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Before: SHRI J. SUDHAKAR REDDY & SMT SUCHITRA KAMBLE
This appeal is filed by the assessee against the order dated 25/08/2014 passed by Ld. CIT Ghaziabad u/s 12AA.
The grounds of appeal are as follows:-
“1. That the Ld. CIT, Ghaziabad erred in law as well as on the facts by rejecting the application for registration u/s 12AA of the Income Tax Act on the ground that the report of ACIT, Range-1 Ghaziabad could not rectify the activities and affairs of the society as genuine.
2. That the Ld. CIT, Ghaziabad erred in law as well as on the facts by rejecting the registration u/s 12AA of the Income Tax Act even after verifying the affairs and activities of the society and also verifying the books of account and vouchers for the previous years.
3. That the Ld. CIT, Ghaziabad erred in law and facts in rejecting the application for registration u/s 12AA of the Income Tax Act that authorization to the society too maintain or construct the temples or Ghats by any authority could not be produced while there is no such requirement prescribed under the Income Tax Act, 1961.
4. Ground No. 4 to 7 remains the same.
The appellant is a Society which was incorporated on 13/7/2010. The main object of the Society is to run and maintain Old Shani Mandir situated at the bank of Gang Nahar at Muradnagar, Ghaziabad. There was an investment in development of Ghat and related building of Rs.63,000/- and most of these expenses were incurred in cash. The first application for registration u/s 12A was rejected vide order dated 31/3/2013 on the ground that the objective of the Society is general in nature and is not covered u/s 2(15) of the Income Tax Act. The CIT has asked the Society to ascertain the affairs and activities of the Society. The CIT in its order held that Society does not have any authorization or legal rights to run and maintain the Old Shani Mandir situated at the bank of Gang Nahar, Muradnagar, Ghaziabad or to execute any construction of this side. The Society produces letters written by it to District Magistrate of Ghaziabad Development Authority and the Police Department for the maintenance of the Ghats and Temples. The CIT observed that there was no permission letter or any other evidence regarding authorization to Society to maintain or construct the Temple or Ghats by any of the authority. Therefore, the CIT rejected the application for grant of Registration u/s 12AA of the Income Tax Act.
The Ld. AR submitted that there was a letter dated 5/5/2015 from the Ghaziabad Development Authority recommending that the maintenance of the Ghats and Temple be given to the Society. The same was ignored by the CIT. The CIT also ignored the balance- sheet of the Society wherein investment in development of Ghat was shown in the balance-sheet as on 31/3/2011.
The Ld. DR relied upon the order of the CIT(A).
We have perused all the records and heard both the counsels. The main objective of the assessee was to run and maintain old Shani Mandir on the bank of Gang Nahar. The devotees normally take bath at the bank of the river. As the temple is next to the banks of the river, it was a necessity to build a Ghat or to maintain the Ghat situated therein because, public come for religious rituals. Thus, the activities of the society are charitable in nature and fall within the category of advancement of any other object of general Public utility. The CIT is wrong in coming to a conclusion that the activities of the society are not charitable as it does not have permission. The CIT ignored a letter dated 5/5/2015 from the Ghaziabad Development Authority recommending the Society as well as the balance-sheet of the Society wherein investment in development of Ghat was shown. Letters to the District administration are ignored by the CIT. The CIT has not stated what are the permission that the assessee is required to get and what it did not get. No rules or regulations are quoted. No authority has objected or held that the activity of the trust is illegal or unauthorized. The fact remains that, the Public Utility is developed and maintained by the assessee. Therefore, the rejection by the CIT regarding the application u/s 12AA is not correct. Hence, we direct the CIT to grant registration to the assessee under Section 12AA of the Income Tax Act, 1961
In result, appeal is allowed.
The order is pronounced in the open court on 26th of April, 2016.