IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH "B", HYDERABAD
BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER
AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER
ITA No. 1559/Hyd/2012
Assessment Year : 2011-12
Gareeb Guide (The Voluntary The Director of Income-tax
organization), Hyderabad (Exemption), Hyderabad.
PAN AAHFG3708J
(Appellant) (Respondent)
Assessee by Shri D.V. Rao
Revenue by Shri Solgy Jose T. Kottaram
Date of hearing 04-06-2014
Date of pronouncement 18-06-2014
O RDE R
PER SAKTIJIT DEY, A.M.:
This appeal of the assessee is directed against the order dated
27/09/2012 passed by the DIT(E), Hyderabad rejecting assessee's
application for grant of registration u/s 12AA of the IT Act.
2. Briefly the facts are, assessee claiming itself to be a charitable
institution applied for registration u/s 12AA of the Act in the
prescribed manner before the DIT(E) on 31/03/2012. As it appears
from the order of DIT(E) after receiving application in Form No. 10A,
the DIT(E) issued a questionnaire vide letter dated 02/07/2012 calling
upon the assessee to furnish details on specific issues raised in the
questionnaire and further to produce their original documents of
registration and books of account for verification. After perusing the
information submitted by Assessee institution, the DIT(E) noted that
the objects of the Trust as mentioned in the Trust Deed are not
specific and cannot be accepted as charitable keeping in view the
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Gare eb Guid e (Th e Volunta r y Organsation ), Hyd.
meaning of `charitable purpose' defined in section 2(15) of the Act.
Further, the DIT(E) also noted that though during the proceeding,
assessee Institution stated that they have conducted campaigns on
Right to Information Act, Role of Judiciary, Role of Youth in Politics,
Public Interest Litigation on 25% free seats to poor students in private
colleges, campaign on women right, child right, etc., but, has not
furnished any evidence to indicate that it has in reality conducted
such campaigns. DIT(E), further, noted that the assessee institution
could not explain how such objects are covered under charitable
purpose as defined in section 2(15) of the Act. Further, the DIT(E)
observed that though a specific query vide Sl. No. 13 of the
questionnaire was raised to indicate certainty of the objects and
classification of the objects under different heads like medical relief,
education, relief of poor or any other object of general public utility,
however, assessee institution has not clarified on such issue by
leaving specific column blank. In view of the aforesaid, the DIT(E)
came to a conclusion that the assessee cannot be allowed
registration u/s 12A of the Act. Accordingly, he rejected the
application filed by the assessee institution.
3. We have heard the parties and perused the materials on record.
It is the contention of the learned AR that the objects of the assessee
will clearly come within the meaning of charitable purpose as defined
u/s 2(15) of the Act, as they are for general public utility. Therefore,
the conclusion drawn by the DIT(E) that the objects are not charitable
is totally arbitrary and without any basis. So far as the other
allegation of the DIT(E) that the assessee has not furnished any
evidence in respect of claim of conducted campaigns on various
issues, the learned AR submitted that the DIT(E) without affording a
reasonable opportunity for furnishing necessary clarification/details
was not justified in alleging that the assessee has failed to furnish the
necessary information.
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Gare eb Guid e (Th e Volunta r y Organsation ), Hyd.
4. The learned DR, on the other hand, relied on the order of
DIT(E).
5. As can be seen from the order of the DIT(E), the objects of the
assessee institution are as under:
" 1. Promoting fundamental principles and humanitarian values,
2. Develop in a better understanding internally,
3. Influencing behavior in the community,
4. The protection of life health and human dignity,
5. Guide the people for their well wish,
6. Fight for legal and economical equality, etc.
6. Though the DIT(E) has held that the aforesaid objects are not
specific and cannot be accepted as charitable but, on what basis he
has come to such a conclusion has not at all been discussed by him.
Further, the allegation of the DIT(E) that the assessee has not
indicated with certainty the objects and classification of the objects
under different heads appears to be vague. We fail to understand
what the DIT(E) actually meant by that. Further, it is not clear whether
the DIT(E) has granted adequate opportunity to the assessee to
substantiate its claim in respect of the campaigns stated to have been
undertaken by it. Therefore, considering the submission of the
learned AR that it will clarify all issues by removing
doubts/apprehensions of the DIT(E), if another opportunity is given,
we are inclined to remit this matter back to the file of DIT(E), who
shall decide the issue afresh after affording reasonable opportunity of
being heard to the assessee institution. If at all the DIT(E) comes to
an opinion that objects of assessee do not come within the meaning
of charitable purpose as provided u/s 2(15), he must provide
adequate reasons for coming to such conclusion. Further, the DIT(E)
must seek clarification on all the issues, which according to him,
makes the institution ineligible for registration u/s 12AA of the Act.
Only after affording a fair opportunity of hearing to assessee
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institution and considering all its submissions and materials on
record, the DIT(E) shall decide the issue in accordance with law.
7. In the result, appeal of the assessee is considered to be
allowed for statistical purposes.
Pronounced in the open court on 18/06/2014.
Sd/- Sd/-
(B. RAMAKOTAIAH) (SAKTIJIT DEY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Hyderabad, Dated: 18 th June, 2014
kv
Copy to:-
1) Shri D.V. Rao, Legal Advisor, Gareeb Guide (The Voluntary
Organisation), 11/101, Old Malahar, Sahara States, Mansoorabad,
L.B. Nagar, Hyderabad 500 068.
2) DIT(E), Hyderabad.
3) ADIT(E), Hyderabad.
4) The Departmental Representative, I.T.A.T., Hyderabad.
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