M/S RURAL SOCIETY OF JHARKHAND HEALTH & EDUCATION,RANCHI vs. CIT EXEMPTION, PATNA

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ITA 345/RAN/2016Status: DisposedITAT Ranchi21 May 2018AY 2016-174 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that registration under Section 12A/12AA is a prerequisite for granting approval under Section 80G(5)(vi). Therefore, the CIT(Exemption) was justified in rejecting the application.

What were the facts?

The assessee, a trust, applied for registration under Section 80G(5)(vi) of the Income Tax Act. The CIT(Exemption) rejected the application because the trust had not yet obtained registration under Section 12A/12AA of the Act.

What were the issues?

Whether registration under Section 12A/12AA is mandatory for obtaining approval under Section 80G(5)(vi)?

Which sections of the Income-tax Act were involved?

Section 80G(5)(vi),Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI N.S SAINI & PAVAN KUMAR GADALE

For Respondent: Shri Deepk Kr. Sutariya CIT(A), JSR
Hearing: 21/05

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI

BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.345/Ran/2016 Assessment Year: 2016-2017

CIT (Exemptions), 2nd floor, M/s. Rural Society of Vs. Jharkhand Health and Central Revenue Building, Education, Plot No.B, Part, Birchand Patel Marg, Patna. Ranchi-Khunti Main Road, Tupudana, Ranchi. PAN/GIR No. AACAR 1534 R (Appellant) .. ( Respondent)

Assessee by: None Revenue by : Shri Deepk Kr. Sutariya CIT(A), JSR

Date of Hearing : 21/05/ 2018 Date of Pronouncement : 23 /05/ 2018

O R D E R Per N.S.Saini, AM This is an appeal filed by the assessee against the order u/s.80G(5)(vi)

of the Income tax Act, 1961 of the CIT(Exemption), Patna for the

assessment year 2016-17.

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2.

The sole ground taken by the assessee is that the CIT(Exemption) is

not justified in not granting registration or approval under section 80G(5)(vi)

of the Income tax Act, 1961.

3.

No one appeared on behalf of the assessee when the case was called

for hearing despite service of notice by RPAD. Therefore, we proceed to

decide the appeal exparte after hearing ld D.R. and on the basis of materials

available on record.

4.

The facts in brief are that the assessee is a trust. It filed an

application in Form No.10G of the income tax Rules, 1962 for grant of

approval u/s.80G(5)(vi) of the Act on 22.4.2016. The CIT(Exemption) on

perusal of copy of accounts observed that the assessee society has received

grant of Rs.18,00,000/- from the National Skill development Corporation but

the para-10 of Rules & Regulations, which is regarding sources of income of

the society does not mention about grant as a source of income. As the

grant in aids will not be income of the trust, therefore, the activities carried

out with this grant in aid cannot be activity of the trust society. Therefore,

the CIT(Exemption) did not grant approval u/s.80G(5)(vi) of the Act to the

assessee trust.

5.

Hence, the assessee is in appeal before the Tribunal.

6.

After hearing ld D.R. we have gone through the written submission

filed by the assessee. We find that the assessee has not been granted

registration u/s.12A/AA of the Act on the ground of (i) rent to Secretary of

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the Secretary and (ii) no activity was carried out due to lack of voluntary

donations. We find that Sub clause (i) of sub rule (2) provides that the

application to be filed in form 10G shall be accompanied by a copy of

registration granted u/s 12AA or copy of registration issued u/s 10(23) or

10(23C). It is not in dispute that the assessee society/trust is yet to be

granted registration u/s 12A / 12AA of the Income Tax Act, 1961. Sub Rule

(4) of Rule 11 AA also provides that the Commissioner has to be satisfied

that all the conditions laid down in clauses 1 to 5 of sub section 5 of section

80G are fulfilled by the institution or fund, then such satisfaction has to be

recorded in writing and its only thereafter that the approval to the institution

or fund u/s 80G (5) can be granted. In these circumstances, in our

considered opinion, the Ld. CIT(Exemptions) was justified in rejecting the

application in Form No. 10G and in refusing the grant approval u/s 80G (5)

(vi) of the Income Tax Act 1961 to the assessee's society as it did not have

the registration u/s 12A / 12AA of the Income Tax Act, 1961. We,

accordingly, confirm the order of the CIT(E) and dismiss the ground of

appeal of the assessee.

9.

In the result, the appeal of the assessee is dismissed.

Order pronounced in the open court on 23 /05/2018 Sd/- sd/- (PAVAN KUMAR GADALE) (N.S Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Ranchi; Dated 23 /05 /2018

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B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : M/s. Rural Society of Jharkhand Health and Education, Plot No.B, Part, Ranchi-Khunti Main Road, Tupudana, Ranchi 2. The respondent: CIT (Exemptions), 2nd floor, Central Revenue Building, Birchand Patel Marg, Patna 3. The CIT(A), BY ORDER, 4. Pr. CIT, 5. DR, ITAT, Ranchi 6. Guard file. SR.PS, ITAT, //True Copy// CAMP AT RANCHI

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