Fire Prayer Vision Ministries, CHENNAI V. ITO, Pudukkottai

ITA 1812/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90316 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-04-2015
• Assessment Year: misc
• Appeal Filed On: 24-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN IRS
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , ! ' , # $% BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1812/MDS/2014 M/S. FIRE PRAYER VISION MINISTRIES, ROOM NO.6,SAHAYAMATHA COMPLEX, EAST MAIN STREET, PUDUKOTTAI 622 001. [PAN: AAATF 0738J] ( &' /APPELLANT) VS THE INCOME TAX OFFICER, WARD I (1) PUDUKOTTAI. ( '(&' /RESPONDENT) / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE / RESPONDENT BY : SHRI. N. MADHAVAN, IRS, JCIT. /DATE OF HEARING : 13.04.2015 /DATE OF PRONOUNCEMENT : 13.04.2015 ) / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL FILED BY ASSESSEE IS DIRE CTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-I, TIRUCHIRAPALLI, DATED 28.05.2014 IN REFUSING TO GRANT RECOGNITION U/S. 80G OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE T RUST WAS GRANTED REGISTRATION U/S.12A OF THE INCOME-TAX ACT, 1961 BY THE COMMISSIONER I.T.A.NO. 1812/MDS/2014 :- 2 -: OF INCOME TAX, TIRUCHIRAPPALLI FROM THE ASSESSMENT YEAR 1996-97 AS A RELIGIOUS TRUST. THE TRUST HAS NOW FILED AN APPL ICATION IN FORM NO.10G ON 28.09.2012 FOR GRANT OF APPROVAL U/S.80G(5) OF T HE ACT. THE TRUST WAS ISSUED WITH A DETAILED QUESTIONNAIRE DATED 8.10 .2012 ASKING TO GIVE A DETAILED NOTE ON ACTIVITIES CARRIED OUT BY THE TRUS T AND TO FURNISH NECESSARY EVIDENCE REGARDING CHARITABLE ACTIVITIES GENUINELY CARRIED ON BY THE TRUST. THE TRUST WAS FURTHER ASKED TO PROVE WI TH THE HELP OF BOOKS OF ACCOUNTS, DOCUMENTS, VOUCHERS AND OTHER NECESSARY E VIDENCE THAT IT DID NOT CARRY OUT THE ACTIVITIES STATED IN THE OBJECT C LAUSE OF THE TRUST DEED AND THESE ACTIVITIES WERE CHARITABLE IN NATURE AS P ER DEFINITION U/S.2(15) OF THE INCOME TAX ACT, 1961. THE TRUST WAS SPECIFI CALLY ASKED TO SUBMIT THE AUDITED ACCOUNTS STATEMENT FOR THE LAST 3 YEARS AND SHOW THAT INCOME OF THE TRUST HAS BEEN SOLELY UTILIZED FOR THE PURPO SE OF THE OBJECTS FOR WHICH IT WAS FORMED. THE TRUST WAS ALSO SUPPOSED T O PROVE THAT THE ACTIVITIES WERE CARRIED OUT ONLY IN INDIA AND THE B ENEFITS OF THE TRUST WAS AVAILABLE TO ALL IRRESPECTIVE OF CASE, RELIGION, SE X AND THE BENEFIT WERE NOT CONFINED TO ANY OF THE RELIGIOUS COMMUNITY OR CASTE . THE TRUST OUGHT TO HAVE FURNISHED ITS REPLY WITHIN 30 DAYS OF RECEIPT OF THE QUESTIONNAIRE LETTER. IT WAS, HOWEVER, NOTICED THAT NO DETAILS A S CALLED FOR IN THE QUESTIONNAIRE WERE SUBMITTED BY THE TRUST. A REMIND ER LETTER DATED 22.02.20123 WAS ALSO SERVED ON THE ASSESSEE TRUST O N 26.02.2013. SINCE THE TRUST DID NOT EVEN RESPOND TO THE SAID R EMINDER, A FINAL I.T.A.NO. 1812/MDS/2014 :- 3 -: OPPORTUNITY WAS GIVEN TO THE TRUST BY POSTING A HEA RING ON 14.03.2013 BY ISSUE OF A LETTER DATED 06.03.2013. EVEN TO THIS L ETTER, NO REPLY WAS RECEIVED AND NONE ON BEHALF OF THE TRUST APPEARED O N THE HEARING DATE. IN ABSENCE OF ANY DETAILS BEING MADE AVAILABLE BY T HE APPLICANT TRUST, IT IS DIFFICULT TO VERIFY WHETHER ALL THE CONDITIONS PRES CRIBED IN CLAUSE (I) TO (IV) OF SUB-SECTION (5)OF SECTION 80G R.W.S.80G(2)(IV) H AVE BEEN COMPLIED WITH OR NOT. FURTHER, IN ABSENCE OF AND DETAILS BE ING MADE AVAILABLE FOR VERIFICATION, IT IS NOT POSSIBLE TO SAY DEFINITELY THAT CHARITABLE ACTIVITIES OF THE TRUST WERE CARRIED OUT GENUINELY. THE ONUS WAS ON THE ASSESSEE TO PROVE THAT ALL THE CONDITIONS STIPULATED U/S.80G HA VE BEEN COMPLIED WITH. 3. IN THE FIRST ROUND OF LITIGATION, THIS TRIBUNAL BY ITS ORDER IN ITA NO.1338/MDS/2013, DATED 17.02.2014 REMITTED THE ISS UE BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX TO CONSIDER THE ISSUE AFRESH AFTER PROVIDING OPPORTUNITY OF HEARING TO THE ASSES SEE. THE COMMISSIONER OF INCOME TAX WHILE GIVING EFFECT TO T HE ORDER OF THE TRIBUNAL DATED 28.05.2014 AGAIN REFUSED TO GRANT RE COGNITION UNDER SECTION 80G AS THE ASSESSEE HAS NOT CARRIED OUT THE CHARITABLE ACTIVITIES AS DEFINED THE TRUST DEED . WHILE HOLDING SO, THE COMMISSIONER OF INCOME TAX OBSERVED AS UNDER:- 5. THE TRUST PROCLAIMS AS SOCIAL, EDUCATIONAL A ND CHARITABLE TRUST IN FORM 10G FILED ON 128.03.2012, THE CORE OBJECT OF TRUST IS CENTERED IN SPREADING GOSPEL WHICH IS RELIGIOUS IN NATURE AS APPARENT FROM THE OBJECTIVES MENTIONED ABOVE. PERU SAL OF THE INCOME AND EXPENDITURE ACCOUNT PUT FORTH BY THE TRU ST, IT WAS I.T.A.NO. 1812/MDS/2014 :- 4 -: OBSERVED THAT TRUST HAS INCURRED ITS INCOME MOSTLY TOWARDS RELIGIOUS ACTIVITIES RATHER THAN ON CHARITY AND IT WAS FOR THIS REASON RECOGNITION U/SD.80G WAS NOT GRANTED EARLIER. EVEN DURING THE COURSE OF PRESENT HEARING ON 10.04.2014, THE TRUST HAS FAILED TO PRODUCE BEFORE THE UNDERSIGNED ANY SUBSEQUENT EVIDE NCES TO PROVE THAT CHARITABLE ACTIVITIES ARE CARRIED OUT SU BSTANTIALLY BY THE TRUST TO BECOME ELIGIBLE FOR RECOGNITION U/S.80G. THE TRUST GOT REGISTRATION U/S. 12AA AS RELIGIOUS TRUST AND EXPENSES WERE INCURRED MOSTLY TOWARDS RELIGIOUS ACTIVITIES AS SEE N FROM THE INCOME AND EXPENDITURE ACTIVITIES FOR THE A.Y. 2008 -09 TO 2010- 11 FILED ALONGWITH THE APPLICATION. 6. FURTHER, IT IS REPRESENTED DURING THE COURSE OF HEARING THAT THE TRUST AS OF NOW INCURRED LESS THAN 5% OF ITS EXPEND ITURE TOWARDS RELIGIOUS ACTIVITIES, OUT OF THE TOTAL INCOME OF TH E A.Y. 2014-15. HOWEVER, PERUSAL OF THE INCOME AND EXPENDITURE ACCO UNT FILED ALONGWITH THE APPLICATION IN FORM 10G DATED 28.09. 2012 FOR THREE ASSESSMENT YEARS VIZ. 2008-09, 2009-10 & 2010-11 SH OWS THAT THE TRUST HAS INCURRED MAJOR PORTION OF ITS INCOME TOWA RDS RELIGIOUS ACTIVITIES AND THIS REASON WAS TAKEN INTO ACCOUNT W HILE REJECTING THE APPLICATION EARLIER. THE ITAT HAS DIRECTED TO CONS IDER THE SAME APPLICATION AND PASS FRESH ORDER AFTER GIVING AN OP PORTUNITY. THE STATEMENT ADDUCED BY THE TRUST DURING THE COURSE OF HEARING THAT IT INCURRED LESS THAN 5% OF ITS EXPENDITURE OUT OF THE TOTAL INCOME ONLY PERTAINS TO A.Y. 2014-15 THE CONDITION OF WHI CH IS CLAIMED TO HAVE MET THE TRUST IE. ONLY RECENTLY, SUBSEQUENT TO FILING OF THE APPLICATION. THE APPLICATION FIELD ON 28.09.2012 W HICH IS RECONSIDERED NOW IS STILL DEVOID OF ANY MATERIAL EV IDENCE TO SHOW THAT THE STATUTORY CONDITION OF EXPENDITURE LIMIT F OR GRANT OF RECOGNITION U/S.80G IS FULFILLED BY THE TRUST. 7. FURTHER, I AM NOT SATISFIED WITH THE GENUINE NESS ACTIVITIES OF THE TRUST TO THE EXTENT THAT CHARITABLE ACTIVITIES AS DEFINED IN THE TRUST DEED ARE NOT SUBSTANTIALLY CARRIED OUT BY IT. I AM THEREFORE UNABLE TO GRANT OF RECOGNITION U/S.80G OF THE INCOM E TAX ACT, 1961 SINCE THE APPLICANT TRUST HAS NOT COMPLIED WITH THE REQUIREMENTS OF SECTION 80G OF THE INCOME TAX ACT, 1961. THEREFORE, THE EARLIER ORDER DATED 20.03.2013 REJECTING THE APPLICATION FI LED BY THE TRUST FOR EXEMPTION U/S.80G STANDS EFFECTIVE. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE LD. COUNSEL SUBMITTED THAT THE ASSESSE E RECEIVED DONATIONS WHICH WAS ONLY USED FOR CHARITABLE AND A DMINISTRATIVE I.T.A.NO. 1812/MDS/2014 :- 5 -: PURPOSES AND IT WAS NOT USED FOR ANY RELIGIOUS ACT IVITIES AND THIS WAS NOT EXAMINED BY THE LOWER AUTHORITIES AND WITHOUT E XAMINING THIS, RECOGNITION U/S.80G WAS DENIED. IN OUR OPINION, THE ARGUMENT OF THE AUTHORISED REPRESENTATIVE IS MISCONCEIVED. THE COMM ISSIONER OF INCOME TAX HAS GIVEN CATEGORICAL FINDING IN HIS ORD ER THAT FOR THE ASSESSMENT YEARS 2008-09, 2009-10 AND 2010-11, THE ASSESSEE HAS INCURRED MAJOR PORTION OF ITS INCOME TOWARDS RELIGI OUS ACTIVITIES AND THERE IS NO ERROR IN THE ORDER OF COMMISSIONER OF I NCOME TAX. BEING SO, WE HAVE NO HESITATION IN CONFIRMING THE COMMISS IONER OF INCOME TAX ORDER. THUS, THE GROUND RAISED BY THE ASSESSEE IS REJECTED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSE SSEE IN ITA NO.1812/MDS/2014 IS DISMISSED . ORDER PRONOUNCED ON MONDAY, THE 13 TH DAY OF APRIL, 2015, AT CHENNAI. SD/- SD/- ( ! ' ) (CHALLA NAGENDRA PRASAD) # / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER /CHENNAI. ! /DATED:13.04.2015. KV !' #$% &% /COPY TO: 1. ' APPELLANT 2. / RESPONDENT 3. ( ( )/CIT(A) 4. ( /CIT 5. %) * ##+, /DR 6. * -. / /GF. I.T.A.NO. 1812/MDS/2014 :- 6 -: