IN INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMADABAD Before: Shri Rajpal Yadav, Judicial Member Shri Amarjit Singh, Accountant Member ITA No. 3096/Ahd/2013 Assessment Year :N.A. Aces Handicap Welfare Vs. Commissioner of Charitable Trust, Income Tax, Panchal Ortho Hospital, Suryaprakash Chamber, Nr. Bus Depot, Bilimora, Dharampur Road, Valsad Gandevi Taluka, District: Navsari PAN No. AADTA7774N (Appellant) .. (Respondent) By Assessee Shri Mitish S. Modi, A.R. By Revenue Shri Jagdish, CIT D.R. Date of Hearing 20.09.2016 Date of 29.09.2016 Pronouncement ORDER PER AMARJIT SINGH, A.M.: This appeal is directed at instance of assessee against order of ld. CIT, Valsad, dated 25.10.2013 passed on following grounds: (1) learned CIT, Valsad s order is contradictory to law and facts of case and hence, liable to be quashed. I T N o . 3 0 9 6 / h d / 1 3 ( c e s H n d i c p W e l f r e C h r i t b l e Tr u s t v s . C I T ) Page 2 (2) learned CIT, Valsad has erred in denying approval u/s 80G(5) of Act without considering on merits documentary evidences/explanations furnished before him to satisfy himself about genuineness of activities carried out by applicant trust and hence, his action in refusing to grant approval is arbitrary, bad in law and not justified. 2. assessee is charitable trust for advancement of medical relief to establish and maintain hospitals, dispensaries, Rehabilitation Centre. In this case, assessee has filed application on 30.04.2013 u/s.80G(5)(vi) of Income Tax Act for grant of approval to CIT. CIT rejected application of assessee by stating that application has not been accompanied by any accounts at all, no amount has been claimed to be spent on object of Trust till date of making application. In this connection, CIT stated that assessee was asked about detail of activities carried out with evidences and held that assessee has not disputed that chartiable activities were not done before filing of application. report of A.O. also certified same, so, CIT has rejected claim stating that basic condition of grant of registration was not fulfilled by assessee. 3. During course of proceedings before us, ld. A.R. stated that vide letter dated 11.10.2013, assessee trust has submitted to CIT audited books of account for year ending 31st March, 2013 and provisional books of account till 30th September, 2013 and activities carried out by Trust till date. Before us, he submitted name of 3 patients with date of treatment and cost of treatment provided to those patients. i. Patient s Name: Jaywardhan Rana Diagnosis: Right Trans Tibial Amputee Treatment: Fitted with Right below Knee artificial limb Date: 12th May 2013 Cost of Treatment: Rs.38,000/- I T N o . 3 0 9 6 / h d / 1 3 ( c e s H n d i c p W e l f r e C h r i t b l e Tr u s t v s . C I T ) Page 3 ii. Patient s Name: Mrs. Suman Jadav Diagnosis: Left Trans Tibial Amputee (Diabetic) Treatment: Fitted with Left below Knee artificial limb with Silicone Gel Liner Date: 28th May 2013 Cost of Treatment: Rs.48,000/- iii. Patient s Name: Mr. MohammadAli Mehaboobali Sayyed Diagnosis: Both Knee Osteo arthritis Treatment: Fitted with Palfic O.A Knee Brace Date: 3rd July 2013 Cost of Treatment: Rs.8,000/- On other hand, ld. D.R. stated that from audited accounts of Trust, it is evident that no activities were carried out by assessee Trust. So, CIT has rightly rejected claim of assessee for registration u/s.80G of Act. 4. We have heard both sides and perused material on record carefully. In this case, assessee is duly registered under section 12AA vide certificate issued by CIT, Valsad dated 28.03.2013 that is first condition regarding establishment of Trust for charitable purpose. On perusal of Section 80G(5) as well as Rule 11AA, what is required to be seen whether Institution/fund has been established in India for charitable purpose or not and it lays certain additional conditions which are required to be fulfilled. Rule 11AA provide requirements for approval of institution or fund under section 80G. Now once registration u/s.12AA of Act has been granted approval under section 80G of Act will depend upon fulfillment one or more of conditions specified in Section 80G(5) of I T N o . 3 0 9 6 / h d / 1 3 ( c e s H n d i c p W e l f r e C h r i t b l e Tr u s t v s . C I T ) Page 4 Act. We noticed that vide letter dated 25.10.2013 Commissioner of Income Tax, Valsad has rejected grant of registration on reasoning that basic condition of grant of registration are not met but we find that non-fulfillment of specified conditions as per Section 80G(5) of Act have not been elaborated in details in above stated letter. 5. After considering facts and circumstances as stated above in this order, we allow assessee to make fresh application to Administration CIT for deciding afresh according to fulfillment of conditions specified in Section 80G(5) of Act along with requirement of Section 11AA of Income Tax Rules. 6. In result, appeal filed by assessee is allowed for statistical purpose. This Order pronounced in open Court on 29.09.2016 Sd/- Sd/- (Rajpal Yadav) (Amarjit Singh) Judicial Member Accountant Member Ahmedabad: Dated 29 /09/2016 True Copy S.K.Sinha Copy of Order Forwarded to:- 1. Appellant 2. Respondent 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order Aces Handicap Welfare Charitable Trust v. Commissioner of Income-tax, Valsad