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TMI Blog2022 (12) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... ate its claim. We are unable to accept the applicants claim in absence of sufficient material required for formation of satisfaction. Therefore, no case fit for grant of registration u/s.12A(1) of the Income-tax Act, 1961. Accordingly, the registration sought by the applicant u/s. 12A(1) of the Income-tax Act, 1961 is hereby rejected. Appeal of the assessee is dismissed. - ITA No. 6240/Del./2017 - - - Dated:- 16-12-2022 - Dr. B. R. R. Kumar, Accountant Member And Sh. Yogesh Kumar US, Judicial Member Assessee by : Sh. None Revenue by : Smt. Mayank Prabha Tomar, Sr. DR ORDER Per Dr. B. R. R. Kumar, Accountant Member : The present appeal has been filed by the assessee against the order of the Ld. CIT(E), Lucknow dated 24.07.2017. 2. The assessee has raised the following grounds of appeal: 1. That on the facts, circumstances and legal position of the case, the Worthy CIT has erred in passing that order in contravention of the provisions of Section 12AA of the Income Tax Act, 1961. 2. That on the facts, circumstances and legal position of the case, the Worthy CIT has erred in rejecting the application of the appellant for grant of registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out of the funds of the trust, are being made to the trustees including salary to society members who has been designated as Principal, which attracts the provisions of Section 13(1)(c) read with Section 13(3) of the Income Tax Act, 1961. Book of Accounts and Vouchers were again called for on 29.06.2017, but were never produced for verification. 3. On perusal of the material available on record and the financial statements submitted by the applicant, it is found that although the applicant has provided the high rates of the OPD fees, Nursing charges, Rate List of Pathology denoting the charges for the various pathology tests and receipts under ECG, GYN, IPD, OT, Panchkarma, Pathology and X-Ray. However the applicant has neither provided any vouchers to corroborate the fact that the said charges are actually being levied from the common public nor have these rates been verified through entries in the books of accounts which again places serious question on the apparently bogus and fake claims of charity being purported by the applicant so as to create a mirage whereby the applicant can secure the said registration. On perusal of the financial statements for the F.Y. 2015-16, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed. Since the applicant has failed to produce the books of accounts and the vouchers the said expenses, as claimed by the applicant, appear nothing but a subterfuge by means of which the applicant intends to reduce the differential between its exorbitant income and minimal expenses so that the net tax liability does not arise in the case of the applicant. This fact has been established by the applicant as perusal of the Income Tax Returns for the past FYs shows that despite have exorbitant income the applicant has been consistently filing tax returns with Nil income by fabricating bogus and fake expenses so as to minimize and overshadow the hefty profits that it is making out of its commercial activities. It is also worth noting that the applicant has made hefty investments by way of FDR QSN, Trust UPPCL, Trust FDR and is also having a lot of funds available as cash and bank balance. Despite have such amounts at hand to further the cause of charity the applicant has taken minimal interest in providing any element of charity except pursuing its commercial interests. It is important note here that on perusal of the material available on record, it is found that that payments, source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s clearly goes to prove that the activities of the applicant are not genuine and this application is a mere attempt two secure tax benefits under the garb of charity. On perusal of the financial statements, it was found that the during the demonetization period, a lot of cash deposits have been made into the accounts of the trust and its centers of medical educations and the hospital. The fact that the applicant has had a history of existence but never applied for registration u/s. 12A earlier raises certain queries regarding the application. The said application being pursued at a time when the applicant has come in receipt of a lot of cash deposits during the demonetization period during the F.Y. 2061-17 raises concerns regarding the fact that the this application could be an attempt on the part of the applicant to avoid tax liability of the unaccounted cash deposits that have been accepted by the applicant. According registration to such institutions, that not only have a commercial character void of any element of charity but have also pursued activities resembling to those of money laundering practices during the demonetization period, would be detrimental to the spirit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions for approval u/s.80G of the Act. Hence, we do not find any justification to interfere in these orders of learned CIT . 6. The law requires a conjunctive test whereby objects of the applicant society have to be charitable and genuineness of charitable activities should be established for registration of application u/s. 12A. Mere recital of objects or activities without cogent or corroborative evidence is not sufficient by themselves to enable a registering authority to arrive at the satisfaction mandated by law. In the instant case, the documents on record do not suffice to establish the genuineness of activities. As such the findings of fact regarding its charitable activities or rather the lack thereof arrived at on the basis of the evidence filed and arguments addressed stand uncontroverted. This is fatal to the claim of the applicant. 7. It is clear that applicant has failed to provide sufficient material to corroborate the charitable nature of the objects and genuineness of the activities. Despite being provided timely opportunity the applicant has not been able to substantiate its claim. 8. In view of the facts and above decisions, I am unable to accept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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