Daulat Kanwar Parasmal Chaudhari Jain Charitable Trust, CHENNAI V. DIT, CHENNAI

ITA 1763/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77247 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-04-2014
• Assessment Year: misc
• Appeal Filed On: 16-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DAS GUPTA IRS
• Assessee Lawyers: T BANUSEKAR
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . . !' , # '$ % BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 1763/MDS/2013 SMT. DAULAT KANWAR PARASMAL CHAUDHARI JAIN CHARITABLE TRUST, NO.144-L, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AALTS 8091 E V. DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI - 600 034. ( '(/ APPELLANT) ( *+'(/ RESPONDENT) '( , / APPELLANT BY : SHRI T. BANUSEKAR, CA *+'( , / RESPONDENT BY : SHRI S. DAS GUPTA, IRS, JCIT - , ./ / DATE OF HEARING : 28 TH APRIL, 2014 0!1 , ./ / DATE OF PRONOUNCEMENT : 28 TH APRIL, 2014 - - I.T.A. NO. 1763/MDS/13 2 / 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 DIRECTOR OF INCOM E TAX (EXEMPTIONS) AT CHENNAI, PASSED ON 28.6.2013, REJEC TING THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 12A A OF THE INCOME-TAX ACT, 1961. 2. THE DIRECTOR OF INCOME TAX (EXEMPTIONS) REJECTED THE APPLICATION FILED BY THE ASSESSEE-TRUST FOR OBTAINI NG REGISTRATION UNDER SECTION 12AA ON TWO GROUNDS:- (1) THE TRUST PROPOSES TO CARRY OUT BOTH RELIGIOUS AND CHARITABLE ACTIVITIES; (2) THE ASSESSEE-TRUST CONSISTS OF ONLY THREE MEMBERS, WHEREAS, FIVE MEMBERS ARE NECESSARY FOR CONDUCTING MEETINGS AS PER THE RULES OF THE TRUST. 3. WE HEARD SHRI T. BANUSEKAR, THE LEARNED CHARTERE D ACCOUNTANT APPEARING FOR THE ASSESSEE AND SHRI S. D AS GUPTA, THE LEARNED JOINT COMMISSIONER OF INCOME TAX APPEAR ING FOR THE REVENUE. - - I.T.A. NO. 1763/MDS/13 3 4. THE HONBLE MADRAS HIGH COURT HAS HELD IN THE CA SE OF DIRECTOR OF INCOME-TAX (EXEMPTIONS) V. SEERVI SAMAJ TAMBARAM TRUST (43 TAXMANN.COM 142) THAT AN ASSESSEE IS ENTI TLED FOR REGISTRATION UNDER SECTION 12AA EVEN IF IT IS CARRY ING ON BOTH CHARITABLE AND RELIGIOUS ACTIVITIES. IN VIEW OF TH E ABOVE JUDGMENT, THE FIRST OBJECTION OF THE DIRECTOR OF INCOME-TAX ( EXEMPTIONS) IS NOT SUSTAINABLE IN LAW. 5. REGARDING THE NUMBER OF MEMBERS OF THE TRUST, IT IS SEEN THAT THE ASSESSEE-TRUST HAS ALREADY INCLUDED TWO MO RE MEMBERS AND ACCORDINGLY, NO CONFLICT EXISTS BETWEEN THE TRU ST DEED AND TRUST RULES. THEREFORE, THIS OBJECTION HAS ALSO BE EN CURED BY THE ASSESSEE. 6. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE D IRECT THE ASSESSEE TO FILE THE PAPERS REGARDING INDUCTION OF TWO MEMBERS INTO THE TRUST SO THAT THE DIRECTOR OF INCOME-TAX ( EXEMPTIONS) SHALL GRANT REGISTRATION TO IT UNDER SECTION 12AA O F THE INCOME- TAX ACT, 1961. 7. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. - - I.T.A. NO. 1763/MDS/13 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 28 TH OF APRIL, 2014 AT CHENNAI. SD/- SD/- (S.S. GODARA) (DR. O.K. NARAYANAN) ( . . !') ( . . . ) # '$ /JUDICIAL MEMBER /VICE-PRESIDENT /CHENNAI, 3' /DATED, THE 28 TH APRIL, 2014. KRI. '4 , *#.56 761. /COPY TO: 1. '( /APPELLANT 2. *+'( /RESPONDENT 3. - 8. () /DIT(EXEMPTIONS), CHENNAI 4. - 8. /DDIT(E)-II, CHENNAI 5. 69 *#.# /DR 6. : ; /GF.