Vesta Temple Charities Trust, CHENNAI V. DIT (Exemptions), CHENNAI

ITA 1611/CHNY/2010

• Counselvise Citation: 161121714 RSA 2010
• Duration Of Justice: 1 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-10-2011
• Assessment Year: misc
• Appeal Filed On: 23-09-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENN AI BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER .. ITA NO.1611/MDS./2010 VESTA TEMPLE CHARITIES TRUST, NO.185,ST.MARYS ROAD, ALWARPET, CHENNAI 600 018. VS. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI 600 034. PAN AABTV 1935 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.SEETHARAMAN, CHARTERED ACCOUNTANT DEPARTMENT BY : SHRI I. VIJAYAKUMAR, COMMISSIONER OF INCOME TAX DR DATE OF HEARING : 13.10.11 DATE OF PRONOUNCEMENT : 13 .1 0.11 O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTIONS),CHENNAI DT.26.06.2010. 2. THE APPELLANT IS A TRUST, CONSTITUTED BY A TRUS T-DEED ON 30.10.2009. AN APPLICATION IN THE FORM NO.10A WAS FILED ON 31.12.2009 SEEKING REGISTRATION U/S.12AA OF THE INC OME TAX PAGE OF 4 ITA. 1611/MDS/10 VESTA TEMPLE CHARITIES TRUST 2 ACT, 1961. IT WAS NOTICED THAT THE MAIN OBJECTIVE OF THE TRUST IS TO PERFORM ARCHANAS IN THE NAME OF ANCESTORS, SELF AND CLOSE RELATIVES OF THE AUTHORS (SETTLORS OF THE TRUST), I N THE NAME OF LORD, IN VARIOUS TEMPLES ON SPECIFIC DAYS AS A TRIB UTE TO THE SOULS OF THEIR ANCESTORS. THE TRUST HAS EVEN SPECI FIED THE NAMES ON WHOM THE ARCHANAS TO BE PERFORMED.THUS, THE COMMISSIONER HAS FOUND THAT THE TRUST AIMS AT SATIS FACTION OF THE FOUNDER OF THE TRUST ONLY. HE HAS FOUND THE TR UST NOT TO BE CHARITABLE IN NATURE AND SO NOT ELIGIBLE FOR REGIST RATION U/S.12AA OF THE ACT. THE TRUST IS AGGRIEVED AND RAISED THE APPEAL BEFORE US. FOLLOWING GROUNDS ARE TAKEN:- 1. YOUR PETITIONER SUBMITS THAT THE DIRECTOR OF I NCOME TAX(EXEMPTIONS) ERRED IN REFUSING REGISTRATION U/S.12A(A) OF THE ACT TO THE TRUST. 2. YOUR PETITIONER IS A RELIGIOUS TRUST, FORMED MAI NLY TO DO POOJA IN VARIOUS TEMPLES. 3. YOUR PETITIONER SUBMITS THAT THE POOJAS ARE TO B E PERFORMED ON THE DATE OF BIRTH OF ANCESTORS OF THE FOUNDER OF THE TRUST ON SPECIFIC DAYS AT DIFFERENT TEMPLES. 4. YOUR PETITIONER SUBMITS THAT THE FOUNDER DOES NO T DERIVE ANY AS BENEFIT AS ALLEGED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS). 5. YOUR PETITIONER SUBMITS THAT THERE IS NO DIRECT OR INDIRECT BENEFIT TO THE FOUNDER AND AUTHOR OF THE T RUST. 6. YOUR PETITIONER SUBMITS THAT THERE IS NO DIRECT OR INDIRECT BENEFIT TO THE FOUNDER AND AUTHOR OF THE T RUST. PAGE OF 4 ITA. 1611/MDS/10 VESTA TEMPLE CHARITIES TRUST 3 7. YOUR PETITIONER SUBMITS THAT IN VIEW OF THE ABOV E FACTS AND CIRCUMSTANCES OF THE CASE SUBMITS THAT THE DIRECTOR OF INCOME TAX BE DIRECTED TO REGISTER THE TRUST U/S.12A(A) OF THE ACT. 8. YOUR PETITIONER SUBMITS THAT ADDITIONAL GROUNDS BE ALLOWED AT THE TIME OF HEARING. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS. AFTER HEAR ING BOTH SIDES IN THE LIGHT OF THE TRUST-DEED AND THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS), WE HAVE FOUND THAT THIS IS ONLY A PRIVATE TRUST NOT ELIGIBLE FOR REGISTRATION U/S.12A A OF THE ACT. THE AVERMENTS OF THE TRUST-DEED CLEARLY POINTS OUT THAT IT IS NOT A PUBLIC CHARITABLE TRUST AND HENCE, WE ALSO FIND T HAT THIS IS NOT A TRUST, WHICH CAN BE REGISTERED U/S.12AA OF THE AC T. ACCORDINGLY, WE DISMISS THE APPEAL AND CONFIRM THE NON-REGISTRATION. 4. IN RESULT, THE APPEAL OF THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED ON 13 TH OCTOBER, 2011. SD/- SD/- (DR.O.K.NARAYANAN ) ( HARI OM MARATHA ) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 13 TH OCTOBER, 2011. K S SUNDARAM COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE PAGE OF 4 ITA. 1611/MDS/10 VESTA TEMPLE CHARITIES TRUST 4 DATE INITIALS 1. DRAFT DICTATED ON 2. DRAFT PLACED BEFORE AUTHORITY 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5. APPROVED DRAFT COMES TO P.S. 6. KEEP FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE 9. DATE OF DISPATCH OF ORDER