RAMDULARI BANSAL WELFARE SOCIETY,JAIPUR vs. CIT(E), JAIPUR, JAIPUR

ITA 790/JPR/2024Status: DisposedITAT Jaipur28 November 2024Bench: Dr. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)12 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(E)'s decision, finding that the assessee society was expanding expenditures prohibited for pharma companies, indicating a commercial nature to its activities. The principle of 'substance over form' was applied.

What were the facts?

The assessee society applied for registration under Section 12AB and approval under Section 80G. The CIT(E) rejected the applications, citing that the assessee was conducting business activities beyond its charitable objects and making payments to specified persons, thereby siphoning funds.

What were the issues?

Whether the assessee society was genuinely carrying out charitable activities or engaging in business activities disguised as charity, and whether its expenditures were in line with its charitable objects.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G,Section 13(3)

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Income Tax Appellate Tribunal, JAIPUR BENCH “A”, JAIPUR

Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL

For Appellant: Mr. P. C. Parwal, CA, Ld. AR
For Respondent: Mr. Arvind Kumar, Ld. CIT-DR
Hearing: 26/11/2024Pronounced: 28/11/2024

PER GAGAN GOYAL, A.M: These two appeals by assessee are directed against the order of Ld. CIT (E), Jaipur dated 31.03.2024 passed u/s. 12AB (1) (b) (ii) of the Income Tax Act, 1961 (in short ‘the Act’). The assessee has raised the following grounds of appeal:

1.

The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee u/s 12A(1)(ac)(iii) in Form No.10AB seeking registration u/s 12AB of IT Act, 1961 by making various incorrect & irrelevant observations without appreciating the explanation of assessee in correct perspective and by holding that (i) assessee is doing business in garb

The order continues below.

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