IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘E’: NEW DELHI)
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
SHRI T. S. KAPOOR, ACCOUNTANT MEMBER
ITA No.5640/DEL/ 2012
(Assessment Year: )
NLB Charitable Trust
5, Ambedkar Bhawan,
N H 58, Delhi Haridwar Bye Pass Road.
REVENUE BY: Mrs. A. S. Awasthi, Sr.DR.
ASSESSEE BY: Shri K. Sampath, Adv.
PER T. S. KAPOOR, AM
This is an appeal filed by the assessee against the order of the Commissioner of Income Tax passed u/s 80G of Income Tax Act. The grounds taken by the assessee are as under:
“1. On the facts and in the circumstances of the case, the Commissioner of Income Tax has erred in rejecting petition u/s 80G (5) of the Income Tax Act, 1961. Observations made, inferences drawn and findings recorded are bad in law.
2. The CIT has without consideration of the facts of the cases, taken a decision in a hurry and reached conclusions unilaterally, without providing enough opportunity to the assessee to explain its affairs.”
2. Vide this appeal, the assessee has raised its objections against denial of registration u/s 80G of the Income Tax Act, 1961. At the outset, the Ld. AR invited our attention to appellate order passed by ITAT, Delhi Bench-F in ITA No.1707 vide order dated 12.03.2010, in which the registration u/s 12A of the Act was directed to be given. In view of the above order, the Ld. AR submitted that initially the registration u/s 12A was denied and, therefore, assessee did little towards its activities and was waiting for the registration which was directed by ITAT to be given and, thereafter, it purchased lands for carrying out charitable activities and in this respect our attention was invited to paper book page 53 to 142 wherein copies of land purchased were placed.
3. Our attention was also invited to paper book page 45 which is a copy of approval as administrative controller issued by directorate of distance education Swami Vivekanand Subharti University and it was pleaded that assessee trust has been able to get approval for working as administrative controller and, therefore, the registration u/s 80 G should have been granted to it. Inviting our attention to CIT’s order in this regard in which he had denied registration u/s 80G on the basis of unexplained bank entries, he submitted that explanation of credit entries in the bank account are as per paper book page 22 and 23. In so far as explanations of unsecured loans and deposits were concerned he submitted that necessary explanation could not be given earlier and it was prayed that assessee was having full records to explain each and every deposits and entries in bank account and, therefore, the case of the assessee may be sent back for fresh hearing.
4. Ld. Departmental Representative on the other hand had no objection to the proposal.
5. We have heard the rival parties and have gone through the material placed on record. We observe that application u/s 80G was originally filed on 07.02.2011 which was fixed for hearing on 12.10.2011 on which date Ld. AR appeared on behalf of trust and case was adjourned to 11.11.2011 on which date no body appeared on behalf of ssessee. Therefore, case was fixed for hearing on 09.10.2012 and finally the case was heard on 15.10.2012. The assessee was required to furnish final accounts for the year ending on 31.03.2009 to 31.03.2011 and was required to furnish the proof of charitable activities carried out by the trust. The Ld. Commissioner observed that despite a year had passed the complete books of accounts were not furnished and only a copy of bank account and a letter from Swami Vivekanand Subharti University was filed. Therefore, on the basis of unexplained entries in the bank account and on the basis that assessee had not produced sufficient material to show that it had carried out charitable activities the CIT rejected the application. We further observe that assessee was given registration u/s 12A vide order dated 17.03.2010 and in the month of October, 2012, the assessee received a letter from Directorate of Distant Education Swami Vivekanand Subharti University for approval as administrative controller and assessee also purchased lands the evidence of which is placed at paper book page 53 to 142. We further observe that assessee had not submitted complete books of accounts and other documents to the satisfaction of CIT, which it now is willing to do.
6. Keeping in view the above and in the interest of justice, we are of the opinion that Ld. Commissioner should examine the case of assessee afresh and on the basis of all facts and circumstances of the case, he should decide regarding registration u/s 80G of the Act.
In view of the above, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in Open Court on 5th /07/ 2013
(Rajpal Yadav) (T.S. Kapoor)
Judicial Member Accountant Member
Dated the 5th day of July, 2013
Copy forwarded to
4. CIT (A)
5. CIT (ITAT), New Delhi.