James Memorial Charitable Trust, Kanyakumari V. CIT, Madurai

ITA 1560/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57909 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-01-2012
• Assessment Year: misc
• Appeal Filed On: 17-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I VIJAYAKUMAR
• Assessee Lawyers: V D GOPAL
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 1560/MDS/2010 ASSESSMENT YEAR : -- M/S. JAMES MEMORIAL CHARITABLE TRUST, 2/67/1, JAMES HOSPITAL, COLACHEL, KANYAKUMARI DISTRICT. V. THE COMMISSIONER OF INCOME- TAX-I, MADURAI. [PAN: AAATJ5297J] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. D. GOPAL, ADVOCATE RESPONDENT BY : DR. I. VIJAYAKUMAR, CIT-DR DATE OF HEARING : 31-01-2012 DATE OF PRONOUNCEMENT : 31-01-2012 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIO NER OF INCOME-TAX-I, MADURAI IN C. NO. 464/125/2005-06/CIT-I DATED 05-02-2010 REFUS ING TO GRANT RENEWAL OF APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, 1 961 (THE ACT FOR SHORT). 2. SHRI V. D. GOPAL, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND DR. I. VIJAYAKUMAR, LEARNED CIT-DR REPRESENTED ON BEHALF O F THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE ASSESSEE TRUST WAS ENJOYING THE BENEFIT OF REGISTRATION UNDE R SECTION 12AA OF THE ACT. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD FILED AN APPLI CATION UNDER SECTION 12AA DATED I.T.A. NO.1560/MDS/2010 2 12-08-2009 FOR RENEWAL OF THE APPROVAL UNDER SECTIO N 80G OF THE ACT. IT WAS THE SUBMISSION THAT THE ASSESSEE TRUST WAS DOING CHARIT ABLE ACTIVITIES IN THE FORM OF CARRYING OUT OF FREE MEDICAL CAMPS ETC. FOR THE BEN EFIT OF THE POOR AND DESERVING AS HAS BEEN RECOGNIZED BY THE LEARNED CIT. IT WAS THE SUBMISSION THAT THE LEARNED CIT HAD HELD THAT THE ASSESSEE HAD NOT OBTAINED THE PROPER PERMISSION FROM THE GOVERNMENT AUTHORITIES APART FROM CREATING SUCH OTH ER INFRASTRUCTURE FACILITIES, AND HAD REFUSED THE ASSESSEE THE BENEFIT OF RENEWAL OF THE APPROVAL UNDER SECTION 80G OF THE ACT. IT WAS THE SUBMISSION THAT THERE WAS N O CHANGE IN THE FACTS OR THE ACTIVITIES OF THE ASSESSEE AS FROM THE EARLIER YEAR S WHEN THE ASSESSEE DID HAVE THE APPROVAL U/S 80G. IT WAS THE SUBMISSION THAT THE A SSESSEE MAY BE GRANTED THE BENEFIT OF THE APPROVAL U/S 80G. IT WAS THE SUBMIS SION THAT THE FOUNDER OF THE ASSESSEE TRUST IS A DOCTOR AND HE WAS DOING THE CHA RITABLE ACTIVITIES OF PROVIDING FREE MEDICAL CAMPS. IT WAS THE SUBMISSION THAT THE ASSESSEE DID HAVE THE NECESSARY INFRASTRUCTURE FACILITIES. OTHERWISE THE ASSESSEE WOULD NOT HAVE BEEN ABLE TO PROVIDE FREE MEDICAL CAMPS. IT WAS THE SUB MISSION THAT FOR PROVIDING FREE MEDICAL CAMPS NO SPECIFIC APPROVAL FROM THE GOVERNM ENT WAS REQUIRED. 4. IN REPLY, THE LEARNED DR VEHEMENTLY SUPPORTED TH E ORDER OF THE LEARNED CIT. IT WAS THE SUBMISSION THAT THE LEARNED CIT HAD RIGH TLY DENIED THE ASSESSEE THE RENEWAL OF APPROVAL UNDER SECTION 80G. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. PROVI DING MEDICAL RELIEF IS TREATED AS A CHARITABLE ACTIVITY U/S 2(15) OF THE ACT. UND ISPUTEDLY, THE LEARNED CIT AGREES I.T.A. NO.1560/MDS/2010 3 THAT THE ASSESSEE HAS PROVIDED FREE MEDICAL CAMPS. WHETHER THE ASSESSEE HAS OBTAINED THE PRIOR PERMISSION FROM THE GOVERNMENT I S AN ISSUE WHICH DOES NOT COME WITHIN THE PURVIEW OF THE INCOME TAX ACT, 1961 FOR THE PURPOSE OF GRANTING THE APPROVAL UNDER SECTION 80G. THE BASIC INFRASTR UCTURE FACILITIES IF NOT AVAILABLE THE ASSESSEE COULD NOT HAVE PROVIDED THE FREE MEDIC AL CAMPS. UNDISPUTEDLY, THE FOUNDER OF THE ASSESSEE TRUST WHO IS PROVIDING THE FREE MEDICAL CAMP IS ALSO A DOCTOR. THE ASSESSEE DID HAVE THE NECESSARY APPROV AL U/S 80G IN EARLIER YEARS. THERE ARE NO CHANGES IN THE FACTS FROM THE EARLIER YEARS WHEN THE ASSESSEE DID HAVE THE APPROVAL UNDER SECTION 80G. IN THE CIRCUM STANCES, WE ARE OF THE VIEW THAT THE ASSESSEE IS ENTITLED TO THE APPROVAL UNDER SECTION 80G. IN THE CIRCUMSTANCES, THE LEARNED COMMISSIONER OF INCOME T AX IS DIRECTED TO GRANT THE ASSESSEE THE BENEFIT OF RENEWAL OF APPROVAL UNDER S ECTION 80G OF THE ACT, AS PRAYED FOR. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. 7. THE ORDER WAS PRONOUNCED IN THE COURT ON 31-01-2 012. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 31 ST JANUARY, 2012. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE