HISTORICAL CAR ASSOCIATION OF INDIA,CHENNAI V. ITO, CIT, EXEMPTIONS, CHENNAI

ITA 2041/CHNY/2024

AI Insights

The case involves the Historical Cars Association of India, which appealed against the order of the Commissioner of Income Tax (Exemption), Chennai, rejecting their application for approval under section 80G of the Income Tax Act, 1961. The Association argued that their activities, which include the preservation and promotion of vintage cars, fall under the charitable purposes as defined in the Act. However, the Commissioner found inconsistencies in their application and previous rejection of registration under section 12AB led to the dismissal of their current application. The Tribunal, after hearing the arguments and reviewing the materials, concurred with the Commissioner's decision and dismissed the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107400 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 06-11-2024
• Assessment Year: misc
• Appeal Filed On: 31-07-2024
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962, Finance (No.2) Act, 2009, Ancient Monuments Preservation Act, 1904
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR
• Assessee Lawyers: NAME; HISTORICAL CARS ASSOCIATION OF INDIA; FILED
• Keywords: Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.2041/Chny/2024 Historical Cars Association of India, 144/7, Rayala Techno Park, Old Mahabalipuram Road, Kottivakkam, Chennai 600 041. [PAN:AAFCH2422M] Vs. The Commissioner of Income Tax (Exemption), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri A. Sasikumar, CIT सुनवाई की तारीख/ Date of hearing : 06.11.2024 घोषणा की तारीख /Date of Pronouncement : 13.11.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 28.06.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai. 2. We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent and set exparte. We proceed to decide the appeal on merits after hearing the ld. DR basing on the material available on record. I.T.A. No.2041/Chny/24 2 3. The assessee by name, Historical Cars Association of India, filed an application dated 15.12.2023 in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval under section 80G(5)(iv)(B) of the Income Tax Act, 1961 [“Act” in short]. The ld. CIT(E) requested the assessee to furnish Note on activities and Annual Accounts/Financial statements, certified copies of important documents for verification. The ld. CIT(E) noticed some inconsistencies in the details submitted by the assessee. The ld. CIT(E) issued show-cause notice to the assessee why the application in Form 10AB should not be rejected for the reasons, which are reflecting in pages 4 and 5 of the impugned order. According to the ld. CIT(E), the assessee filed explanation contending that the preservation of monuments or places or objects of artistic or historic interest can be correlated and linked with the objects preservation like vintage cars which are over and above 50-100 years old comes under sporting activity. The ld. CIT(E) discussed about the ancient monuments at page 6 of the impugned order and held that conducting historic cars rally does not fit into the definition of charitable purposes as defined under section 2(15) of the Act . Further, the ld. CIT(E) observed that the assessee’s application under Form 10AB seeking regular registration under section 12AB of the Act was rejected and in view of the same, the I.T.A. No.2041/Chny/24 3 present application Form 10AB seeking approval under section 80G of the Act was rejected. 4. Before us, nothing was brought on record challenging the action of the ld. CIT(E) in rejecting the application for seeking approval under section 80G of the Act and also the status of rejection registration under section 12A/12AA/12AB of the Act. On perusal of the impugned order, we find that the assessee itself contended that preservation of monuments or places or objects of artistic or historic interest are fall under the definition of charitable purpose, but, however, nothing was brought on record before the ld. CIT(E) in support of the same. The ld. CIT(E) discussed the relevant provisions as inserted by Finance (No.2) Act, 2009 that “ancient monument” means any structure, erection or monument, or any tumulus or place of interment, or any cave, rock-sculpture, inscription of monolith, which is of historical, archaeological or artistic interest, or any remains thereof and includes: (a) the site of an ancient monument; (b) such portion of land adjoining the site of an ancient monument as may be required for fencing or covering in or otherwise preserving such monument; and (c) the means of access to and convenient inspection of an ancient monument – The Ancient Monuments Preservation Act, 1904. I.T.A. No.2041/Chny/24 4 5. However, we find that the activity of the assessee in conducting historic cars rally etc. does not fit into the definition of charitable purpose as defined under section 2(15) of the Act as also noted by the ld. CIT(E) and before us, nothing was brought on record to substantiate the claim of the assessee. Further, when there is no registration under section 12AB of the Act, no approval under section 80G of the Act could be granted. Therefore, in the absence of registration under section 12AB of the Act, and also with the reasons recorded by the ld. CIT(E), we find no infirmity in the order of the ld. CIT(E) of rejecting application in Form 10AB seeking approval under section 80G of the Act. Thus, the grounds raised by the assessee are dismissed. 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced on 13th November, 2024 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 13.11.2024 Vm/- I.T.A. No.2041/Chny/24 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "