Jan Jagran Sewa Samiti, Haryana vs Assessee

ITA No. 1133/Del/2013 Assessment Year: - - Jan Jagran Sewa Samiti, vs. Commissioner of IT., 588/31, Gali No. 6, Rohtak Ashok Vihar, Mehlana Road, (Haryana) Sonepat (Hr.) (PAN: AABAJ1490M) (Appellant) (Respondent)

ITA No. 1132/Del/2013 Assessment year : - -

Malik Charitable Trust, vs. Commissioner of IT., 588/31, Gali No. 6, Rohtak Ashok Vihar, Mehlana Road, (Haryana) Sonepat (Hr.) (PAN: AADTM0488M) (Appellant) (Respondent)

Appellant by: Shri Rajesh Rani, Adv. Respondent by: Shri Gunjan Prasad, CIT(DR)

Date of hearing : 02.01.2015 Date of pronouncement: :03.2015

ORDER

PER I.C. SUDHIR: JUDICIAL MEMBER The assessees have questioned denial of their registrations under sec.

12AA of the Income-tax Act, 1961 by the Learned CIT on several grounds.

The issue involved in all the grounds, which should have been in concised 2

form, is on the validity of rejection of the application of the assessee for

registration sought under sec. 12AA of the Act.

2. While reiterating the grounds of the appeals, the Learned AR

submitted that the Learned CIT has categorized the assessee society under

the advancement of any other object of general public utility instead of

medical relief. She submitted that assessees are registered societies. Jan

Jagran Sewa Samiti was registered w.e.f. 28.3.2011 and Malik Charitable

Trust was registered on 07.10.2011. The very object of both the societies is

to make aware the public about health through naturopathy and acupressure

and without taking any medicines. They organize camps for check-up and

thereafter patients are given treatment through acupressure and naturopathy.

The energy level and blood circulation of the human body is checked and the

treatment is given by pressing the proper points of the human body by

acupressure. Nominal fee is charged. The Learned AR submitted that the

Learned CIT has denied the requested registration by noting wrong facts and

without giving opportunity to the assessees to meet out those objections

raised by him. She thereafter tried to meet out each and every objections on

the basis of which Learned CIT(Appeals) has rejected the registration. She

submitted further that the assessees charge the nominal fees just for meeting 3

out the expenses incurred in organizing the camps. The assessees do not

make these fees mandatory. If anybody does not pay the fees or is not able to

pay the fees despite that treatment is not denied to such persons. All the

expenses mentioned in the income and expenditure accounts are duly

authorized by the Presidents of the Societies and are properly accounted in

the books. The books were never demanded by the learned Commissioner.

The Learned AR submitted further that the Learned CIT is not correct in

saying that the assessee society had not annexed the original instruments

along with the applications. On demand by the Learned Commissioner, the

original instruments for forming the society were shown by the assessee to

the Learned Commissioner during the course of hearing on 20.12.2012. She

submitted that the proviso to sec. 2(15) of the Act does not apply in the case

of assessees even if they are categorized under the advancement of any other

object of general public utility as held by the Learned Commissioner instead

of medical relief since value of receipts does not exceed, the monitory limit

prescribed in the said provision. The Learned AR also argued that it is an

established proposition of law that while granting registration in the first

year under sec. 12AA of the Act, the Learned Commissioner is required to

see only the aims and objects of the societies. She placed reliance on the

following decisions:

4

1. New Life in Christ Evangelistic Association vs. CIT - 246 ITR 532 (Madras);

2. CIT vs. Kannika Permeshwari Devasthanam - 133 ITR 779 (Madras).

3. The Learned CIT(DR) on the other hand submitted that the Learned

CIT while rejecting the application for registration has passed

comprehensive and reasoned order to justify that the appellant society are

not eligible for the registration under sec. 12AA of the Act. The societies

under the garb of charity actually run their clinics to earn the profits as a

professional practicenor. They have not maintained their accounts properly.

The receipts have been spent on purposes other than the charitable objects.

4. Considering the above submissions in view of the orders impugned,

we find that the Learned CIT while rejecting applications for registration

under sec. 12AA of the Act of the societies by raising several objections

therein has not given opportunity to the societies to meet out those

objections raised by him. We thus in the interest of justice set aside the

matter to the file of the Learned CIT to reconsider the applications of the

societies for registration under sec. 12AA of the Act after affording proper 5

opportunity to them to meet out the objections raised by him. The grounds

involving the issues are accordingly allowed for statistical purposes.

5. In result, the appeals are allowed for statistical purposes.

Decision pronounced in the open court on 16.04.2015

Sd/- Sd/-

( B.C. MEENA ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 16 /04/2015 Mohan Lal

Copy forwarded to:

1) Appellant

2) Respondent

3) CIT

4) CIT(Appeals)

5) DR:ITAT

ASSISTANT REGISTRAR 6

Date Draft dictated on computer 26.03.2015 Draft placed before author 26.03.2015 Draft proposed & placed before the second member

Draft discussed/approved by Second Member. 16.04.2014 Approved Draft comes to the Sr.PS/PS 16.04.2015 Kept for pronouncement on 16.04.2015 File sent to the Bench Clerk 16.04.2015 Date on which file goes to the AR Date on which file goes to the Head Clerk.

Date of dispatch of Order.