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Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: Sh. H. S. SidhuDr. B. R. R. Kumar
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the revenue against the orders of the ld. CIT(E), New Delhi dated 21.11.2016.
2. Following grounds have been raised by the revenue: “1. That on the facts and in the circumstances of the assessee trust’s case the learned Commissioner of Income Tax (Exemptions) was wrong in passing order under section 80G(5)(vi) of the Act.
2. That on the facts and in the circumstances of the assessee trust’s case the learned Commissioner of Income Tax (Exemptions)was wrong in passing order under section 80G5(vi) of the Act on the ground that no charitable activities have been carried out except purchase of land.
3. That on the facts and in the circumstances of the assessee trust’s case the learned Commissioner of Income Tax (Exemptions) has grievously erred in law in not granting approval under section 80G of the act as it is well
2 Gobind Ram Kahan Chand Trust settled that at the stage of granting approval, non- commencement of activities by the trust cannot be a ground for not granting the approval and moreover assesse trust has already purchased land of Rs. 7,86,000 for carrying out the objectives of the trust, registration under section 12A/12AA was already granted and trust objectives were never doubted.”
3. The order of the ld. CIT (E) dated 21.11.2016 is as under: “1. The applicant has filed an application on 30.05.2016 in Form No.10G seeking approval for exemption u/s 800 of the Income Tax Act. 1961. Subsequently, letter/notice dated 30.05.2015 was issued to the applicant requiring it to submit the documents/ explanations in support of its claim for exemption u/s 80G of the Act on 30/06/2016 neither anybody attended the proceedings nor any reply received in this office.
The applicant has filed details/documents which have been perused and placed on record.
As per questionnaire issued vide letter No. CIT(E)/2016-17/DEL-GER45660-30052016 dated 30.05.2016 the applicant was asked to file documents with regards to charitable activities carried out by it along with proof of beneficiaries and other supporting documentary evidences viz. bills, in Q.No.12. The applicant has failed to furnish any documentary evidences for the same. Further, the applicant has stated vide its reply dated 0409,201§ that negligible activities has been carried out by the trust since inception.
4. The trust has purchased a land of Rs.7,86,000 and no charitable activities have been carried out by the applicant as mentioned above, the application filed by the applicant for giant of approval for exemption u/s 80G is hereby rejected.”
During the arguments before us, the ld. AR submitted that the registration u/s 12AA has been granted by the ld. CIT (E) on 19.05.2016 vide Registration No. DEL-GR25129-19052016. It was submitted that the assessee has filed all the details required by the ld. CIT (E) in connection with seeking approval for exemption u/s 80G of the Income Tax Act, 1961. The ld. AR
3 Gobind Ram Kahan Chand Trust has submitted the details in the paper book filed before us. The ld. AR submitted that given an opportunity, he would make all the compliance before the ld. CIT (E).
The ld. DR opposed to the remand of the matter back to the file of the ld. CIT (E).
We find that the exemption was denied by the ld. CIT (E) as the assessee has not carried any charitable activities as well as failed to file documents with regard to charitable activities. We feel that interest of justice would met if the assessee is given an opportunity to present his case before the ld. CIT (E) and the matter is remanded back to the file of the ld. CIT (E) to consider the matter afresh. We also direct that the assessee would comply to all the notices issued by the revenue authorities without seeking unnecessary adjournments.