JAMAIAT ULAMA-E-RELIEF FOUNDATION,MUMBAI vs. DIT (E), MUMBAI

We have heard the ld. Authorized Representative (AR) for the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. The ld AR of the assessee argued that during the registration proceeding before the assessee was asked to furnish the information related with details and particulars of Members of Managing Committee, their bank accounts, NOC for office premises, copy of registration from Charity Commissioner, copy of audited accounts and its activities undertaken along with the documentary evidence. The assessee furnished all detailed particulars which were required by ld DIT(E). Though,the appellant fulfilled all the requisite condition required for registration u/s 12A of the Act, yet the appellant was not granted registration. It was further argued that while examining the application for registration the ld DIT(A) was required to examine the object of the Trust and genuineness of its activity. The assessee furnished the sufficient evidence with regard to the lawful object of the society and its genuine activities. The ld AR for assessee argued that ld DIT (E) objected that object No. 3 of the society is commercial in nature. The ld AR for appellant submitted that after filing the present appeal, the appellant approached the Charity Commissioner for change of Clause-3 of Memorandum of Association which has been allowed by the Charity Commissioner vide order dated 26.10.2016. The copy of order passed by Charity Commissioner and the application of assessee is also placed on record. On the other hand, ld. DR for the Revenue supported the order of ld. DIT(E) and would argue that the application of the assessee was rejected on five grounds i.e (i) the collection receipt of the Society is without any supporting documentary evidence, (ii) failed to furnish requisite satisfaction with documentary evidence /material about the object and genuinity of the activities, (iii) object No.3 of society is commercial in nature and there is no legal and binding clause for utilizing the funds of Society solely for charitable purpose (iv) Society is providing legal assistance to the person who are allegedly involved in anti-national activities and (v) the Membership is restricted to Member “Jamiat Ulama-E-Relief Foundation only”. It was argued that the appellant is engaged in anti-social activities and were providing legal add/assistance to the accused who were involved in various terrorist activities. The assessee provided the legal assistance to the accused involved in (1) Akshar Dham Attack case, (2) Tiffin 3 Jamiat Ulama-E-Relief Foundation Bomb Blast Case, (3) Bangalore Blast Case, (4) Nanded Blast Case, (5) CRPF Rampur Attack Case, (6) Lucknow Case, (7) Gateway of India, Mumbai blast Case. Thus, the object and the activities of the assessee are neither genuine nor lawful. Accordingly, the application of the assessee was rightly rejected by ld. DIT(E). In the rejoinder submission ld AR of assessee submitted that the appellant society provided legal aid to the accused who were implicated in various criminal cases. The legal aid is the primary and basic right of every person, even the state provides the legal aid to the person who are found involved in various criminal cases. The appellant is ready to prove the genuineness of its activity after amendment in the Memorandum of Association vide amendment dated 23.08.2016.

We have considered the rival contention of the parties and gone through the order of ld. DIT(E), the various documents placed on record by AR of the assessee in various decisions filed in the form of Paper Book. Though the AR of the appellant filed a legal paper book, however, none of the decision was referred during his submission. The appellant society was formed on 11.06.2013. The appellant filed an application under Form No. 10 A on 11.03.2013 seeking registration under section 12A of the Act. The assessee in response to the queries furnished information about the object of the society and the details of its activities. However, the ld DIT(E) rejected the application of the appellant on five grounds as mentioned in sub-para (a) to (e) of para 3 of its order dated 30.09.2013. All the reasons of rejection are narrated by ld DR for the revenue which are not repeated here for the sake of brevity.

Section 12AA of the Act prescribes the procedure of the registration by ld DIT(A). The ld DIT(A) is required only after examining the record and satisfying himself about the object of the society(Trust)/ institution and genuineness of its activities, the ld DIT(E) has to pass the order either for granting registration under section 12A or his refusal. The ld DIT (E) objected on the objects as well as on the activities of the society. The first objection of ld DIT(E) is on the funding of the society as no supporting documents was furnished about the source of funding. The second objection of ld DIT (E) is that no material and supporting document for expenses incurred in its activity is provided. The third objection of ld DIT(E) is that society is commercial in nature. Now, the society has deleted the object clause No.3 of its Memorandum of Association. The fourth objection of ld DIT (E) is that the society is