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TMI Blog2014 (12) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... is a loan given by that trust to these two trusts. In support of this contention, he submitted a copy of balance sheet of all the three trusts i.e. Vikat Educational Trust, Vinayak Educational Trust being the two assessees before us and Bhalchandra Educational Trust who has provided this money to these two trusts. He pointed out that on page No. 3 of the paper book is the copy of balance sheet of Bhalchandra Educational Trust as on 31/03/2013 and as per the same, on the assets side of the balance sheet, there are two items appearing under the heading loans & advances given to these two assessees and amount is Rs. 40 lacs each. He also submitted that Bhalchandra Educational Trust is already registered u/s 12AA and 80G of the Act. 3. Regarding the donation received by Vikat Educational Trust of Rs. 44,72,800/-, it was submitted that the complete list of 1084 persons being the donors is available on page 1 to 16 of the paper book which contains the name, address and amount of donation. Similarly, regarding the donation received by Vinayak Educational Trust of Rs. 44,23,100/- also, it was submitted that complete list of donors along with the name, address and amount of donation is av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Learned A.R. of the assessee has furnished the details of the trustees for these three trusts and from those details, it is seen that two trustees are common in all the three trusts i.e. Shri Subodh Chawla and Smt. Mona Chawla both resident of 32A, Chandra Lok Aliganj, Lucknow. In the case of Bhalchandra Educational Trust, there is no other trustee but in the Vikat Educational Trust, there is one more trustee i.e. Shri Poras Chawla with same address and in the case of Vinayak Educational Trust, there is one more trustee Shri Dushyant Chawla with same address. 4. Learned D.R. of the Revenue supported the order of learned CIT in all these cases and placed reliance on the judgment of Hon'ble Punjab & Haryana High Court rendered in the case of CIT vs. Savior Charitable Trust. 5. We have considered the rival submissions and perused the material available on record in all these cases. We find that the facts in all the cases are almost similar and therefore, we reproduce the relevant Para of the order of learned CIT from the order passed by him u/s 12AA in the case of Vikat Educational Trust i.e. I.T.A. No.474/Lkw/2013. These paras are Para No. 2 to 5 and the same are reproduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xteen pages and each page has been initialed by this authority as a mark of authentication 3.1 Looking to the prima facie suspicious nature of the donations, the applicant was asked to furnish written confirmations from the alleged donors proof of their address and residence and their assessment particulars. However, as already mentioned, these were not furnished by the applicant. 3.2 The receipts produced show that the person incharge of collecting donations was present at distant locations on a particular day This would have involved extensive travel, which was not possible on a single day by normal mode of transportation. Extensive travelling on a continuous basis is also not corroborated by the accounts in as much as the travel expenses amount to a paltry sum of Rs. 570/- for the period during which the donations were allegedly mobilised and for which travelling would have been undertaken. Even the identity of Shri Pawan, who is seen to have issued the receipts is not known. It may be pointed out here that no amount is debited as salary or wages in the accounts. 3.3 As regards the alleged donations from Bhalchandra Educational Trust, the applicant did not reveal as to whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to be registered u/s 12A so as to confer on it the exalted status of a charitable institution and to allow any exemption in respect of its income. The application filed in form No. 10A is rejected." 5.1 From the above paras from the order of learned CIT, it is seen that his main objection is that the assessee has claimed receipt of cash donation of Rs. 44.73 lacs and he is not satisfied about the details provided in respect of these donations. His second objection is that the assessee has shown receipt of donation of Rs. 40 lacs from Vinayak Educational Trust having same trustees and same objectives. We also find that there is no objection of CIT regarding the objects of these assessee trusts. We also find that the basis of CIT in doubting the genuineness of cash donation is that the identity of Shri Pawan, who has issued the receipts is not known and no salary was debited in the books of account on account of payment to Shri Pawan. In our considered opinion, this is not valid for deciding the claim of the assessee regarding registration. As per the judgments cited by Learned A.R. of the assessee being the judgments of Hon'ble Allahabad High Court and Hon'ble Punjab & H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT that trustees and objects of this trust is identical with these two trusts. This finding of fact given by learned CIT itself is sufficient to hold that registration should be granted to these two trusts also because when under identical facts, registration is already granted by learned CIT himself to Bhalchandra Educational Trust, there is no reason to deny registration to these two trusts. 5.4 Moreover, as per the balance sheet of Vikat Educational Trust as on 31/03/2013 available in paper book, we find that this assessee has invested an amount of Rs. 94.28 lacs on acquiring the land and Rs. 21.13 lacs on account of building (under construction). Similarly, as per the balance sheet of Vinayak Educational Trust as on 31/03/2013, an amount of Rs. 94.28 lacs was invested on acquisition of land and further amount of Rs. 22.50 lacs was invested on account of construction of building. It is also submitted before us that application is already submitted with Regional Director, NRC on 29/12/2012 for approval of D.ELED (BTC) programme. The college building is under construction. Hence, these two trust have already undertaken activities to fulfill their charitable objects in a big wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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