Durkal Charitable Educational Trust, CHENNAI V. DID (Exemptions), CHENNAI

ITA 11/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73641 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-01-2014
• Assessment Year: misc
• Appeal Filed On: 02-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: B RAMAKRISHNAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! , ' # $ BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ I.T.A. NO. 11/MDS/2013 M/S. DURKAL CHARITABLE EDUCATIONAL TRUST, C/O. CNGSN & ASSOCIATES, CAS, SWATHI COURT, NO.22, VIJAYARAGAVA ROAD, T. NAGAR, CHENNAI 17 [PAN: AABTD 1271 F] ( !% /APPELLANT) VS DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI ( &'!% /RESPONDENT) / APPELLANT BY : SHRI B.RAMAKRISHNAN, FCA / RESPONDENT BY : SHRI ANIRUDH RAI, CIT-DR / DATE OF HEARING : 30-01-2014 /DATE OF PRONOUNCEMENT : 30-01-2014 #( / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE ASSESSEE IMPUGNIN G THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTIONS), CH ENNAI DATED 26-11-2012, VIDE WHICH THE APPLICATION OF THE ASSES SEE SEEKING I.T.A. NO. 11/MDS/2013 2 REGISTRATION U/S.12AA OF THE INCOME TAX ACT, 1961 ( HEREIN AFTER REFERRED TO AS THE ACT) HAS BEEN REJECTED. 2. THE ASSESSEE IS A TRUST, CONSTITUTED ON 25-05-2 006. THE ASSESSEE FILED APPLICATION IN PRESCRIBED FORM ON 17 -05-2012 BEFORE DIT(EXEMPTIONS), CHENNAI SEEKING REGISTRATION U/S.1 2AA OF THE ACT. THE DIT(EXEMPTIONS) VIDE IMPUGNED ORDER REFUS ED TO GRANT EXEMPTION INTER-ALIA ON THE GROUND, THAT CLAUSE 4(E) OF THE OBJECTS OF THE TRUST IS COMMERCIAL IN NATURE. THE DIT(EXEM PTIONS) FURTHER HELD THAT THE ASSESSEE IS RUNNING A PLAY SCHOOL WHI CH DOES NOT COME WITHIN THE AMBIT OF EDUCATION. AGGRIEVED AGAINST THE ORDER OF THE DIT(EXEMPTIONS) , CHENNAI, THE ASSESSEE HAS COME IN AN APPEAL BEFORE THE TRIBUNAL. 3. SHRI B.RAMAKRISHNAN, FCA APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ALLEGED OBJECTIONABLE C LAUSE 4(E) IN THE OBJECT CLAUSE OF THE TRUST WAS INCORPORATED IN THE OBJECTS FOR PROMOTING ARTISANS AND GENERATING A SOURCE OF INCOM E FOR THEM. HOWEVER, THE SAME HAS BEEN DELETED VIDE DEED OF COD ICILE DATED 27-11-2013. THE LD.AR HAS PLACED ON RECORD A PHOTO COPY OF THE AFORESAID DEED. I.T.A. NO. 11/MDS/2013 3 4. ON THE OTHER HAND, SHRI ANIRUDH RAI, APPEARING O N BEHALF OF THE REVENUE SUBMITTED THAT THE SAID DEED WAS NEVER PRODUCED BEFORE THE DIT(EXEMPTIONS). THE LD.DR FURTHER SUBM ITTED THAT THE ASSESSEE HAS NOT PRODUCED ANY RETURN OF INCOME TILL DATE, ALTHOUGH IT WAS CONSTITUTED WAY BACK IN THE YEAR 2006. THE ASSESSEE HAS NOT EVEN PRODUCED THE BOOKS OF ACCOUNTS TO SHOW THE ACTIVITIES BEING CARRIED OUT BY THE ASSESSEE. 5. BOTH SIDES HEARD. THE OBJECT CLAUSE 4(E) TO WHI CH THE DIT(EXEMPTIONS) HAS OBJECTED HAS BEEN REMOVED BY TH E ASSESSEE AFTER PASSING OF THE IMPUGNED ORDER. THE LD.DR HAS POINTED OUT THAT THE ASSESSEE HAS NOT PRODUCED ANY RETURN OF IN COME AND THE BOOKS OF ACCOUNT ALTHOUGH THE ASSESSEE-TRUST WAS CO NSTITUTED WAY BACK IN THE YEAR 2006. IN THE INTEREST OF JUSTICE, WE REMIT THE FILE BACK TO THE DIT(EXEMPTIONS) TO DECIDE THE MATTER AFRESH AFTER T AKING INTO CONSIDERATION THE DOCUMENT VIDE WHICH THE OBJECTS O F THE TRUST HAVE BEEN MODIFIED. THE ASSESSEE IS DIRECTED TO PR ODUCE ALL THE RELEVANT DOCUMENTS INCLUDING BOOKS OF ACCOUNT ETC., BEFORE THE DIT(EXEMPTIONS) TO ENABLE THE DIT(EXEMPTIONS) TO DE CIDE THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATI ON U/S.12AA OF THE I.T.A. NO. 11/MDS/2013 4 ACT. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY, THE 30 TH JANUARY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 30 TH JANUARY, 2014 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR