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2016 (10) TMI 849 - ITAT DELHI

2016 (10) TMI 849 - ITAT DELHI - TMI - Registration u/s 12AA and exemption u/s 80G denied - non charitable activities - To Promote safety and the prevention of accidents in all areas of life at work at leisure on the road, in the home and through safety education in schools, institutions work places and all other locations - Held that:- DIT(E) has to satisfy himself about the object of the trust and the genuineness of its activities. From the order passed by ld. DIT(E) it is evident that she is .....

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in nature or not. This is not disputed by ld. DIT(Exemption). - We may also clarify that as far as ld. DIT(E)ís finding regarding applicability of proviso to section 2(15) is concerned, we are not inclined to accept the same for the simple reason that assessee had received service charges from various organizations for conducting the programme and this cannot par take the character of business by any stretch of reasoning. Be that as it may, this cannot be basis for denying registration as it .....

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see has also annexed various reports on its activities, which have not adversely been commented by ld. DIT(E). Photographs annexed in paper book show that various programmes were being conducted and people were listening to various speakers. Therefore, the assessee-society was carrying out the activities for which it was incorporated. Hence, genuineness of activities stands established. Thus, twin ingredients of section 12AA being satisfied, we do not find any basis for denying registration to t .....

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: JUDICIAL MEMBER For The Appellant : Shri Ashok Khurana CA For The Respondent : Shri A.K. Saroha CIT (DR) ORDER PER S.V. MEHROTRA, A.M: This is assessee s appeal against the order dated 28.11.2013 passed by the Director of Income Tax (E), u/s 12AA(1)(b) r.w.s. 12A of the Income Tax Act, 1961. 2. The assessee has raised as many as 9 grounds of appeal to assail the order of ld. DIT(E) in denying registration u/s 12AA and exemption u/s 80G of the Act. 3. Brief facts of the case are that the asses .....

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ducation in schools, institutions work places and all other locations. b) Institute of Road Safety and Fleet Management Society aim is to sensitize masses by raising awareness about road traffic deaths, cripples and grievous injuries their grave consequences and thus building community involvement around the issue of Road Safety. c) Institute of Road Safety and Fleet Management society campaigns to bring in change in attitudes and behaviors and inculcate sense of courtesy and concern among road .....

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he assessee s AR was required to state the nature of deposits or credits in the bank account. The assessee s AR filed letter dated 15.10.2013, signed by the President of the Society, stating therein that we hereby certify that amount above ₹ 20,000/- receipts/ credits into our bank account are against Road Safety Education-Training Services rendered by us . Ld. DIT(E) also noticed that assessee, inter alia, submitted that it was providing knowledge of safe driving on the roads to the profe .....

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s of the organization for which the training programme is being conducted. Ld. DIT(E), however, has observed that assessee was unable to file any further details about contents/ name/ target group etc. of the training programme conducted by it for various organization from whom it claimed to have received ₹ 27.09 lacs. Ld. DIT(E) observed in para 6 of her order that the applicant s activities fell within the ambit of advancement of any other object of general public utility and the applica .....

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and proviso to section 2(15) was not attracted. It was further contended that the activities fell within the ambit of education as it was running a training institute to cater to the needs of professional drivers. 2.3. Ld. DIT(E) rejected the assessee s claim of registration u/s 12A observing in para 8 of her order as under: 8. I have carefully considered the submissions made by the applicant and gone through the details filed by it. It is clear that the institute primarily claims to be conducti .....

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etails filed, it could not be ascertained as to how applicant is providing training to the commercial entities from whom service charges/misc. receipt have been shown. No, evidence has been filed in respect of nature/content of training and the target group drivers, commuters, management staff etc. to whom it is imparted. In its reply dated 28/11/2013 applicant has filed only names of organizations for AY. 2011-12 and 2012-13 wherein, it claims to have trained the staff of these organizations. A .....

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ing on the decision of Hon ble Supreme Court in the case of Sole Trustee Lok Shikshana Trust Vs. CIT (1975) 10 ITR 234 (SC), ld. DIT(E) did not accept the assessee s contention that it was providing education. She also relied on the decision of Hon ble Gujarat High Court in the case of Sorabji Nusserwanji Parekh 66 Taxmanh 411 for rejecting the assessee s claim that it was imparting education. However, she accepted that the activities carried out by the assessee fell within the last limb, advanc .....

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ne the genuineness of the activities which has not been doubted by ld. DIT(E). He referred to page 8 of PB wherein memorandum of association of assessee society is contained and referred to aims and objects of society and pointed out that the activities carried out by assessee were charitable in nature. He submitted that all these activities were carried out for the benefit of public at large by sensitizing masses by raising awareness about accidents which results into enormous losses to human l .....

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on of knowledge by public at large. 5. We have considered the submissions of both the parties and have perused the record of the case. Section 12AA of the Income-tax Act prescribed the procedure for registration. This section mandates ld. Commissioner to - (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessa .....

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trust and the genuineness of its activities. From the order passed by ld. DIT(E) it is evident that she is not disputing that objects of the society are charitable in nature as she herself has said that the activities carried out by assessee were covered under fourth limb of section 2(15) viz. advancement of any other object of general public utility. At this juncture we may observe that we are not recording any findings as to under which limb of section 2(15) the assessee s activities fell, bec .....

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siness by any stretch of reasoning. Be that as it may, this cannot be basis for denying registration as it is nowhere so contemplated in the Act. 5.3. Now the second aspect, which is to be considered at the time of grant of registration, is regarding the genuineness of its activities. In this regard ld. DIT(E) has observed, as noted in para 8 of her order, reproduced earlier, that assessee had filed only names of organizations for AYs 2011-12 and 2012- 13, wherein it claimed to have trained the .....

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