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TMI Blog2018 (12) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... red opinion M/s ASPAM Foundation helped in achieving social objective of assessee. Further in respect of land, we observe from paper book that the litigation against 76 people has attained finality vide order dated 12.10.99 passed by Civil Judge (J. Division) Hissar). CIT(E) does not dispute M/s ASPAM Foundation to be charitable trust. Assessee during year under consideration constructed Satsangh Bhavan and Temple which has not been disputed by Ld. CIT(E). These forms part of balance sheet as on 31/03/15 placed. Thus in our considered opinion assessee has achieved its objective of trust through M/s ASPAM Foundation. Merely because a business group and Directors of company are members of society, does not dilute nature of society being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the application for Registration u/s 80G(5)(vi) of the Income Tax Act, 1961 is arbitrary, misconceived, fallacious and illegal and having been done on imaginary, fictitious and unsubstantiated grounds must be quashed with further directions to grant the registration as sought. 2. Brief facts of the case are as under: Assessee is a society and filed application for registration under section 12A of the Act on 30/03/16. Ld.CIT(Exemption) accordingly, issued notice for filing of copies of bye-laws and various other details as called for. Assessee filed the aims and objectives of society from wherein Ld.CIT (Exemption) observed that, aims and objectives of society were to open, run, establish or finance, assistant and contrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that admittedly, said hospital was run and managed by M/s ASPAM Foundation and activities are being claimed by M/s ASPAM Foundation, as charitable in nature. Ld.Counsel submitted that, as society was not having sufficient funds, it requested M/s ASPAM Foundation to help society for running hospital. On acceptance of request, M/s ASPAM Foundation incurred expenditure and claimed exemption in return of income. Ld.Counsel submitted that assessee in present case provided land and did not claim any expenditure on account of construction activity undertaken by M/s ASPAM foundation. He submitted that M/s ASPAM Foundation helped in achieving object of society. Ld. Counsel submitted that during Financial Year 2013-14 an amount of ₹ 20.46 Lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was belonging to trust which was acquired by Society in 2010. He submitted that acquisition of land after it was de-notified from HUDA by private society itself is inherently wrong. Ld. Sr. DR submitted that assessee has not proved how the takeover was effectuated and whether trust was exempted entity duly registered under Societies Registration Act. Ld. Sr.DR further submitted that prior to takeover by HUDA, Mandal Trust filed a case against 76 people, neither name of trust has been provided on file nor any evidence has been adduced that state litigation has attained finality and 76 people who had arraigned against earlier, have accepted decision. 9. It was contended by Ld. Sr. DR that after taking possession of temple land, assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant society as well. It has been submitted by Ld. Counsel that assessee was not having sufficient fund and M/s ASPAM Foundation spent approximately 85% of its receipts which was utilised for construction of hospital building on land owned by assessee. It has been emphasised that affairs of hospital are being reflected in accounts of M/s ASPAM Foundation. 12. Thus, we observe that M/s ASPAM Foundation claimed exemption in their return of income, whereas, land has been provided by assessee, who has not claimed any expenditure on account of construction activities. Thus in our considered opinion M/s ASPAM Foundation helped in achieving social objective of assessee. Further in respect of land, we observe from paper book that the lit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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