9911796707
TMI Blog2012 (11) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... ety, in compliance of the same, the Assessing Office vide his report dated 05.09.2011 stated that the Society has failed to produce the books of account in absence of which, it is not possible to verify the genuineness of activities of the Society and keeping in view all these facts, the AO did not recommend the case of the assessee for registration under section 12AA of the Act. The Jt. C.I.T. Range-1, also endorsed the findings of the A.O. The Ld. CIT Bathinda fixed the case for hearing in his office on 27.03.2011 and authorised representative of the Society attended the proceedings and also filed the requisite information alongwith the details of activities and other documents. 2. The Society is registered with the Additional Registrar of Societies, Mansa vide No.44 of 22.03.2004. The aims and objects of the Societies are contained in Memorandum of Association of the Society. After perusing the objects and functions of the Society, the Ld. CIT Bathinda is of the view that the activities of the Society are in commercial nature rather than charitable in nature. The Ld. CIT, Bathinda has also perused the income and expenditure of the society which reveals that the Society has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional Registrar Office, Mansa and formation of the Society was on initiation and instructions of Government of Punjab to implement 'Suwidha' (Single User's Friendly Window Disposal helpline for Applicants) and is a project of the State Government. The State Govt. had instructed all the District Offices to form Societies on a similar pattern, with official website SUWIDHA.nic.in. The main object of the Society is to provide Single Window Services to the Citizens against a minimum fees for their services and to provide services within scheduled time. He further stated that the organisation of the Society was framed and Deputy Commissioner, Mansa is an Ex-officio member along with various other Additional Commissioners as well as Sub-Divisional Magistrates and other Officers of the District Mansa, as the office bearers for the completion of the Society. He further stated that the D.C. Mansa is the Chairman of the present Society and the Additional Deputy Commissioner (General) is a Member/Secretary, Additional Deputy Commissioner (Development) Member, SDM, Mansa and Executive Engineer, PWD, B&R, Mansa, are the Members of the Society. He stated that the motive of the society is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant records available with us. The Ld. counsel for the assessee filed a chart of services and charges against the services rendered by the Society that are about 36 in number. For the sake of convenience, we reproduce the 17 services rendered by the Society and the charges taken by the Society, which are as under: Sukhmani Society for Citizen Services v. CIT Bathinda I.T.A. No. 551/ASR-2011 Service Facili. Charges Time Frame Financial Year 2008-09 Financial Year 2009-10 Financial Year 2010-11 (Rs.) Days No. of Cases %age of Total No. of Cases %age of Total No. of Cases %age of Total 1 Issuance of Nationality Certificate 20 15 0 0 0 0.00% 11856 24.70% 2 Issuance of Birth Certificate 20 7 5001 32.46% 5419 11.62% 7462 15.55% 3 Driving Licences related services 20 7 0 0.00% 20041 42.96% 7326 15.26% 4 Arm Licences related Services 500 45 4282 27.79% 5855 12.55% 5173 10.78% 5 Issuance of Affidavits 20 Same Day 1036 6.72% 4258 9.13% 5011 10.44% 6 Registration of Vehicle Services 100 5 0 0.00% 6096 13.07% 4675 9.74% 7 Issuance of Copy of a Document 30 7 1473 9.56% 1257 2.69% 1904 3.97% 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 500000.00 Receivable from Ex. 77860.00 Clerk cum Accountant Sh. Ashok Kumar. Security from Computer 10000.00 Bank Balances: S.B.O.P., Mansa 1573840.99 Amount More deposited in Bank Account 270.0 SBOP, Mansa ( I/A) 371818.00 PNB, Budhlada 334408.50 SBOP, Sardulgarh 257726.00 Cash in Head 4270.00 4215661.49 4215661.49 Report :- Subject to our Separate Audited for Report of Even Date For Sanjeev Amar & Associates Chartered Accountants Place : Mansa (Sanjeev Kumar) Dated : 18.08.2009 M. No. 500277 Sukhmani Society for Citizen Services (D.C. Office),Mansa Income & Expenditure Account For The Period Ending 31.03.2009 Expenditure Amount (Rs) Amount (Rs) Income Amount To Pb. State e-goverance Society, CHD 381533.50 By Receipts 2592150.00 By Bank In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004.00 By Excess Deposit 250.00 To Bank Exp. 911.00 By Excess credit bank 10.00 To computer repair 64880.00 To Audit fee 7000.00 To electricity bill 49702.00 To Telephone 10590.00 To SMS Exp. 1122.00 To Advertisement 13113.00 To Electric Repair 4969.00 To Travelling 2346.00 To Misc. Exp. 670.00 To Postage 500.00 To Depreciation 314442.00 To Income over Exp. 1487573.00 3507052.00 3507052.00 Report :- Subject to Our Separate For Report of Even Date For Sanjeev Amar & Associates Chartered Accountants Place : Mansa (Sanjeev Kumar) Dated : 22.06.2010 M. No. 500277 7.4 Lastly, the balance sheet as on 31.03.2011 as well as Income & Expenditure account for the period ending 31.03.2011 are reproduced as under: Balance Sheet as On 31.03.2011 Liabilities Amount Amount (Rs) Assets General Funds Fixed Assets 1285660.00 O. Balance- 5192964.99 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety on charitable as well as public utility work. Almost all the expenditure has been incurred by the Society on printing and stationery, salary to their employees, Bank expenditure, Computer repair, Audit fee, Electricity Bill, Telephone, Electric repair, traveling, misc. expenditure, postage etc. 7.6 The present Society has filed an application to the Ld. CIT, Bathinda for registration. As per section 12AA of the Act, the Ld. CIT, Bathinda on receipt of an application for registration can call for such documents or information from the present society as he thinks necessary in order satisfy himself about the genuineness of the activities of the society and may also make such inquiries as he may deem necessary in this behalf. If the Ld. CIT, Bathinda is satisfied himself of the objects of the Trust of this Society and genuineness of its activities, he shall pass an order in writing registering the present society and if he is not satisfied then he shall pass order in writing refusing to register the Society after giving reasonable opportunity of being heard. In the present case also, the Ld. CIT, Bathnda referred the application of the Society to the ITO Ward 1(4), Mansa to ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities under the project. (iii) To establish and maintain any agencies and franchises in the district for the conduct of the business of the society." The Ld. CIT also perused the Income and Expenditure accounts, which we have reproduced hereinabove and finally concluded that the above facts clearly reveals that the activities of the Society are of commercial in nature aimed at deriving profit and not for charity. 7.7 We have also perused the Income & Expenditure accounts, which we have reproduced hereinabove as well as the impugned order alongwith relevant provisions of section 12AA of the Act and section 2(15) of the Act. For the sake of convenience, provisions of section 12AA and section 2(15) of the Act are reproduced as under: "Section 12AA. (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub section (1) of section 12A, shall - (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deemed necessary in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a has also referred the matter to the ITO Ward 1(4), Mansa to verify the genuineness of the activities of the present society who vide his reported dated 05.09.2011 has stated that the assessee has failed to produce books of account in the absence of which it is not possible to verify the genuineness of the activities of the society and the AO has not recommended the case of the assessee for registration u/s 12AA of the Act. Even otherwise, the assessee has failed to establish before the ld. CIT(A) that the society is doing any charitable work keeping in view its objects. Merely, mentioning about various objects in the nature of charitable activities in the Memorandum of Association, does not mean that the Society is doing any charitable activities for the general public utility and is entitled for registration under section 12AA of the Act. According to section 12AA of the Act, the Commissioner on receipt of application for registration of a trust or institution has to satisfy himself about the genuineness of activities of the trust or institution. In the present case, the Ld. CIT, Bathinda has made the inquiry from the concerned ITO, who has not recommended the case of the Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
