Appeal details
Counselvise Citation
[2021] 108 COUNSELVISE.COM (IT) 2369 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 11 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
23-04-2021
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Assessment Year
2015-2016
Appeal Filed On
22-05-2019
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.1606/CHNY/2019 /ASSESSMENT YEAR: 2015-16 M/S. MARUTHAM EDUCATIONAL AND CHARITABLE TRUST, 2/1, AGRI THOTTAM, NATHAHALLI, DHARMAPURI, TAMIL NADU-636 803. [PAN: AACTM 2997E] VS. THE INCOME TAX OFFICER, EXEMPTIONS WARD, NO.3, GANDHI ROAD, SALEM-636 007. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. I. DINESH, ADVOCATE /RESPONDENT BY : MR. SURESH PERIASAMY, JCIT /DATE OF HEARING : 22.03.2021 / DATE OF PRONOUNCEMENT : .04.2021 / O R D E R PER SHRI V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), S ALEM IN I.T.A NO.134/2017-18 DATED 30.04.2019 RELEVANT TO THE ASS ESSMENT YEAR 2015-16. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS M/S. MARUTHAM NELLI EDUCATIONAL AND CHARITABLE TRUST APP LIED FOR I.T.A NO.1606/CHNY/2019 :- 2 -: REGISTRATION U/S. 12AA OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) AND THE LD. CIT(EXEMPTIONS) GRANTED REGISTRATION VI DE ORDER DATED 18.02.2016. THE ASSESSEE HAS FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR (AY) 2015-16 ON 30.09.2015 WHICH WA S SUBSEQUENTLY REVISED ON 24.04.2016. THE ASSESSING O FFICER (AO) DENIED THE EXEMPTION CLAIMED BY THE ASSESSEE U/S. 1 1 OF THE ACT FOR THE REASON THAT THE ORIGINAL OBJECTS ON WHICH REGISTRAT ION U/S. 12AA OF THE ACT GRANTED ARE DIFFERENT FROM THE OBJECTS FOR AY 2 015-16 FOR THE REASON THAT THERE IS AN AMENDMENT TO THE OBJECTS. THE ORIG INAL OBJECTS ON WHICH REGISTRATION U/S. 12A OF THE ACT GRANTED WHIC H ARE AS UNDER: 1. TO HELP THE LADLES THROUGH OUR TRUST WHO ARE LIV ING INDEPENDENTLY BY THEIR HUSBAND, WIDOWS, POOR LADIES, HANDICAPPED LADLES, MENTALLY RETARDED CHILDRENS, AND TO. ASSIST EMPLOYMENT OPPO RTUNITIES FOR WELFARE OF FUTURE LIFE OF POOR LADIES, AND THE TRUS T IS HELPING FOR IMPROVEMENT OF LADIES IN THE SOCIETY. 2. THE TRUST CAN HELP THE ORPHANS CHILDREN, POUR HA NDICAPPED CHILDREN. TO PROVIDE EDUCATIONAL FACILITIES TO THES E CHILDRENS, PROVIDING HOSTELS FOR THEIR STAYING, PROVIDING -FAC ILITIES FOR PLAYING SPORTS BY THESE POOR CHILDRENS AND TO IMPROVEMENT OF LIFE STYLE OF THE POOR CHILDREN. 3. TO HELP FINANCIALLY AND PHYSICALLY FOR PHYSICALL Y HANDICAPPED PERSONS, AND TO GET FINANCIAL BENEFITS AWARDED BY T HE GOVERNMENT FROM TO TIME AND THE SAME WILL BE DISBURSED TO THE POOR CHILDREN. 4. TO TAKE NECESSARY STEPS THROUGH THE TRUST FOR IM PROVING OF LIFE STYLE TO VILLAGES. 5. TO HELP PEOPLES WHO ARE LIVING BELOW THE POVERTY LINE, TO HELP BACKWARD COMMUNITY PEOPLES FOR IMPROVING THEIR LIFE . 6. TO HELP HILL AREA TRIBAL PEOPLES THROUGH OUR TRU ST. 7. TO PROVIDE JOB OPPORTUNITIES TO THE -EDUCATED PE OPLES. 