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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 524/JP/2016
PER VIJAY PAL RAO, JM :
This appeal by the assessee is directed against the order dated 4th April, 2016
of ld. CIT (Exemptions), Jaipur passed under section 80G(5)(vi) of the I.T. Act. The
assessee has raised the following grounds :-
“ 1. That on facts and law the order passed u/s 80G(5)(vi) on dated 04.04.2016 is bad-in-law and for various other reasons deserves to be quashed.
That the ld. CIT (Exemption) erred in law and as well as on the facts of the case in rejecting the application filed for grant of approval u/s 80G(5)(vi) on the basis that no activity has been started by the applicant as per the object of the trust, the application has been reject wrong and without any justification since applicant has started the activities of the trust.
2 ITA No. 524/JP/2016 Kaviraj Murari Dan Shrimati Daulat Kanwar Shrimati Gulab Bai Memorial Trust, Jaipur.
That the ld. CIT (Exemption) order is bad-in-law and deserve to be quashed.
That the applicant reserves the right to add, amend, withdraw or alter any ground of appeal before the finalization of said appeal.’
We have heard the ld. A/R as well as the ld. D/R and considered the relevant
material on record. The assessee is a charitable society which was created vide Trust Deed dated 29th June, 2015 registered with Sub-Registrar, Jaipur. The
assessee society filed application for registration under section 12A on 05.10.2015
and also filed an application for registration under section 80G(5)(vi) on 26.10.2015.
The ld. CIT (Exemptions) while considering the application under section 80G(5)(vi)
has observed that though the objects of the assessee trust are charitable in nature,
however, since the assessee has not carried out any activity and the same are yet to
be started, therefore, the approval under section 80G was declined while passing the
impugned order. The ld. A/R has pointed out that the ld. CIT (E) granted the registration under section 12AA vide order dated 5th April, 2016 whereas the
approval under section 80G was declined based on the same facts and objects of the
Trust/Society. He has also filed the details of the activities carried out by the
assessee society subsequent to the impugned order was passed by the ld. CIT
(Exemptions) and also filed an application for admitting the additional evidence.
On the other hand, the ld. D/R has submitted that when assessee trust did
not carry out any charitable activity, then the ld. CIT (Exemptions) was justified in
declining the approval of exemption under section 80G.
3 ITA No. 524/JP/2016 Kaviraj Murari Dan Shrimati Daulat Kanwar Shrimati Gulab Bai Memorial Trust, Jaipur.
Having considered the rival submissions as well as relevant material on
record, we note that the ld. CIT (Exemptions) did not raise any objection regarding
the charitable nature of the objects of the assessee society and after passing the
impugned order dated 04.04.2016 the registration under section 12AA was granted
to the assessee vide order dated 05.04.2016. There is no dispute that the assessee
society was newly created and yet to start the activity for achieving the objects.
Therefore, when the charitable purpose and objects of the assessee society are not
in dispute and subsequently the assessee has carried out charitable activities as per
the details filed by the ld. A/R, then in the facts and circumstances of the case, we
are of the considered opinion that the ld. CIT (Exemptions) has to reconsider the
matter by considering the order passed under section 12AA as well as the activities
which were subsequently carried out by the assessee. Accordingly, the impugned
order is set aside and matter is remanded to the record of the ld. CIT (Exemptions)
for deciding the same afresh in the light of the above observations.
In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 02/08/2018.
Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Jaipur Dated:- 02/08/2018. Das/
4 ITA No. 524/JP/2016 Kaviraj Murari Dan Shrimati Daulat Kanwar Shrimati Gulab Bai Memorial Trust, Jaipur.
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant-Kaviraj Murari Dan Shrimati Daulat Kanwar Shrimati Gulab Bai Memorial Trust, Jaipur. 2. The Respondent – The CIT, Exemptions, Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 524/JP/2016) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत
5 ITA No. 524/JP/2016 Kaviraj Murari Dan Shrimati Daulat Kanwar Shrimati Gulab Bai Memorial Trust, Jaipur.