Sanmargadarsi Trust, Coimbatore V. CIT-I, Coimbatore

ITA 1400/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0917 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-01-2013
• Assessment Year: 2011-2012
• Appeal Filed On: 25-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH CHENN AI BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER .. ITA NO.1400/MDS./2012 ASSESSMENT YEAR:2011-12 M/S.SANMARGADARSI TRUST, 106,Q BLOCK, KOVAIPUDUR, COIMBATORE 641 042. VS. COMMISSIOENR OF INCOME TAX-I, 63,RACE COURSE ROAD, COIMBTORE 641 018. PAN AAJTS 9356 A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.S.SADASIVAN COMPANY SECRECATRY AUTHORISED REPRESENTTIVE RESPONDENT BY : SHRI SHAJI P JACOB ADDL. CIT DATE OF HEARING : 31.01.13 DATE OF PRONOUNCEMENT : 31. 01.13 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE ASSESSEE, IT IS AGGR IEVED ON AN ORDER DATED 27.04.2012 OF CIT-I, COIMBATORE DENYIN G IT REGISTRATION SOUGHT UNDER SECTION 12AA OF THE INCOM E TAX ACT, 1961 (IN SHORT THE ACT ). ITA. 1400 /MDS/12 SANMARGADARSI TRUST 2 2. ASSESSEE HAD FILED APPLICATION IN FORM 10A ALON G WITH A COPY OF TRUST DEED DATED 25.10.2010 BEFORE THE CIT ON 17.09.2011. ASSESSEE WAS REQUIRED TO PRODUCE DETA ILS LIKE INCOME & EXPENDITURE STATEMENT, BALANCE SHEET, DETA ILS OF BANK ACCOUNTS, DONATIONS RECEIVED. THESE WERE FILED ON 19.03.2012. HOWEVER, CIT WAS OF THE OPINION THAT ASSESSEE WAS D OING BUSINESS IN PRINTING, PUBLISHING AND SALE OF BOOKS AND WAS NOT ELIGIBLE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. IN THIS VIEW OF THE MATTER, HE DENIED THE REGISTRATION. 3. NOW BEFORE US, LD. A.R STRONGLY ASSAILING THE O RDER OF CIT, SUBMITTED THAT ASSESSEE HAD FILED A COPY OF ITS INC OME AND EXPENDITURE ACCOUNT FOR THE PERIOD FROM 25.10.2010 TO 31.03.2011 BEFORE THE ASSESSING OFFICER WITH ALL RE CORDS ALONG WITH FORM NO 10A AS REQUIRED UNDER SECTION 12A(A) O F THE ACT.. ACCORDING TO HIM, ITS OBJECTIVES WERE PURELY CHARIT ABLE AND THE BOOK CALLED SANMARGA DARSHI PRINTED BY THE ASSESS EE WAS ONLY FOR CREATING AWARENESS ON PAROPAKARA. AS PER THE LD. A.R, THIS BOOK WAS A REPORT OF INDIVIDUALS AND ORGANIZAT IONS ENGAGED IN NISWARTA SEVA. AS PER LD. A.R, CIT CONSIDERED I T TO BE A BUSINESS OF PRINTING. IN ANY CASE, ACCORDING TO HI M, ASSESSEE HAD JUST STARTED ITS FUNCTIONING AND THE LD. CIT OUGHT NOT HAVE TAKEN ITA. 1400 /MDS/12 SANMARGADARSI TRUST 3 A VIEW THAT IT WOULD NOT DO ANY CHARITY. PER CON TRA, LD. D.R. SUPPORTED THE ORDER OF CIT. 4. WE HAVE PERUSED THE ORDER OF CIT AND HEARD TH E RIVAL CONTENTIONS. THE OBJECTS OF THE TRUST, AS PER ITS TRUST DEED DATED 25 TH OCTOBER, 2010 PLACED BEFORE US READS AS UNDER:- 4. THE OBJECTS OF THE TRUST AS FOLLOWS:- 4.1) TO PROMOTE EDUCATIONAL, CULTURAL, LITERARY AC TIVITIES AMONG THE PEOPLE ESPECIALLY WOMEN AND PEOPLE LIVING IN RURAL AREAS AND FOR THE BETTERMENT OF THEIR KNOWLEDGE THROUGH PROPAGATION O F SANATHANA DHARMA, STUDIES OF ANCIENT TEXTS IN SAMSKRITAM, TAM IL AND OTHER INDIAN LANGUAGES. 4.2. TO ESTABLISH AND MAINTAIN EDUCATIONAL INSTITU TIONS AND HOSPITALS/DISPENSARIES SO AS TO SERVE PEOPLE ESPECI ALLY THE POORER SECTIONS OF THE SOCIETY, WOMEN AND THOSE WHO LIVE I N THE RURAL AREAS OF THE COUNTRY. 4.3. TO ESTABLISH AND MAINTAIN HOMES FOR THE AGED , DISABLED, DESTITUTE, WORKING WOMENS HOSTEL, GOSALAS (PLACE T O MAINTAIN COWS) AND SIMILAR INSTITUTIONS. 4.4. TO PROVIDE ANNADANAM TO THE NEEDY OF THE POO R. 4.5. TO PROMOTE AND PRESERVE NATIONAL INTEGRATION A ND INDIAS CULTURAL HERITAGE. 4.6. TO BRING OUT LITERARY PUBLICATIONS ON SOCIAL, RELIGIOUS AND EDUCATIONAL TOPICS USEFUL TO THE SOCIETY. 4.7. TO SUPPORT PUBLIC CAUSES LIKE IMPROVING SANIT ATION, PUBLIC HEALTH, LITERACY, ERADICATION OF POVERTY AND SOCIAL EVILS. 4.8. TO PROVIDE ASSISTANCE TO VICTIMS OF NTURAL CA LAMITIES. 4.9 TO DO ALL SUCH ACTS AS ARE NECESSARY AND INCID ENTAL TO THE MAIN OBJECTIVES AS NOTED ABOVE, EITHER DIRECTLY OR IN A ASSOCIATION WITH ORGANIZATIONS WITH SIMILAR OBJECTIVES. THERE IS ABSOLUTELY NO DOUBT THAT THE ABOVE OBJECTS WERE CHARITABLE. THE ONLY REASON THAT THE CIT DENIED THE REGISTRATION WAS THAT THE ASSESSEE WAS PRINTING A BOOK CALLED S ANMARGA DARSHI. THE PREAMBLE OF THE BOOK PRINTED BY THE ASSESSEE IS PRODUCED HEREUNDER:- ITA. 1400 /MDS/12 SANMARGADARSI TRUST 4 NAMASTE! HEARY GREETINGS TO ALL WELL WISHERS OF SANMARGA DA RSI FOR A PROSPEROUS AND ENLIGHTENING NANDANA YEAR. THIS YEAR HAPPENS TO BE THE 10 TH AFTER WE STARTED THE VENTURE SANMARGA DARSI WITH THE AIM OF MOBLISING SUPPORT FO R SOCIAL AND CHARITABLE CAUSES BASED ON SANMARGA DARMA. WE WANT ED TO CREATE AWARENESS ON PAROPAKARA AND WITH THIS INTEND HIGHLI GHTED EPISODES FROM OUR HERITAGE AND REPORTED ON INDIVIDUALS AND O RGANIST IONS ENGAGED IN NISWARTA SEVA. OVER THE PERIOD OF SEVERA L YEARS WE HAVE RECEIVED SUPPORT AND ASSURANCES ON HELP FOR SP ECIFIC VENTURES ON SOCIAL SERVICE. SANMARGA DARSI WANTS TO SPONSOR CANDIDATES FOR THE B.ED AND DIPLOMA COURSES IN SPECIAL EDUCATION TO TAKE CARE O F THE CHILDREN NEEDING SPECIAL ATTENTION. IT IS OUR FOND HOPE THA T WE WILL HAVE CARE CENTERS IN EVERY SUBURB AND VILLAGE TO ATTEND TO T HE DIFFERENTLY ABLED. ANNADANAM, EDUCATIONAL AID TO THE POOR, SPREADING SAMSKRITAM LEARNING, PROTECTION OF COWS AND ERADICATION OF SOC IAL EVILS ARE AMONG THE OTHER AIMS OF SANMARGA DARSI. WE HAVE CHALKED OUT A WORKING PLAN TO CARRY OUT THESE ACTIVITIES WITHIN THE LIMIT ED RESOURCES AT OUR DISPOSAL. WE ARE IN THE PROCESS OF BUILDING A COR PUS FUND FOR THIS. CALL IT A CO INCIDENCE, WE DEEM IT AS OUR FORTUNE T O BE THE RECIPIENTS OF THE BLESSINGS, AND PARTICIPATING IN HOSTING HIS HOLINESS SRI SRI BHARATI THEERTHA SWAMINGA, THE JAGADGURU SANKARACHA RYA OF SRINGERI, VISITING TAMILNADU AFTER 16 YEARS AND, WH O HAS BEEN OUR GUIDING LIGHT ALL ALONG. THE JAGADGURU ALWAYS EMPHASIZED ON UNSHAKABLE BHA KTHI FOR RECEIVING THE BLESSINGS OF THE LORD. THEREFORE, WE DEEM IT APT TO HAVE THE PICTURE OF DHRUVA, WHOSE MEDITATION ON LORD NA RAYANA IS ACCLAIMED FOR AGES AS THE GREATEST OF TAPAS, ON THE COVER PAGE. WE HOPE THE COVER PICTURE AND THE CONTENTS OF THIS YEA RS SANMARGA DARSI YEAR BOOK WILL MOTIVATE AND INSPIRE YOUNG MIN DS TO DEDICATE THEMSELVES AT THE SERVICE OF GOD. ITA. 1400 /MDS/12 SANMARGADARSI TRUST 5 WE CANNOT SAY THAT PRINTING OF THE ABOVE BOOK WAS A PART OF ANY BUSINESS ENDEAVOR. A LOOK AT THE PROFIT AND LOSS AC COUNT, & INCOME AND EXPENDITURE ACCOUNT PLACED BY THE ASSESS EE DOES NOT SHOW ANY ACTIVITIES, WHICH CAN BE CALLED AS A B USINESS OF PUBLISHING. THERE IS NO RECEIPT FROM ANY SALE OF B OOKS. IN SUCH CIRCUMSTANCES, WE ARE OF THE OPINION THAT THE REGIS TRATION SOUGHT BY THE ASSESSEE WAS UNJUSTLY DENIED. WE QUASH THE ORDER OF CIT AND DIRECT THE CIT TO GRANT THE ASSESSEE REGISTRATI ON SOUGHT BY IT UNDER SECTION 12AA OF THE ACT. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 31 ST JANUARY,JANUARY, 2013. SD/- SD/- (VIKAS AWASTHY) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED 31 ST JANUARY, 2013. K S SUNDARAM COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE ITA. 1400 /MDS/12 SANMARGADARSI TRUST 6 ITA. 1400 /MDS/12 SANMARGADARSI TRUST 7