IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "A" : DELHI
BEFORE SHRI BHAVNESH SAINI, J.M. AND SHRI L.P. SAHU, A.M.
ITA.No.6487/Del./2018
Bharat Vikas Parishad
Maharana Pratap Nyas, Flat
No.157, Hewo Apartments, The CIT (Exemptions)
Sector-15, Part-II, Gurgaon, vs.
Haryana. (Hq.), Chandigarh.
PAN AADTB1479P
(Appellant) (Respondent)
Shri Ved Jain, Advocate,
Shri Rishabh Jain, C.A. And
For Assessee :
Miss. Umang Luthra,
Advocate
For Revenue : Shri Sanjay Goyal, CIT-D.R.
Date of Hearing : 04.02.2019
Date of Pronouncement : 06.02.2019
ORDER
PER BHAVNESH SAINI, J.M.
This appeal by Assessee has been directed
against the Order of the Ld. CIT(E), Chandigarh, Dated
29.08.2018, under section 80G(5)(vi) of the Income Tax Act,
1961.
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
2. We have heard the Learned Representatives of
both the parties and perused the material available on
record.
3. Briefly the facts of the case are that an
application in the prescribed form was filed for approval
under section 80G(5)(vi) of the Income Tax Act, 1961. The
Ld. CIT(E) noted that in this case the applicant also filed an
application under section 12A of the I.T. Act did not meet
the requirement for approval as mandated by Rule 11AA of
the I.T. Rules. Even though, the applicant has been granted
registration under section 12A recently, the real purpose as
per the stated object cannot be corroborated at present
given that the entity is still to redeem itself after the grant of
12A registration. The application was found premature and
the same was rejected.
3. Learned Counsel for the Assessee submitted that
assessee is a charitable trust and carried out various
activities since inception like providing free mortuary vans
free of cost to Civil Hospitals, providing free foods to the
patients of civil hospitals, free water ATMs etc. The Ld.
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
CIT(E) granted registration under section 12AA vide Order
Dated 29.08.2018 (PB-55) but declined to grant approval
under section 80G of the I.T. Act, 1961. He has relied upon
decision of Hon'ble jurisdictional Punjab and Haryana High
Court in the case of CIT (E) vs. Sant Girdhar Anand
Parmhans Sant Ashram (2018) 408 ITR 79 (P & H) in which
it was held as under :
"It was recorded by the Tribunal that since assessee
had been granted exemption u/s 12AA which was in
existence and in case of any violation, the same was
subject to variation/withdrawal by the CIT(E), there
was no logic in denying approval u/s 80G(5)(vi) of the
Act. There seems no reason to differ with the view taken
by the Tribunal. In case, in subsequent years, the
Revenue is satisfied that the activities of assessee are
not qualified for charitable purposes, it shall be open for
the Department to initiate action for cancellation of
registration u/s 12AA and also for passing appropriate
orders regarding approval granted u/s 80G(5)(vi) in
accordance with law."
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
3.1. He has also relied upon similar decision of
Hon'ble jurisdictional Punjab and Haryana High Court in
the case of Sonepat Hindu Educational and Charitable
Society vs. CIT (2005) 278 ITR 262 (P & H) in which it was
held that registration of an institution under section 12A of
the Act is sufficient to of its being established for charitable
purposes. Thus, registration under section 80G cannot be
denied. He has also relied upon decision of the Hon'ble
Delhi High Court in the case of DIT vs. Foundation of
Ophthalmic & Optometry Research Education Centre 2012
(8) TMI 77 (Del.) in which it was held as under :
"Denial of registration as charitable trust under Section-
12AA (1)(B) - no charitable activity had in fact taken place
since the society was a newly established one - Held
that:- Considering the procedure for registration as lead
in Section 12AA the statute does not prohibit or enjoin the
Commissioner from registering Trust solely based on its
objects, without any activity, in the case of a newly
registered Trust. The statute does not prescribe a waiting
period, for a trust to qualify itself for registration.
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
When the society/trust of assessee itself was formed on
30.05.2008 with the money available with the trust, one
cannot expect them to do activity of charity immediately
and because of that situation the authority cannot come
to a conclusion that trust was not intending to do any
activity of charity. In such a situation the objects of the
trust have to be taken into consideration by the authority
and the objects of the trust could be read from the trust
deed itself - in favour of the assessee."
3.2. He has submitted that while granting approval
under section 80G, the Commissioner is required to satisfy
the prescribed conditions which he has not doubted in the
present case. He has, therefore, submitted that approval
under section 80G may be granted to the assessee.
4. On the other hand, Ld. D.R. relied upon the
impugned Order.
5. After considering the rival submissions, we are of
the view that Order under section 80G(5) denying approval
to the assessee cannot be sustained in Law. It is not in
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
dispute that assessee has been granted registration under
section 12AA of the I.T. Act, 1961, by DIT (E) vide Order
Dated 29.09.2018. The Ld. CIT(E) was satisfied with the
objects and activities of the assessee that it is meant for
charitable purposes, therefore, different view cannot be
taken while refusing the grant of approval under section
80G(5) of the I.T. Act. The Ld. CIT(E) did not doubt the
objects of the assessee and did not mention anything if
assessee has violated any of the conditions of Section
80G(5) of the I.T. Act. Considering the totality of the facts
and circumstances of the case in the light of above decisions
relied upon by the Learned Counsel for the Assessee, we are
of the view that assessee is entitled for approval under
section 80G(5) of the I.T. Act, 1961, from the date of
application. We, accordingly, set aside the impugned Order
and direct the Ld. CIT(E), Chandigarh, to grant approval to
the assessee under section 80G(5)(vi) of the Income Tax Act,
1961, from the date of application.
6. In the result, appeal of Assessee is allowed.
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ITA.No.6487/Del./2018 Bharat Vikas Parishad
Maharana Pratap Nyas, Gurgaon.
Order pronounced in the open Court.
Sd/- Sd/-
(L.P. SAHU) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Delhi, Dated 06th February, 2019
VBP/-
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT `A' Bench, Delhi
6. Guard File.
// BY Order //
Assistant Registrar : ITAT Delhi Benches :
Delhi
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