M/s Sri Shirdi Sai Baba Seva Ashram, Akividu V. The Commissioner Of Income Tax, Rajahmundry

ITA 16/VIZ/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7147 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-02-2011
• Assessment Year: misc
• Appeal Filed On: 12-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: K NEERAJA
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

ITA 16/V/2010 SRI SHIRDI SAI BABA SEVA ASHRAM, AKIV IDU IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 16 /VIZAG/ 20 10 ASSESSMENT YEAR : N.A. SRI SHIRDI SAI BABA SE VA AHSRAM AKIVIDU VS. CIT RAJAHMUNDRY (APPELLANT) (RESPONDENT) PAN NO.AAGTS 8873D APPELLANT BY: SHRI K. NEERAJA, ADVOCATE RESPONDENT BY: SHRI D.S. SUNDER SINGH, SR.DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) ON A SOLITARY GROUND THAT CIT IS NOT JUSTIFI ED IN REJECTING THE APPLICATION FOR REGISTRATION OF TRUST U/S 12AA OF T HE INCOME-TAX ACT. DURING THE COURSE OF HEARING OF THE APPEAL, THE ASSESSEE H AS ALSO RAISED THE ADDITIONAL GROUNDS THAT THE CIT HAS MISDIRECTED HIM SELF IN REJECTING THE APPLICATION OF THE ASSESSEE U/S 12AA OF THE ACT FOR REGISTRATION OF THE CHARITABLE TRUST BY INVOKING THE PROVISIONS OF SECT ION 80G RELYING ON VARIOUS HIGH COURT DECISIONS OUT OF CONTEXT WHICH ARE NOT R ELEVANT AND THUS NOT APPLICABLE. SINCE THE ADDITIONAL GROUNDS RELATE TO THE REFUSAL OF REGISTRATION U/S 12AA OF THE ACT, WE ADMIT THE SAME AND ADJUDICA TE IT ALONG WITH THE ORIGINAL GROUNDS OF APPEAL. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND WE FIND THAT CIT HAS R EFUSED THE REGISTRATION ON THE GROUND THAT THE ASSESSEE IS ENGAGED IN NON-CHAR ITABLE ACTIVITIES, AND THEREFORE, THE ASSESSEE TRUST DOES NOT QUALIFY FOR THE ISSUE OF CERTIFICATE OF EXEMPTION U/S 80G OF THE ACT. HE HAS ALSO PLACED A RELIANCE UPON VARIOUS JUDGEMENTS OF DIFFERENT HIGH COURTS BUT ALL THESE J UDGEMENTS WERE RENDERED WHILE ADJUDICATING THE ISSUE OF EXEMPTION U/S 80G O F THE ACT. DURING THE COURSE OF HEARING OF THE APPEAL, ASSESSEE HAS ALSO INVITED OUR ATTENTION TO THE OBJECT OF THE TRUST WITH THE SUBMISSION THAT ASSESS EE IS ACTIVELY ENGAGED PURELY IN CHARITABLE WORK AND NOTHING HAS BEEN BROU GHT OUT ON RECORD BY THE ITA 16/V/2010 SRI SHIRDI SAI BABA SEVA ASHRAM, AKIV IDU 2 REVENUE THAT ASSESSEE WAS EVER ENGAGED IN NON-CHARI TABLE ACTIVITIES. HE HAS ALSO INVITED OUR ATTENTION TO THE INCOME EXPENDITUR E ACCOUNT, RECEIPT AND PAYMENTS ACCOUNT AND BALANCE SHEET WHERE FROM IT IS NOT DISCERNIBLE THAT ASSESSEE WAS EVER ENGAGED IN NON-CHARITABLE ACTIVIT IES. CIT WHILE REFUSING THE REGISTRATION HAS ALSO OBSERVED THAT THE ASSESSE E WAS ENGAGED IN RELIGIOUS ACTIVITIES. 3. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE CIT AND WE DO NOT FIND ANY INSTANCES ON THE BASIS OF WHICH AN INFERENCE CA N BE DRAWN THAT THE ASSESSEE WAS ENGAGED IN COMMERCIAL ACTIVITY. WHILE GRANTING REGISTRATION U/S 12A, THE CIT IS ONLY REQUIRED TO EXAMINE WHETHER TH E OBJECT OF THE ASSESSEES ARE FOR CHARITABLE PURPOSE AND THE ASSESSEE IS ENGA GED IN CHARITABLE ACTIVITIES. SINCE NOTHING HAS BEEN BROUGHT ON RECO RD BY THE CIT THAT THE ASSESSEE IS ENGAGED IN NON-CHARITABLE ACTIVITIES, W E DRAW AN INFERENCE THAT ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES AND TH EREFORE THE REGISTRATION U/S 12AA CANNOT BE DENIED. WE THEREFORE, SET ASIDE THE ORDER OF CIT AND DIRECT HIM TO GRANT A REGISTRATION U/S 12AA. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 2.3.2011 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 2 ND MARCH, 2011 COPY TO 1 SRI SHIRDI SAI BABA SEVA ASHRAM, GUMMULURU ROAD, NE AR M.R.O. OFFICE, AKIVIDU 2 CIT, RAJAHMUNDRY 3 THE CIT (A) , RAJAHMUNDRY 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM