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