in the balance sheet ambulance value has been shown at Rs 66,400/- . Ambulance being used for charitable purpose for providing services to the needy patients in time. That Income and expenditure both for the running of Ambulance has been accounted for and duly shown in Receipt & payment accounts. Further cash deposit during demonetization only Rs 739,000/- out of opening of Dharmarth Gulaks kept at Gaushala , Mandir, Dharmarth Aushdhayla and Satsang place and from the regular receipts from running of charitable activities. Car has been purchased during the year 2016-17 by the trust. That car is being used for the purpose of running the trust and achieving the objects of trust more efficiently & effectively. That mahant of dera has to go in various satsang , meetings for donation on behalf of the trust. Appellant assessee trust time to time also participates in charitable activities along with other charitable institutions and that programme were organized along with Jen Sewa Sansthan. The snapshot of the activities of the trust carrying on the charitable activities could be seen from the receipt and payment account submitted before us for last three years:- serial Nature of income 2015 2016 2017 number Amount in rupees

6 | P a g e

Donation 8,85,095 18,01,500 Nil 1 Laboratory income 2,00,226 5,14,050 7,61,000 2 Outdoor patient 1,30,623 1,34,815 1,80,000 3 income Ambulance income 2,02,380 2,78,790 2,37,740 4 Ambulance grant 3,09,000 Nil Nil 5 Membership fees 50,000 50,000 50,000 6 Dental income Nil 1,81,740 1,27,235 7 X-ray income Nil 12,600 55,780 8 Physiotherapy Nil 72,910 1,24,000 9 income Religious activity Nil Nil 9,97,900 10 donation Corpus donation Nil 19,90,000 1,00,000 11

09 Before the learned Commissioner assessee also produced the bank statement of the assessee with Oriental Bank of commerce from 8 May 2013 to 31/3/2017. It further provided the register of outdoor patients before him. From the above activities it is apparent that assessee is carrying on charitable activities as envisaged u/s 2 (15) of the act. 10 Coming to the objections of the learned CIT – E we find that assessee has given a detailed explanation with respect to the land and building which is owned by the trustee and on which satsang Bhavan is constructed. Further the contractor’s account was also produced which shows that the initially some amount was given for the construction activity however the contractor returned the sum and later on the trust carried on the

7 | P a g e

construction activities by looking at alternatives. The amount was received from the contractor through account payee cheques and same were also given earlier to him through account payee cheques. Therefore we do not find any merit in the finding of the learned CIT –E that the transaction with Mr Surinder Sukhija prevents assessee from getting registration u/s 12 AA of the act. Further the assessee has submitted the bank account since beginning. The amount is deposited after demonetization which were lying in the goallakhs of the assessee. This was also disclosed in the receipt and payment account. The bank account submitted by the assessee also supports this. The justification given by the assessee for holding the car and using it for the activities of the trust is also justifies the use of claiming of the depreciation as well as payment of insurance. In fact the level of activities being carried out by the trust justifies the use of car. Further the learned CIT E held that the credits in bank account as well as the receipt as per receipt and payment account for financial year 2016 – 17 does not match, however, there is no difference between the receipts which are required to be shown in the receipt and payment account. Assessee has also shown the bank account to the learned CIT – E, who could not find out or give any instances where the receipts are not accounted in the receipt and payment account but are credited in the bank account. The carrying on of the activities of satsang along with Jan Sewa Samiti has also been properly explained by the assessee that it carries on these activities along with these other organizations. Further the government of Haryana has give grant to the assessee trust for carrying on its medical activities for purchasing an ambulance. Appellant trust is also showing considerable amount of fees from the patient’s and also applies substantial amount for medical relief , relief to poverty, gaushala and religious activities. All these activities falls under the gamut of provisions of Section 2 (15) of the act. The learned CIT E without any evidence and on irrelevant considerations has denied the registration to the trust u/s 12 AA of the act. Object of Section 12AA 8 | P a g e

of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust whether applied for charitable or religious purposes. Off course trust needs to show that the activities are genuine I and in accordance with the objects. This is demonstrated by the applicant appellant exhaustively . The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find present case arising out of the question of registration of the Trust and not of assessment. All these factual aspects can also be verified during the course of assessment proceedings when the assessee claims benefit of Section 11 – 13 of the income tax act after registration. In view of the above facts, we direct the learned CIT –E to grant registration to the assessee u/s 12 AA of the act, as it is carrying on charitable activities as envisaged u/s 2 (15) of the act and none of the activities carried out by the assessee are not genuine, in fact they are in accordance with the trust deed and in consonance with the provisions of The Income Tax Act. 11 Accordingly, appeal filed by the assessee is allowed.

Sd/- Sd/- ( AMIT SHUKLA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 03/11/2021. *MEHTA* Copy forwarded to 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi.

9 | P a g e

Date of dictation 3.11.2021 Date on which the typed draft is placed before the 3.11.2021 dictating member Date on which the typed draft is placed before the other 3.11.2021 member Date on which the approved draft comes to the Sr. PS/ 3.11.2021 PS Date on which the fair order is placed before the 3.11.2021 dictating member for pronouncement Date on which the fair order comes back to the Sr. PS/ 3.11.2021 PS Date on which the final order is uploaded on the website 3.11.2021 of ITAT date on which the file goes to the Bench Clerk 3.11.2021 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order

10 | P a g e