Purshottam Public Trust, , Baroda vs Assessee

सुनवाई क तार ख/ Date of Hea ring : 07/04/2015 घोषणा क तार ख /Date o f Prono unceme nt: 1 7/04/2015

आदेश /O R D E R

PER: S. S. GODARA, JUDICIAL MEMBER

This assessee's appeal is directed against the order of CIT-I, Baroda dated 15.09.2014 denying Section 80G(5) registration.

2. The assessee trust enjoys Section 12A registration since 28.02.2014. It filed for Section 80G approval on 18.03.2014. Its objects are mainly in the field of education. The CIT has rejected its 80G application as under:

4. The trust vide its letter dated 28.08.204 submitted the details. The reply furnished by the trust has been considered.

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i) While granting registration u/s. 12A on 28.02.2014, it was specifically mentioned in the certificate that the trust should do the activities as per the objects, mentioned in the trust deed. However, the trust has not conducted any activities except it had provided educational help to 2 students in the F.Y.2013-14, which were shown at the time of granting registration u/s.12A. On perusal of the evidences produced by the trust in support of the activities, claimed to be carried out by it, it has not furnished any documents proving that the benificiaries are actually needy persons.

ii) On perusal of the Income & Expenditure account for the F.Y.2013-14, it is seen that the trust has not incurred 85% of the Income towards its objects. It had not filed Form No. 10 for accumulation or set apart of the unutilized Income before the concerned A.O. However, it had merely submitted declaration during the current proceeding in which the trust had declared that the income of Rs.1,23,388/- will be applied in the A.Y. 2015-16 in the manner provided under the Income Tax Act, 1961 dtd. 31.07.2014, which is not a correct procedure for accumulation of income for the reason as under:

As per Rule- 17 "Notice for accumulation of income by charitable or religious trust or institution or association referred to in clause(21) and (23) of section 10, the notice to be given to the Assessing Office or the prescribed authority under subsection (2) of section 11 or under the said provision as applicable under clause (21) or clause (23) of section 10 shall be in Form No. 10 and shall be delivered before the expiry of the time allowed under sub-section (1) of section 139, for furnishing the return of income

iii) In the submission given by the trust, it is seen that there is donation Income of Rs.1,50,000/- Vide letter dtd 20.08.2014, the trust was asked to provide the copy of receipts issued to the donors. On perusal of the receipts issued by the trust, it is noted that the trust has given the receipts no. 002 & 003 to the donors dtd. 10.06.2014 i.e. in the F.Y.2014-15, for the amount of Rs.25,000/- and Rs.50,000/-. However, it had received donation in the F.Y.2013-14 (verified from the bank account). Hence, it can be said that the accounts produced by the trust is not reliable.

5. From the above discussion, it is to be held, the activities carried out by the trust are not genuine. Documentary proof submitted by the trust regarding charity provided to the students does not prove it was given to the needy students, the trust has not file Form No. 10 for accumulation of unutilized income, and the receipts issued to the donors are not in the same F.Y. in which the trust has received donation.

6. In view of the above factual position, it is apparent that the trust has failed to establish the genuineness of its activities. Therefore, it is not a fit case for granting approval under section 80G(5)(vi) of the Act."

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This leaves the assessee aggrieved.

3. We have heard both sides and gone through the relevant findings extracted hereinabove. The Assessee submits the CIT's reasons relate to genuineness of its activities and question accounting of donations hereinabove. Per assessee, these issues are not the relevant factors in deciding Section 80G approval. Case law of N.N. Desai Charitable Trust Vs. CIT, (2002) 123 Taxman 866 (Guj.) is quoted in support. The Revenue supports the CIT's order. The Hon'ble Jurisdictional High Court observes that assessment of a trust and its actual liability to tax u/s.11, 12 and 12AA have no bearing on claim of donors for whose benefit Section 80G approval is accorded. The Revenue fails to point out any distinction of facts. Their Lordships have directed the Commissioner to pass a fresh order as per law. We also take cue therefrom and follow a similar path. The CIT's order under challenge is set aside and matter is restored back for fresh adjudication as per law. The assessee will be at liberty to place on record all its evidence in support of Section 80G registration.

4. The assessee's appeal is allowed for statistical purpose.

Order Pronounced on 17.4.15

Sd/- Sd/- (G. D. AGARWAL) (S.S. GODARA) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated /04/2015 Prabhat Kr. Kesarwani, Sr. P.S.s ITA No.2932/Ahd/2014 M/s. Purshottam Public Trust For A.Y.2014-15 -4-

आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आयु त / Concerned CIT

4. आयकर आयु त(अपील) / The CIT(A)-III, Ahmedabad

5. वभागीय त न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड फाईल / Guard file.

आदेशानुस ार / BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad