TMI Blog2017 (8) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... to the applicant. Appeal of the Assessee is allowed. - I.T.A.No.6721/Del/2015 - - - Dated:- 25-8-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Sh. Piyush Kaushik, Adv. For The Department : S h. Vijay Varma, CIT(DR) ORDER PER H. S. SIDHU, JM The Assessee has filed the present appeal against the impugned order dated 16/06/2015 passed by the Ld. Commissioner of Income Tax (Exemptions), Lucknow on the following grounds:- 1. That on the facts and circumstances of the case and in the law, the CIT(Exemptions) has grossly erred in denying registration to the assessee society u/s. 12A(a) of the Income Tax Act, 1961 as claimed. 2. That on the facts and circumstances of the case and in the law, the CIT(Exemptions) has grossly erred in denying registration to the assessee society u/s. 12A(a) of the Income Tax Act, 1961 as claimed being in gross violation to the principles of natural justice and fairness. That the appellant craves leave to add to and / or amend, modify or withdraw the grounds outlined above before or at the time of hearing of the appeal. 2. The brief facts of the case are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hmedabad Rana Caste Association vs. CIT 82 ITR 704 SC; Decision of Supreme Court in the case of CIT vs. Andhra Chamber of Commerce 55 ITR 722 SC. He also attached the copy of decisions holding that at the stage of grant of registration u/s. 12A the objects are to be seen and it is not appropriate on part of CIT to examine the aspect of application of income i.e. the decision of Hon ble Rajasthan High Court in the case of CIT vs. Gopi Ram Goyal Charitable Trust (2017) 392 ITR 285 (Raj); Decision of Kerala High Court in the case of Shree Anjaneya Medical Trust vs. CIT (2012) 382 ITR 399 (Ker.); Decision of Allahabad High Court in the case of Fifth Generation Education Society vs. CIT 185 ITR 634 (All.); Decision of Punjab Haryana High Court in the case of CIT vs. BKK Memorial Trust (2013) 213 Taxmann 1; Decision of Karnataka High Court in the case of CIT vs. AS Kupparaju Brothers Charitable Foundation Trust (2012) 205 Taxman 9 and decision of Madhya Pradesh High C ourt in the case of CIT vs. DTR Charitable Trust 61 DTR 410. He further stated that as per Memorandum of assessee society at page no. 36 37B of the PB and also as per the submission made before the Ld. CIT(E) dated 15.6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orandum Articles of Association together with English translated version of objects clause as per Memorandum; Details of Charitable works undertaken with respect to protection of interest of farmers; correspondences with the offices of Hon ble President of India PMO with respect of protection of interest of farmers and letter dated 3.6.2015 before the Parliamentary Committee with respect to protection of interests of farmers and also the second Paper Book which is containing pages 1 to 48 in which the assessee s counsel has attached the copies of various decisions and relied on the same with regard to submissions that Objet beneficial for a section of public (protection of interest of farmers in the present case) is an object of general public utility i.e. Decision of Hon ble Supreme Court in the case of Ahmedabad Rana Caste Association vs. CIT 82 ITR 704 SC; Decision of Supreme Court in the case of CIT vs. Andhra Chamber of Commerce 55 ITR 722 SC and also attached the copy of decisions holding that at the stage of grant of registration u/s. 12A the objects are to be seen and it is not appropriate on part of CIT to examine the aspect of application of income at the stage of gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on can be achieved. iv. To make research and development in the. field of ancient agriculture shastra. v. To collect information about farmers' problems and make arrangements for organizing conferences, training classes, discussion, seminar, agricultural research; travel, exhibition and program for the farmers. vi. To establish contacts with agricultural organizations, providing and taking help from them. vii To provide and take suitable help from labour unions, educational organizations, various governments, social organization, public organization; etc. viii. To working for protection of cattle, agricultural subsidized livestock, vegetation, etc. ix. To guide, assist and form processing organization. x. To make agricultural produce available to the markets and establish worthwhile methods for getting best value according to the cost of the agricultural produce. xi. To plan and work for financial and social development of farmer, farm owners, agricultural labour, blacksmith, carpenter, potter and those communities whose financial livelihood is dependent on agriculture. xii. To establish, guide and assist in health education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction with demand of farmers pertaining to land acquisition etc.; Representation dated 12/09/13 before the Hon'ble President of India in connection with demand of farmers; Representation dated 03/06/15 before the Joint Parliamentary Committee in connection with demand of farmers. We further note that the assessee from time to time appeared before the Ld. CIT(E) and submitted the details as under:- Firstly vide submission dated 16/02/15 (pg 1 PB) the assessee has submitted, interalia, the following documents: i. List of management committee (page 3 PB); ii. Copy of Memorandum Articles of Association (pages 22-37 PB); iii. Copies of audited accounts for FY 2011-12; FY 2012-13 FY 2013-14 (pages 4-18 PB). Thereafter vide submission dated 15/06/15 the assessee has submitted, inter alia, the following documents: i. Audited accounts for FY 2011-12; FY 2012-13 FY 2013-14 were re-submitted. ii. Copies of bank statements for last three years were submitted; iii. Detailed note on charitable activities carried out by assessee society together with various representations submitted for protection of interests of farmers (supra) were submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole of mankind or even all persons living in a particular country or province. It was sufficient if the intention was to benefit a section of the public as distinguished from specified individuals , 6.7 On the facts of the present case, the section of public to whom benefit is intended is farmers constituting approx. 60% - 70% of population of country and the protection of interests of farmers will invariably confer several benefits. These points were clearly highlighted vide submission dated 15/06/15 before the CIT(Exem.) which establishes beyond any doubt that the object of assessee is of general public utility within the meaning of section 2(15), which reads as under:- i. Upliftment of farmers by way of providing them facilities like better seeds, fertilizers, availability of water and electricity; connecting villages with roads etc; ii. Assessee society works in the field of improving financial; cultural; social and educational upliftment of farmers; iii. Providing farmers with the knowledge of modern agricultural techniques and equipments; iv. Implementation of latest techniques in farming; v. Organizing meetings, trainings, sessions, exh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such situation exists on the facts of present case. 6.9 We further of the view that at the stage of granting registration u/s 12A the Ld. CIT(E) has required to see the objects of society and not required to examine on the application of income which will have to be undertaken by the Assessing Officer (AO) on a year to year basis after assessee files return of income claiming exemption u/s 11. This position is now well settled by several authoritative pronouncements on the subject. On the facts of present case there cannot be even an iota of doubt that the objectives of assessee society are charitable in nature being an objective of general public utility within the meaning of section 2(15) of the Act as detailed herein above. 7. Keeping in view of the facts and circumstances of the case as explained above and respectfully following the legal position as discussed above, we are of the considered opinion that the assessee is entitled for registration u/s. 12A of the Act. Therefore, we set aside the impugned order passed by the Ld. CIT(Exemptions), Lucknow and accordingly, direct the Ld. CIT(E), Lucknow to grant registration under section 12A of the Act to the applicant. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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