2007 (3) TMI 188

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bunal"), in I. T. A. No. 748IChandi/2000 "1. Whether, on the facts and in the circumstances of the case and in view of legal provisions the Income-tax Appellate Tribunal was justified in concurring with the Commissioner of Income-tax who has erred in denying registration under section 12A and exemption under section 80G to the appellant-trust by erroneously holding that apparently the appellant-trust has not been performing the charitable activities as per its aims and objects for which it was formed which action of the Commissioner of Income-tax is illegal and thus needs to be quashed being in clear contradiction to the findings by this hon'ble court as so held in the case of Sonepat Hindu Educational and Charitable Society v. CIT [205]....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es during the preceding period such as organizing bhandaras, helping needy patients, etc., but perusal of the income and expenditure account did not show any expense towards the same. No detail of any help provided by the assessee to the poor persons was furnished. From a perusal of profit and loss statement, it is evident that entire receipts were kept in the fixed deposits and interest was being earned thereon. During last three years no expenditure, whatsoever, was incurred on any of the objects of the trust. As far as source of funds with the trust was concerned, trust claimed that the same was by way of deductions from the wages being paid to the employees engaged by Shri J. S. Tanwar, who was running an agency in the name of M/s. Aman....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... its creation to the decision of the Commissioner of Income-tax. (iv) That the assessee had deposited Rs. 76,40,788 and earned huge interest on these deposits; the assessee-trust had filed Form No. 15H with the bank certifying that no tax was payable by it to avoid deduction of tax at source and, therefore, the assessee had given a false declaration. (v) That there was no proof that the amount collected by the assessee was from voluntary contributions that too for the corpus of the trust. (vi) That the assessee, it appears, had made application for registration as a charitable institution only when the Income-tax Officer had started inquiries about the registration of the trust under section 12A after discovering the declaration fi....