TMI Blog2012 (11) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety is doing any charitable activities for the general public utility and is entitled for registration under section 12AA of the Act. According to section 12AA of the Act, the Commissioner on receipt of application for registration of a trust or institution has to satisfy himself about the genuineness of activities of the trust or institution. The activities of the assessee-society are not charitable in nature within the meaning of provisions of section 2(15) of the Act and it does not qualify to treat as charitable institution. Since the assessee has not established that its society is formed with objects of any charitable purpose, then the question of discussion of citations relied upon by the Society does not arise. The present society is doing its business and charging huge fees from the public which is in addition to the prescribed fee of the Punjab Govt. Even otherwise, the fees charged by the present society is in addition to the burden forced upon the common-man. Because of this service has to be rendered by the Punjab Govt. free of cost to the public against the fee prescribed in the chart - Decided against the assessee. - IT APPEAL NO. 551 (ASR.) OF 2011 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the above said facts to the Society and the Society contended that the main object of the Society is to provide citizen's services to the common people for their convenience and the Society also explained that the Society receives application from the common citizen for various services on behalf of the departments of State Govt, forwards the same to the concerned department and deliver back the same to the citizen within a specified time frame. The Society is charging prescribed fee from the citizen for providing services. The Ld. CIT, Bathinda perused the chart produced by the Society showing charges received by the Society and he is of the view that the Society charges as much as Rs.1000/- for issuing NOC for petrol pump, Rs.500 for registration of marriage, Rs.500 for NOC on building plan and so on. He is also of the view that these charges are in addition to the statutory fees charged by the State Govt. Departments. These charges/fees are charged by the Society for providing alleged citizen services. The Ld. CIT, Bathinda finally held that the activity of the Society is in the nature of trading, commerce or business and activity of rendering service in relation to the trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges taken by the Society from the Citizens for rendering its services. He has also drew our attention towards the object of the Society which are mentioned in the Memorandum of Association i.e. about 29 objects. He has also drew our attention towards present Board of Governors and stated that almost all the Board Members are high officials of the Punjab Government. Finally, he stated that the Society is working for charitable purposes as well as for public utility purposes and he requested that the Society deserves registration under section 12AA of the Act. But the Ld. CIT, Bhatinda has wrongly rejected the request of the assessee vide impugned order dated 26.09.2011. In support of his contention he has placed reliance on the following decisions: (i) CIT v. Haryana Warehousing Corpn. (ii) CIT v. Haryana Building Other Construction Works Welfare Board (iii) CIT v. Gujarat Maritime Board [2007] 289 ITR 139 (Guj.) (iv) CIT v. Aggarwal Sabha Maharaja Aggarsain Bhawan (v) Sanjeevamma Hanuman the Gowda Charitable Trust v. DIT (Exemptions) [2006] 285 ITR 327. (vi) Bar Council of Maharashtra v. CIT [1980] 126 ITR 27 (Bom.) (vii) CIT v. Dredging Corpn. of India [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 100 5 0 0.00% 6096 13.07% 4675 9.74% 7 Issuance of Copy of a Document 30 7 1473 9.56% 1257 2.69% 1904 3.97% 8 Issuance of Death Certificate 20 7 975 6.33% 951 2.04% 1577 3.29% 9 Submission of Passport Applications 100 20 2101 13.63% 1654 3.55% 1282 2.67% 10 Agriculture related 100 30 274 1.78% 779 1.67% 614 1.28% 11 Non-Encumberence Certificate 20 0 0 0.00% 0 0.00% 374 0.78% 12 Form seeling 0 0 0 0.00% 0 0.00% 160 0.33% 13 Issuance of Surety Bonds 50 Same Day 5 0.03% 29 0.06% 151 0.31% 14 Registration of Marriage 500 Same Day 60 0.39% 88 0.19% 63 0.13% 15 Others 0 0 202 1.31% 218 0.47% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank Balances: S.B.O.P., Mansa 1573840.99 Amount More deposited in Bank Account 270.0 SBOP, Mansa ( I/A) 371818.00 PNB, Budhlada 334408.50 SBOP, Sardulgarh 257726.00 Cash in Head 4270.00 4215661.49 4215661.49 Report :- Subject to our Separate Audited for Report of Even Date For Sanjeev Amar Associates Chartered Accountants Place : Mansa (Sanjeev Kumar) Dated : 18.08.2009 M. No. 500277 Sukhmani Society for Citizen Services (D.C. Office),Mansa Income Expenditure Account For The Period Ending 31.03.2009 Expenditure Amount (Rs) Amount (Rs) Income Amount To Pb. State e-goverance Society, CHD 381533.50 By Receipts 2592150.00 By Bank Interest 48843.