Halls Road Karpagavinayagar Social Charitable Trust, CHENNAI V. Additional DIT, CHENNAI

ITA 1593/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61057 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-04-2012
• Assessment Year: misc
• Appeal Filed On: 27-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SIBENDU MOHARANA IRS
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 80G; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO.1593(MDS)/2011 M/S HALLS ROAD KARPAGAVINAYAGAR SOCIAL CHARITABLE TRUST, NO.3/52, HALLS ROAD, NEW RESIDENTIAL BLOCK, KILPAUK, CHENNAI-600 010. PAN ADIPC4635J. VS. THE ADDITIONAL DIRECTOR OF INCOME-TAX (EXEMPTIONS), CHENNAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.SRIDHAR, ADVOCATE RESPONDENT BY: DR. SIBENDU MOHARANA, IRS, CI T. DATE OF HEARING : 30 TH APRIL, 2012 DATE OF PRONOUNCEMENT : 30 TH APRIL, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE DIRECTOR O F INCOME-TAX - - ITA NO.1593 OF 2011 2 (EXEMPTIONS) UNDER SECTION 12AA OF THE INCOME-TAX A CT, 1961, THROUGH HIS PROCEEDINGS DATED 26-8-2011. 2. THE ASSESSEE HAD SOUGHT FOR REGISTRATION UNDER SECTION 12AA OF THE ACT THROUGH ITS APPLICATION IN FORM NO.10A. THE REQUEST OF THE ASSESSEE BEFORE THE DIRECTOR WAS TO REGISTER THE ASSESSEE AS A PUBLIC CHARITABLE TRUST. BUT, TH E DIRECTOR FOUND THAT ALMOST THE ENTIRE FUNDS AVAILABLE TO THE ASSES SEE WERE USED FOR CONSTRUCTING A TEMPLE AND, THEREFORE, THE ACTIV ITIES OF THE ASSESSEE ARE RELIGIOUS IN NATURE. THEREFORE, HE HE LD THAT THE ASSESSEE CANNOT BE REGISTERED AS A PUBLIC CHARITABL E TRUST. THE APPLICATION WAS ACCORDINGLY REJECTED. 3. IT IS AGAINST THE ABOVE ORDER THAT THE ASSESSEE IS IN APPEAL. IT IS THE CASE OF THE ASSESSEE THAT THE OB JECTIVES OF THE ASSESSEE TRUST ARE CHARITABLE IN NATURE AND THE ACT IVITIES CARRIED ON BY THE ASSESSEE WERE ALSO CHARITABLE IN NATURE. IT IS THE PRAYER OF THE ASSESSEE THAT REGISTRATION MAY BE GRA NTED UNDER SECTION 12AA OF THE ACT. 4. WE CONSIDERED THE ISSUE. WE AGREE WITH THE DIRECTOR OF INCOME-TAX(EXEMPTIONS) THAT THE ACTIVIT IES CARRIED ON BY THE ASSESSEE ARE MAINLY RELIGIOUS. THE ACTIVITY CARRIED ON BY - - ITA NO.1593 OF 2011 3 THE ASSESSEE DURING THE RELEVANT PREVIOUS YEAR IS C ONSTRUCTION OF A TEMPLE BUILDING. 5. BUT IT IS TO BE SEEN THAT SECTION 11 PROVIDES T HE BENEFIT NOT ONLY TO CHARITABLE INSTITUTIONS BUT ALS O TO RELIGIOUS INSTITUTIONS. THE BENEFIT OF SECTION 11 IS AVAILAB LE TO INSTITUTIONS WHICH ARE BOTH CHARITABLE AND RELIGIOUS IN NATURE. IT IS ONLY FOR THE PURPOSE OF SECTION 80G THAT RELIGIOUS INSTITUTI ONS STAND ON A DIFFERENT FOOTING. 6. EVEN THOUGH THE ASSESSEE IS CARRYING ON RELIGIO US ACTIVITIES, THE ASSESSEE IS ENTITLED FOR REGISTRATI ON UNDER SECTION 12AA AND WHILE GRANTING THE BENEFIT UNDER SECTION 1 1, THE ASSESSING OFFICER SHALL EXAMINE THE ELIGIBILITY OF THE ASSESSEE WITHIN THAT LIMITED SCOPE OF RELIGIOUS ACTIVITIES. BUT THE ASSESSEE IS TO BE GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT. 7. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, WE SET ASIDE THE ORDER OF THE DIRECTOR OF INC OME- TAX(EXEMPTIONS) AND DIRECT HIM TO GRANT REGISTRATIO N TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT AS A RELIGIO US INSTITUTION. 8. IN RESULT THE APPEAL FILED BY THE ASSESSEE IS A LLOWED. - - ITA NO.1593 OF 2011 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 30 TH OF APRIL, 2012 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 30 TH APRIL, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.