AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 960
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....der section 12AA of the Act and fulfils all the conditions as mentioned under clause (i) to clause (v) of sub-section (5) of section 80G, a fact which has not been challenged by the Hon'ble CIT(Exemption). 2.3. As held by various judicial forums, there was no justifiable cause for the Hon'ble CIT(Exemption) to look into the objects or activities carried out by the Appellant. 3. That on the facts and circumstances of the case and in law, the Hon'ble CIT(Exemption) has erred in holding that the activities of the Appellant do not fall within the ambit of charitable activities, inter alia because- 3.l. The objects of the Appellant had already been examined and held to be charitable in nature at the time of its registration under section 12AA of the Act. 4. That on the facts and circumstances of the case and in law, the Hon'ble CIT(Exemption) has erred in holding that the Appellant is not involved in the charitable activities and has not been able to prove their genuineness, inter alia because: 4.1. Activity of donating receipts to institutions which carry out charitable activities is charitable in nature, a proposition which has been upheld by various judicial....
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....or according the said approval. 6. In view of the above discussion, it is clear that the applicant society is not entitled for approval u/s 80G of the IT Act 1961. Accordingly the application in form no, 10G seeking approval u/s 80G is hereby rejected. The crux of the CIT(E)'s finding was that the Appellant has made donations to other trusts/societies, namely Warne Baby Fold, Salaam Balaak Trust and Jeevan Dhara Trust and has not done any charitable activities itself. The CIT(E) has either ignored or not appreciated the entire gamut of activities undertaken by the Appellant since its inception. That the activities of the Trust since inception as were explained to the Hon'ble CIT(E) since inception are placed at pg.61/PB. 3. That the Appellant enjoys exemption u/s 12AA of the Act vide registration no. CIT(E) Lucknow/12AA/2018-19/A/1181-A dated 23.7.2018, The order of registration u/s 12AA of the Act is placed at pg 151-152/ PB. The Appellant places reliance on the decision of the jurisdictional Allahabad High Court in the case of Commissioner of Income Tax, Allahabad v Lok Sewa Sansthan Samiti Sonebhadra (2019) 105 taxmann.com 202 (All.). The Revenue's SLR agai....
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....Allahabad High Court in Hardiyal Charitable & Educational Trust v. Commissioner of Income Tax-11, Agra reported in 355 ITR 534 which was rendered in the context of registration u/s 12AA. -It is humbly submitted that the conditions for grant of registration u/s 12AA and approval u/s 80G of the Act are pari materia the same and therefore the ratio of the above judgment applies to the present case with equal force. The Hon'ble Court held that: "The preponderance of the judicial opinion of all the High Court including this court is that at the time of registration under Section 12AA of the Income-tax Act, which is necessary for claiming exemption under Sections 11 & 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under Section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the ....
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.... - For relevant year, assessee filed application for grant of approval under section 80G(5)(vi) ~ Commissioner (Exemptions) declined approval under section 80G(5)(vi) on ground that activities of assessee-trust were not for charitable purposes and 50 per cent of donations was from trustees themselves - Tribunal noted that no action under sub-section (3) of section 12AA had been initiated for cancellation of registration of assessee-society - Tribunal further opined that Commissioner (Exemptions) before denying approval under section 8QG(5)(vi) was required to record a definite finding of fact that funds were utilised for private purposes and not for charitable purposes - On account of failure of revenue authorities to bring any such evidence on record, Tribunal concluded that order passed by Commissioner (Exemptions) was not sustainable- Accordingly, Tribunal granted approval to assessee- trust under section 80G(5)(vi) - High Court upheld order passed by Tribunal -Whether, on facts, SLP filed against order of High Court was to be dismissed - Held, yes [Para 3] [In favour of assessee]" 9. On identical facts the Hon'ble Delhi Benches of ITAT in the case of Bharat Bhushan Jain C....
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....ration under Section 12AA of the Act and also for passing appropriate orders regarding approval granted under Section 80G(5)(vi) of the Act in accordance with law." In light of the aforesaid, it is humbly pleaded that the decision of the CIT(E) declining approval under section 80G(5) of the Act is unreasonable and legally not sustainable and deserves to be reversed. The Appellant prays that it may be granted registration u/s 80G(5) of the Act. 5. On the other hand, the ld. DR has submitted that the notes of the activities submitted by the assessee, the above said fact was not cleared rather it would shows assessee was merely a facilitator between the donor and actual charitable trust. As such case may be the above said aspect has not been examined and the finding of the ld. CIT(E) was based on the premises that the assessee was not involved any charitable activities. 6. The ld. DR further submitted a note (containing of 4 pages), for supporting his case which reads as under: "Under the Income Tax Act separate procedures have been provided for registration u/s 12AA and approval u/s 80G respectively. Thus grant of registration u/s 12AA does not automatically lead to the approva....
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.... fees of two girls through M/s Warne Baby Fold. However it has not been clarified how these two beneficiaries were selected and whether they have some relationship with the trustees or M/s Varuna Integrated Logistics Private Limited. Though in the written submission the assessee has claimed that its objects empowered it to give donations to other charitable organizations, it must be noted that as per the objects, such donations could be utilized only for the public at large and not for specific beneficiaries. It has also not been clarified as to how these beneficiaries were selected and which economic/social parameters were considered for this purpose. On page 65(B) there is a payment voucher on the stationery issued by M/s Varuna Integrated Logistics Private Limited which shows payment of school fees and tuition fees of the three children of Sh. Mahendra Saxena namely Tanya, Ananya and Prince. The relationship of Mr. Mahendra Saxena with the trustees or with M/s Varuna Integrated Logistics Private Limited has not been disclosed and it is also not clear why three children of the same person were chosen as beneficiaries and why children from other families in need were ignored. ....
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....for various reasons including the reason that, that the assessee has not carried out any charitable activities. The assessee has drawn our attention to the various activities (three) which were carried out by the assessee for charitable purposes. The above said aspect has not been denied by the ld CIT DR, however he had raised some objection to that activities and sought to justify the act of the CIT exemption. In our view the order impugned before us is conspicuous silent on the carrying out of the activities by the assessee rather the order has not dealt with any of the activities carried out by the assessee. In our considered opinion, the interest of justice requires that the ld. CIT(E) should examine the documents (already on record) mentioned hereinabove and other documents , Which according to the assessee shows that, the assessee was involved in its own capacity of doing the charitable activity . For the purposes of granting the registration, if the CIT exemption on examination of the document referred hereinabove, satisfy that the assessee was involved in carried out a charitable activities then the CIT(E) individually as well, then the CIT exemption, shall assess the impac....