Appeal Details
Counselvise Citation
167521714 RSA 2012
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
26-11-2012
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2012-2013
Appeal Filed On
28-08-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1675(MDS)/2012 M/S.DHARMARAAJ PRABOO TRUST, 5498/1, MARTHANDAPURAM 1 ST STREET, PUDUKOTTAI. PAN AABTD6200A. VS. COMMISSIONER OF INCOME-TAX-I, TIRUCHIRAPALLI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.ALAGAP PAN, C.A. RESPONDENT BY : SHRI ANIRUDH RAI, IRS, CIT DATE OF HEARING : 22 ND NOVEMBER, 2012 DATE OF PRONOUNCEMENT : 26 TH 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 I NCOME-TAX-I AT TIRUCHIRAPALLI, DATED 29-6-2012, WHEREIN THE COM MISSIONER HAS DECLINED TO GRANT REGISTRATION TO THE ASSESSEE TRUST UNDER - - ITA 1675 OF 2012 2 SECTION 12A OF THE INCOME-TAX ACT, 1961 AND ALSO DE CLINED TO RECOGNIZE FOR THE PURPOSE OF SECTION 80G OF THE ACT . 2. THE ASSESSEE IS A TRUST CREATED ON 14-11-2011 W ITH THE OBJECTIVES OF GIVING SCHOLARSHIPS, FREE NOTEBOO KS AND UNIFORM TO POOR STUDENTS. 3. THE COMMISSIONER OF INCOME-TAX DECLINED THE APPLICATIONS OF THE ASSESSEE TRUST ON THE GROUND TH AT THE ASSESSEE HAS NOT CARRIED OUT ANY CHARITABLE ACTIVIT Y; THAT THE TRUST HAS TAKEN LOANS OF ` 65 LAKHS; THAT THE ASSESSEE HAS SUDDENLY ACQUIRED A PROPERTY WORTH ` 7.15 CRORES AND ALSO THAT THE COMMISSIONER OF INCOME-TAX DOES NOT SEE ANY MATERIA L ON RECORD TO SHOW THAT THE ASSESSEE WAS INTENDING TO C ARRY OUT ANY CHARITABLE ACTIVITIES. 4. WE HEARD BOTH SIDES IN DETAIL. THE TRUST WAS CREATED ON 14-11-2011. THE APPLICATION FOR REGISTR ATION WAS MADE ON 21-12-2011. IT IS TOO PREMATURE TO COME TO A FINDING THAT THE ASSESSEE HAS NOT CARRIED OUT ANY CHARITABL E ACTIVITY. - - ITA 1675 OF 2012 3 WITHIN ONE MONTH OF CREATION OF THE TRUST IT IS NOT POSSIBLE TO FULFILL THE OBJECTIVES OF THE TRUST. THEREFORE, THAT REASON IS NOT VALID IN REJECTING THE APPLICATIONS OF THE ASSESSEE. REGARD ING THE LOANS OF ` 65 LAKHS, IT IS TO BE SEEN THAT THE LOANS WERE AVA ILED FROM THE TRUSTEES AND THE LOANS WERE AVAILED FOR THE PURPOSE OF CREATING THE INFRASTRUCTURE FOR THE CHARITABLE PURPOSES CONT EMPLATED BY THE ASSESSEE. THE LOANS TRANSACTIONS ARE TRANSPARE NT. THE ASSESSEE TRUST HAS ACQUIRED PROPERTY WORTH ` 7.15 CRORES NOT BY PAYING ANY AMOUNT, BUT ON THE OTHER HAND THE SAID A SSET WAS TRANSFERRED IN FAVOUR OF THE ASSESSEE BY ANOTHER SI MILAR TRUST BY NAME M/S.BHARATI TRUST. IN FACT THE ASSET SO TRANS FERRED WAS A SCHOOL, ERSTWHILE RUN BY M/S.BHARATI TRUST. ALL TH E LAWS RELATING TO CHARITIES PERMIT DONATION BY ONE CHARITABLE INST ITUTION TO ANOTHER CHARITABLE INSTITUTION. IT IS TO BE SEEN T HAT ALL THE RESOURCES OF THE CHARITABLE INSTITUTIONS ARE UTILIZ ED ONLY FOR THE PURPOSES OF LAWFUL OBJECTIVES OF CHARITY DECLARED I N THE RESPECTIVE TRUST DEEDS. 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE F IND THAT THE COMMISSIONER OF INCOME-TAX HAS FORECLOSED HIS OPINION - - ITA 1675 OF 2012 4 ON THE ASSESSEE TRUST WITHOUT GIVING THE ASSESSEE A N OPPORTUNITY OF DEMONSTRATING ITS CHARITABLE ACTIVITIES. IF AT ALL THERE IS ANY LAPSE ON THE PART OF THE ASSESSEE TRUST IN PERFORMI NG THE ASSIGNED TASKS, SUCH LAPSES COULD BE ACTED UPON AT APPROPRIATE TIME AND IN ACCORDANCE WITH LAW. 6. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT IT IS NOT PROPER NOW ON THE PART OF THE COMMIS SIONER OF INCOME-TAX TO REJECT THE APPLICATIONS OF THE ASSESS EE PRAYING FOR REGISTRATION UNDER SECTION 12A AND SO ALSO TO RECOG NIZE THE ASSESSEE TRUST FOR THE PURPOSE OF SECTION 80G OF TH E ACT. 7. THEREFORE, WE DIRECT THE ASSESSING OFFICER TO G RANT REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12 A AS WELL AS TO GRANT APPROVAL TO THE ASSESSEE UNDER SECTION 80G OF THE ACT. 8. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. - - ITA 1675 OF 2012 5 ORDERS PRONOUNCED ON MONDAY, THE 26 TH OF NOVEMBER, 2012 AT CHENNAI. SD/- SD/- (S.S.GODARA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 26 TH NOVEMBER, 2012. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.
