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Bharat Vikas Parishad Maharana Pratap Nyas, Flat No.157, Hewo Apartments, Sector-15, Part-II, Gurgaon, Haryana. vs. The CIT (Exemptions) (Hq.), Chandigarh.
February, 07th 2019
        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.
                                   2
                              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.
                                3
                             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."
                                 4
                              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.
                                 5
                              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
                              6
                           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.
                               7
                            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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