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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order dated 03.02.2023 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of registration u/s 12AB of Income-tax Act, 1961 has been rejected, the assessee has filed this appeal on following effective grounds: “1. That on facts and circumstances of the case, the CIT(Exemption) has erred to reject the application of assessee for permanent registration under 12AB of the Act by determination that the assessee could not establish his charitable activities and submitted the details of the same.
2. That no proper and reasonable opportunity was given to the appellant to prove his case and lead evidence in support of his claim.”
Shri Ghanshyamdas Ji Vyas Trust, Ratlam ITA No 190/Ind/2023
The registry has calculated a delay of 41 days in filing of appeal. When questioned during hearing, Ld. AR for assessee explained that the appeal was e-filed on 23.03.2023 and physical copy was re-filed on 16.05.2023; since the e-filing was done in time there is no delay. On perusal of case-file, Ld. AR’s submission is found correct. Thus, it is accepted that the appeal was filed in time and the defect noted by registry is dissolved. Therefore, hearing is proceeded.
Briefly stated the assessee-trust was created on 07.05.1985. It applied, for the first time, for grant of registration u/s 12AB vide application dated 07.01.2022 whereupon the CIT(E) granted provisional registration vide order dated 14.01.2022. Thereafter, the assessee, as required under law, filed application dated 12.09.2022 for grant of final registration but the CIT(E) denied final registration and simultaneously cancelled provisional registration vide impugned order dated 03.02.2023. Aggrieved by such order, the assessee has come in this appeal before us.
Ld. AR for assessee carried us to the Grounds of Appeal, the impugned order and the documents filed by assessee in Paper-Book. The Paper-Book consists of 26 pages in two parts, namely (i) Page 1-10, 22-25 and 26 are the documents already submitted at lower level, and (ii) Page 11- 21 are the additional evidences. Referring to impugned order, Ld. AR submitted that the CIT(E) has noted, in Para No. 1 to 2, that the assessee filed incomplete reply to his notices dated 23.12.2022 and 23.01.2023 and did not file any reply to his notice dated 11.01.2023. Ld. AR submitted that the correct fact is such that the assessee filed complete replies to the best of efforts, a copy of letter dated 28.12.2022 submitted to CIT(E) is also placed in Paper-Book Page No. 22-24. Further, in response to notice dated 11.01.2023, the assessee in fact submitted a reply, though not on 19.01.2023 fixed by CIT(E) but later on 26.01.2023/27.01.2023.
Shri Ghanshyamdas Ji Vyas Trust, Ratlam
Then, Ld. AR carried us to subsequent Para No. 3 to 6 of the order of CIT(E) and showed that the CIT(E) has precisely raised three objections for rejecting assessee’s application, as under:
(i) The assessee has not submitted any documentary proof related to activities, location of the activities and photos (ii) The assessee claimed that he is engaged in public activities for the benefit of Adivasi, vanvasi and janjati to provide education, to run school, etc. to provide medical help, advising people for education and to take care of their health and providing information about various government schemes. The assessee also claimed that he is doing activity like Ahinsha Yatra, arranged camp in jails among criminals to avoid crime and to join the social life. However, the assessee had not explained location, date and address where the activities have been carried out. He has also not submitted any photograph or supporting documents.
(iii) On perusal of audit reports of last 3 years, no activities have been shown as claimed in reply. Further, the expenses on Ration distribution, Kanya Bhojan and Educational help are mentioned in accounts but no supporting documents regarding activities conducted have been provided by assessee.
With regard to these objections raised by CIT(E), Ld. AR has filed following written-note and the submissions made therein were also re- iterated during hearing:
“Reason for not providing photos and address, location etc.
As we all are aware that in the last dates of FY 2019-20, F.Y. 2020-21 and F.Y. 2021-22 there is CORONA in whole India. All the NGO’s are totally engaged in the fight against the same and they are helping to the needy poor families to provide food in term of raw food material. The Government is also doing this work but in such tight situation the food material is not reached to the last man of the society. There are so many
Shri Ghanshyamdas Ji Vyas Trust, Ratlam requests was received but due to limitation fund utilized for these purposes the trust has just provided small amount food packets in the society. We are not in a position to get the photos of such distributions because it hearts the people who received the help. We are not having any specific date, address for the same because as and when we received the information of the needy persons the trustees were discussed the matter on phone and arrange the material and also arranged for distribution. Further noted that all the trustee of the trust is old age persons and they are not allowed to go out of home. Due to such critical position the earning of the common people is badly affected and those families are not able to pay educational fees of its children. The trust has paid the fees of those students who are genuinely not able to pay fees to the school. The trustees are also contact to the respective schools to provide concession to the students. As we are all known that the crime on the girls is increased day by day. To educate the young boys a function of Kanya Bhojan is organized at Ratlam and the boys has got the oath for committed, not harassed the girls and also save them from any abuse. By this function a new energy was pass on to the youth. Apart from this please be noted that in the premises of the trust a regular activity is running to fill the object to the trust i.e. provide education to the common person for better civilization and healthy persons in the society. The trust is organized the yoga camp. Sanskar Kendrak for the students below the age group of 12. The trust is also gathered the students and forced to read news-papers and other readily available books based on the various historical persons borne in the society like Mahatma Gandhi, Bhagat Singh, Chandra Shekhar Azad, Dr. APJ Kalam etc. The trust is getting its accounts audited by the Chartered Accountants and he has certified the expenses done by the trust for charity purposes. The appellant is already submitted the same up to the F.Y. 2021-22 on the portal We further enclosed herewith copy of latest audited accounts for the F.Y. 2022-23. Please note that all these activities are carried out in the premises owned by the trust and the trustees and local people who is expert in this field has regularly organized the event and educated the local people for better man and for this there is no cost on the trust because the persons who take the lead is not charged any amount for his services and there is no need of any arrangements because the same is running in our owned premises. Now the trustees of the trust are assured to you that from the right down (today ) proper documentation and photos will be maintained for the future compliances.
Shri Ghanshyamdas Ji Vyas Trust, Ratlam Till the date the trustees are in believed in that no advertise the work done for charity and just do the work the better man of last people in the society and the trustee who is attend the age of more than 65 to 80 years having one platform to serve the society with in its capacity. Looking to the facts and circumstances and the charitable activities done by the trust please grant the permanent registration to the trust so the social work will be regularly carrying by such old age trustees. Sir, some of the NGOs doing charity in silent mode and not made any propaganda of its activities. They do the work and go ahead for the other charitable activities. This trust is also in this nature and the old age trustees are not in nature to highlighted his name for doing such noble work, now time is change and it is required to maintain the documents for the same. ”
With these submissions, Ld. AR contended that the assessee is genuinely doing charitable activities and the CIT(E) ought to have granted registration.
Per contra, Ld. DR for revenue relied strongly upon CIT(E)’s order and submitted that the CIT(E) has strongly and repeatedly mentioned in his order that the assessee filed incomplete replies and did not file details of charitable activities undertaken. Ld. DR contended that the CIT(E) is not able to derive the satisfaction required by section 12A in absence of details of activities by assessee. Therefore, he has rightly rejected assessee’s application; his order is valid and must be upheld.
We have considered rival submissions of both sides and perused the impugned order as well as the documents filed in Paper-Book. We find that the CIT(E) has considered the replies filed by assessee in response to his notices dated 23.12.2022 and 23.01.2023 as ‘incomplete replies’. Further, in response to notice dated 11.01.2023, the assessee himself accepts not to have filed a reply on the date fixed by CIT(A), though the assessee claims to have filed a belated reply on 26.01.2023/27.01.2023. Further, the CIT(E) has mentioned at multiples times, almost in all Para No. 3, 4, 5 and 6 of his order and also in final para No. 7, that the assessee has not filed complete information and could not establish charitable activities. Furthermore, the assessee has filed newer evidences in Paper-Book in support of charitable
Shri Ghanshyamdas Ji Vyas Trust, Ratlam activities in the shape of audited accounts for the year 2022-23 (Page No. 11-12 of Paper-Book) and certain expenses vouchers/letters of bodies or persons for charitable activities done in financial year 2019-20 to 2021-22 (Page No. 13-21 of Paper-Book). Further, in Ground No. 2, the assessee also claims that no proper and reasonable opportunity was given by CIT(E) to assessee to prove his case and lead evidence in support of his claim. Therefore, in this situation, we feel it more appropriate and judicious to remand this case back to the file of CIT(E) for consideration afresh. Ld. CIT(E) will give opportunity to assessee to explain its case, consider those submissions judiciously and pass an appropriate order without being influenced by his previous order. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purposes.
Order pronounced in the open court on 26.10.2023.