8. TO CREATE SELF EMPLOYMENT TO THE EDUCATED PERSON S WHO ARE LIVING WITHOUT ANY JOB AFTER COMPLETION OF THEIR STUDIES. I.T.A NO.1606/CHNY/2019 :- 3 -: 9. TO ARRANGE EXPERTS TO TEACH BUSINESS TECHNIQUES, AND EXPORT TECHNIQUES TO THE EDUCATIONAL PERSONS. 10. FOR CONDUCTING FREE EDUC1ON AND FREE ADVICE OF LAW ETC., THROUGH THE TRUST. 11. TO PROTECT ATMOSPHERE PLANTING OF NEW PLANTS, A ND CONDUCTING FREQUENT MEETING TO EXPLAIN THE SOCIAL ACTIVITIES. 12. TO PROTECT ATMOSPHERE IN AND AROUND AND ALSO NE IGHBORING AREAS. TO SAFEGUARD THE PERISHABLE ITEMS AVAILABLE IN OUR COUNTRY. 13. CONVERSION OF WASTE LANDS INTO AGRICULTURE LAND S. 14.TO IMPROVE THE LIFESTYLE OF THE FARMERS. 15. TO PROTECT THE RIGHTS OF THE LADIES AND CHILDRE NS IN THE SOCIETY. 16. TO TAKE ACTION AGAINST THE PERSONS WHO ARE ACTI NG AGAINST THE PROCEDURE. 17 TO TAKE ACTION FOR REDUCTION OF CRIMES IN THE CO UNTRY, TO ISSUE BETTER LIFE THOSE WHO INVOLVED IN THE CRIMINAL LIFE . 18. ABOLITION OF CHILD LABOUR ORIENTATION. 19. TO PROTECT ARTS, AND THEIR RELATED ACTIVITIES.. 20. TO OPEN HOSTEL FOR STAYING OF OLD AGE PEOPLES A ND TO CREATE GARDENS4 PARKS ETC., FOR WELFARE OF THE OLD AGE PEO PLES, FOR PASSING THEIR TIME III THEIR OLD AGE. 21.TO ARRANGE MARRIAGES FOR POOR PEOPLES THROUGH OU R TRUST. 22.TO PROVIDE PROPER EDUCATION TO THE-BACKWARD CLAS S CHILDREN THROUGH OUR TRUST. 23. TO CREATE PRIMARY SCHOOL, MIDDLE SCHOOL, COLLGE S1 UNIVERSITIES, SOCIAL BUILDINGS, FOR STUDYING OF MOST BACKWARD PEO PLES WHO ARE LIVING IN THE COUNTRY. 24. TO ARRANGE A LIBRARY FOR READING THE BOOKS .AND MAGAZINES BY.TE STUDENTS, AND TEACHERS OF THE EDUCATIONAL INSTITUTI ONS. 25. CONDUCTING OF MEETINGS AND TO ISSUE USEFUL INFO RMATION TO-THE PUBLIC ARRANGEMENT OF TOURS. 26. TO APPOINT WELL KNOWN DOCTORS TO TAKE CARE OF T HE PUBLIC PEOPLES WHO ARE SUFFERING ALONG WITH DISEASES. 27.TO ISSUE WELL EDUCATION TO THE POOR PEOPLES WHO ARE LIVING IN THE SOCIETY, AND TO HELP THEM FINANCIALLY I.E. PAYING O F STIPEND AND EDUCATIONAL EXPENSES FOR SUCCESSFUL OF THEIR EDUCAT ION. TO PROVIDE FOOD AND SHELTER TO THE PEOPLES WHO ARE LIVING BELO W THE POVERTY LINE. I.T.A NO.1606/CHNY/2019 :- 4 -: 28.TO CREATE HOSPITALS, AND TO OPEN MEDICAL COLLEGE S, ENGINEERING COLLEGES, POLYTECHNIC COLLEGES FOR STUDYING BY THE BACKWARD PEOPLES. 29. PROVIDING MAXIMUM MEDICAL FACILITIES TO THE PEO PLES WHO ARE, SUFFERING ON THE SOCIETY. 30. OPENING OF HOSPITALS IN THE VILLAGES FOR BENEFI T OF DEVELOPED VILLAGES. 31.TO TEACH LESSONS TO THE VILLAGE PEOPLES FOR IMPR OVING THEIR LIFE. 32. TO PAY EXPENSES FOR CREMATION THOSE WHO ARE EXP IRED IN POOR FAMILIES. 33.TO ASSIST OTHER TRUSTS THOSE WHO ARE HAVING THE SAME PPRINCIPLES OF OUR TRUST. 34. TO HELP AND REHABILITATE THE PERSONS WHO ARE IN VOLVED IN THE SEVERE CRIMES. 35. TO GET FINANCIAL ASSISTANCE FROM THE EDUATTOFLA L111STITUTIOFLS, BUSINESSMAN, AND TO UTILIZE THE FUNDS FOR DEVELOPME NT OF THE TRUST. 36. TO COLLECT AMOUNT FROM THE PUBLIC PEOPLES, TO G ET LOANS FROM THE BANK THROUGH THE TRUST ON LOWER INTEREST BASIS, AND TO UTILIZE THE AMOUNT FOR THE ABOVE SAID WORKS. 36. ARRANGEMENTS ARE MADE TO GET THE FINANCIAL BENE FITS GRANTED BY THE GOVERNMENT TO THE POOR PEOPLES, AND THE SAME WI LL BE DISBURSED TO THE POOR PEOPLES. 3. SUBSEQUENTLY, SOME OF THE OBJECTS ARE AMENDED ON 15 TH DAY OF FEBRUARY, 2016 AS UNDER: DELETION OF CLAUSE 4(1) PAGE 4 OF THE TRUST DEED: TO ESTABLISH AND RUN REHABILITATION HOME AND HOSTEL FOR WOMEN WHO ARE HELPLESS, BELOW POVERTY LINE, HANDICA PPED AND MENTALLY RETARDED. DELETION OF CLAUSE 7 OF PAGE 8 TO 10 OF THE TRUST D EED: TO APPOINT AS FAMILY LEGAL HEIRS OF THE TRUSTEE IN THE EXISTING TRUST, AFTER DEMISE OR VOLUNTARY RETIREMENT OF ANY OF THE TRUSTEE. TO APPOINT ANY ONE OF THE RELATIVE PERSON OF THE TR USTEE AS MEMBER IN THE TRUST (I.E) SON, DAUGHTER, SON-IN-LAW , DAUGHTER-IN-LAW, HUSBAND OR WIFE OF THE TRUSTEE. THE TRUSTEE WHO ARE WILLING TO RELIEVE FROM THE TRU ST, INFORM THE BOARD OF TRUSTEES THAT TRUSTEE IS NOT INTENDED TO APPOINT I.T.A NO.1606/CHNY/2019 :- 5 -: ANY OF THE LEGAL HEIR OF THE TRUSTEE AND NOT TO CLA IM THE RIGHT AFTER VOLUNTARY RETIREMENT. TO APPOINT ANY ONE OF PERSON AS LEGAL HEIR OTHER TH AN FAMILY LEGAL HEIR OF THE TRUSTEE AND INFORM THE BOARD OF T RUSTEES FOR THREE-FOURTH MAJORITY APPROVAL. THE TRUSTEE HAS RIGHT TO CHANGE THE FAMILY LEGAL HE IR AS WELL AS LEGAL HEIR OF THE TRUSTEE AND INFORM THE BOARD O F TRUSTEES FOR THREE-FOURTH APPROVAL. INSERTION OF CLAUSE IN THE PARA 4(1) OF PAGE 4 OF T HE TRUST DEED: IT IS HEREBY DECLARE THAT THE MAIN OBJECT OF THE TR UST IS TO PROVIDE BETTER EDUCATION TO THE STUDENTS IN RURAL A REAS IRRESPECTIVE OF CASTE, SEX, AND RELIGION IN THE COU NTRY. IN ADDITION TO EDUCATIONS TO PROVIDE MEDICAL RELIEF, R URAL DEVELOPMENT AND OTHER SOCIAL RELATED SERVICES. TO ESTABLISH, RUN AND MAINTAIN EDUCATIONAL INSTITUT IONS., SUCH AS POLYTECHNIC, ENGINEERING, MEDICAL, AGRICULT URE, HORTICULTURE COLLEGES AND PRIMARY, SECONDARY AND CB SE SCHOOLS AND PROVIDE INFRASTRUCTURE FACILITIES TRAIN ING, LECTURES, CONDUCT VARIOUS PROGRAMMES TO THE STUDENT S. THIS TRUST IS CREATED AS PUBLIC TRUST. IT IS HEREBY DECLARED AND MADE CLEAR THAT THE BENEFIT OF THIS TRUST SHALL BE OPEN TO ALL IRRESPECTIVE OF THE CASTE, CREED, AND RELIGION. THE PROPERTY OF THE TRUST SHALL IN NO CASE REVERT TO TH E FOUNDER OR TRUSTEES OF THESE DESCENDANTS OR TO ANY OTHER PERSO N. NO PART OF THE TRUST EITHER THE CORPUS OF THE INCOME T HERE FROM SHALL BE UTILIZED FOR ANY OTHER OBJECT OTHER THAN T HAT OF THE TRUST HEREBY CREATED. IT IS HEREBY DECLARED AND MADE CLEAR THAT ANY TRUST EE OR MEMBER OF THE TRUST HAS NO RIGHT TO CLAIM TO APPOIN T ANY PERSON OF HIS RELATIVES IN THE TRUST AFTER HIS DEMI SE OR VOLUNTARY RETIREMENT FROM TRUST AT ANY POINT OF TIM E. THE BOARD OF TRUSTEES HAS POWER TO APPOINT ADDITION AL TRUSTEES HI THE CASE OF VACANCY ARISES DUE TO DEATH OR RETIREMENT OR ANY OTHER REASON TO FULTILL THE OBJEC T OF THE TRUST AS PER PROVISION OF THE INCOME TAX ACT, 1961 AND PR IOR APPROVAL OF THE COMMISSIONER OF THE INCOME TAX. ALL OTHER CLAUSES OF THIS TRUST SHALL HENCE FORTH F ROM PART AND PARCEL OF THE TRUST DEED DT. W.O3.2OO AND THIS AMEN DED DEED DATED 15.02.2016 SHALL HENCE FOR THE FORM PART AND PARCEL OF THE TRUST DEED DT. 10.03.2008 OPERATION RETROSPECTIVELY. I.T.A NO.1606/CHNY/2019 :- 6 -: 4. ONE OF THE OBJECT NO.1, WHICH IS AMENDED READS A S UNDER: TO ESTABLISH AND RUN REHABILITATION HOME AND HOSTE L FOR WOMEN WHO ARE HELPLESS, BELOW POVERTY LINE, HANDICA PPED AND MENTALLY RETARDED. 5. THE AO IS OF THE OPINION THAT THE ASSESSEE HAS A MENDED ORIGINAL OBJECT NO.1 AND THEREFORE, THE ORIGINAL OBJECTS ARE DIFFERENT AND DUE TO SUBSEQUENT AMENDMENT MADE BY THE ASSESSEE FOR AY 20 15-16 WHICH IS PENDING BEFORE THE AO IS DIFFERENT, THEREFORE, I T IS DENIED. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERI ALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. 7. WE HAVE GONE THROUGH THE ORIGINAL OBJECTS AND SU BSEQUENT AMENDMENT MADE BY THE ASSESSEE IS ONE OF THE OBJECT S AS EXTRACTED ABOVE AND WE FIND THAT AFTER AMENDING THE OBJECT NO .1, THE OBJECTS OF ASSESSEE IS REMAINING THE SAME. THE MAIN OBJECT OF THE ASSESSEE IS TO RUN THE EDUCATIONAL INSTITUTION TO FACILITATE TO PO OR CHILDREN AND PHYSICALLY HANDICAPPED CHILDREN. WE FURTHER FIND T HAT THE STATUS OF THE ASSESSEE AS PER THE ORIGINAL OBJECTS AS WELL AS SUB SEQUENT OBJECTS, THERE IS NO CHANGE. THE MAIN OBJECT OF THE ASSESSE E IS TO PROVIDE EDUCATION WHICH IS COMMON IN BOTH ORIGINAL OBJECTS AS WELL AS SUBSEQUENT AMENDMENT. FURTHER, WE FIND THAT THE SUB SEQUENT AMENDMENT MADE BY THE ASSESSEE IS MORE SPECIFIC AND MAINLY RELATES I.T.A NO.1606/CHNY/2019 :- 7 -: TO EDUCATION, MEDICAL RELIEF, RURAL DEVELOPMENT AND SOCIAL RELATED SERVICES. IN VIEW OF THE ABOVE, THE LD. CIT(EXEMPT IONS) IS INCORRECT IN REJECTING THE EXEMPTION CLAIMED BY THE ASSESSEE U/S . 11 OF THE ACT WITHOUT PROPERLY EXAMINING THE SUBSEQUENT AMENDMENT MADE BY THE ASSESSEE ON 15.02.2016. IN OUR OPINION, THE A.O IS NOT CORRECT IN DENYING THE CLAIM OF THE ASSESSEE U/S. 11 OF THE AC T, AND THE SAME IS CONFIRMED BY THE LD. CIT(EXEMPTIONS). ACCORDINGLY, WE CANCEL THE ORDER PASSED BY THE LD. CIT(EXEMPTIONS) AND DIRECT THE A.O TO ALLOW EXEMPTION U/S. 11 OF THE ACT. ACCORDINGLY, THE APP EAL FILED BY THE ASSESSEE IS ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON 23 RD APRIL, 2021 IN CHENNAI. SD/ - SD/ - ( & ) (G. MANJUNATHA) + /ACCOUNTANT MEMBER ( - ) (V. DURGA RAO) /JUDICIAL MEMBER /CHENNAI, /DATED: 23 RD APRIL, 2021 . EDN, SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF
