Arulmigu Balamalai Aranganathar Thirukkoil Annadhaanam Scheme Fund, CHENNAI V. CIT, Coimbatore

ITA 1600/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64578 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-11-2012
• Assessment Year: misc
• Appeal Filed On: 17-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA IRS
• Assessee Lawyers: R K V SUNDAR
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A.NO. 1600/MDS/2012 ARULMIGU BALAMALAI ARANGANATHAR THIRUKKOIL ANNADHAANAM SCHEME FUND C/O SRI T.N.SEETHARAMAN, ADVOCATE, # 384 (OLD NO.196), LLOYDS ROAD, CHENNAI 600086. PAN AADTA3388A VS. THE COMMISSIONER OF INCOME-TAX-I, COIMBATORE 641 018. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K.V.SUNDAR, ADVOCAT E RESPONDENT BY : DR. S. MOHARANA, IRS, CIT DATE OF HEARING : 22 ND NOVEMBER, 2012 DATE OF PRONOUNCEMENT : 22 ND NOVEMBER, 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 OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, ITA 1600/12 :- 2 -: AT COIMBATORE DATED 31.05.2012 PASSED UNDER SEC.12 AA OF THE INCOME-TAX ACT, 1961. 2. THE ASSESSEE IS A FUND CONSTITUTED AT THE INSTAN CE OF THE STATE GOVERNMENT OF TAMIL NADU AS PER NOTIFICATION IN G.O.MS.NO.169 DATED 9.8.2011. THE ASSESSEE-FUND IS CONSTITUTED FOR THE PURPOSE OF CARRYING OUT ANNADHA ANAM SCHEME FUND ORGANIZED BY THE GOVERNMENT OF TAMIL NADU FOR PROVIDING FREE MID DAY MEAL TO POOR AND NEEDY PUBLIC WITHOUT ANY DISTINCTION OF CASTE, CREED OR RELIGION. THE GOVERNMENT HAS AL SO SPECIFIED IN THE NOTIFICATION THAT THE FUND IS ADMINISTERED BY T HE COMMISSIONER, HINDU RELIGIOUS & CHARITABLE ENDOWMEN T ADMINISTRATION DEPARTMENT. THE FUND IS CONSTITUTED TEMPLE-WISE AND AS SUCH THE TRUSTEES OF THE FUND ARE HEREDITARY TRUSTEES OF THE CONCERNED TEMPLES. 3. IN THE ABOVE BACKGROUND, THE ASSESSEE MADE AN AP PLICATION DATED 14.10.2011 TO THE COMMISSIONER OF INCOME-TAX FOR REGISTRATION AS A PUBLIC CHARITABLE TRUST. 4. THE COMMISSIONER OF INCOME-TAX THROUGH HIS ORDER DATED 31.5.2012 PASSED UNDER SEC.12AA GRANTED REGISTRATIO N TO THE ITA 1600/12 :- 3 -: ASSESSEE AS A RELIGIOUS TRUST. THE APPLICATION OF THE ASSESSEE TO TREAT THE TRUST AS A PUBLIC CHARITABLE TRUST, WAS N OT ACCEPTED BY THE COMMISSIONER. 5. THEREFORE, THE GRIEVANCE OF THE ASSESSEE IN THE PRESENT CASE IS THAT THE COMMISSIONER SHOULD HAVE GRANTED R EGISTRATION TO THE ASSESSEE AS A PUBLIC CHARITABLE TRUST AND ALSO OUGHT TO HAVE APPROVED THE ASSESSEE-TRUST FOR THE PURPOSE OF SEC. 80G. 6. WE HEARD BOTH SIDES IN DETAIL. 7. THE FUND IS CONSTITUTED AS DIRECTED BY THE STATE GOVERNMENT OF TAMIL NADU. THE SCHEME OF ANNADHAANAM UNDERTAKE N BY THE GOVERNMENT OF TAMIL NADU IS FOR THE WELFARE OF GENE RAL PUBLIC. IT IS NOT MEANT FOR ANY PARTICULAR COMMUNITY, CASTE OR CREED. THE ONLY THING IS THAT THE ANNADHAANAM SCHEME IS CARRIE D OUT WITH THE HELP OF TEMPLES SITUATED THROUGHOUT TAMIL NADU. IT IS WELL KNOWN THAT TAMIL NADU IS A STATE OF TEMPLES. THEY ARE PLACES OF WORSHIPPING AS WELL AS PLACES OF PUBLIC GATHERING. THEREFORE, THE STATE GOVERNMENT THOUGHT IN ITS WISDOM THAT THE TEM PLES ARE THE BEST LOCAL POINTS THROUGH WHICH THEY CAN IMPLEMENT ITS MID DAY MEAL SCHEME MEANT FOR THE POOR PEOPLE. ITA 1600/12 :- 4 -: 8. IN THESE CIRCUMSTANCES, THE TRUST CANNOT BE TREA TED AS A RELIGIOUS TRUST ONLY FOR THE REASON THAT THE ACTIVI TIES OF THE FUND ARE CARRIED OUT WITH THE HELP OF LOCAL TEMPLES. IT IS TO BE SEEN THAT IN OUR COUNTRY THERE IS NO SERIOUS DISTINCTION BETWEEN RELIGIOUS ACTIVITIES AND CHARITABLE ACTIVITIES CARRIED OUT BY ALL RELIGIOUS INSTITUTIONS. IN ONE WAY, IF THE ELEMENT OF CHARIT Y IS TAKEN OUT OF THE RELIGIOUS ACTIVITIES CARRIED OUT IN INDIA, THER E IS NO SUBSTANCE LEFT THEREIN. EVERY RELIGION IN INDIA IS VERY MUCH CONNECTED WITH CHARITABLE ACTIVITIES. IN REAL LIFE, SOMETIME IT I S VERY DIFFICULT TO DISTINGUISH THE ACTIVITY BETWEEN CHARITABLE AND REL IGIOUS. 9. THEREFORE, WE FIND THAT THE COMMISSIONER OF INCO ME-TAX HAS CHARACTERIZED THE ASSESSEE-FUND AS A RELIGIOUS TRUS T ON A NON EXISTING TECHNICAL GROUND. THIS IS NOT PROPER IN L AW. ACCORDINGLY, WE DIRECT THE COMMISSIONER OF INCOME-TAX-I, COIMBAT ORE TO REVISE HIS ORDER AND GRANT THE ASSESSEE THE STATUS OF A PU BLIC CHARITABLE TRUST. THE COMMISSIONER IS ALSO DIRECTED TO APPROV E THE ASSESSEETRUST FOR THE PURPOSE OF SEC.80G OF THE I NCOME-TAX ACT, 1961. 10. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA 1600/12 :- 5 -: ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY, THE 22 ND OF NOVEMBER, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 22 ND NOVEMBER , 2012 MPO* COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF