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SAKSHAM SAMAJIK UTTHAN AVEM VIKAS SANSTHAN,JAIPUR vs THE CIT, EXEMPTION, JAIPUR, JAIPUR | BharatTax

SAKSHAM SAMAJIK UTTHAN AVEM VIKAS SANSTHAN,JAIPUR vs. THE CIT, EXEMPTION, JAIPUR, JAIPUR

ITA 758/JPR/2024Status: DisposedITAT Jaipur27 September 2024Bench: DR. S. SEETHALAKSHMI (Judicial Member)1 pages

AI SummaryAllowed

Facts

The assessee, Saksham Samajik Utthan Avem Vikas Sansthan, filed appeals against the orders of the CIT(E) which rejected their applications for registration under Section 12AB and recognition under Section 80G of the Income Tax Act. The primary grounds for rejection by the CIT(E) were alleged non-genuine activities and non-compliance with procedural requirements, including the assertion that the assessee had not furnished Income Tax Returns.

Held

The Tribunal noted that the CIT(E) had not provided adequate opportunity to the assessee and had overlooked submitted documents. The Tribunal found that many of the CIT(E)'s conclusions were based on assumptions and that the assessee had provided substantial documentation. Consequently, the Tribunal remanded the matters back to the CIT(E) for fresh consideration.

Key Issues

Whether the CIT(E) erred in rejecting the assessee's applications for registration under Section 12AB and recognition under Section 80G of the Income Tax Act without proper consideration of evidence and opportunity to be heard, and whether the assessee's activities were genuinely charitable.

Sections Cited

12AB, 80G, 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA Nos. 757 to 760/JP/2024

For Appellant: CA jktLo dh vksj ls@

Hearing: 19/09/2024

fu/kZkfjrh dh vksj ls@ Assessee by : Sh. K. L. Choudhary, CA jktLo dh vksj ls@ Revenue by : Sh. Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@ Date of Hearing : 19/09/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 27/ 09/2024 vkns'k@ ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM

The present bunch of four appeals are filed by the assessee aggrieved from the orders of Commissioner of Income Tax, Exemption, Jaipur dated 30/03/2024 [here in after ‘CIT(E)’ ] as detailed herein below.

Sl.No. Appeal No. Relates to issue DIN no of order Order dt. 1 of ITBA/EXM/F/EXM45 30/03/2024 757/JP/2024 registration u/s. /2023- 12AB of the Act 24/1063721683(1) 2 of ITBA/EXM/F/EXM45 30/03/2024 758/JP/2024 provisional /2023- registration 24/1063721683(1) u/s.12AB of the Act to 760/JP/2024 Saksham Samajik Uttan Avem Vikas Sansthan vs. CIT (E) 3 ITA No. Rejection of ITBA/EXM/F/EXM45 30/03/2024 759/JP/2024 recognition u/s. 80G /2023- of the Act 24/1063721821(1) 4 ITA No. Rejection of ITBA/EXM/F/EXM45 30/03/2024 760/JP/2024 provisional /2023- recognition u/s. 80G 24/1063721821(1) of the Act

As is evident from the above table, though the appeal filed by the assessee is four but effectively the order under challenge are two one is for denial of registration u/s.12AB of the act and another for denial of recognition for 80G of the Act.

2. The assessee has taken following grounds in respective appeals so filed:

“1. Under the facts and circumstances, order passed by Ld. CIT, Exemption, Jaipur under section 12AB of the Income-tax Act bad in law being non speaking, ignoring, without considering the submission and against the principle of natural justice.

4. Aggrieved from the order of ld. CIT(E) rejecting the permanent registration as well as provisional registration, assessee preferred an appeal before us on the grounds as stated hereinabove. Apropos to the grounds so raised the ld. AR appearing on behalf of the assessee has placed reliance on the written submission which is reiterated here in below; “We are submitting written submission to your honour against application for registration under section 12AB of the Income Tax Act, 1961 is rejected by CIT, Exemption, Jaipur and order passed under section 12AB of the Income Tax Act, 1961 are as under:- The society was registered under the Rajasthan Society Registration Act, 1958, with registration No. 816/JAIPUR/2009-10 on 22/12/2009, under the name M/s Saksham Samajik Utthan Avem Vikas Sansthan. The society also has a Trust Registration Certificate under the Rajasthan Public Trust Act, 1959, dated 10/11/2023, with registration No. 111 JAIPUR, 2023. The society is engaged in running charitable activities. It operated a primary school named Deep Public School until the academic year 2021-22, after which the school was closed. Currently, the society is running a Beggars Rehabilitation Home at Old Nigam Bhawan, Stadium Road, Sanganer, Jaipur and other charitable acitivity. The Income Tax Department granted the society registration under section 12A(1)(ac)(iii) in Form 10AC, with unique Registration No. AALAS0722ME20211, for the period from AY 2022-23 to AY 2024-25, dated 06/04/2022, The Income Tax Department was also granted the registration under section 80G(5)(iii) to the society in Form 10AC, vide unique Registration No. AALAS0722MF20221 for the period from 06-04-2022 to AY 2024.25 on dated 06/04/2022 in favour of M/s Saksham Samajik Utthan Avem Vikas Sansthan to 760/JP/2024 Saksham Samajik Uttan Avem Vikas Sansthan vs. CIT (E) 1. Under the facts and circumstances, order passed by Ld. CIT, Exemption, Jaipur under section 12AB of the Income-tax Act bad in law being non speaking, ignoring, without considering the submission and against the principle of natural justice.

7. In the financial year 2022-23 received amounting to Rs. 10,06,315/- for Beggars Rehibitions Home . It's important to note that the amounting to Rs. 345000/- was not utilized by Smt. Evadeep Saxena for personal use. this expenses constitute reimbursement of expenses. The society was duly authorized to incur expenditure for the setup of Baggers Home, and the allocated amount was indeed utilized for this purpose. This entry does not involve any siphoning of funds. The books of accounts like ledger, cash book, and vouchers are also reflected these transaction and verifiable from books of accounts. Beggars Rehibitions Home Activity are as under:- राज�थान �भखार� एवं �नध�न �यि�तय� का पुनवा�स अधी�नयम 2020 राज�थान सरकार के �वारा अ�यंत गर�ब व वह वग� इसके बारे म� सोचकर के भी �यादातर लोग� को गहन ह� आती है उसके उ�थान के उ�े�य को लेकर एक बहुत सराहनीय पहल उपरो�त अ�ध�नयम के मा�यम से क� गई इस अ�ध�नयम के अंतग�त वे लोग जो �वकट प�रि�थ�तय� के कारण सड़क पर भीख मांगने को मजबूर है या सड़क पर रहने को मजबूर ह� तथा शार��रक �प से पूण�ता �व�थ नह�ं है , को सुलभ जीवन देना है। सव�थम सव�थम सड़क पर रह रहे �यि�तय� क� काउंस�लंग क� जाती है तथा उ�ह� समझाया जाता है �क वह �भ�ा मांगना छोड़ द�। कई बार �कसी के बहकावे या प�रवार के दबाव के कारण भी लोग ये का करते ह�, छोटे-छोटे ब�चे भीख मांगने लगते ह�, जो समझाइश के बाद अकसर भीख मांगना बंद कर देते ह� , तथा काउंस�लंग ट�म के �वारा इ�ह� आसपास के �कूल� म� दा�खला लेने म� मदद क� जाती है , ता�क ब�चे पढ़ �लखकर अपना उ�जवल भ�व�य बना सके। वे लोग जो �कसी �कसी मजबूर� के कारण भीख मांगते ह� ,उ�ह� भी समझाया जाता है �क आप क� जो भी ि�थ�त रह� है उसे दूर करके आप अपने प�रवार व घर के साथ रहो, वह�ं कुछ काम कर�। अनेक� बार काउंस�लंग करने के बाद भी य�द वे लगातार भीख मांगते रहते ह� या �दखाई पड़ते ह� तो पुनवा�स �ह म� उ�ह� लाने क� काय�वाह� क� जाती है यहां पर उनके �वा��य जांच क� जाती है और एक सुंदर वातावरण सुंदर पा�रवा�रक वातावरण के बीच इन लोग� को रखा जाता है इस दौरान सघन काउंस�लंग के मा�यम से पता लगाया जाता है �क अमुक �यि�त सड़क पर आ�खर to 760/JP/2024 Saksham Samajik Uttan Avem Vikas Sansthan vs. CIT (E) आ�खर भीख मांगने को मजबूर �य� हुआ है, उसके सामने ऐसी �या परेशा�नयां रह� या ऐसे �या शार��रक �वषमताएं रह� िजस कारण वह सड़क पर भीख मांगने को मजबूर हुआ!! रे��यू के मा�यम से इन �भखार� को �वक�सत पुनवा�स �ह तक लाया जाता है जहां उनक� समु�चत देखभाल रहने खाने पीने का �बंध सं�था के �वारा �कया जाता है �वभागीय आदेश अनुसार समय-समय पर आधार काड� बनवाने के �लए क�प का आयोजन भी �कया जाता है िजसम� िजन लोग� के आधार काड� खो चुके ह� वह भी अपने आधार काड� पुनः �ा�त कर सकते ह� , और िजनके आधार काड� अभी तक नह�ं बन पाए ह� वह अपने आधार काड� इन क�प� के मा�यम से आसानी से बनवा सकते ह� । इसके अलावा पा�रवा�रक कारण� जैसे वृ�ाव�था , गर�बी , बीमार� के कारण भी बहुत लोग घर , प�रवार को छोड़ने व भीख मांगने को मजबूर ह�, उ�ह� प�रवार के साथ पुनवा��सत करना उ�ये�य ह�, जो लोग समा�य जीवन मे कुछ काय� सरलता से कर सकते ह�, उ�ह� नौकर� लगवाना है, ताक� ये स�मानपूव�क जी�वकोपाज�न कर सके। Copy of Sanction letter are enclosing herewith marked Page No. 82-86. Copy of Grant Sanction Letter by the Social Justice And Empowerment Department are enclosing herewith Page No. 87 to 92. Copy of utilization certificate by the CA are enclosing herewith marked Page No. 93 to 94. Copy of attendance register and verified by the appropriate authority of Government of Rajasthan are enclosing herewith marked Page No. 95-153. Photographs of Beggars Rehibitions Home some beneficiaries are enclosing herewith marked Page No. 154 to 159. The rent amount of Rs. 40,000 paid to Mrs. Anita Saxena is genuine and appropriate. The Ld. CIT wrongly mentioned amounting Rs. 80000/- instead of Rs. 40000/-. These expenses are designated against office rent, and the entire amount was utilized for the setup of the office. This entry does not involve any siphoning of funds. The society did not claim any bogus expenditures or create any bogus loans. The expenditures and unsecured loans are fully genuine and verifiable through the society's records (Books of Accounts). The aforementioned income, expenditures, and loans are reflected in the books of accounts, such as the ledger, cash book, and vouchers, and are verifiable from these records (books of accounts).

However, the assessee had indeed filed the Income Tax Returns and submitted the same to the Learned CIT Exemptions as per the reply dated 18/01/2024 (Paper Book, Page No. 294, Para No. 21). These Income Tax returns, audit reports, and intimations are also accessible on the e-filing portal of the Income Tax Department. The Learned Commissioner of Income Tax (CIT), Exemptions, Jaipur, ignored the facts and the reply with documents submitted, and acted without giving proper opportunity and against the principles of natural justice. The appellant hereby submits the copy of the Intimation under Section 143(1) issued by the Income Tax Department for the Assessment Years 2023-24, 2022-23, and 2021-22 to support the additional evidence of submission of the ITR. � In reference to Sr. Nos. 4 and 5 above, regarding the copy of the utilization certificate issued by the CA of the Beggars Rehabilitation Home (Paper Book Index Sr. No. 16, Page No. 93 to 94) and the copy of the attendance register verified by the appropriate authority of the Government of Rajasthan (Paper Book Index Sr. No. 17, Page No. 95 to 153), it is pertinent to note that the Learned CIT Exemptions mentioned in the order on Page No. 9 (Paper Book Page No. 19) that the assessee's activities were deemed “Non-Genuineness of Activities and non-compliance”. The assessee had indeed filed the copy of the sanction letter of the Beggars Rehabilitation Home and the copy of the grant sanction letter by the Social Justice and Empowerment Department of the Beggars Rehabilitation Home and submitted the same to the Learned CIT Exemptions as per the reply dated 20/03/2024 (Paper Book, Page No. 280, Para Nos. 14 and 15). The Learned Commissioner of Income Tax (CIT), Exemptions, Jaipur, ignored the facts and the reply with documents submitted, and acted without giving proper opportunity and against the principles of natural justice. The appellant hereby submits the utilization certificate by the CA of the Beggars Rehabilitation Home (Paper Book Index Sr. No. 16, Page No. 93 to 94) and the copy of the attendance register verified by the appropriate authority of the Government of to 760/JP/2024 Saksham Samajik Uttan Avem Vikas Sansthan vs. CIT (E) Rajasthan (Paper Book Index Sr. No. 17, Page No. 95 to 153) to support the additional evidence of submission of the copy of the sanction letter of the Beggars Rehabilitation Home and the copy of the grant sanction letter by the Social Justice and Empowerment Department of the Beggars Rehabilitation Home. � In reference to Sr. No. 6 above, regarding the copy of the details of payment amounting to Rs. 345,000/- incurred as petty expenses on behalf of the sanstha by Smt. Evadeep Saxena (Paper Book Index Sr. No. 25, Page No. 243 to 258), it is pertinent to note that the Learned CIT Exemptions mentioned in the order on Page No. 8 (Paper Book Page No. 18) that “On perusal of bank account statement of Shri Evadeep Saxena it is notice that not shown any withdrawal in the bank account to establish that she has made the payment for trust”. The assessee had indeed filed the copy of the bank account statement of Smt. Evadeep Saxena and submitted the same to the Learned CIT Exemptions and reply was also filed on dated 20/03/2024 (Paper Book Page No. 278, Para No. 10). The Learned Commissioner of Income Tax (CIT), Exemptions, Jaipur, ignored the facts and the reply with documents submitted, and acted without giving proper opportunity and against the principles of natural justice. The appellant hereby submits the reply dated 20/03/2024 (Paper Book, Page No. 278, Para No. 10) and the copy of the details of payment amounting to Rs. 345,000/- incurred as petty expenses on behalf of the sanstha by Smt. Evadeep Saxena (Paper Book Index Sr. No. 25, Page No. 243 to 258) to support the additional evidence of submission of the copy of the bank account statement of Smt. Evadeep Saxena. The new evidence is crucial and directly relevant to the matter under consideration. It will assist the Hon’ble Tribunal in arriving at a just and fair decision. Under Rule 29 of the ITAT Rules, the Tribunal has the power to allow additional evidence if it is of the opinion that such evidence is necessary for the adjudication of the case or for any other substantial cause. The Appellant submits that the new evidence is necessary for the adjudication of the case and its admission would serve the ends of justice. In light of the above, the Appellant humbly prays that the Hon’ble Tribunal may be pleased to: - Allow this application for the admission of additional evidence. - Take on record the new evidence as listed above. - Grant any other relief as deemed fit and proper in the interest of justice.” submission so filed vehemently argued that considering nature of activities carried out, assessee submitted the proof for receipt and expenditure incurred but the same has merely not considered because the same are not rooted through the bank account maintained by the assessee. The assessee submitted all the evidence regarding the receipt as well as payment. The ld. CIT(E) has also incorrectly assumed that the assessee has not furnished any ITR but the same were filed any online intimation for Assessment Years 2021-22, 2022-23 & 2023-24 were also placed on record. All these shows that the assessee’s contention were not considered appropriately. As regards, the activities carried out by the assessee trust as is evident from the paper book that the charitable activities are carried out for that they have submitted a detailed photographs as well as attendance of the beneficiaries. If all these evidence read together holistically the activities made payment and receipt not refracted in the bank account does not debar the assessee from the beneficial the provisions of section 12AB of the Act. The assessee in support of the contentions already placed on record and has filed a petition under rule 29 stating that they have deprived of submitting the fully and correct information and to support the contentions already on record. Additional evidence was filed in the 2nd Considering over all aspect of the matter, the ld. AR of the assessee prayed that if given a chance, the assessee will be in better position placed all correct and complete details to make them to eligible for registration u/s 12AB of the Act.