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SEPARATE AUDITED FOR REPORT OF EVEN DATE FOR SANJEEV AMAR ASSOCIATES CHARTERED ACCOUNTANTS PLACE : MANSA (SANJEEV KUMAR) DATED : 22.06.2010 M. No. 500277 Income Expenditure Account For the Period Ending On 31.3.2010 Expenditure Amount Income Amount To Pb. State e-governance Society Chd. 486084.50 By Receipts 3420275.00 To Printing stationery 146145.00 By Bank Interest 86517.00 To Salary 917004.00 By Excess Deposit 250.00 To Bank Exp. 911.00 By Excess credit bank 10.00 To computer repair 64880.00 To Audit fee 7000.00 To electricity bill 49702.00 To Telephone 10590.00 To SMS Exp. 1122.00 To Advertisement 13113.00 To Electric Repair 4969.00 To Travelling 2346.00 To Misc. Exp. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnance Society Chd. 478259.50 By Receipts 3132591.00 To Printing 154873.00 By Bank Interest 327855.43 To Salary 1413932.00 By Excess Deposit 1969.00 To Bank Exp. 350.00 By Excess credit bank 10.00 To Stationery 74842.00 To computer repair 67450.00 To Audit fee 7000.00 To electricity bill 62279.00 To Telephone 14659.00 To SMS Exp. 279.00 To Advertisement 13084.00 To Electric Repair 8806.00 To Travelling 12760.00 To Misc. Exp. 3135.00 To Depreciation 223130.00 To Income over Exp. 901085.93 3462515.43. 3462515.43 Report :- Subject to Our Separate Report of Even Date For Sanjeev Amar Associates Chartered Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n para 3.1(i) to para 3(iii). For the sake of convenience, the objects of the society are reproduced hereunder: "3.1. The applicant society is registered with the Addl. Registrar of Societies, Mansa vide No. 44 of 22.03.2004.The aims and objectives of the societies are contained in Memorandum of Association of the society, a copy of which has been obtained and is placed on file. As many as 29 objectives have been mentioned in the list in para 4 under the title Objectives and functions of the society. Some of the objectives are such that activities of the society seem to be of commercial nature rather than of charitable nature. The objectives of such nature are as under: (i) To workout and recommend the service fee or user charge that could be charged from the end customers for the approval of the competent authority and concerned departments/organizations over the above and the prescribed bill amount/fee/statutory fee for providing the services through Sukhmani Centres/Financial Institutions or Franchisees. (ii) To buy, sell, let on hire, lease, trade, import, repair or otherwise deal with IT resources, services support on turkey basis like hardware, software, connectivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Govt. of Punjab in the month of August, 2002 at Fatehgarh Sahib. It was inaugurated by the Chief Minister of Punjab on 31.10.2002. The project was founded by the Govt. of India, Department of Communication Information Technology. The Govt. of Punjab has decided to implement this project in all Districts of Punjab alongwith SUWIDHA Back-end Services (SUBS) of the Deputy Commissioner Branches in December, 2004. The project replication started in all districts with technical support of NIC-District Centres. As of now, the project is being executed in all Deputy Commissioner's offices. The appellant society is registered with the Additional Registrar of Societies, Mansa vide No.44 of 22.03.2004 and its aims and objects are contained in Memorandum of Association of the Society which we have already mentioned in the foregoing paragraphs. After perusing the objects of the Society, we find that the Ld. CIT, Bathinda, has reproduced some important objects of the Society in para 3.1 (pages 2 3) of the impugned order which shows that this society has been established for maintaining the agencies and franchises in the district for the conduct of the business of the society, whic ..... 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