Trust of God is Good, CHENNAI V. ITO, Theni

ITA 1790/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73685 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-02-2014
• Assessment Year: misc
• Appeal Filed On: 24-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: A S SRIRAMAN
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . !' !' !' !' , # # # # $ $ $ $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NO.1790/MDS/2013 TRUST OF GOD IS GOOD, 2/1/184, VINOBAJI COLONY, BODINAYAKANUR 625 513, THENI DISTRICT. [PAN : AABTT7439D] VS. THE INCOME TAX OFFICER, WARD I(1), THENI. ( %& %& %& %& / APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI A.S. SRIRAMAN, ADVOCATE '(%& ) * / RESPONDENT BY : SHRI S. BHARATH, CIT ) + / DATE OF HEARING : 18.02.2014 ,- ) + /DATE OF PRONOUNCEMENT : 26.02.2014 . . . . / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX, MADURAI, DATED 22.07.20 13 PASSED UNDER SECTION 80G OF THE INCOME TAX ACT. 2. THE APPEAL OF THE ASSESSEE IS TIME BARRED BY FO UR DAYS IN FILING. THE LD. COUNSEL FOR THE ASSESSEE HAS FILED A PETITION R EQUESTING TO CONDONE THE DELAY. BY REFERRING TO THE CONTENTS THEREIN, THE LD . COUNSEL FOR THE ASSESSEE HAS PLEADED FOR CONDONING THE DELAY. THE LD. DR HAS NOT OBJECT TO THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1790 1790 1790 1790/M/ /M/ /M/ /M/13 1313 13 2 SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. ON PERUSAL OF THE PETITION FILED FOR CONDONATION OF DELAY, WE ARE SATISFIED TH AT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM NOT FILING THE A PPEAL WITHIN THE STIPULATED TIME. ACCORDINGLY, WE CONDONE THE DELAY OF FOUR DAYS IN F ILING THE APPEAL AND ADMIT THE SAME FOR HEARING. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A PUBLIC CHARITABLE TRUST HAVING GRANTED REGISTRATION UNDER SECTION 12AA OF T HE INCOME TAX ACT BY ORDER DATED 09.03.2012 FOR THE ASSESSMENT YEAR 2012 -13 ONWARDS. THEREAFTER, THE ASSESSEE HAS FILED AN APPLICATION D ATED 22.01.2013 FOR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT. THE LD . CIT CALLED FOR THE REPORT FROM THE ASSESSING OFFICER AND THE REPORT OF THE AS SESSING OFFICER READS AS UNDER: 'DURING THE COURSE OF THE VERIFICATION, IT IS FOUND THAT THE TRUST IS PREDOMINANTLY INVOLVED IN RELIGIOUS ACTIVITIES ONLY . THE MANAGING TRUSTEE OF THE TRUST IS FOUND TO BE A PASTOR INVOLV ED IN THE TRUST IS FOUND TO BE A PASTOR INVOLVED IN THE PASSIONATE EVANGELIC AL WORK. MOST OF THE PAYMENTS FROM THE TRUST HAVE BEEN MADE TO VARIOUS P REACHERS FOR HAVING DELIVERED LECTURERS ON PREACHING OF CHRISTIA NITY. THOUGH THE TRUST HAS CLAIMED TO HAVE CARRIED OUT VARIOUS CHARI TABLE PROGRAMMES, WHEN THE MANAGING TRUSTEE WAS REQUESTED AS TO SPECI FICALLY IDENTIFY THE SAID ACTIVITIES WITH REFERENCE TO THE DETAILS AVAIL ABLE IN THEIR BOOKS OF ACCOUNTS PRODUCED, HE HAS ACCEPTED THAT THEIR CORE ACTIVITY IS ONLY MISSIONARY WORK AND OTHER CHARITABLE ACTIVITY HAVE NOT AT ALL BEEN CARRIED ON EXCEPT THE RUNNING OF AN ORPHANAGE. 4. BASED ON THE REPORT OF THE ASSESSING OFFICER, T HE LD. CIT CAME TO A CONCLUSION THAT THE ASSESSEE TRUST WAS CREATED FOR RELIGIOUS PURPOSE AND THEREFORE IT IS IN VIOLATION OF EXPLANATION 3 OF SE CTION 80G(5) OF THE ACT. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1790 1790 1790 1790/M/ /M/ /M/ /M/13 1313 13 3 ACCORDINGLY, THE LD. CIT REJECTED THE APPLICATION F OR GRANT OF APPROVAL UNDER SECTION 80G(5) OF THE ACT. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT, WITHOUT EXAMINING THE OBJECT OF THE TRUST, SIM PLY REJECTED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE OBJECTS OF THE TRUST ARE ONLY RELIGIOUS PURPOSE AND IT ATTRACTS EXPLANATION 3 OF SECTION 80 G(5) OF THE ACT. THE ORDER PASSED BY THE LD. CIT, REJECTING THE CLAIM OF THE A SSESSEE UNDER SECTION 80G(5), IS NOT BASED ON ANY MATERIAL. THE LD. COUNS EL FOR THE ASSESSEE HAS ALSO SUBMITTED THAT THE ASSESSEE IS READY TO FILE A LL THE DETAILS ONCE AGAIN AND THE ISSUE MAY BE REMITTED BACK TO THE LD. CIT T O EXAMINE AFRESH. 6. ON THE OTHER HAND, THE LD. DR HAS SUPPORTED THE ORDER PASSED BY THE LD. CIT. 7. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIAL ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE HAVE AL SO GONE THROUGH THE OBJECTS OF THE TRUST, AS STATED AT PAGES 4 TO 6 OF THE TRUST DEED AND ARE REPRODUCED HEREUNDER: 1) RURAL SAFETY PROGRAMES. 2) AWARENESS PROGRAMS IN REGARD TO PREVENTION OF AC CIDENTS 3) EDUCATIONAL PROGRAMS IN REGARD TO RULES AND REGULA TIONS OF MOTOR VEHICLE ACT. 4) RIGHTS OF PEOPLE OF ROAD USAGE 5) SKILL DEVELOPMENT IN REGARD TO PREVENTION AND CO NTROL OF ACCIDENTS 6) DRIVING TECHNICAL EDUCATION 7) ROAD SAFETY AWARENESS PROGRAM TO THE SCHOOL CHIL DREN 8) EMPLOYMENT OPPORTUNITIES FOR THE DRIVERS 9) SPECIAL AWARENESS PROGRAM FOR DRIVERS 10) DEVELOPING DRIVING EDUCATION, SELF CONFIDENCE AND B EST-CHARACTER IN THE TRAINING PROGRAMS I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1790 1790 1790 1790/M/ /M/ /M/ /M/13 1313 13 4 11) TWO WHEELER AND FOUR WHEELER MECHANISMS 12) STREET PLAY AND THEATRE PLAY IN REGARD TO ROAD SAFETY AWARENESS PROGRAMS 13) THE TRUST WILL NOT INTERFERE THE ACTIVITIES OF ANY POLITICAL PARTY. THE FUNCTION OF THE TRUST WILL BE INDEPENDENT AND SELF AUTONOMY AND THE FUNCTION OF THE TRUST WILL BE UNDER THE CONSTITUTION OF INDIA A ND ABIDE THE ACTS AND RULES OF THE GOVT. AND IN ANY WAY THE ACTIVITIES OF THE TRUST WILL NOT BE AGAINST THE GOVERNMENTS RULES AND REGULATIONS. 14) THE TRUST WILL START CHILDREN'S HOME, WOMEN STA Y HOMES, OLD AGE HOMES ORPHANAGE HOMES AND HOME FOR PHYSICALLY AND MENTALL Y DISORDERS. 15) AIMS AT REACHING THE UNREACHED PEOPLE IN THE CITIES, TOWNS AND RURAL VILLAGES OF OUR COUNTRY WITH LOVE OF JESUS CHRIST 16) CHURCH PLANTING IN VILLAGES. 17) PASTORAL MINISTRY 18) PERSONAL EVANGELISM, HOSPITAL MINISTRY, JAIL MI NISTRY AND MINISTRY AMONG THE SLUM PEOPLE 19) THE MAIN OBJECTIVES OF THE MISSION IS TO MINIST ER IN THE NAME OF JESUS CHRIST AND TREAT ALL THE PEOPLE IRRESPECTIVE OF THE IR CASTE, CREED OF CULTURE 20) AIDS AWARENESS AND CANCER, ALCOHOL, ANTI-DRUG, ADDICTION, ANTI SMOKING. 21) MINISTRY AMONG THE HANDICAPPED AND SOCIAL SERVI CE. 22) HEALTH CENTRES ESPECIALLY IN RURAL AREAS 23) SLUM/VILLAGES DEVELOPMENT. 24) LEPROSY, VISUALLY HANDICAPPED WELFARE SERVICE. 25) MINISTRY AMONG THE WOMEN SELF HELP GROUPS, CHIL DREN HOMES FOR ORPHANS, CHILDREN DESERTED BY THEIR PARENTS; CHILDR EN OF WIDOWS, CHILDREN FROM POOR FAMILIES 26) THE TRUST WILL CONDUCT RURAL AND URBAN MEN & WO MEN'S BY GIVING TRAINING IN DIFFERENT GOVERNMENT APPROVED SELF EMPL OYMENT TRAININGS AND COTTAGE INDUSTRIAL PROGRAMMES. 27) TO PLAN AND IMPLEMENT SPECIFIC PROGRAMMES FOR T HE WELFARE OF WOMEN, YOUTH, AND CHILDREN'S. 28) TO UNDERTAKE INCOME GENERATIVE PROJECTS FOR THE BENEFIT OF PEOPLE LIVING BELOW THE POVERTY LINE, UNEMPLOYED AGRICULTU RAL COOLIES AND POOR PEOPLES. 29) TO UNDERTAKE AND CONDUCT AWARENESS PROGRAMMES ABOUT LEGAL EDUCATION, NON- FORMAL EDUCATION, ADULT EDUCATION, AGRICULTURAL PROGRAMMES, ENVIRONMENTAL PROTECTION, SOCIAL FOREST RY PROGRAMMES , HEALTH PROGRAMMES, ORPHANAGE, OLDAGE AND HANDICAPPE D CARE PROGRAMMES, HOUSE CONSTRUCTION, HUMAN RIGHTS PROGRA MMES ETC. 30) TO STUDY AND UNDERTAKE RESEARCH AND IMPLEMENT P ROJECTS, PROGRAMMES, SCHEMES AND SO ON FOR CULTURAL, SOCIAL, EDUCATIONAL, HEALTH, ECONOMIC, ECOLOGICAL AND ENVIRONMENT PROJEC TS IN THENI AND OTHER DISTRICT. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1790 1790 1790 1790/M/ /M/ /M/ /M/13 1313 13 5 31) TO ESTABLISH CONTACT WITH GOVERNMENT DEPARTMENT S BOARDS OF STATE AND CENTRAL AND NON-GOVERNMENTAL AGENCIES IN AND AB ROAD FOR MUTUAL CO-OPERATION ASSISTANCE FOR EXCHANGING VIEWS, SKILL S, TECHNIQUES AND ALSO IMPLEMENTING PROJECTS, PROGRAMMES, SCHEMES ETC., FO R BENEFIT OF THE RURAL AND URBAN PEOPLES. 32) TO SUPPORT AND GUIDE FOR THE RURAL WOMEN TO GET LOAN OR SUBSIDY LOAN FROM STATE AND CENTRAL GOVERNMENTS SCHEMES AND ALSO START DIARY FARM, GOAT REARING ETC., AND START WOMEN'S SELF EMP LOYMENT INDUSTRIAL PROJECTS AND TO SUPPORT GUIDE UN-EMPLOYED YOUTH AND WOMEN. 33) TO UNDERTAKE WATER RESOURCES DEVELOPMENT PROGRA MMES AND HELP OR IMPLEMENT THE SCHEMES OF THE STATE AND CENTRAL GOVE RNMENT AND THUS PROVIDE THE RURAL COMMUNITY A GOOD LIVING. 34) TO CONDUCT EYE CAMPS, HEALTH CAMPS, WOMEN HOSTE LS, CRCHES, STAY HOMES, OLD AGE HOMES AND START WELFARE SCHEMES FOR DESTITUTE, WIDO WS, HANDICAPPED PERSONS, OLDER ETC. 34) TO FORM ORPHANAGE FOR CHILDREN, WOMEN HOSTELS, CRCHES, STAY HOMES; OLD AGE HOMES AND START WELFARE SCHEMES FOR DESTITUTE, WIDOWS, HANDICAPPED PERSONS, ORDERS ETC., 35) TO START REFRIGERATION, AIR CONDITION, ELECTRIC IAN AND GENERAL ELECTRONICS TRAINING INSTITUTIONS, EDUCATION INSTIT UTIONS, I.T.I. POLYTECHNIQUES, MEDICAL COLLEGE, LAW COLLEGE, PARAM EDICAL COLLEGE ETC., AND ALSO START STAY. HOMES FOR THE EDUCATIONA L AND PROFESSIONAL STUDENTS. 36) TO CREATE THE HEALTH AWARENESS TO RURAL AND URB AN AREA PEOPLES AND DO PREVENTIVE ACTIVITIES ABOUT DISEASES AND ALSO GI VE AWARENESS AND PROTECT ACTIVITIES FROM AIDS, T-B, SUGAR, LEPROCY A ND CANCER. 37) TO UNDERTAKE AND ESTABLISH FOR CONSUMER PROTECT ION AND CONDUCT AWARENESS PROGRAMMES IN THE FILED OF CONSUMER PROTE CTION BOTH IN URBAN AREAS OF THENI DISTRICTS. 38) TO PUBLISH COMPUTER MATTERS AND OTHER PUBLIC AW ARENESS MATTERS IN RELATED TO CIRCULAR MAGAZINE, NEWS PAPERS AND BOOKS . 39) TO FACILITATE WOMEN TO BECOME POWERFUL EDUCATIO NALLY, ECONOMICALLY AND SOCIALLY. 40) TO CONDUCT PERIODIC LECTURES MEETING CONFERENCE S, SEMINARS AND SURVEYS ON MATTERS OF HEALTH, AGRICULTURE, EDUCATIO N, ENVIRONMENTAL AND ECOLOGY. 41) RAISE AND RECEIVE FUNDS FROM VARIOUS SOURCES LI KE DONATIONS, CONTRIBUTIONS, GRANTS, AIDES, ETC., TO ACHIEVE THE LAID AIMS AND OBJECTIVES OF THE 'TRUST. 42) TO UNDERTAKE PROJECTS FOR BIOGAS, NON-CONVENTIO NAL ENERGY, PUNGAN JETROBA, ETC. 42) TO ESTABLISH PROJECT/ BRANCH OFFICES, AND OTHER UNITS FOR THE PROMOTION OF THE AIMS AND OBJECTIVES OF THE 'TRUST ANYWHERE IN INDIA. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1790 1790 1790 1790/M/ /M/ /M/ /M/13 1313 13 6 43)TO UNDERTAKE DEVELOPMENT PROGRAMMES FOR SCHEDULE D CASTE SCHEDULED TRIBE, MOST BACKWARD CLASS PEOPLE . 44)TO SUPPORT VICTIMS OF TSUNAMI, FLOOD, DROUGHT, E ARTHQUAKE FOR RELIEF. 8. FROM THE ABOVE OBJECTS, IT IS CLEAR THAT THE AS SESSEE IS A PUBLIC TRUST. THE ORDER OF THE LD. CIT IS CRYPTIC AND IT IS NOT C LEAR HOW THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 80G(5) AND ATTRA CTS EXPLANATION 3 OF SECTION 80G(5) OF THE ACT. KEEPING IN VIEW OF THE S UBMISSIONS MADE BY THE LD. COUNSEL FOR THE ASSESSEE, WE SET ASIDE THE ORDE R PASSED BY THE LD. CIT AND DIRECT THE LD. CIT TO DECIDE THE ISSUE DE NOVO IN ACCORDANCE WITH LAW AFTER CONSIDERING THE DETAILS FILED BY THE ASSESSEE . 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON WEDNESDAY, THE 26 TH OF FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 26.02.2014 VM/- TO: THE ASSESSEE/A.O./CIT(A)/CIT/D.R.