DHANBAD BLIND RELIEF SOCIETY,DHANBAD vs. CIT EXEMPTION , PATNA

आदेश /O R D E R PER BENCH:- This assessee’s appeal arises against the Commissioner of Income Tax (Exemption)-Patna’s order dated 22.09.2017, denying registration in proceedings u/s. 12AA of the Income Tax Act, 1961; in short ‘the Act’ vide following discussion:- “The applicant Society filed application in form No.10A of the Income Tax Rules,1962 on 30.03.2017 for registration u/s. 12AA of the e Income Tax Act, 1961. The applicant was requested to appear on 20.06.2017 either in person or through an authorized representative with relevant documents for verification of the genuineness of the Society. The details sent by the applicant Society by post and mail have been considered. The Society has not filed the audited balance sheet as on

ITA No.12/Ran/2018 Dhanbad Blind Relief Society Vs. CIT(Ex),Pat Page 2 31.03.2016 though it is overdue. The AR stated that audit as on 31.03.2016 is yet to be completed. Further it is seen that the school is run from a premise neither owned by the applicant Society nor taken on rent. No plausible explanation has been submitted in this regard. In view of such, I am not satisfied about the genuineness of activities of the Society. Therefore application filed in from no.10A for getting registration u/s./ 12AA of Income-tax Act, 1961 is rejected.” 2. It transpires during the course of hearing that learned CIT(Ex) has not declined assessee’s registration sought on the ground that its objects are in any way not covered u/s 12(15) of the Act. Learned counsel has placed on record its memorandum of association comprising the relevant objects as follows:- “4. Aims & Objectives of the Society: i. The prevention of preventable and the cure of curable blindness and eye trouble. ii. To impart education to the blind through suitable media including Bhartiya Braille System by establishing schools (wherever and whenever with hostel facilities), Libraries and Braille Press. iii. To impart training o the blind in useful vocational courses including handicraft, music etc. and to promote their all-round welfare, physical, mental, cultural, social and economical. iv. The conservation of vision, organization of lectures, demonstrations, exhibitions, conferences etc./. and the preparation of literature, charts, models, lantern sliders etc. and any other steps that may be necessary for the purpose of propaganda and education of the masses with regard to eye care. v. To train and maintain a staff of workers for the treatment of eye trouble, conservation of vision, the education and care of the blind etc. and other lawful works and may be needed to carry out the aims and objects of the Society. vi. To initiate, promote and advance measures: cultural, educational, legislative and others for eliminating the causes of blindness. vii. The Society shall help blind student, grants-in-aid for higher studies including technical and vocational course in college etc. viii. To take all the measures necessary or advisable for conserving vision and for preventing and curing blindness and the removal of its causes and for ameliorating and improving the condition of the persons suffering from blindness. ix. The Society shall organize boards, branches and centers for the relief of the blind and shall directly or through the established agencies maintain and help Eye Hospitals, Dispensaries etc. for the treatment of all eye diseases and make efforts for the conservation of vision. x. To purchase, sell, hire or lease or otherwise acquire any real or personal property and any rights and privileges necessary or convenient for the purpose of the Society. xi. To do all such lawful things as are necessary to the attainment of the above objects or any one of them. xii. To undertake appropriate projects to encourage and provide sources of earning to blind student and also develop the standard of skill.

ITA No.12/Ran/2018 Dhanbad Blind Relief Society Vs. CIT(Ex),Pat Page 3 xiii. To promote homes for blind children with proper care and guide by Society. Other objects. i) To work on prevention, awareness, early identification, diagnosis, rehabilitation, vocational training, education & training, infrastructure development and all other welfare work for different disabilities. ii) Give free training to women’s like Kutir Udyoge, so they can become self- employed and their live-style can be improved. Also remove social evils such as Dowry system, Child marriage, Child labour etc. and educate the peoples from seminars to abolish such systems. iii) To work on awareness, prevention, training and treatment of AIDS, Cancer, Drug addiction, Malaria, Kala zar and other killer diseases. iv) To work for development of Sanitation, Cleanness, Personal development, Education & training, self employment, Tribal welfare in the state to work in the Education & training, self employment, Tribal Welfare in the state to work in the field for environment protection, plantation, water harvesting, pollution control, non-conventional sources of energy, etc. and knowledge about the protection of environment. v) Also work in field of plantation and agricultural, spread education for planting trees to make environment green and clean. Also organized seminars for controlling the pollution.” 3. Mr. Singh places a very strong reliance on CIT(Ex)’s order denying Sec. 12AA registration. His further case is that if the assessee’s pleadings are based on the above stated trust deed. The matter be sent back to CIT(E) as an alternative for necessary factual examination thereof. 4. We find no merit in either Revenue’s twin arguments. The fact remains that CIT(E) has not commented anything adverse against the above extracted objects sufficiently takes care of the same to charitable in nature u/s 2(15) of the Act. We further find that assessee’s object No.(ii) in particular is in the field of carrying out educational activities for blind through suitable medium by way of establishment of schools, library and Brailie Press. Learned counsel quotes this tribunal’s co-ordinate bench’s decision in ITA No.237/Ran/2017 Sarvodya Welfare Society vs CIT(E) decided on 26.11.2018 accepting similar registration vis-à-vis the principle required to be followed at the time of sec. 12AA proceedings as under:- “7. We found strength in the submissions of ld AR and also at the time of registration the CIT(E) has not doubted the objects and activities of the trust, therefore, we are of the firm opinion that the CIT(E) at the time of registration has to consider the objectives and we support our view with the decision of Hon'ble Allahabad High Court in the case of CIT (Varanasi) vs Varanasi We4elfared Trust in ITA No.22 of 2014 order dated 2.11.2014 wherein the Hon'ble High Court has held that the preponderance of the judicial opinion of all the High Court’s including this Court is

ITA No.12/Ran/2018 Dhanbad Blind Relief Society Vs. CIT(Ex),Pat Page 4 that at the time of registration u/s.12AA of the Act, which is necessary for claiming exemption u/s.11 & 12 of the Act that the CIT is not required to look into the activities, where such activities have not or are in the process of in its initiation. Where a trust, set up to achieve its objectives of enabling educational institution, is in the process of establishing such institution and receives donations, the registration u/s 12A cannot be refused on the ground that the trust has not yet commenced, the charitable or religious activities. Any enquiry of the nature would amount to putting the cart before the horse. At this stage, only the genuineness of the objects has to be tested and not the activities which have not yet commenced. The enquiry of the CIT at such preliminary stage should be restricted to genuineness of the objects and not of the activities unless such activities have commenced. The trust or society cannot claim exemption,, unless it is registe4red u/s. 12AA of the Act and at that such initial stage, the test of genuineness of the activities cannot be a ground on which the registration may be refused.” We adopt the detailed reasoning mutatis mutandis to accept assessee’s grievance. It is held entitled for sec. 12AA registration as prayed for therefore. 4. This assessee’s appeal is allowed. Order pronounced in the open court 11/01/2019 Sd/- Sd/- (लेखा सद य) ("या#यक सद य) (Dr. A.L. Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Ranchi, *Dkp $दनांकः- 11/01/2019 Ranchi । आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. अपीलाथ�/Appellant-Dhanbad Blind Relief Society, New Colony, Nr. RLC Court. Jagiwan Nagar, Dhannbad-826003 2. ��यथ�/Respondent-CIT(Ex), Patna 3. संबं0धत आयकर आयु3त / Concerned CIT Ranchi 4. आयकर आयु3त- अपील / CIT (A) Ranchi 5. 6वभागीय �#त#न0ध, आयकर अपील�य अ0धकरण, / DR, ITAT, Ranchi 6. गाड< फाइल / Guard file. By order/आदेश से, /True Copy/ SR.PS, ITAT, RANCHI