Sri Kodandarama trust, Hyderabad V. Director of Income Tax (Exemptions), Hyderabad

ITA 1133/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69921 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST, HYDERABAD. PAN: AALTS9964J VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) HYDERABAD. APPELLANT RESPONDENT APPELLANT BY: SRI MOHD. AFZAL RESPONDENT BY: SRI P. SOMA SEKHAR REDDY DATE OF HEARING: 13.11.2013 DATE OF PRONOUNCEMENT: 13.11.2013 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) [D IT(E)], HYDERABAD DATED 29.05.2013. 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WITH REGARD TO NON-GRANTING OF REGISTRATION SOUGHT U/S. 12AA OF INCOME-TAX ACT, 1961. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE APPLIED FOR REGISTRATION U/S. 12AA OF THE ACT IN FO RM NO. 10A ON 27/11/2012. THE DIT(E) OBSERVED THAT F ROM THE OBJECTS OF THE TRUST AS CONTAINED IN THE SAID TRUST DEED, IT I S NOTICED THAT THE APPLICANT TRUST INTENDS TO PURSUE BOTH REL IGIOUS AND CHARITABLE OBJECTIVES. IN THIS CONTEXT, IT IS R ELEVANT TO REFER TO THE OBJECT CLAUSES FROM (1) TO (4) AND (7) AS ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 2 MENTIONED AT PAGE 2 OF THE SAID TRUST DEED, WHICH A RE REPRODUCED AS UNDER: (1) TO MAINTAIN A TEMPLE OF SRI KODANDARMA TRUST AT MUNNATURU, KANCHIKACHERLA MANDAL, KRISHNA DISTRICT. (2) TO ARRANGE FOR THE REGULAR PUJAS IN THE TEMPL E. (3) TO DO ALL TYPE OF ACTIVITIES FOR THE WORSHIP OF LORD SRI KODANDARAMA ACCORDING TO THE HINDU PRANALIKA INCLUDING BUILDING OF PRAYER HALLS AND TEMPLES. (4) TO DO ALL TYPE OF ACTIVITIES FOR PROPAGATION OF RELIGION BY WAY OF CELEBRATING THE FESTIVALS. (5) TO MAKE AVAILABLE INFORMATION AND ACTIVITIES OF THE TRUST BY PERIODICAL PUBLICATIONS AND THROUGH DEDICATED INTERNET WEBSITES AS DEEMED NECESSARY FROM TIME TO TIME. (6) TO ACTIVELY ASSIST AND COOPERATE WITH OTHER ORGANISATIONS WITH SIMILAR OBJECTIVES AS DEEMED SUITABLE. TO OPEN, FINANCE, CONSTRUCT BUILDINGS, MAINTAIN AND OPERATE FACILITIES IN SUPPORT OF ABOVE OBJECTIVES. TO PURSUE ALL ABOVE OBJECTIVES AS A WORTHWHILE CONTRIBUTION TO SOCIETYS WELFARE IRRESPECTIVE OF ANY CASTE, RACE OR RELIGIOUS CONSIDERATIONS. (7) TO PURSUE ANY OTHER ACTIVITY INCLUDING WORKS OF CHARITY OR OFFER SCHOLARSHIPS IN CONSONANCE WITH OU R OBJECTIVE TO MAKE PRESENTATIONS ON OUR OBJECTIVES, RAISE AND COLLECT FUNDS, PARTICIPATION OR ASSISTANC E REQUIRED FOR OUR ACTIVITIES FROM GENERAL PUBLIC, NG OS AND/OR ANY GOVERNMENT BRANCHES OR DEPARTMENTS AS FOUND NECESSARY. ALL FINANCES AND PROFITS, IF ANY, ACCRUED TO THE TRUST SHALL BE USED ONLY TOWARDS PUR SUIT OF THE OBJECTIVES OF THE TRUST. 4. THE DIT(E) NOTED THAT AS SEEN, THE AFOREMENTIONE D OBJECTS FROM (1) TO (4) ARE OF RELIGIOUS NATURE. FU RTHER, AS PER THE OBJECT CLAUSE (7), THE TRUST INTENDS TO PUR SUE ANY OTHER ACTIVITY INCLUDING WORKS OF CHARITY. FIRST OF ALL, FROM ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 3 SUCH MENTION, 'ANY OTHER ACTIVITY', IT SHOWS THE TR UST INTENDS TO CARRY ON ACTIVITY NOT SPECIFICALLY MENTI ONED IN THE TRUST DEED. UNDER THIS CIRCUMSTANCE, WHEN THE E NTIRE OBJECTS OF THE ASSESSEE TRUST ARE RIOT VERIFIABLE, IN MY VIEW, IT CANNOT BE GRANTED REGISTRATION. SECONDLY, IN THAT OBJECT CLAUSE(7), WHEN IT IS MENTIONED 'TO PURSUE A NY OTHER ACTIVITY INCLUDING WORKS OF CHARITY OR OFFER SCHOLARSHIPS', IT SHOWS THE ASSESSEE TRUST ALSO INT ENDS TO CARRY OUT CHARITABLE WORKS. UNDER THIS CIRCUMSTANCE , THUS, IT MAY BE NOTICED THAT, THE ASSESSEE IS HAVIN G INTENTION OF BOTH CHARITABLE AND RELIGIOUS OBJECTIV ES, THE LATTER AS PER THE OBJECT CLAUSES (1) TO (4), REPROD UCED ABOVE. 5. FURTHER, THE DIT(E) OBSERVED THAT SINCE, THE APP LICANT TRUST IN THIS CASE IS HAVING BOTH CHARITABLE AND RE LIGIOUS OBJECTS, UNDER THAT CIRCUMSTANCE, HAVING REGARD TO THE PROVISIONS OF SECTION 11(1)(A) OF THE ACT, WHEREIN THERE IS REFERENCE TO WHOLLY CHARITABLE PURPOSES OR RELIGIOU S PURPOSES, IN THAT CASE, HAVING REGARD TO PROVISIONS OF SECTIONS 12A(1) OF THE ACT TOGETHER WITH THE PROVIS IONS OF CLAUSE (AA) THERE UNDER, IN MY VIEW, THE APPLICANT TRUST WOULD NOT BE ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT. 6. FURTHER, THE DIT(E) OBSERVED THAT A TRUST CREAT ED AFTER 1-4-1962, FOR THE PURPOSE OF EXEMPTION OF ITS INCOME, HAS TO BE WHOLLY EITHER FOR CHARITABLE PURP OSES OR WHOLLY FOR RELIGIOUS PURPOSES. 'CHARITABLE PURPOSE' AS DEFINED IN EXPLANATION-3 TO SECTION 80G(5) OF THE A CT, DOES NOT INCLUDE ANY PURPOSE THE WHOLE OR' SUBSTANT IALLY WHOLE OF WHICH IS OF A RELIGIOUS NATURE. THOUGH 'CH ARITABLE PURPOSE' IS NOT DEFINED SEPARATELY IN SECTION 11(1) OF THE ACT, SUCH DEFINITION AS GIVEN UNDER SECTION 80G(5) OF THE ACT, HOLDS GOOD FOR THE PURPOSE OF SECTION 11 OF TH E ACT. ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 4 AS PER SUCH DEFINITION, AS MAY BE NOTICED, 'CHARITA BLE PURPOSE' IS ENTIRELY DIFFERENT AND DISTINCT FROM 'R ELIGIOUS PURPOSE'. IT IS ONLY WHEN A TRUST CREATED AFTER 1-4 -1962, IS HAVING ENTIRELY 'CHARITABLE PURPOSES' OR ENTIRELY ' RELIGIOUS PURPOSES', THAT THE SAME, AS PER THE PROVISIONS OF SECTION 11(L)(A) RWS 12A(1) OF THE ACT, WOULD BE ELIGIBLE FOR EXEMPTION OF INCOME. 7. THE DIT(E) OBSERVED THAT, THUS, CLAUSE (A) TO SU B- SECTION (1) TO SECTION 11 OF THE ACT, IT MAY BE SEE N THAT, ONLY WHEN A TRUST HAS GOT OBJECTIVES FULLY OF CHARI TABLE NATURE OR FULLY OF RELIGIOUS NATURE, THAT IT WOULD BE ELIGIBLE FOR EXEMPTION OF ITS INCOME AND THUS, WOULD BE ELIG IBLE FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT . IT IS THE NATURE OF OBJECTIVE OF SUCH TRUST OR INSTITUTIO N, AS MENTIONED IN THAT CLAUSE (A) TO SUB-SECTION (1) TO SECTION 11 I.E, EITHER 'WHOLLY CHARITABLE' OR 'WHOLLY RELIGIOUS', WHICH DETERMINES THE ELIGIBILITY FOR REGISTRATION UNDER S ECTION 12A OF THE ACT. THE DIT(E) RELIED ON THE DECISION O F HON'BLE MADHYA PRADESH HIGH COURT IN THE CASE OF D.S.D.B. TRUST V. CIT(MP) (2008) 302 ITR 321, WHERE IN, AT PAGE 324 OF THE SAID DECISION, THE HON'BLE COURT OBSERVED AS UNDER: 'IN OUR CONSIDERED VIEW, SINCE 11 OF THE ACT PROVIDES FOR EXEMPTIONS TO THE TRUST REGISTERED UNDER THE AC T, IT IS PRIMARILY THE PURPOSE OF SECTION 11 THAT WILL DOMINATE OR PREVAIL OVER OTHER CONSIDERATION. SECTI ON 11 PROVIDES FOR THIS EXEMPTION ONLY IF THE PROPERTY HELD IS FOR CHARITABLE OR RELIGIOUS PURPOSES. IT IS ONLV WHEN SUCH A PURPOSE IS SHOWN THAT REGISTRA~ION CAN BE GRANTED'. 8. THE DIT(E) NOTED THAT HAVING REGARD TO THE SPEC IFIC PROVISIONS CONTAINED IN SECTION 11(1)(A) AND SECTIO N 12A OF THE ACT, AND RELYING ON THE ABOVE DECISION OF TH E ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 5 HON'BLE M.P HIGH COURT AND ALSO KEEPING IN VIEW THE RATIO OF DECISION OF HON'BLE SUPREME COURT IN STATE OF KE RALA V. M.P. SHANTI VARMA JAIN(1998) 231 ITR 787(SC) AND CI T V. PALGHAT SHADI MAHAL TRUST (2002) 254 ITR 212 (SC ) AND OF THE HON'BLE JAMMU & KASHMIR HIGH COURT IN GHULAM MOHIDDIN TRUST VS. CN [2001] 248 ITR 587, THE ABOVE TRUST, WHICH IS HAVING BOTH RELIGIOUS AND CHA RITABLE OBJECTS CANNOT BE ALLOWED REGISTRATION U/S.12AA OF TILE ACT. IN THIS CONTEXT, IT IS ALSO PERTINENT TO KEEP IN MIND THE FOLLOWING OBSERVATIONS MADE BY THE HON'BLE JAMMU & KASHMIR HIGH COURT AT PAGE NO.S93-S94 OF THE SAID DECISION IN GHULAM MOHIDDIN TRUST VS. CIT (SUPRA): ' ...... BECAUSE THE LAW IS WELL-SETTLED THAT IF THERE ARE SEVERAL OBJECTS OF THE TRUST, SOME OF WHICH ARE CHARITABLE AND SOME NON-CHARITABLE AND THE TRUSTEES IN THEIR DISCRETION ARE TO APPLY THE INCOME TO ANY OF THE OBJECTS, THE WHOLE TRUST WOULD FALL AND NO PART OF ITS INCOME WOULD BE EXEMPT FROM TAX. THE REASON IS THAT IN SUCH A CASE NO DEFINITE PART OF THE PROPERTY OR ITS INCOME IS ALLOCATED FOR CHARITA BLE PURPOSES AND IT WOULD BE OPEN TO THE TRUSTEES TO APPLY ITS INCOME TO ANY OF THE NON- CHARITABLE OBJECTS OR RELIGIOUS PURPOSES. ' 9. FURTHER, THE DIT(E) NOTICED THAT THE ASSESSEE TR UST HAS NOT COMMENCED ANY ACTIVITY SO FAR. VIDE QUERY NO.2 OF THE SAID QUESTIONNAIRE, IT WAS ASKED TO FURNISH A NOTE ON PRECISE ACTIVITIES UNDERTAKEN WITH DETAILS THEREOF AND EVIDENCE FOR THE SAME. HOWEVER, IN RESPONSE TO THE SAME, UNDER POINT NO.2 OF THE REPLY DT 22.05.2013 FURNISHED BY THE LD. AUTHORISED REPRESENTATIVE, IT WAS SUBMITTED THAT THE ACTIVITIES OF THE TRUST ARE INTENDED TO START AFTER GRANT OF APPROVAL FROM THE DIRECTOR. FURTHER, UNDER POINT NO.3 OF THE SAID REPLY, IN RESPONSE TO QUERY REGARDING FURNISHING OF THE BOOKS OF ACCOUNTS, IT W AS SUBMITTED THAT, AS THE TRUST HAS NOT STARTED ANY AC TIVITY, ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 6 THEREFORE, NO AMOUNT IS SPENT, EXCEPT AN AMOUNT OF RS.100/- CHARGED BY THE BANK. IT WAS FURTHER STATED THAT NO BOOKS OF ACCOUNTS MAINTAINED . FROM SUCH ADMISSION MADE IN THAT REPLY, THUS, IT CL EARLY SHOWS THAT THE ASSESSEE TRUST HAS NOT COMMENCED ANY ACTIVITY SO FAR. UNDER THIS CIRCUMSTANCE I.E, IN AB SENCE OF ANY ACTIVITY BY THE ASSESSEE TRUST, IT CANNOT BE GR ANTED REGISTRATION U/S 12AA OF THE ACT. 10. IN VIEW OF THE ABOVE OBSERVATIONS, THE DIT(E) R EJECTED THE APPLICATION FILED BY THE ASSESSEE IN FORM NO. 1 0A FOR REGISTRATION U/S 12AA OF THE ACT. 11. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US RAISING 7 GROUNDS OF APPEAL CONTENDING THE ACTION OF THE DIT( E) IN REJECTING THE APPLICATION FILED BY THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. 12. WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERUSED THE RECORD. WE HAVE GONE THROUGH THE OBJEC TS OF THE TRUST MENTIONED AT PARA 3 (SUPRA). WE FIND THAT TH E ASSESSEE IS CARRYING ON THE RELIGIOUS OBJECTS ALONG WITH CHA RITABLE ACTIVITIES, BUT, THE MAIN OBJECTS OF THE ASSESSEE I S RELIGIOUS IN NATURE. WE ARE OF THE VIEW THAT TO OBTAIN REGISTRAT ION U/S 12AA OF THE ACT, THE ASSESSEES OBJECTS MAINLY SHOULD BE CHARITABLE IN NATURE. IN OUR OPINION, REQUIREMENT OF THE PROVI SION TO GRANT REGISTRATION U/S. 12AA IS THAT THE SOCIETY'S OBJECT CLAUSE SHOULD NOT CONTAIN ANY NON CHARITABLE ACTIVITIES AN D THERE IS NO RESTRICTION IN CARRYING ON RELIGIOUS OBJECTS ALONG WITH CHARITABLE OBJECTS. THE ASSESSEE HAS LIBERTY TO CARRY ON RELI GIOUS ACTIVITIES ALONG WITH CHARITABLE ACTIVITIES. IN SI MILAR CIRCUMSTANCES, THE COURTS HELD THAT THE ASSESSEE CA N CARRY ON CHARITABLE ACTIVITIES ALONG WITH RELIGIOUS ACTIVITI ES: ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 7 1) CIT V. JAIPUR CHARITABLE TRUST (81 ITR 1) (DEL). 2) ZENITH TIN WORKS CHARITABLE TRUST V. ITO (102 IT R 119) (BOM). 3) CIT V. AHMEDABAD RANA CASTE ASSOCIATION (88 IATR 354) (GUJ.) 4) CIT V. CHANDRA CHARITABLE TRUST (294 AITR 896) (GUJ). 5) ADDL. CIT V. AA BIBIJIWALA TRUST (100 ITR 516) ( GUJ). 6) ACIT V. BARKATE SAIFIYAH SOCIETY (213 ITR 492) ( GUJ). 7) GULAM MOIHIUDDIN TRUST V. CIT (248 IATR 587) (J& K). 8) CALICUT ISLAMIC CULTURAL SOCIETY V. ACIT (28 SOT 148). 13. FURTHER, THE OBJECTS OF THE ASSESSEE CANNOT BE SAID DESCRIPTIVE AND THE OBJECTS MENTIONED IN THE TRUST DEED ARE IN ACCORDANCE WITH THE PROVISIONS OF SECTION 2(15) OF THE ACT AND THERE IS NO ALLEGATION BY THE DIT(E) THAT THE OBJEC TS MENTIONED THEREIN ARE NOT CHARITABLE NATURE AND IT CANNOT BE SAID THAT THE OBJECTS MENTIONED IN CLAUSES 1 AND 2 CANNOT BE SAID THAT THEY ARE OF NON-CHARITABLE IN NATURE. BEING SO, IN OUR OPINION, THIS REASONS ADVANCED BY THE DIT(E) ARE NOT PROPER TO DE NY THE REGISTRATION U/S. 12AA OF THE ACT. FOR THIS PURPOS E, WE PLACE RELIANCE ON THE JUDGEMENT OF ALLAHABAD HIGH COURT I N THE CASE OF FIFTH GENERATION EDUCATION SOCIETY VS. CIT (185 ITR 634) WHEREIN IT WAS HELD THAT ' THE ORDER IMPUGNED DOES NOT SAY THAT THE OBJECTS OF THE SOCIETY ARE NOT CHARITABLE IN NATURE; IT MERELY SAYS THAT THEY ARE GENERAL IN NATURE. JUST BECAUSE THEY ARE GENERAL, THEY DO NOT CEASE TO BE CHARITABL E. THE COMMISSIONER HAS ALSO OBSERVED THAT NO ACTIVITY HAS BEEN CARRIED ON BY THE SOCIETY. IT IS ALSO NOT THE REQU IREMENT OF SECTION 12A OF THE ACT. NOR HAS SECTION 80G ANY RE LEVANCE AT THIS STAGE. THE IMPUGNED ORDER CANNOT, THEREFORE, BE SUSTAINED AND IT IS QUASHED. ' ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 8 14. FURTHER, RECENTLY THE HYDERABAD BENCH OF THE TR IBUNAL IN THE CASE OF REHOBOTH MISSION V. DIT(E) IN ITA NO. 352/HYD/2010 ORDER DATED 26.5.2010 HELD AS FOLLOWS: '6. WE HAVE GONE THROUGH THE PROVISIONS OF SEC. 13(1)(B) OF THE ACT. THERE IS NOTHING IN THE LANGUAGE OF THIS PROVISION TO SUGGEST THAT AN INSTITUTION OF MIXED OBJECTS IS PRECLUDED FROM GETTING REGISTRATION U/S 12AA OF THE ACT. IT IS ALS O SEEN FROM THE OBJECTS OF THE TRUST IN QUESTION THAT THE ASSESSEE IS CARRYING ON NO NON-CHARITABLE OR NON-RELIGIOUS ACTIVITIES. WE PLACE RELIANCE ON THE JUDGEMENT OF ACIT V. BARKATE SAIFIYAH SOCIETY 213 ITR 492 (GUJ) AND CIT V. CHANDRA CHARITABLE TRUST 294 AITR 86 ( GUJ), WHEREIN IT WAS HELD THAT A TRUST CAN EITHER BE FOR RELIGIOUS PURPOSES OR FOR CHARITABLE PURPOSES OR IT CAN BE FOR BOTH. ONLY A TRUST WHICH IS FOR RELIGIOUS PURPOSE IS EXCLUDED AN D DEBARRED FROM REGISTRATION U/S 12AA OF THE ACT. A TRUST WHOSE OBJECT IS CHARITABLE AS WELL AS RELIGIOUS IS NOT DEBARRED FROM REGISTRATION. FURTHE R, IN THE CASE OF NEW LIFE IN CHRIST EVANGELISTIC ASSOCIATION V. CIT & OTHERS 246 ITR 532 (MAD), WHEREIN IT WAS HELD THAT FOR GRANTING OR REFUSING REGISTRATION U/S 12A IN RELATION TO SUCH TRUST, THE ONLY CONDITION PRECEDENT IS THAT AN APPLICATION FOR REGISTRATION SHOULD BE MADE IN TIME AND THE ACCOUNTS OF THE INSTITUTE SHOULD BE AUDITED. NO ENQUIRY ABOUT OBJECTS OF THE TRUST CAN BE MADE U/S 12A OF THE ACT. WE HAVE GONE THROUGH ALL THE JUDGEMENTS CITED BY THE LEARNED COUNSEL FOR THE ASSESSEE. THE FACTS OF THE CASE IN THE CASE CONSIDERED BY THE GUJARAT HIGH COURT SQUARELY APPLY TO THE FACTS OF THE CASE ON HAND. THE DEPARTMENT HAS NOT BROUGHT ANY CONTRARY DECISION TO OUR NOTICE. IN OUR OPINION, IN THE CIRCUMSTANCES UNDER CONSIDERATION, THE DIT(E) SHOULD NOT HAVE REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT ON THIS REASON. COMMENTING ON THE HONOURABLE GUJARAT HIGH COURT DECISION, THE DIT(E) HAS OBSERVED THAT THE HONBLE HIGH COURT HAS INTRODUCED A NEW CONCEPT KNOWN AS CHARITABLE RELIGIOUS TRUST. ACCORDING TO HIM, TRUST HAS TO BE EITHER WHOLLY RELIGIOUS OR WHOLLY CHARITABLE. OTHERWISE, IT IS NOT ENTITLED FO R REGISTRATION AND THE HONBLE GUJARAT HIGH COURT DID NOT CONSIDER THE WORD OR WHICH HAS BEEN EMPLOYED U/S 11(1)(A) AND SEC. 12 OF THE ACT AND ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 9 THE HONBLE HIGH COURT HAS INTERPRETED SEC. 13(1)(B) OF THE ACT. WE ARE UNABLE TO AGREE WITH THE DIT(E) AS TO HOW AND WHY THE JUDGEMENT OF THE HONBLE GUJARAT HIGH COURT IS NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. THERE IS NO SUCH BAR SINCE THERE IS NO JURISDICTIONAL HIGH COURTS JUDGEMENT ON THIS ISSUE, TO THE CONTRARY AND THIS OBSERVATION OF THE DIT(E) IS UNWARRANTED. CONSEQUENTLY, WE DIRECT THE DIT(E) TO GRANT REGISTRATION TO THE ASSESSEE SOCIETY SUBJECT TO FULFILMENT OF OTHER CONDITIONS, IF ANY.' 15. AS REGARDS THE OBSERVATION OF THE DIT(E) THAT A SSESSEE HAS NOT COMMENCED ANY ACTIVITIES AT THE TIME OF APP LYING FOR REGISTRATION, IN THIS CONTEXT WE REFER TO THE FINDI NGS OF THE COORDINATE BENCH OF ITAT, HYDERABAD IN THE CASE OF SOCIETY OF SISTERS OF ST. ANNE, PHIRANGIPURAM VS. DIT(E) IN IT A NO. 345/HYD/2012, DATED 27/09/2012, WHEREIN IT WAS HELD THAT THE ASSESSEE NEED NOT COMMENCE THE ACTIVITIES BEFORE SE EKING REGISTRATION. THEREFORE, THE SAID REASON POINTED OU T BY THE DIT(E) DOES NOT DISENTITLE THE ASSESSEE IN SEEKING REGISTRATION U/S 12AA OF THE ACT. 16. IN VIEW OF THE ABOVE OBSERVATIONS, WE DIRECT T HE ASSESSEE TO CAUSE NECESSARY AMENDMENT TO THE TRUST DEED WITH REFERENCE TO THE OBJECT CLAUSE TO THE SATISFAC TION OF THE DIT(E). ACCORDINGLY, WE REMIT THE ISSUE TO THE FIL E OF THE DIT(E) FOR CONSIDERING THE ISSUE AFRESH AND ONCE TH E NECESSARY AMENDMENT IS MADE TO THE TRUST DEED, AS P ER THE PROVISIONS OF SECTION 12AA OF THE ACT, THE DIT(E) I S DIRECTED TO GRANT THE REGISTRATION U/S 12AA OF THE ACT, ON RECE IPT OF THE AMENDED TRUST DEED. NEEDLESS TO SAY THAT OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE IS TO BE GIVEN. ITA NO. 1133/HYD/2013 SRI KODANDARAMA TRUST ============================= 10 17. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER, 2013 SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 13 TH NOVEMBER, 2013 KV COPY FORWARDED TO: 1. SRI KODANDARAMA TRUST, C/O MOHD. AFZAL, ADVOCATE , 11- 5-465, FLAT NO. 402, SHERSONS RESIDENCY, CRIMINAL COURT ROAD, RED HILLS, HYDERABAD 500 004. 2. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), 3 RD FLOOR, AAYAKAR BHAVAN, HYDERABAD. 3. THE DDIT(E)-I, HYDERABAD. 4. THE DR ITAT, HYDERABAD