M/s. Centre for Development and Communication Trust, Theni V. CIT, Madurai

ITA 1836/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57888 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-01-2012
• Assessment Year: misc
• Appeal Filed On: 29-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 1836/MDS/2010 ASSESSMENT YEAR : -- M/S. CENTRE FOR DEVELOPMENT AND COMMUNICATION TRUST, 1/167, WEST STREET, KAMATCHIPURAM, UTHAMAPALAYAM TALUK, THENI DISTRICT. V. THE COMMISSIONER OF INCOME- TAX-I (I/C), MADURAI. [PAN: AAATC4299D] (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : DR. I. VIJAYAKUMAR, CIT-DR DATE OF HEARING : 25-01-2012 DATE OF PRONOUNCEMENT : 25-01-2012 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE REFUSAL OF GRANT OF RENEWAL OF REGISTRATION UNDER SECTION 80-G OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) V IDE AN ORDER IN C. NO. 464/75/1985-86/CIT-I DATED 29-01-2010. 2. NONE REPRESENTED ON BEHALF OF THE ASSESSEE AND D R. I. VIJAYAKUMAR, LEARNED CIT-DR REPRESENTED ON BEHALF OF THE REVENUE. I.T.A. NO.1836/MDS/2010 2 3. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASS ESSEE HAD FILED AN APPLICATION FOR RENEWAL OF REGISTRATION GRANTED TO THE ASSESSEE U/S 80G OF THE ACT ON 06-08-2009. IT WAS THE SUBMISSION THAT THE MANAGIN G COMMITTEE MEMBERS OF THE TRUST WERE GOVERNMENT EMPLOYEES WHO CANNOT BECOME T RUSTEES UNDER THE RELEVANT SERVICE RULES. IT WAS THE SUBMISSION THAT THE VERY CONSTITUTION OF THE TRUST WAS IRREGULAR. IT WAS THE SUBMISSION THAT FURTHER THE ASSESSEE WAS CLAIMING EXPENDITURE UNDER THE HEAD OF A RESIDENTIAL SCHOOL WHEREAS THE TRUST DID NOT PROVIDE FOR RUNNING OF THE SCHOOL. IT WAS THE SUBMISSION THAT THE ORDE R REFUSING TO GRANT THE ASSESSEE RENEWAL OF REGISTRATION U/S 80G WAS LIABLE TO BE UP HELD. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D DR. AT THE OUTSET WHAT IS NOTICED IS THAT THE PERUSAL OF THE APPLICATION U /S 80G ITSELF SHOWS THAT IT IS AN APPLICATION FOR RENEWAL. THE ASSESSEE TRUST CONTIN UES TO ENJOY THE BENEFIT OF REGISTRATION UNDER SECTION 12A OF THE ACT. A PERUS AL OF THE OBJECTS OF THE TRUST SHOWS THAT THE PRIME PURPOSE OF THE TRUST IS TO UND ERTAKE, PROMOTE AND ASSIST IN THE SOCIAL, ECONOMIC AND INTELLECTUAL DEVELOPMENT O F WEAKER SECTIONS OF THE SOCIETY. IT ALSO PROVIDES FOR PROVIDING FELLOWSHIPS AND SCHO LARSHIPS IN FURTHERANCE OF THE OBJECTS OF THE SOCIETY. THE ASSESSEE SOCIETY HAS R ECEIVED FUNDS FROM THE CENTRAL SOCIAL WELFARE BOARD UNDER THE SANCTION OF GRANT-IN -AID FOR FAMILY COUNSELLING CENTRE. IT IS FURTHER NOTICED THAT THE UNDER SECRE TARY TO THE GOVERNMENT OF INDIA, MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT, NEW DELHI HAS UNDER THE SANCTION OF HIS EXCELLENCY THE PRESIDENT OF INDIA DIRECTED THE PAYME NT OF RECURRING GRANT OF ` I.T.A. NO.1836/MDS/2010 3 9,81,180/- TO THE ASSESSEE SOCIETY FOR THE MAINTENA NCE OF THE PROJECT, NAMELY A RESIDENTIAL PRIMARY SCHOOL, THENI. THUS IT CANNOT BE SAID THAT THE TRUST IS DOING ANY ACTIVITIES OUTSIDE THE SCOPE OF ITS BYE-LAWS. IN R EGARD TO THE ISSUE AS TO A GOVERNMENT EMPLOYEE BECOMING A TRUSTEE UNDER THE RE LEVANT SERVICE CONDUCT RULES IT IS NOT AN ISSUE THAT IS TO BE CONSIDERED WHEN GRANTING THE APPROVAL UNDER SECTION 80-G. IF A GOVERNMENT EMPLOYEE HAS VIOLATE D ANY OF THE SERVICE CONDUCT RULES, IT IS FOR THE GOVERNMENT TO TAKE ACTION AGAI NST SUCH EMPLOYEE. IT CANNOT LEAD TO THE DENIAL OF AN APPROVAL, MUCH LESS A DENI AL OF AN APPROVAL FOR SECTION 80-G OF THE ACT. IN THE CIRCUMSTANCES, WE ARE OF THE VI EW THAT AS THERE ARE NO CHANGES IN THE FACTS IN REGARD TO SECTION 80G APPROVAL GRAN TED EARLIER AND THE PRESENT POSITION, THE ASSESSEE IS ENTITLED TO THE GRANT OF THE RENEWAL OF APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, 1961. IN THE CI RCUMSTANCES, THE LEARNED COMMISSIONER OF INCOME TAX IS DIRECTED TO GRANT THE ASSESSEE THE NECESSARY APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, 1 961 AS PRAYED FOR. IN THE CIRCUMSTANCES, THE APPEAL OF THE ASSESSEE IS ALLOWE D. 4. THE ORDER WAS PRONOUNCED IN THE COURT ON 25/01/2 012. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 25 TH JANUARY, 2012. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE