Gian Educational Society,, Bulandshahr v. CIT, Meerut

ITA 1159/DEL/2010 | 2010-2011
Pronouncement Date: 21-05-2010 | Result: Allowed

Appeal Details

RSA Number 115920114 RSA 2010
Bench Delhi
Appeal Number ITA 1159/DEL/2010
Duration Of Justice 2 month(s) 6 day(s)
Appellant Gian Educational Society,, Bulandshahr
Respondent CIT, Meerut
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 21-05-2010
Assessment Year 2010-2011
Appeal Filed On 15-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI K.D. RANJAN ACCOUNTANT MEMBER ITA NO. 1159/DEL/2010 ASSESSMENT YEAR: 2010-11 GIAN EDUCATIONAL SOCIETY NEW SHIVPURI JUNCTION ROAD NEAR LOYAL PUBLIC SCHOL KHURJA BULANDSHAHR. PAN NO. - VS. CIT AYAKAR BHAWAN BHAISHALI GROUND MEERUT. U.P. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: KISHORE B. SR. DR O R D E R PER I.P. BANSAL J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DI RECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX MEERUT PASSED U/S 80G(5)(VI) DATED 27.01.2010. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THE PRESEN T APPEAL IS DENIAL FOR GRANT OF RENEWAL OF REGISTRATION U/S 80G. LD. CIT HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANT OF RENEWAL OF REGISTRATION U/S 80G ON THE GROUND THAT ACTIVITY OF PROVIDING TRAINING O F VARIOUS PROFESSIONAL COURSES LIKE TRAINING OF SEWING WEAVING AND MUSIC AND ADULT EDUCATION AS WELL AS PRELIMINARY EDUCATION UPTO NURSERY DO NO T FALL WITHIN THE PURVIEW OF DEFINITION OF CHARITABLE ACTIVITY U/S 2( 15) OF THE I.T. ACT 1961 AND THUS ASSESSEE NOT BEING ENGAGED IN THE CHARITA BLE ACTIVITY IS NOT ENTITLE TO GET RENEWAL OF 80G CERTIFICATE AND IT IS MENTIONED BY LD. CIT THAT 2 ITA NO. 1159DEL/2010 HER DECISION IS SUPPORTED BY THE DECISION OF KERALA HIGH COURT IN THE CASE OF SELF EMPLOYER SERVICES SOCIETY VS. CIT 247 ITR 18. 3. AS AGAINST THAT IT IS THE CASE OF THE ASSESSEE T HAT THE SOCIETY WAS ESTABLISHED ON 20.12.04. IT WAS GRANTED REGISTRATI ON ON 27.12.04. THE SOCIETY DOES NOT DERIVE ANY INCOME BY WAY OF PROFIT AND GAINS OF THE BUSINESS. THE OBJECT OF THE SOCIETY IS FULLY CHARI TABLE. IT IS ENGAGED IN THE CHARITABLE ACTIVITY OF PROVIDING FREE EDUCATION TO THE POOR AND SLUM COMMUNITY. IT PROVIDES FREE PROFESSIONAL TRAINING OF SEWING AND WEAVING AND MUSIC TO THE POORS WIDOWS AND HELPLESS UNEDUCA TED FEMALES TO MAKE THEM SELF-DEPENDENT. PERMANENT REGISTRATION C ERTIFICATE WAS GRANTED UNDER INCOME TAX ACT ON 20.11.07. THE CERT IFICATE GRANTED U/S 80G WAS VALID UPTO 31.03.09. THE ASSESSEE APPLIED RENEWAL OF CERTIFICATE U/S 80G WHICH IS REFUSED BY THE LD. CIT . 4. IN THE GROUNDS OF APPEAL IT HAS BEEN CLEARLY ME NTIONED THAT EDUCATION AS PER DEFINITION OF SEC. 2(15) IS A C HARITABLE ACTIVITY AND LD. CIT IS WRONG IN HOLDING THAT PROVIDING ADULT EDUCAT ION AND PRELIMINARY EDUCATION DOES NOT FALL WITHIN THE AMBIT OF EDUCATI ON. IT IS FURTHER MENTIONED THAT ASSESSEE IS PROVIDING ALL THESE EDUC ATIONS ABSOLUTELY FREE TO ALL THE STUDENTS. ONLY TOKEN AMOUNT OF RS. 30/- PER MONTH IS CHARGE FROM NURSERY CHILDREN FOR MAINTENANCE CLEAN ING AND TO AVOID ENTRY OF NON-OBSERVING STUDENTS. ALL THE BOOKS/STUD Y MATERIAL AND UNIFORM ARE BEING PROVIDED ABSOLUTELY FREE TO ALL T HE STUDENTS. THE SOCIETY DOES NOT HAVE ANY INCOME BY ANY MEANS OF BU SINESS. THE MOTIVE OF THE ASSESSEE IS BEING FULFILLED WITH THE HELP OF DONATION BY THE 3 ITA NO. 1159DEL/2010 MEMBERS OF THE SOCIETY AND HELP IN KIND RECEIVE FRO M THE PERSONS DESIROUS OF HELPING THE POORS. THEREFORE THE REMA RK OF LD. CIT IS THAT ASSESSEE IS ENGAGED IN THE BUSINESS ACTIVITY IS BAS ED ON WRONG PRESUMPTIONS. ALL THE BALANCE SHEETS OF PREVIOUS Y EARS WERE FILED BEFORE LD. CIT. THUS IT IS THE GRIEVANCE OF THE ASSESSEE THAT REFUSAL TO GRANT RENEWAL OF 80G IS AGAINST THE PROVISIONS OF THE ACT . 5. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. AS THIS ISSUE IS SMALL WE PROCEED TO DECIDE THIS APPEAL EX-PARTE QU A THE ASSESSEE AFTER HEARING LD. DR. 6. THE MAIN REASON TO REFUSE RENEWAL U/S 80G AS STA TED IN THE ORDER OF LD. CIT IS THAT PROVIDING ADULT EDUCATION AND PR ELIMINARY EDUCATION UPTO NURSERY DOES NOT FALL WITHIN THE AMBIT OF REGU LAR EDUCATION AS MENTIONED IN SEC. 2(15) OF THE ACT. IN OUR OPINION SUCH OBSERVATION OF LD. CIT IS CONTRARY TO THE PROVISIONS OF THE ACT. IT I S RECORDED IN THE IMPUGNED ORDER THAT ASSESSEE IS PROVIDING THESE FAC ILITIES TO THE POOR AND NEEDY PERSONS AGAINST NOMINAL PAYMENTS. IN THE GROUNDS OF APPEAL IT HAS BEEN CLEARLY WRITTEN THAT SUCH FACILITIES AR E BEING PROVIDED TO THE POORS AND DESERVED PERSONS AND ONLY AN AMOUNT OF RS . 30/- PER MONTH IS BEING CHARGED FROM NURSERY CHILDREN JUST TO COVE R UP SOME EXPENDITURE. THE ACTIVITIES ARE CARRIED ON WITH TH E HELP OF DONATIONS RECEIVED FROM MEMBERS AND FROM THE PERSONS CONTRIBU TING FOR CHARITY. MOREOVER THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12A PERSISTS AND HAS NOT BEEN WITHDRAWN. KEEPING IN VIEW ALL THESE F ACTS WE ARE OF THE OPINION THAT GRANT OF RENEWAL OF 80G CERTIFICATE HA S WRONGLY BEEN REFUSED 4 ITA NO. 1159DEL/2010 TO THE ASSESSEE AND ACCORDING TO THE FACTS OF THE C ASE THE ACTIVITY OF THE ASSESSEE IS VERY MUCH CHARITABLE IN NATURE AS THE S AME CONSTITUTE TO PROVIDE EDUCATION TO THE NEEDY PERSON AND FEMALES T O ENABLE THEM TO BECOME SELF-DEPENDENT. NO SPECIFIC INSTANCE HAS BE EN BROUGHT ON RECORD BY THE LD. CIT TO SHOW THAT WHAT IS STATED B Y THE ASSESSEE IS NOT CORRECT. RATHER ASSESSEE HAS SUBMITTED ALL THE DOC UMENTS AS IS CONTENDED IN THE GROUNDS OF APPEAL. THEREFORE WE FIND NO JUSTIFICATION IN NON-GRANT OF RENEWAL OF CERTIFICATE U/S 80G. THEREF ORE WE DIRECT LD. CIT TO GRANT RENEWAL TO THE ASSESSEE U/S 80G. 7. THE CASE LAW RELIED UPON BY LD. CIT IN THE CASE OF SELF EMPLOYER SERVICES SOCIETY U/S CIT (SUPRA) DOES NOT APPLY TO THE FACTS OF THE PRESENT CASE AS IN THAT CASE THE PETITIONER SOCIETY DID NOT DO ANY CHARITABLE WORK DURING THE RELEVANT PERIOD AND ACTI VITY OF THAT SOCIETY WERE FOR THE PURPOSE OF GENERATING INCOME FOR MEMBE RS OF THE SOCIETY AND THUS IT WAS HELD THAT SOCIETY WAS NOT LIABLE F OR GET REGISTRATION. 8. IN VIEW OF ABOVE DISCUSSION THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21.05.10 (K.D. RANJAN) ACCOUNTANT MEMBER (I.P. BANSAL) JUDICIAL MEMBER DATED: *KAVITA 5 ITA NO. 1159DEL/2010 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR