9911796707
TMI Blog2025 (5) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 wherein the AO requested the CIT(E) for cancellation of the registration granted to the assessee on the various grounds. 4. After examination of the proposals so received by the CIT(E), a show cause notice dated 03.10.2022 was issued to the assessee asking it to explain as to why it should not be held that it had committed specified violation as provided in explanation to section 12AB(4) of the Income Tax Act, 1961. The assessee had made detailed submissions dated 27.10.2022 which is reproduced at pages 4 to 8 of the impugned order and after considering this reply of the assessee, the Ld. CIT(E) further raised queries in terms of the notice dated 10.04.2023. The assessee has finally made reply which is reproduced in para 8 at pages 10 to 12 of the order. Thereafter, the Ld. CIT(E) further sought information vide notice dated 09.06.2023. which were duly replied by assessee vide letter dt. 20.06.2023 wherein the assessee rebutted each and every allegation with regard to specified violation of Explanation (d) to Section 12AB(4) of the Act. The said reply is reproduced at pages 14 to 32 of the order. After considering the submissions of the assessee, the Ld. CIT(E)observed that asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the registration under section 12A of the Act and approval under section 80G of the Act as per new provisions applicable, has been granted for the asst. years 2022-23 to 2026-27 after considering the aims and objects and the activities of the Appellant. The Id. CIT(E) further failed to appreciate that the assessing officer has scrutinized the objects and activities of the Appellant in detail for asst. years 2012-13 and 2018-19 and granted the benefit of registration under section 12A of the Act, and therefore in the light of the said position, the proposal of the jurisdictional assessing officer to cancel registration and so also the order of the Id. CITIE are erroneous and unsustainable on facts and in law. 5. The Id. CIT(E) erred in holding that details of contributions received at places other than the head office casts serious doubts on genuineness of the activities of the assessee. The Id. CIT(E) ought to have appreciated that the Appellant raises donations through advertisements in newspapers and magazines with a request to donate directly into its bank account. 6. The Id. CIT(E) failed to appreciate that the Appellant cannot be held responsible if the donors wish t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the beneficiaries of Nagrik Vikas Kendra' belonged to a particular religious community. The Id. CIT(E) failed to appreciate that list of non-Muslim filed before the Id. CIT(E) clearly establish that the non-muslims have also benefited. 13. The Id.CIT(E) ought to have appreciated that the benefits under Nagrik Vikas Kendra' is open for all communities and as a matter of fact the benefit was provided to non-Muslims as well. The la. CIT(E) erred in not appreciating the fact that the Appellant does not discourage or reject this benefit for other communities and this activity is taken up for the benefit of all communities. The finding of the Id. CIT(E) is incorrect and unsustainable on facts and in law in this regard 14. The Id. CIT(E) erred in holding that the beneficiaries of low cost housing' belonged to a particular religious community. The Id CIT(E) failed to appreciate that list of non-Muslim filed before the Id. CIT(E) clearly establish that the non-Muslims have also benefited. 15. The Id. CIT(E) ought to have appreciated that the benefits under Low Cost Housing' is open for all communities and as a matter of fact the benefit was provided to non-Muslim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The finding of the ld. CIT(E) in paragraph 11 of his order are incorrect and unsustainable on facts and in law. The Id. CIT(E) ought to have appreciated that there is not a single instance where the Appellant has discouraged or has rejected the application of an eligible beneficiary, on the ground of caste, creed or religion. The Id. CIT(E) ought to have appreciated that the eligible candidates from other communities who had applied were granted benefit under various activities run by the Appellant, and that if they the eligible candidates from other communities do not approach, the Appellant cannot be found fault with by casting aspersion of bias. For these and other grounds that may be urged with the leave of the Hon'ble ITAT, it is prayed that the appeal may be allowed." 8. All these grounds of appeal are revolving around two issues: (i) Withdrawal of registration granted u/s 12A with retrospective operation from AY 2018-19; and (ii) cancellation of registration granted u/s 12A(1)(ac)(i) of eh Act w.e.f. AY 2022-23 and onwards. 9. In this regard, the Ld. AR of the assessee submitted that the assessee was granted registration u/s 12A as a charitable society and is car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 29.05.2009 which stood cancelled by impugned order w.e.f. AY 2018-19. Further registration granted u/s 12A(1)(ac)(i) dt. 23.09.2021 is also cancelled w.e.f. AY 2022-23. Therefore, we first decide the issue whether the registration granted u/s 12A can be withdrawn with retrospective effect. 12. Through Finance Act, 2021 and Taxation and Other Law (Relaxation and Amendment of Certain Provision) Act, 2020, major changes were made with regard to the trust or institution registered under section 12AA of the Act where they were required to re-register itself before the specified dates provided u/s 12A(1)(ac) of the Act and sunset clause has been inserted under section 12AA(5) w.e.f. 01.04.2021 and new section 12AB has been inserted. Thereafter, vide Finance Act 2022 sub-section (4) of section 12AB was substituted w.e.f. 01.04.2022, according to which where registration has been granted u/s 12AB (1) or 12AA(1) (b) of the Act, the said registration can be cancelled only if subsequent to the registration, the Principal Commissioner or Commissioner notices one or more specified violations during any previous year or receives a reference from the AO under proviso to Section 143(3) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (c) the trust or institution has applied any part of its income from the property held under a trust for private religious purposes, which does not endure for the benefit of the public; or (d) the trust or institution established for charitable purpose created or established after the commencement of this Act, has applied any part of its income for the benefit of any particular religious community or caste; or (e) any activity being carried out by the trust or institution,- (i) is not genuine; or (ii) is not being carried out in accordance with all or any of the conditions subject to which it was registered; or if the trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality". 13. Prior to this amendment, cancellation of registration of any trust or institution can be made only in case where activities of such trust or institutions were not found genuine or not being carried out in accordance with objects of tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owers the Commissioner of Income Tax to initiate steps for cancellation of the registration of a Trust, but, the legislation had no intention of giving the said provision, a retrospective effect. For in such a situation, the same would have been clearly specified in the said provision. Interpretation of the said provision has to be harmonious rather than being prejudicial to the institutions as it would instigate and create a fear of the Income Tax Department. I find support in my opinion from the following cases with reference to the issue of cancellation or withdrawal of registration with retrospective effect: 17. The CBDT vide circular no. 11/2022 dt. 03.06.2022 explain the amendment and clearly observed that these amendments are effective from 1.4.2022, it reads as under: "Finance Act, 2022 has inserted sub-section (4) in section 12AB of the Income-tax Act, 1961 (the Act) allowing the Principal Commissioner or Commissioner of Income-tax to examine if there is any "specified violation" by the trust or institution registered or provisionally registered under the relevant clauses of sub-section (1) of section 12AB or subsection (1) of section 12AA. Subsequent to examination by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancellation of the registration w.e.f. Asst. Year 2022-23 granted u/s 12A(1)(ac)(i) of the Act vide Unique Registration Number AAATH7672RE20084 dated 23.09.2021. The grounds of appeal No.2 to 22 taken by the assessee are in relation to the withdrawal of exemption from Assessment Year 2022-23. Since all these grounds of appeal are interconnected and related to the issue of challenging the order of the ld. CIT(E) cancellation of registration granted u/s 12A(1)(ac)(i) of the Act, the same are dealt with together. 21. Briefly stated the facts are that the Ld. CIT(E) invoked the clause (d) of explanation of 12AB(4) on account of allegation that assessee has applied its income for the benefit of a particular religious community. The ld. CIT(E) further invoked clause (a) of explanation of 12AB(4) by alleging that assessee has applied its income for the benefit of a particular religious community and thus has deviated from its stated aims and objectives. Ld. CIT(E) has also invoked clause (e) of explanation to section 12AB(4) by alleging that the assessee has filed to prove the genuineness of the activities undertaken. It is seen that the AO made proposal for cancellation of the registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er organizations. However, the list of beneficiaries is not complete but whatever details have been shared shows that the beneficiaries belong to a particular religious community. vi The assessee (HWF) claimed that it had has conducted free Vaccination camps in collaboration with Delhi Govt. Vaccination camps were conducted in Uttar Pradesh also. Subject has shared neither evidence of expenses towards its activities nor the complete list of beneficiaries along with Aadhar/PAN. A general list with beneficiaries belonging to a particular religious community was furnished. vii. The assessee (HWF) claimed that it had has provided support to 13 poor patients who were not able to afford medical cost and reimbursed the cost which was incurred for the purchase of medicines. The list of the 13 patients was shared, who belong to a particular religious community. Further, names of the patient were not supported with valid Id proof in order to know whether they were the real beneficiaries or not. viii. The assessee (HWF) claimed that it had undertaken drinking water projects in certain areas of the country, Subject has not shared the list of total expenses incurred towards drinking water ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Before us, the Ld. AR argued that before the Ld. CIT(E), assessee society has made pointwise rebuttal of all the allegation made by the AO in its proposal as well as by Ld. CIT(E) vide show cause notice for withdrawal of the application. He primarily relied on such submissions which are as under: "Respectfully we are submitting reply to the letter referred to above as a show cause notice for the alleged violation of the provisions of explanation (d) of section 12AB (4) of the Income Tax Act. 1961 Your letter is based on the report of Jurisdictional Assessing Officer (JAO) saying that we applied our income for the benefit of a particular religious community. At the outset we assert that this finding of the JAO is incorrect as we apply income for the benefit of all the communities. Earlier during the course of our investigation is 131 (14) of the IT Act we submitted huge amount of information and documents and it appears that the JAO missed to notice proof of our unbiased activities in the records already made available by us. There is a possibility that we could not submit some portion of the data owing to paucity of time available to us as we were originally required to submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities. Our school in Guwahati has got CBSE affiliation and is running up to high schools with considerable students belonging to non-Muslim communities too. In other cases, we have applied for the registration and our applications are in various stages of registration processes. POINTWISE REPLIES Regarding Scholarships We provided scholarships both under special and general categories. The report of the JIO says that all the beneficiaries belong to members of a particular religious community. This inference is incorrect. We are providing list of students who does not belong to this particular religious community along with their ID proof and copies cheques through which payments were made to them, marked as Annexure 1. Regarding Educational Awards The report of the JAO that all the beneficiaries belong to one particular religious community' is unfounded as is evident from the list of student's names, with father names, Schools names, photographs and receipts which is enclosed, marked Annexure-II. Regarding Distribution of School Bags Strangely the JAO has reported to you that 'all the students belong to a particular religious community' whereas it is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate and Additional District Magistrates of South East Delhi Regarding Drinking Water Projects We installed drinking water facilities through contractors after TDS, The costs of this services are appearing in the audited accounts already submitted during the investigation. As regards the report that 'facility of drinking water was...extended to a particular religious community' we submit that it is not true. Drinking water facilities, like hand pumps, are meant for communities and it is not possible to ID proofs from members of the community being benefited. Alternatively, we approached community leaders for confirmation of these facilities for submission to you. The letters from local leaders on their letter-heads are self-explanatory showing that we have no bias in providing our services and that the facilities we provided are functioning well even on date after several years of their installation. We are also submitting proof of payments to contractors with TDS photographs of some of the projects conducted by us, marked as Annexure- VIII Regarding Project for Low-Cost Housing We are submitting photographs of house constructed and the condition before the constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of income for construction of toilets to families against applications stating that houses of the applicants do not have toilets. Copies of eleven such applications, cheques paid and IDs are enclosed, marked as Annexure XIII. Their religious identities are obvious and these obviate the impression created by the JAO Our main and routine activity comprises education related services and we are working in different areas of the country through school curriculum, as described above. We are submitting for your perusal details regarding teachers and students belonging to communities other than the one referred to by the JAO, marked as Annexure-XIV Sir, our submissions as above clearly establish that our applications of incomes are in accordance with the aims and objects of bringing all round development to the Impoverished irrespective of any caste, creed or religion, as stated in our Society deed with which the Department of Income Tax gave us registration u/s 124/12AA and continued the same in its renewal. In view of above submissions, we request you to oblige us by passing an order u/s 12AB (4)(ii) in our favour." 25. Thereafter, the assessee vide letter dated Nil provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8a to Annexure 8g) ix. We have not published any paid advertisement for scholarship schemes in print and electronic media, x. Conditions with the scholarship attached. (Annexure 10) xi. In some photographs of drinking water project, it has been mentioned that the project is sponsored by some person/entities. Actually, it is not sponsorship. II's donation. Some of our donor donate us in memory of someone who meant a lot to them to honor and cherish the memories they have left behind. It is a great way of showing their love and respect. We just put name of their beloved one on their supported projects, attached details of such projects along with corresponding expenses. (Annexure 11) xii. In our last reply dated 17/10/2022, a copy of bill from Blue Skies Tour & Travels Pvt. Ltd., which was not legible, now attached a legible copy of the bills in respect of the above entity. Regarding foreign travel, Ms Daya Aruna research scholar in department of Hindi, Jamia Milia Islamia, New Delhi, want to attend 25th European Conference on South Asian Studies (ECSAS) Paris, France. Conference was self- sponsored. She was poor Dalit woman research scholar, and approached to Human Welfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il they receive the final output in the form of money or document. Some of the people are not having basic documents for applying for the schemes. NVKs also help them make Aadhar, ration cards, bank account, etc. Attached List of 39 Nagrik Vikas Kendra in 12 states, list of beneficiaries and corresponding expenses for the financial Year 2017-18 to 2021-22. (Annexure 14) xv. Details of community learning centers supported by the society along with details of beneficiaries and corresponding expenses, attached for the financial Year 2017-18 to 2021-22. (Annexure 15) xvi. Details of additions to capital assets along with details of expenses, source of fund and copy of contract for construction work, attached for the financial Year 2017-18 10 2021-22 (Annexure 16 to Annexure 16ah) xvii. Details of schools run by society along with fee structure, list of students and copy of approval of govt. authorities, attached for the financial Year 2017-18 to 2021-22 (Annexure 17) xviil. Annual reports of the trust, attached for the financial Year 2017-18 το 2021-22 (Annexure 18) Hope above information/details are in line with required information in case any further query relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. Where we work d. Programs & Activities The bank particulars for making the payments for the respective projects have been detailed on each project giving the bank name, account no., IFSC Code so that the Donors may make the payments in the respective bank accounts - Donors make the payments through banking channel as well as by cash deposit in the said bank accounts for which no details generally are being furnished by such cash depositors despite of the fact of the following specifically mentioned on each advertisement as appearing on the website in case of each project and all the money/donations so received are duly accounted for in the books of the assessee organization duly audited by the auditors after examining the activities of the assessee organization under the provisions of the Income Tax Law for which due Audit Reports are being furnished year by year on Form-10B u/s 124 of the Act after due satisfaction by the Auditors:- e. "Email us the details of transaction/fund transfer details with your postal address at [email protected] or WhatsApp +917042892026" The assessee organization has not been registered under FCRA Act ever and therefore, did not receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by CBDT to this effect. The copies of such orders for registration are enclosed marked as Annexure-4(Colly.) The activities of the above named organization have been examined time & again by the tax authorities under various scrutiny assessments and after deep examination & satisfaction, the tax authorities allowed the continuance of the benefit u/s 11 of the Act (last examined vide order dated 25.02.2021 vide DIN: ITBA/AST/S/143(3)/2020-21/1030991801(1) accepting the charitable activities of the organization after due examination - the benefit u/s 11 of the Act was duly allowed), the copies of the few assessment orders in respect of the same u/s 143(3) of the Act are enclosed herewith marked as Annexure-5(Colly.) D) Further to the above, it is most pertinent to mention here that after due examination & complete satisfaction by the tax authorities towards the Aims & Objects as well as the actual activities as being carried out by the assessee organization, the Registration u/s 12(1) as well as benefit us 80G of the Act was allowed by PCIT vide orders dated 23.09.2021 relevant to AY's 2022-23 to 2026-27, the copies of the same are enclosed herewith marked as Annexure-6(Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s 12AB read with section 124 does not confer any right of exemption upon the applicant w's 11 and 12 of Income Tax Act, 1961. Such exemption from taxation will be available only after the Assessing Officer is satisfied about the genuineness of the activities promised or claimed to be carried on in each Financial Year relevant to the Assessment Year and all the provisions of law acted upon. This will be further subject to provisions of section 2(15) of the Income Tax Act, 1961. g. No change in terms of Society Deed/ Memorandum of Association shall be effected without due procedure of line and its intimation shall be given immediately to Office of the Jurisdictional Commissioner of Income Tax. The registering authority reserves the right to consider whether any such alteration in objects would be consistent with the definition of "charitable purpose" under the Act and in conformity with the requirement of continuity of registration. h. The Trust/ Society/ Non-Profit Company shall maintain accounts regularly and shall get these accounts audited in accordance with the provisions of the section 124(1)(b) of the Income Tax Act, 1961. Separate accounts in respect of each activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of rule 174 or by not complying with the requirements of sub-rule (3) or (4) of the said rule, the registration and Unique Registration Number (URN), shall be cancelled and the registration and URN shall be deemed to have never been granted or issued." After due consideration of the aforesaid terms & conditions on the basis of which registration u/s 124 and benefit u/s 80G of the Act granted to the assessee organization, we do not find any occasion for issuance of notice u/s 12AB(4) of the Act as the assessee organization duly satisfies all the terms & conditions contained in clause 10 of the said orders vide sub-clauses (a) to (r) contained therein, each & every sub clause is duly satisfied by the Assessee Organization is being demonstrated herein below:- a. The assessee organization has not amended or there has been any move to amend or alter the objects/rules and regulations of the organization. b. The assessee society has not been dissolved as yet and no benefit whatsoever has been derived directly or indirectly by anybody specified in section 13(3) of the Income Tax Act, 1961. c. The assessee trust/institution has not been converted into any form or merged into any oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. l. No asset has been transferred by the assessee organization right from the inception of the creation of the Society till date to anyone, including to any Trust/ Society/ Non Profit Company etc. m. No evidence whatsoever has been brought to the knowledge of the assessee organization till date with regard to the fact that activities of the Society are not genuine or are not being carried out in accordance with the objects of the Society and therefore, it remained unascertained as to how the notice w/s 12AB(4) of the Act has been given to the assessee organization proposing for cancellation of registration without having provided any documentary evidence by the Registering Authority to this effect on the basis of which he proposes to do so - Vague averments have no meaning in the eyes of law. n. The assessee organization has not obtained the registration fraudulently by misrepresentation or suppression of any fact. o. The assessee organization has never claimed non-deduction of tax at source In respect of investments etc relating to the Society on the basis of the certificate/registration granted u/s 124 of the Act. p. All the Public Money so received including for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Impoverished irrespective of any caste, creed or religion, as stated in our Society deed as well as in view of the detailed facts stated in earlier paras above In addition to the above, we want to bring the following further facts before your good self 1) The very allegation made by your good-self in your notice dated 09.06.2023 that the charitable activities of the assessee organization are for the benefit of a particular religious community which fact is totally wrong and it seems that your good-self has formed this contention totally under misconception as the assessee Society is just working towards the well-being of the poor, the impoverished & unprivileged section of the society. The Society is making every possible effort to help the poor & not a particular religious community as wrongly alleged by your good-self Poor is a Poor. Poor cannot be categorized in a particular religious community. 2) It is pertinent to mention here that the assessee Society has not indulged in any tуре оf religious activities and all the activities of the said assessee organization are directed towards providing the facilities or means for the general well-bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch may be in misconception to the activities of any other organization(s) may be with the similar or same name as our organization (the assessee organization) is engaged for carrying out the Charitable activities for the public at large and not for the benefit of a particular religious community as the assessee organization is just working towards the well-being of the poor, the impoverished & unprivileged section of the society. 4) The allegation so made is totally wrong & baseless not only as per law but also on facts which are elaborated below:- The assessee organization is mainly engaged towards promoting the education amongst the poor section of the society and has its educational Institutions running in six states - Delhi, Haryana, West Bengal, Bihar, Jharkhand, and Assam. ii The assessee organization has a system of selecting the candidates by way of an application-based system First, the students submit an application for admission in the institution and then the applications are approved by the school managing committee and admission is granted to the eligible student. Therefore, whosoever applies for admission gets the admitted to the school. Anyone who wants to tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is not working for the benefit of a particular specific community or caste but for all, the project-wise some of the beneficiaries from the communities other than the alleged community are detailed vide Annexure- 12(Colly.) with its Sub-Annexures 12(a) to 12(n) annexed herewith. The assessee Society due to its widespread charitable activities has earned a sense of society in the people and therefore, not only the needy people but also other Charitable Institutions are benefitted from their activities, few of such instances are detailed here-under- a) The assessee Society through its School Capacity Building Project helps other educational institutions which are deprived of the basic infrastructural facility for carrying out their charitable educational activities like wooden furniture, labs, electrical fittings, etc. The assessee society raises funds and help theses charitable institutions for achieving their noble aim of providing education to the poor & needy. The documentary evidences in terms of photographs & vouchers are enclosed herewith marked as Annexure-13(Colly.). b) The assessee Society in collaboration with a Hospital Al-Shifa, a charitable institution runs Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable facilities provided by the Society and person of any religion can avail such benefits and there are numerous cases where beneficiaries are from different religions and not from a particular religious community, copy of few of such cases where the beneficiaries of the charitable projects of the assessee Society belong to other religion are enclosed herewith marked as Annexure-12 with its sub-annexures 12(a) to 12(n) already stated at sub-para (iv) to Para 4 above. d) That the very reason for the aforesaid misconception is that the number of beneficiaries in some of the backward areas (regions) as selected from the backward areas as notified by Niti Aayog appearing on the website of Niti Aayog, the population of which areas are more from a particular religious community and that is the reason for the said fact that in such areas the population of such particular religious community is more than the people of other religious communities and due to the said fact, the applicants from a particular religious community are more and therefore, it cannot be said that the Society is working towards a particular religious community or caste and such a situation is beyond the control o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d para-wise:- i. Soft copy of list of donations in excel attached for the financial Year 2017-18 to 2021-22 marked as Annexure-16(with its sub-annexures for each of the respective financial year marked as Annexures -16(a) to 16(e)]. ii. We publish advertisements in newspapers, magazines and social media for collecting public funds for its activities. Philanthropists come forward and deposit transfer their contribution directly in our bank accounts for charity. However, some of them do not inform their details. That's why some columns in our donars' details are blank which fact has already been detained just below item. (c)-Other Program of Para (B) above. The copies of the advertisements are enclosed herewith marked as Annexure-17(Colly). iii We are running schools in different states including one chapter in Hyderabad, Telangana. We have provided you earlier only head office data, and transactions including donations received in schools and the chapter were not included in the information earlier provided, the Reconciliation Statement to the data provided is enclosed herewith marked as Annexure-18 with regard to donations and Annexure-19 with regard to the expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt are not so sufficient. In such a situation various NGOs come forward to help those affected people so that lives of general poor people could be saved. In such kind of situation, we distribute foods grains etc. (under the head Relief to poor) to poor people round the year. However, we do not restrict the beneficiaries to any community and have been providing rations-kits to the needy people without any biased approach. Also, the we select slums areas where hunger problems are there for distribution of food grains b) We are getting applications from coordinators and volunteers for food grains. Beneficiaries and places of the distribution area are selected by a team of at least three persons at state/district/ local level. Most of the applications are received through volunteers, coordinators of various projects of foundation such as village coordinators, NVK Centre coordinators, and Community Learning Centre coordinators. We are also receiving applications from the institutions such as schools, vocational training centers. Based on the available funds, foundation allows food kits project to different places. Such foods grains and other food items were procured from the markets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) Supporting documents and information relating to drinking water projects have already been provided vide Annexure-23 under the head "Drinking Water Projects under clause (iv) above, h) Supporting documents and information relating to NVK project have already been provided vide Annexure-25 under the head "Nagrik Vikas Kendra Project under clause (iv) above. 3) We have provided scholarships based on the application received from students. Most of the students are applying through the link provided in the website. A team of at least three persons are selecting students after conducting interview and considering their merit and financial need. We are not restricting scholarship to any particular religious community We are providing list of students who do not belong to a particular religions community along with their ID proof and copies of cheques through which payments were made to them as already indicated at sub-para (c) of Pura 5 above vide Annexure-12(Colly.) and therefore, the very allegation is wrong & baseless as every student from any community or caste is free to apply from the said link provided on the website and we do not bring the students from any particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donations in the bank and had not submitted the details whether they were received from foreign entities, however, assessee is not registered in FCRA, therefore, there is no question of receiving any donations from outside the country. Before ld. CIT(E) assessee had filed details of the donations received from various parties and list of donation received were submitted. It was further submitted that in some cases donations were directly credited in the Bank Account of the assessee where the assessee is not having the details of donors in such case and despite of best efforts they could not be identified thus, to such extent details could not be provided. He further submitted that from the perusal of the table appearing at page 34 of the order, only 10% approx. represents such donations received. As the assessee has been maintaining complete details of the donors for majority of the donations, therefore, merely for the reason that where the donations were directly received in the bank account, details of few of such donors were not available, it could not be held that the activities of the assessee are not the genuine or not carried for charitable purposes. Ld. AR further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar religious community. All the observations made by the CIT(E) are not controverted by assessee, and therefore, he prayed for the confirmation of the order of the Ld. CIT(A) cancelling the registration granted u/s 12A of the Act to assessee trust. 30. We have heard the rival submissions and perused the materials available on record. From the facts of the instant case, it is seen that the main issue involved in these grounds revolved around the allegations of the Ld. CIT(E) that the income of the assessee was mainly applied for a particular religious community which is in contraventions to provisions of clause (a), (d) and (e) of Explanation to Section 12AB(4) of the Act. The main objects of the assessee society are as under: "(i) To bring about all round development to the impoverished irrespective of any caste, creed or religion. (ii) To establish, maintain and carry out humanitarian activities with a view of working towards improving the quality of life. (iii) To established administer and maintain educational institutions of every kind especially for the downtrodden sections of India population. (iv) To establish, run maintain or assist any medical institution, hospit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to provide quality of life to the weaker sections of the society, it always tried hard to provide benefit to the poor and in order to achieve these objects, schools were opened in the area where economically weaker sections of society are main residents. As the assessee society is working for a public at large, it cannot be said that it had applied its income for the benefit of a particular community. It is further seen that not only education but also the free medical facilities, drinking water, child support, distribution of free food, low cost housing etc. were also provided where all the weaker sections of the society got benefited. Once, it is established that the main object is of charitable in nature, and objects are for the benefit for the whole mankind and for all the citizens of county, benefit of exemption u/s 12A cannot be withdrawn. The assessee society never restricted its benefit to any caste or community, in other words it never intended to serve a particular caste or community rather the assessee society is working for the benefit of mainly for weaker sections of the society. The Hon'ble Supreme Court in the case of CIT vs. Dawoodi Bohara Jamat (supra) has dealt th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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