Y.V.S. Bhanumurthy & Vijalakshmi Charitable Trust, Hyderabad V. DIT, Hyderabad

ITA 169/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3162 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-07-2010
• Assessment Year: misc
• Appeal Filed On: 02-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMEBR ITA NO.169/HYD /10 M/S. Y.V.S.BHANUMURTHY & VIJAYALAKSHMI CHARITABLE TRUST, HYDERABAD ( PAN - AAATY 1628 E ) V/S. DIRECTOR OF INCOME TAX (EXEMPTION), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.SATYANARAYANA MURTHY RESPONDENT BY : SHRI K.V.N.CHARYA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF THE DIRECTOR OF INCOME TAX(EXEMPTION), HYDERABAD. 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- '(1) THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMP TIONS) IS IN SO FAR AS IT IS AGAINST THE APPELLANT IS CONTRAR Y TO THE FACTS OF THE CASE AND PROVISIONS OF LAW. (2) THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS) I S NOT JUSTIFIED IN REJECTING THE APPLICATION U/S. 80G ON THE GROUND THAT THE APPELLANT-TRUST HAS GIVEN DONATIONS TO OTHER TRUSTS APPROVED U/S. 12A OF THE INCOME TAX AC T. (3) THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS ) SHOULD HAVE APPRECIATED THAT THE APPELLANT-TRUST IS A GENU INE CHARITABLE ORGANIZATION AND THEREFORE, HE SHOULD HA VE ACCORDED APPROVAL U/S 80G OF THE INCOME TAX ACT. (4) THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS ) SHOULD HAVE APPRECIATED THAT THE PROVISIONS OF SECTION 11( 2) ARE ITA NO.169/HYD/10 M/S. Y.V.S.BHANUMURTHY & VIJAYALAKSHMI CHARITABL E TRUST, HYDERABAD 2 MEANT FOR COM PUTATION OF INCOME OF THE APPELLANT TRUST AND THEREFORE HE IS NOT JUSTIFIED IN TAKING INTO A CCOUNT IN PROCESSING THE APPLICATION U/S. 80G OF THE INCOME T AX ACT.' 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE'S APPLICATION FOR SEEKING BENEFIT OF S.80G OF TH E ACT WAS WRONGLY REJECTED BY THE DIRECTOR (EXEMPTION) ON THE P LEA THAT THE ASSESSEE TRUST HAS GIVEN DONATION TO OTHER TRUSTS AND THE TRUST DONATIONS ARE NOT PERMITTED FOR APPLICATION OF INCOME UNDER S.11(2) OF THE INCOME-TAX ACT. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED O N THE ORDER OF THE DIRECTOR OF I.T (EXEMPTION). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND TH AT THE OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE AND THE R EGISTRATION UNDER S.12AA OF THE ACT HAS BEEN GRANTED BY THE DIRECTOR OF I.T (EXEMPTION). ASSESSEE'S ACT OF GIVING DONATIONS TO OTHER REGISTERED TR USTS IN NO WAY CONTRAVENES THE OBJECTS OF THE ASSESSEE TRUST OR ANY P ROVISION OF LAW. S.11(2) OF THE INCOME-TAX ACT HAS NO APPLICATION TO THE DONATIONS MADE BY THE ASSESSEE TRUST TO OTHER REGISTERED TRUSTS. THE DETAILS OF DONATIONS MADE BY THE ASSESSEE TRUST TO OTHER TRUSTS ARE GI VEN IN THE ORDER OF THE DIRECTOR OF I.T.(EXEMPTION), WHICH SHOWS THAT THESE DONATIONS OF SMALL AMOUNTS ARE RANGING FROM RS.5,000 TO RS.50,000 AND THE DONEE TRUSTS ARE REGISTERED AS CHARITABLE TRUSTS . NO VIOLATION OF THE PROVISIONS OF S.11(2) OF THE ACT BY THE ASSESSEE TRUST COULD BE ESTABLISHED BY THE REVENUE. IN THESE FACTS OF THE CASE, WE HOLD THAT THERE IS NO VIOLATION OF THE PROVISIONS OF S.80G(5)(I ) OF THE ACT, AND ACCORDINGLY, WE DIRECT THE GRANT OF S.80G BENEFIT TO T HE ASSESSEE. GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED. ITA NO.169/HYD/10 M/S. Y.V.S.BHANUMURTHY & VIJAYALAKSHMI CHARITABL E TRUST, HYDERABAD 3 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HE ARING OF THE APPEAL ON 1.7.2010 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 1ST JULY, 2010 COPY FORWARDED TO: 1. M/S. Y.V.S.BHANUMURTHY & VIJAYALAKSHMI CHARITABLE TRUST, C/O. VENUGOPAL & CHENOY, CHARTERED ACCOUNTANTS, 4-1-889/16/2, TILAK ROAD, HYDERABAD 500 001. 2. DIRECTOR OF INCOME TAX (EXEMPTION), HYDERABAD. 3. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.