M/s. Glorious Evangelical Ministries, Tuticorin V. CIT, Madurai

ITA 1306/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58023 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-03-2012
• Assessment Year: 2010-2011
• Appeal Filed On: 12-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N DEVANATHAN
• Keywords: Reasonable cause
• Section: 80G; 12AA; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1306/MDS/2011 (ASSESSMENT YEAR : 2 010-11) M/S.GLORIOUS EVANGELICAL MINISTRIES NO.63, TELEGRAPH OFFICE ROAD TUTICORIN-628 002. PAN:AABTG2392L VS. THE COMMISSIONER OF INCOME TAX I MADURAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.DEVANATHAN, ADVOCATE RESPONDENT BY : SHRI K.E .B.RENGARAJAN, JR. STANDING COUNSEL ALONG WITH SHRI ANIRUDH RAI, CIT DR DATE OF HEARING : 5 TH MARCH, 2012 DATE OF PRONOUNCEMENT : 5 TH MARCH, 2012 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE ASSESSEE COMPANY AGAINST THE ORDER DATED 1 ST FEBRUARY, 2011 OF THE CIT-I, MADURAI. THERE IS A DELAY OF 91 DAYS IN FILING OF THIS APPEA L. THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONATI ON OF DELAY. THE REASONS FOR THE DELAY HAVE BEEN EXPLAINE D. BEING SATISFIED ABOUT THE EXISTENCE OF REASONABLE CAUSE, WE CONDONE THE DELAY AND DISPOSE OF THE APPEAL ON MERI TS. ITA NO1306 /MD S/2011 2 2. THE ASSESSEE HAD FILED AN APPLICATION FOR REGIST RATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HER EINAFTER REFERRED TO AS THE ACT). THE ASSESSEE HAD ALSO FI LED AN APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT. BOTH THE APPLICATIONS OF THE ASSESSEE WERE REJECTED BY THE LEARNED CIT BY A COMMON ORDER. 3. THE ASSESSEE HAD PREFERRED AN APPEAL AGAINST TH E ORDER OF THE LEARNED CIT DATED 1 ST FEBRUARY, 2011 IMPUGNING THE REJECTION OF THE APPLICATION FOR REGISTRATION U NDER SECTION 12AA OF THE ACT. THE SAID APPEAL I.E. ITA NO. 616/M DS/2011 WAS ALLOWED BY THE CO-ORDINATE BENCH OF THE TRIBUNA L VIDE ORDER DATED 11.7.2011. DURING THE COURSE OF THE HEA RING OF THE SAID APPEAL, THE ASSESSEE RAISED A GROUND FOR REJEC TION OF APPLICATION UNDER SECTION 80G AS WELL. THE LEARNED D.R. OBJECTED TO THE SAME ON THE GROUND THAT SEPARATE AP PEAL IS REQUIRED TO BE FILED FOR IMPUGNING THE REJECTION OF APPLICATION FOR APPROVAL UNDER SECTION 80G. THE TRIBUNAL GRANT ED LIBERTY TO THE ASSESSEE TO FILE A SEPARATE APPEAL, IF SO AD VISED. ITA NO1306 /MD S/2011 3 4. NOW THE ASSESSEE HAS FILED THE PRESENT APPEAL IMPUGNING THE REJECTION OF THE APPLICATION FOR GRAN T OF APPROVAL UNDER SECTION 80G OF THE ACT. 5. FOR APPROVAL UNDER SECTION 80G, IN CASE THERE AR E OVERLAPPING OF RELIGIOUS AND CHARITABLE ACTIVITIES, IT WOULD BE RELEVANT TO REFER TO THE PROVISIONS OF SECTION 80G( 5B). THE SAME IS REPRODUCED HEREIN BELOW:- (5B) NOTWITHSTANDING ANYTHING CONTAINED IN CLAUSE ( II ) OF SUB-SECTION (5) AND EXPLANATION 3, AN INSTITUTION OR FUND WHICH INCURS EXPENDITURE, DURING ANY PREVIOUS YEAR, WHICH IS OF A RELIGIOUS NATURE FOR AN AMOUNT NOT EXCEEDING FIVE PER CENT OF ITS TOTAL INCOME IN THAT PREVIOUS YEAR SHALL BE DEEMED TO BE AN INSTITUTION OR FUND TO WHICH THE PROVISIONS OF THIS SECTION APPLY.] 6 . A PERUSAL OF SUB-SECTION (5B) OF SECTION 80G SHOWS THAT IF AN INSTITUTION OR FUND DURING ANY PREVIOUS YEAR INCURS EXPENDITURE, OF A RELIGIOUS NATURE AND THE SAID EXPENDITURE DOES NOT EXCEED 5% OF ITS TOTAL INCOME IN THAT PREVIOUS YEAR, THEN IT SHALL BE DEEMED TO BE A N INSTITUTION OR FUND TO WHICH THE PROVISIONS OF SECT ION 80G APPLY. ITA NO1306 /MD S/2011 4 7. IN VIEW OF THE ABOVE, WE ALLOW THE APPEAL OF THE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT. HOWEVER, IT IS MADE CLEAR THAT IN CASE THE ASSESSEE INCURS ANY EXPENDITURE DURING ANY PREVIOUS YEAR EXCEEDING 5% OF ITS TOTAL INCOME IN THE RELEVANT PREVIOUS YEAR WHIC H IS OF RELIGIOUS NATURE, THE APPROVAL GRANTED UNDER SECTIO N 80G SHALL BE CANCELLED/WITHDRAWN AS PER THE PROVISIONS OF TH E ACT. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED ON THE ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH MARCH, 2012. SD/- SD/- ( DR. O.K.NARAYANAN) ( VIKAS AWASTHY ) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 5 TH MARCH, 2012. SOMU COPY TO: (1) APPELLANT ( 4) CIT(A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.