TMI Blog2023 (7) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... as argued by Ld. AR, there is no agreement creating any obligation or commitment on the part of parents to make payment to assessee. These factual aspects clearly demonstrate that the payments made by parents are in the nature of mere voluntary contributions and not in the nature of recovery of charges/fee. Had it been from parents of all children and it would have been systematic in terms of periodicity and amount, there might have been a signal of charge/fee but that is absent. Therefore, the Ld. CIT(E) is not correct in perceiving the amounts received by assessee as charge/fee. Regarding 2nd reason of payments to Shri S.K. Shrivastava and Shri Naveen Agrawal, on perusal of evidences placed by Ld. AR, we prima facie find that the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption), Bhopal [ Ld. CIT(E) ] rejecting the applications filed by assessee for grant of registration u/s 12AB 80G respectively, the assessee has filed these appeals on the grounds mentioned in respective appeal memos. 2. Heard the learned Representatives of both sides at length and case records perused. 3. Briefly stated the facts are such that the assessee is a society engaged in charitable activity for welfare of children suffering from autism, a serious and non-curable disease. The assessee sought registration u/s 12AB and 80G of Income-tax Act, 1961 and for that purpose applied to Ld. CIT(E) in two separate proceedings. In both matters, the assessee was granted provisional registrations by two separate orders dated 28.05.2021. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for deduction u/s 80G is also promoting tax evasion. In this regard, Ld. AR admits that it is true that the assessee received certain amounts from parents of 7 children but the Ld. CIT(E) has given month-wise/parent-wise details of receipts in a Tabular format on Page No. 6 7 of his order. Ld. AR drew our attention to same and contended that from a cursory look of the details, one can easily discern at least three vital aspects, namely (a) the receipts are from 7 parents and not from parents of all 13 children; (b) even from 7 parents, the receipts are not made in all months, they are in a few months; and (c) the amounts received are neither identical nor constant; they are varying. Ld. AR further submitted that there is no agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d some material for use by assessee and made payments out of their pockets. Subsequently, the assessee reimbursed actual amounts to them. In this regard, Ld. AR has also placed on record the copies of invoices of the suppliers, mainly Amazon.in, on Page Nos. 6 to 28 of Paper-Book. Ld. AR carried our attention to those invoices one by one in the presence of Ld. DR and also identified the description of items purchased through those invoices to show that the items mentioned therein were needed for use/consumption by autism affected persons. In short, Ld. AR established that the payments were in the nature of mere reimbursements. (iii) The third reason for rejection mentioned by Ld. CIT(E) in Para No. 3(c) of his order is such that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from parents of children is concerned, we find that (i) the assessee has not received amounts from parents of all 13 children residing in assessee s campus, the receipts were from parents of 7 children only; and (ii) the receipts are not systematic i.e. neither in all months nor of identical or constant amounts. Furthermore, as argued by Ld. AR, there is no agreement creating any obligation or commitment on the part of parents to make payment to assessee. These factual aspects clearly demonstrate that the payments made by parents are in the nature of mere voluntary contributions and not in the nature of recovery of charges/fee. Had it been from parents of all children and it would have been systematic in terms of periodicity and amount, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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