M/s. Global Endeavour Mission, Hyd, Hyderabad V. DIT (Examptions), Hyderabad

ITA 1099/HYD/2011

• Counselvise Citation: 109922514 RSA 2011
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 07-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D D GOYAL
• Assessee Lawyers: A V RAGHURAM
• Section: 11; 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AN D SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO. 1099/HYD/2011 (ASSESSMENT YEAR 2010-11) M/S. GLOBAL ENDEAVOUR MISSION, HYDERABAD PAN: AABTG3481G VS DIRECTOR OF INCOME-TAX (EXEMPTIONS), HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SHRI A.V. RAGHURAM RESPONDENT BY: SHRI D.D. GOYAL DATE OF HEARING: 20.09.2011 DATE OF PRONOUNCEMENT: 13.10.2011 ORDER PER ASHA VIJAYARAGHAVAN, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), HYDERABAD DATED 5.5.2011 FOR THE ASSESSMENT YEAR 2010-11. 2. FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION IN FORM NO. 10G ON 26.10.2010 SEEKING RENEWAL OF 80 G BENEFIT. THE CASE WAS POSTED ON 1.3.2011 AND IN RESPONSE TO IT THE AUTHORISED REPRESENTATIVE FILED REPLY TO THE QUESTI ONNAIRE. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), HYDERABAD REJE CTED THE APPLICATION FILED U/S. 80G OF THE INCOME-TAX ACT, 1 961 HOLDING AS FOLLOWS: 'THE OBJECTS OF THE TRUST ARE BOTH CHARITABLE AND RELIGIOUS. UNDER SEC. 11 OF THE ACT, AN INSTITUTIO N HAS TO CARRY OUT EITHER WHOLLY CHARITABLE ACTIVITIES OR WHOLLY RELIGIOUS ACTIVITIES. IN THE PRESENT CASE, THE OBJ ECTS ARE MIXED AND THE TRUSTEES ARE EMPOWERED TO APPLY THE INCOME TO ANY OBJECT. THERE IS NO CLEAR CUT DEMARCATION OF THE APPLICATION OF INCOME IN THE TRU ST DEED TO THE CHARITABLE ACTIVITIES AND RELIGIOUS ACTIVITIES. IN MY VIEW, A TRUST, WHICH HAS MIXED I.T.A. NO. 1099/HYD/2011 M/S. GLOBAL ENDEAVOUR MISSION ====================== 2 OBJECTS I.E., RELIGIOUS AND CHARITABLE, IS NOT ENTI TLED FOR REGISTRATION/S. 12AA OF THE I.T. ACT. FOR THIS PROPOSITION, I RELY ON THE DECISION OF THE HONBLE HIGH COURT OF J & K IN THE CASE OF GHULAM MOHIDDUIN TRUS T (248 ITR 587).' 3. AGGRIEVED BY THE ORDER OF THE DIRECTOR OF INCOME -TAX (EXEMPTIONS), HYDERABAD, THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED A S FOLLOWS: 1. THE ORDER OF THE LEARNED DIT (EXEMPTIONS) IS WIT HOUT APPLICATION OF MIND SINCE IT IS STATED THAT THE ASS ESSEE TRUST IS SEEKING RENEWAL OF APPROVAL THOUGH IT IS F OR THE FIRST TIME AND STATING THAT IT IS NOT ENTITLED FOR REGISTRATION U/S. 12A WHEN IN FACT THE ORDER U/S. 80G(5) AND THE REFORE, THE ORDER IS VOID AB INITIO . 2. THE LEARNED DIT (EXEMPTIONS) ERRED IN REJECTING REGISTRATION U/S. 80G OF THE ACT, ON THE GROUND THA T THE OBJECTS OF THE SOCIETY ARE MIXED WITH CHARITABLE AN D RELIGIOUS ACTIVITIES THOUGH IT COULD NOT BE A REASO N TO REJECT THE APPROVAL SINCE THE PROVISIONS OF SEC. 80 G ITSELF PERMIT SPENDING UP TO 5% ON RELIGIOUS ACTIVITIES. 3. THE LEARNED DIT (EXEMPTIONS) FAILED TO APPRECIATE T HE FACT THAT THE ASSESSEE HAS SUBMITTED THE AMENDED OBJECTS TO THE REGISTRAR OF SOCIETIES ON 23.03.2010 AND BASED ON SUCH AMENDED OBJECTS THE THEN DIT (EXEMPTIONS) GRANTED REGISTRATION U/S. 12A ON 26.3. 2010 AND THE SAME HAS BEEN SUBMITTED DURING THE COURSE O F HEARING AND THEREBY ERRED IN STATING IN THE ORDER T HAT A TRUST OF MIXED OBJECTS IS NOT ENTITLED FOR REGISTRA TION U/S. 12AA WHEN IN FACT HE IS CONSIDERING APPROVAL U/S. 8 0G AND THEREBY ERRED IN REFUSING TO GRANT APPROVAL U/S . 80G(5). I.T.A. NO. 1099/HYD/2011 M/S. GLOBAL ENDEAVOUR MISSION ====================== 3 5. THE LEARNED DR CONCEDED THAT HE HAS NO OBJECTION FOR THE ISSUE TO BE SENT BACK TO THE DIT(E) TO CONSIDER THE OBJECTIONS RAISED BY THE ASSESSEE. 6. WE FIND THAT THE DIT(E) HAS WRONGLY STATED THAT THE ASSESSEE IS NOT ENTITLED FOR REGISTRATION U/S. 12AA WHILE RE JECTING THE APPLICATION IN FORM NO. 10G FOR GRANT OF APPROVAL U /S. 80G(5) OF THE INCOME-TAX ACT, 1961. ACCORDINGLY, THE ORDER OF TH E DIT(E) IS SET ASIDE AND THE ISSUE IS REMITTED BACK TO THE FILE OF THE DIT(E) FOR FRESH CONSIDERATION OF THE ISSUE AND TO DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER GIVING AN OPPORTUNITY FOR THE ASSESSEE TO PRESENT ITS CASE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH OCTOBER, 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER HYDERABAD, DATED THE 13 TH OCTOBER, 2011 TPRAO COPY FORWARDED TO: 1. M/S. GLOBAL ENDEAVOUR MISSION, C/O. SRI K. VASAN T KUMAR, A.V. RAGUM RAM, P. VINOD & B. PEDDI RAJULU, ADVOCAT ES, FLAT NO. 610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD-500 001. 2. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), AAYAKAR BHAVAN, HYDERABAD-1. 3. THE DDIT (E), HYDERABAD. 4. THE DR, B-BENCH, ITAT, HYDERABAD.