M/s. Sri Ganesh Kripa Charitable Trust, Coimbatore V. CIT-I, Coimbatore

ITA 1255/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64210 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-08-2012
• Assessment Year: misc
• Appeal Filed On: 06-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JUNIOR
• Assessee Lawyers: T BANUSEKAR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI. BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 1255/MDS/2012 M/S. SRI GANESH KRIPA CHARITABLE TRUST, 35/9, SABARI NIVAS, SECOND AVENUE, 7 TH CROSS, NEW THILLAI NAGAR, COIMBATORE. [PAN:AALTS0111R] VS. THE COMMISSIONER OF INCOME TAX- I, COIMBATORE. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. BANUSEKAR, C.A. RESPONDENT BY : SHRI K.E.B. RENGARAJAN, JUNIOR STANDING COUNSEL DATE OF HEARING : 28.08.2012 DATE OF PRONOUNCEMENT : 28.08.2012 ORDER PER CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX - I, COIMBATORE DATED 30 .03.2012 PASSED UNDER SECTION 12AA OF THE INCOME TAX ACT. SHRI T. B ANUSEKAR, C.A. REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI K.E. B. RENGARAJAN, JUNIOR STANDING COUNSEL REPRESENTED ON BEHALF OF THE REVEN UE. 2. THE COMMISSIONER OF INCOME TAX I, COIMBATORE REFUSED REGISTRATION UNDER SECTION 12AA TO THE ASSESSEE ON THE GROUND TH AT THERE IS NO SPECIFIC ACTIVITY OR OBJECTS STATED BY THE TRUST. HE ALSO OB SERVED THAT THE TRUST HAD ALL I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1255 255255 255/M/ /M/ /M/ /M/1 11 12 22 2 2 THE POTENTIAL TO DEGENERATE INTO A TRUST BENEFICIAL TO THE TRUSTEES. AGAINST THIS ORDER OF THE COMMISSIONER OF INCOME TAX -I, THE ASS ESSEE HAS COME UP IN APPEAL. 3. THE COUNSEL FOR THE ASSESSEE CONTENDED THAT THE COMMISSIONER OF INCOME TAX I, COIMBATORE ERRED IN REJECTING THE AS SESSEES APPLICATION FOR REGISTRATION UNDER SECTION 12AA PASSED ON THE PRESU MPTION THAT THE TRUST HAD ALL THE POTENTIAL TO GENERATE INTO A TRUST FOR THE BENEFIT OF THE TRUSTEES, THEREFORE, IS NOT A GENUINE ONE. THE COUNSEL FOR TH E ASSESSEE SUBMITTED THAT ONE OF THE OBJECTIONS OF THE COMMISSIONER OF INCOME TAX I IN NOT GRANTING THE REGISTRATION IS THAT THE TRUSTS REGISTERED OFF ICE IS AT TRUSTEES HOUSE. THE COUNSEL FOR THE ASSESSEE SUBMITS THAT THE OBSERVATI ON OF THE COMMISSIONER OF INCOME TAX I THAT SINCE THE REGISTERED OFFICE O F THE TRUST IS IN A TRUSTEES HOUSE, THE TRUST HAD ALL THE POTENTIAL TO DEGENERAT E INTO A TRUST FOR THE BENEFITS OF THE TRUSTEES IS A MERE PRESUMPTION AND HYPOTHETICAL AND IS NOT VALID ONE AND CANNOT FORM THE BASIS TO REJECT THE R EGISTRATION. 4. THE COUNSEL FOR THE REVENUE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX I. 5. WE HAVE HEARD BOTH SIDES AND GONE THROUGH THE O BJECTS OF THE TRUST. THE OBJECTS OF THE TRUST ARE NOT VAGUE AND ARE SPEC IFIC THOUGH THERE ARE NUMBER OF OBJECTS. ALL THE OBJECTS OF THE TRUST ARE IN CHARITABLE NATURE. WE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1255 255255 255/M/ /M/ /M/ /M/1 11 12 22 2 3 AGREE WITH THE ASSESSEE THAT THE REGISTRATION CANNO T BE DENIED SIMPLY BECAUSE THE TRUST IS LOCATED IN THE PREMISES OF THE TRUSTEE AND IT IS ONLY AN ASSUMPTION THAT THE TRUST IS HAVING POTENTIAL TO DE GENERATE INTO A TRUST BENEFICIAL TO THE TRUSTEES AND WITH THIS PRESUMPTIO N, THE ASSESSEE CANNOT BE DENIED REGISTRATION WHEN THE OBJECTS OF THE TRUST A RE CHARITABLE IN NATURE. THEREFORE, WE DIRECT THE COMMISSIONER OF INCOME TAX I TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY, THE 28 TH AUGUST, 2012 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) VICE - PRESIDENT (CHALLA NAGENDRA PRASAD) JUDICIAL MEMBER CHENNAI, DATED, THE 28.08.2012 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.