TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 897
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.... facts as revealed from the order of the CIT(E) are that the applicant is a society in operation since 1.10.2010 with its aims and objects centering around taking care of cows and running gaushala. The paragraph No.2 of the Ld.CIT(E)'s order elaborates the aims and objects of the applicant society as under: "2. The stated aims and objects of the society are to take care of cows, by running Gaushala at Prem Nagar, Mandi Gobindgarh by collecting funds from the members or donations from well- wishers/donators; apply funds of the Gaushala for the take care of Milching animals; to conduct welfare activities for the society, animals & birds, etc.; to conduct welfare activities for the society, animals & birds etc.; to provide shelter to a stray....
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....ccountant appeared and filed written submission in. response to above noted queries. The counsel was requested to submit the financial statement for the F.Y. 2016-17 which was submitted by the applicant on 15.06.2017 through E-Mail. The financial statements submitted by the applicant reflect the following:- F.Y. Gross receipt Net Surplus Fixed Assets Cash & Bank Additions 2013-14 Rs. 7,955/- Rs.(-)343 Rs. 35,178/- 10,152/- Nil 2014-15 Rs. 8,000/- Rs.(-)988 Rs. 65,640/- 8,702/- Rs. 31,000 2015-16 Rs. 7,15,986/- Rs. 630/- Rs. 9,42,970/- Rs. 1,02,002/- Rs. 9,66,244/- 2016-17 Rs. 19,70,500/- Rs. 1,72,588/- Rs,12,30,391/- Rs. 7,95088/- Rs. 11,38,105/- It is evident that in the first two ye....
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....om the banking channels till the denominations in vogue made illegal. This also belies trust reposed in the society, claiming ostensibly to the charitable, by its donors and also the intended beneficiaries. 8. There is a change of Governing body of the society through a resolution. However, no evidence in respect of acceptance of the change in composition by the Registrar of Societies has been provided by the applicant. Mere furnishing of information to the Registrar does not convey his acceptance of the change. Further, the documents on records reveal that the entire Governing council has been replaced with a new one. in the absence of any evidence to the effect that the change of the Governing council had been accepted by the Registrar ....
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....g the total number of cows with the applicant gaushala and break up of cows as milching and non-milching cows as on 10.4.2018, was filed before us. The same was stated to be certified by the office bearers of the society. The Ld.Counsel for the applicant society, therefore, contended that this finding of the Ld.CI T(E) was totally incorrect and the applicant was primarily indulging in its stated object of looking after cows while milk production was only an incidental activity and the revenue generated from the same was ploughed back for the stated object of the society only. Further the Ld.Counsel contended that the mere fact that there was substantial deposit of cash in the bank account of the society during demonetization, did not lead a....
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....f registration as a charitable society u/s 12AA of the Act, on finding that the applicant society was primarily indulging in commercial activity of selling milk and on noting that there was substantial deposit of cash in its bank account during demonetization period showing that the activities of the applicant society were not transparent and further for the reason that the change in the constitution of the governing body of the society had not been shown to be accepted by the Registrar of Societies. The contentions made by the Ld.Counsel for the society before us shows that the issues raised by the Ld.CIT(E) need further deliberation and investigation before arriving at any conclusion. As regard the commercial activity carried out by the a....