RISING STAR KHILTE CHEHRE,NEW DELHI vs. CIT(EXEMPTION), NEW DELHI

At the very outset the counsel for the assessee stated that the CIT (E) has grossly erred in not considering the charitable activities of the appellant and has denied the registration on frivolous grounds. It is the say of the counsel that the activities of the appellant are in line for the charitable purposes for public at large and are accordingly in accordance with the provision of section 12 AA and 80 G of the Act.

Per contra the DR vehemently stated that the appellant in the garb of charitable activities has provided benefits to related parties.

The DR drew our attention to the list of donors and pointed out that some of the donors have accompanied the visually impaired people on tour to Dubai. The DR further pointed out that some of such people were also related to the settlor of the trust and, therefore, the CIT (E) has rightly denied the registration and the benefit of 80G.

Replying to the submissions of the DR, the counsel vehemently stated that the visually impaired people needed volunteers to lookafter them in the tour to Dubai and other places. The counsel further stated that the Rising Star Tours and Travels, though related to the settlor, arranged travele of the visually impaired people at the best price and no benefit was derived from the appellant.

We have given a thoughtful consideration to the rival submissions. We have carefully perused the list of donors and the list of travelers. There is some force in the submission of the DR that some of the donors are also travelers. The point raised by the counsel can also be not brushed aside lightly as the visually impaired persons need volunteers to lookafter them. However, we find that such list was not explained by the appellant before the CIT(E). Moreover, in the submission made before the CIT(E) the appellant has mentioned that 33 visually impaired persons took trip, however, the CIT(E) in his order has mentioned that the appellant has organized a trip to Dubai for 13 visually impaired persons. The accompaniment of the volunteers alongwith visually impaired people have not been explained properly by the appellant before the CIT (E).

In the interest of justice and fair play we restore the quarrel to the files of the CIT(E). The assessee is directed to explain with evidence why some donors travelled with the visually impaired persons and their relations, if any. The appellant is further directed to demonstrate that no benefit/ profit was derived by Rising Star Tour and Travel from the arrangement made with the appellant. The CIT(E) is directed to examine issues afresh after giving a reasonable and fair opportunity of being heard to the appellant.

In the result, both the appeals filed by the assessee are treated as allowed for statistical purpose.