M/S GURUDWARA BOHLI SAHIB KAR SEWA & CHARITABLE SOCIETY,PEHOWA vs. CIT(E), CHANDIGARH

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ITA 1263/CHANDI/2017Status: DisposedITAT Chandigarh01 August 2018AY 0000-002 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) did not provide a proper opportunity to the assessee to rebut the adverse findings. The matter was restored to the CIT(E) for a fresh decision after giving the assessee an opportunity to explain the issues.

What were the facts?

The assessee, a charitable society, applied for registration under Section 12A. The CIT(E) rejected the application citing the possession of luxury vehicles, uncertainty in donation values, and large monetary receipts during demonetization, questioning the charitable nature of activities.

What were the issues?

Whether the CIT(E) properly afforded the assessee an opportunity to explain adverse findings before rejecting the Section 12A application.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

ITA No. 1263/Chd/2017-M/s Gurudwara Bohli Sahib Kar Sewa & Charitable Society, Pehowa, Haryana 2

addressing some of the social evils, providing free accommodation to

pilgrims and general public, promotion and progress of agricultural

and animal husbandry, helping poor and needy people in case of

natural disaster, taking up programs for ensuring protection of

environment and various other activities / services etc. However,

The Ld. CIT (E) rejected the application of the assessee observing

that the assessee has possessed so many vehicles including luxury

vehicles and that there was no explanation how the purchase / use

of these vehicles involved in charitable purposes or activity.

Further, that the assessee has shown donations receivable. The point

raised by Ld. CIT(E) is that how an entity be sure about the exact

value of donations. Further, Ld. CIT (E) found that the assessee

had shown huge monetary receipts during the period when

demonetarization was effected by the government. The Ld. CIT(E)

has further observed that in the past, most of the cash donations

have not been brought into main stream. He, therefore, held that the

activity of the assessee trust was not charitable in nature.

3.

The Ld. counsel, before us, has submitted that while giving the

above observations / findings, the Ld. CIT(E) has not given proper

opportunity to the assessee. That though certain queries were raised

by Ld. CIT(E) which were duly replied, however, the assessee has

not been given opportunity to rebut the above findings, as no

question was asked by the Ld. CIT(E) specifically on the above

issues. The Ld. counsel has further submitted that the assessee be

given opportunity to explain about each of the issue, such as,

possession of vehicles, receipt of donations and their application on

ITA No. 1263/Chd/2017-M/s Gurudwara Bohli Sahib Kar Sewa & Charitable Society, Pehowa, Haryana 4

set aside and the matter is restored back to the file of CIT (E) to decide it afresh in accordance with law, after giving proper opportunity to the assessee to explain about each of the issues as may be considered appropriate / points raised by the Ld. CIT(E) in this respect. The appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated : 01.08.2018 Rkk Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR

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