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TMI Blog2020 (3) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... ank deposits held by it. The deposits held by the organization are said to be out of funds donated by the public. Enquiries revealed that some donors initially donated each ₹ 1.00 lakh to the Prema Samajam‟ as one time donation for the benefit of it and the donations so collected were deposited in bank accounts held by it. Some donations are extended by public for Annadhanam Scheme‟ for benefit of the assessee. Apart from the donations accepted from public, it also receives sponsorships for providing food from public on special occasions i.e. birthdays, marriage days etc. Prema Samajam collects ₹ 3,000/- from public to provide food to the inmates on the day of their choice who want to sponsor food for the inmate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the above reason given by the ld.CIT(E) is not correct in rejecting the 12A registration to the assessee. CIT(E) not at all examined what the assessee‟s activities whether assessee actually carrying charitable activities are not. Without doing so, the ld. CIT(E) picked up an irrelevant clause in the gift deed and rejected 12A, CIT(A) is not correct. We, therefore, granting 12A to the assessee. - Decided in favour of assessee. - I.T.A. No. 474/VIZ/2016 - - - Dated:- 18-3-2020 - Shri V. Durga Rao, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri Y. Appa Rao, CA For the Department : Shri S.R.S. Narayan, CIT DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted persons with leprosy and submitted that assessee is existed only to do the charity activities and therefore without examining the same, the ld.CIT(E) dismissed the application by considering the irrelevant clause in the gift deed and prayed that 12A registration may be granted. 4. On the other hand, ld.DR relied on the report submitted by the ITO (Exemptions), dated 05/03/2020. 5. We have heard both the sides and gone through the material available on record. We find that the assessee society is existed in the name of Prema Samajam with the following objects:- 1. To arrange free boarding and clothes to weaker and poor people irrespective of religion and castes. 2. To arrange facilities other than means to poor student ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is from interest income earned on bank deposits held by it. The deposits held by the organization are said to be out of funds donated by the public. Enquiries revealed that some donors initially donated each ₹ 1.00 lakh to the Prema Samajam‟ as one time donation for the benefit of it and the donations so collected were deposited in bank accounts held by it. Apart from the above, it is also learnt that some donations are extended by public for Annadhanam Scheme‟ for benefit of the assessee. Apart from the donations accepted from public, it also receives sponsorships for providing food from public on special occasions i.e. birthdays, marriage days etc. Prema Samajam collects ₹ 3,000/- from public to provide food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as ld.CIT(E) rejected the 12A registration on the ground that clause mentioned in the gift deed is not in accordance with law is concerned; we find that the above reason given by the ld.CIT(E) is not correct in rejecting the 12A registration to the assessee. Further, the ld.CIT(E) not at all examined what the assessee‟s activities whether assessee actually carrying charitable activities are not. Without doing so, the ld. CIT(E) picked up an irrelevant clause in the gift deed and rejected 12A, in our opinion ld. CIT(A) is not correct. We, therefore, granting 12A to the assessee. Ordered accordingly. 7. In the result, appeal filed by the assessee is allowed. Order Pronounced in open Court on this 18th day of March, 2020. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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