TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 1065
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....ove before or at the time of hearing of the appeal. 2. The brief facts of the case are that the Assessee filed an Application for registration u/s. 12A(a) of the Income Tax Act, 1961 (hereinafter referred as the Act) on 07.4.2015 before the Ld. CIT(Exemptions), Lucknow. Accordingly, the assessee was served the notice dated 01.6.2015 by the said Ld. CIT(E) for furnishing the information / details on 16.6.2015. On 16.6.2015 the A.R. of the Applicant/assessee attended and filed written submissions. Ld. CIT(E) perused the records which was available with him, has observed that assessee society is not carrying out any charitable activities. He further observed that as per the provisions of section 12AA(1)(b) of the Act, two factors namely the object of charitable purpose and the genuineness of activities have to be proved before granting the registration and applicant failed to prove the same and therefore, Ld. CIT(E) was not satisfied for granting the registration u/s. 12A(a) of the Act. Ld. CIT(E) also relied upon various case laws mentioned at page no. 1 and 2 of the impugned order dated 16.6.2015. 3. Aggrieved with the aforesaid impugned order dated 16.06.2015 assessee is in appea....
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..... 36 & 37B of the PB and also as per the submission made before the Ld. CIT(E) dated 15.6.2015 relevant page 38 & 39 of the Paper Book, the assessee society is essentially involved in the upliftment of farmers by way of providing them various facilities and protecting their interests at the national level and undertakings operations on the country wide basis and focused at protecting the interest of farmers in various manners. He further draw our attention towards page no. 38 & 39 of the PB which is the copy of submission dated 15.6.2015 mentioned therein that charitable activities undertaken by the assessee/society and the same qualify within the prview of "general public utility" being a chartable purpose u/s. 2(15) of the Act. In view of the above, he requested that the issue in dispute may be decided in favor of the assessee and Appeal filed by the Assessee may be allowed by allowing registration u/s. 12A(a) of the Act. 4.1 On the contrary, DR relied upon the orders of the Ld. CIT(E) and also relied upon the case laws as mentioned in the impugned order. Further, he strongly objected the request of the Ld. Counsel of the assessee and also stated that assessee remained non-coope....
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....e on part of CIT to examine the aspect of application of income at the stage of granting registration u/s. 12AA i.e. Decision of Rajasthan High Court in the case of CIT vs. Gopi Ram Goyal Charitable Trust (2017) 392 ITR 285 (Raj); Decision of Kerala High Court in the case of Shree Anjaneya Medical Trust vs. CIT (2012) 382 ITR 399 (Ker.); Decision of Allahabad High Court in the case of Fifth Generation Education Society vs. CIT 185 ITR 634 (All.); Decision of Punjab & Haryana High Court in the case of CIT vs. BKK Memorial Trust (2013) 213 Taxmann 1; Decision of Karnataka High Court in the case of CIT vs. AS Kupparaju Brothers Charitable Foundation Trust (2012) 205 Taxman 9 and decision of Madhya Pradesh High Court in the case of CIT vs. DTR Charitable Trust 61 DTR 410. 6.1 We find that the assessee is a society registered under the provisions of Societies Registration Act, 1860. As detailed before the Ld. CIT vide submission dated 15/06/15 relevant at pages 38 & 39 PB the assessee society is essentially involved in the upliftment of farmers by way of providing them various facilities and protecting their interests at the national level. It is undertaking operations on the country w....
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....lish, guide and assist in health education and other essential arrangement of village life. xiii. To work for achieving goals like self supporting farmers, developed villages, competent India. xiv. To work for collection and conservation of water and promotion of water. xv. To work for protection of the environment. xvi. To make affiliation with organizations who work for the above mentioned objects of the organization and guide them & work together to fulfill the above mentioned objects. xvii. To work for fulfillment of above objects and to do all such acts which are of national interest and are not against Society Registration Act, 1860." 6.2 After perusing the aforesaid objectives, we find that the assessee's main objective are carrying out charitable activities. On perusal of page no. 38 & 39 of the Paper Book which is a submission dated 15.6.2015, assessee has directed several activities all of which are directed towards protection of interests of farmers at a national level and some of the significant achievements of assessee in this regard are as under:- i. With the efforts of assessee the Government has sanctioned Rs. 6,000 crores to sugar mill owners as l....
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.... PB); & iv. Importantly the books of accounts were also submitted vide the said submission in response to query no. 11 of the CIT (Exemptions) letter dated 01/06/15. 6.4 We also find that Ld. CIT(Exemptions) by way of his order rejected assessee's application for registration u/s 12A of the Act. The CIT (E.) has made an allegation to the effect that the assessee has not submitted books of accounts. However, the necessary details were very much submitted vide submission dated 15/06/15 in response to query no. 11 of CIT (Exem.)(supra). Apart from the same the Assessee has again submitted its submission dated 16/02/15 (supra) & another submission dated 15/06/15 (supra). All details are very much a part of record and the CIT(Exem.) could not point any sort of discrepancy in the same. Hence, the decisions relied upon by Ld. CIT(E) are not applicable on the facts and circumstances of present case. 6.5 In view of the above, in our considered view Assessee's objectives duly qualify within the purview of "general public utility" being a charitable purpose under section 2(15) of the Act. Section 2(15) of the Act defines charitable purpose in an inclusive manner as under: "(15....
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....ultural produces produced by the farmers at reasonable prices; vii. With the efforts of assessee the Government has sanctioned Rs. 6,000 crores to sugar mill owners as loan to make payments to the farmers growing sugarcane and this amount will be directly remitted into the bank account of the farmers; viii. It has been resolved by the Government that farmers will be provided relief by the government if the loss incurred due to natural calamities is in excess of 33% instead of earlier being 50%; ix. The Government has agreed for purchasing the wheat which has been destroyed due to rainfall which would again benefit the farmers. 6.8 Besides above, we find that the decisions relied upon by the CIT(E) vide paras 4-7 of his order are not at all applicable on the facts and circumstances of present case in view of following reasons: i. In the cases of Charitable Society Vs DIT (Exemption) 232 ITR 11 & Self Employers Service Society Vs CIT 247 ITR 18 (Ker.) as referred by the CIT(Exem.) vide para 4 of its order the findings on the facts of those cases were that there has been a mis-utilisation of donations received for charitable purposes and the only activity carried on by so....