TMI Blog2021 (11) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the contractor returned the sum and later on the trust carried on the construction activities by looking at alternatives. The amount was received from the contractor through account payee cheques and same were also given earlier to him through account payee cheques. Therefore we do not find any merit in the finding of the learned CIT E that the transaction with Mr Surinder Sukhija prevents assessee from getting registration u/s 12 AA The justification given by the assessee for holding the car and using it for the activities of the trust is also justifies the use of claiming of the depreciation as well as payment of insurance. In fact the level of activities being carried out by the trust justifies the use of car. Further the learned CIT E held that the credits in bank account as well as the receipt as per receipt and payment account for financial year 2016 17 does not match, however, there is no difference between the receipts which are required to be shown in the receipt and payment account. Assessee has also shown the bank account to the learned CIT E, who could not find out or give any instances where the receipts are not accounted in the receipt and payment accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exemption), Chandigarh. 02 The assessee has raised the following grounds of appeal:- i. The learned CIT (E) has erred in law and on facts in rejecting the application u/s 12 A of the income tax act, 1961. ii. That the rejection order passed u/s 12 AA of the act is against the law and to the facts of the case iii. That the learned CIT (exemption) erred in law for not appreciating that the appellant society doing charitable activities and fulfill the conditions laid down u/s 2 (15) of the act. iv. That the learned CIT (E) has erred in law and on the facts in not following the binding judgments of the Honourable Apex court and jurisdictional High Court on similar facts. 03 The brief facts of the case shows that the assessee trust has the aims and objects to serve the society to provide medicine in Aushadhalaya, to promote education, to open dispensaries, college and technical education institutes for propagation of education, to provide books and scholarships to poor and needy students, to work for promotion of sports and to alienate dowry system from society. The assessee applied for registration u/s 12 A of The Income Tax Act by filing form number 10 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total payment of ₹ 5,211,607/ were made during that financial year 2016-17. Therefore, it was clear that complete financial transactions are not being revealed. He further held that the pictures submitted by the assessee revealed the activities carried out by the assessee through some Jan Seva Samiti and therefore these activities are carried out by some other entity. Therefore, he held that the activities of the trust are not genuine and further the financial transactions are not transparent in absence of any concrete reply from the applicant s activities of the trust. Therefore, he held that the activities of the trust could not be termed to be falling within the realm of charitable purposes. He further held that the applicant has not been able to prove pursuance of its objects and the genuineness thereof. Thus, he rejected the application of the assessee for registration u/s 12 AA of the act by passing the impugned order. The appellant applicant trust is aggrieved with that and has preferred this appeal. 06 The learned authorised representative submitted that assessee is constructing a Satsang Bhavan on the land, which is owned by Baba Karanpuri. This land is gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because some infirmities are pointed out which does not exist at all, it cannot be said that the activities of the trust are not charitable in nature. He further submitted that if the trust is granted registration u/s 12 AA of the act than at the time of assessment of the trust whether the assessee has spent money on charitable activities or not can be examined at the time of allowing benefit of Section 11 13 of the act. He therefore submitted that the learned CIT E has not given a single instance where the activities of the trust cannot be said to be charitable in nature. Therefore, the trust should be allowed registration u/s 12AA of the act.The learned that AR also referred to the paper book filed by him and also relied upon several judgments placed therein. He also referred to several communications and replies of the assessee submitted before the learned CIT E. 07 The learned CIT DR vehemently supported the order of the learned CIT E and submitted that there are certain infirmities pointed out by the registering authority and therefore the trust is denied registration u/s 12AA correctly. He extensively referred to paragraph number 7 of the order. 08 We have ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 2017 Amount in rupees 1 Donation 8,85,095 18,01,500 Nil 2 Laboratory income 2,00,226 5,14,050 7,61,000 3 Outdoor patient income 1,30,623 1,34,815 1,80,000 4 Ambulance income 2,02,380 2,78,790 2,37,740 5 Ambulance grant 3,09,000 Nil Nil 6 Membership fees 50,000 50,000 50,000 7 Dental income Nil 1,81, 740 1,27,235 8 X-ray income Nil 12,600 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for financial year 2016 17 does not match, however, there is no difference between the receipts which are required to be shown in the receipt and payment account. Assessee has also shown the bank account to the learned CIT E, who could not find out or give any instances where the receipts are not accounted in the receipt and payment account but are credited in the bank account. The carrying on of the activities of satsang along with Jan Sewa Samiti has also been properly explained by the assessee that it carries on these activities along with these other organizations. Further the government of Haryana has give grant to the assessee trust for carrying on its medical activities for purchasing an ambulance. Appellant trust is also showing considerable amount of fees from the patient s and also applies substantial amount for medical relief , relief to poverty, gaushala and religious activities. All these activities falls under the gamut of provisions of Section 2 (15) of the act. The learned CIT E without any evidence and on irrelevant considerations has denied the registration to the trust u/s 12 AA of the act. Object of Section 12AA of the Act, is to examine the genuineness of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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