M/s. Augustine Educational and Charitable Trust, CHENNAI V. ITO, Karaikudi

ITA 1886/CHNY/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0789 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-02-2013
• Assessment Year: misc
• Appeal Filed On: 10-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI. BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT & SHRI S.S. GODARA, JUDICIAL MEMBER I.T.A. NO.1886/MDS/2010 M/S. AUGUSTINE EDUCATIONAL AND CHARITABLE TRUST, S. PREETHI GROUP OF COLLEGES, ARASANOOR, THIRUMANSOLAI POST, SIVAGANGAI TALUK, SIVAGANGAI DISTRICT 630 601. [PAN:AABTA5090R] VS. THE INCOME TAX OFFICER, WARD I(1), KARAIKUDI. (APPELLANT) (RESPONDENT) A PPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : DR. S. MOHARANA, CIT DATE OF HEARING : 12.02.2013 DATE OF PRONOUNCEMENT : 21.02.2013 ORDER PER S.S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL EMANATES OUT OF THE ORDER O F THE COMMISSIONER OF INCOME TAX I, MADURAI DATED 24.12.2 009 IN C.NO. 464/68/ 2005-06/CIT-I PASSED UNDER SECTION 80G OF THE INCOM E TAX ACT 1961 [IN SHORT THE ACT]. 2. FROM THE GROUNDS RAISED IN THE APPEAL, WE NOTIC E THAT THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT HAS WRONGLY REJECTED I TS APPLICATION SEEKING RENEWAL OF APPROVAL UNDER SECTION 80G OF THE ACT. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1886 886886 886/M/ /M/ /M/ /M/10 1010 10 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A TRUST CREATED ON 30.03.2005. IT GOT REGISTRATION UNDER SECTION 12AA OF THE ACT ON 23.12.2005. ON THE SAME DAY, IT WAS GRANTED APPROVA L UNDER SECTION 80G OF THE ACT UPTO 31.03.2006. ON 09.07.2009, IT APPLIE D FOR RENEWAL OF THE APPROVAL UNDER SECTION 80G OF THE ACT. THE CIT, W HILE REJECTING ASSESSEES APPLICATION FOR RENEWAL, OBSERVED AS UNDER: 3. THE TRUST WAS CREATED ON 30.03.2005. IT WAS GR ANTED REGISTRATION U/S. 12AA OF THE ACT ON 23.12.2005. IT WAS ALSO GRANTED APPROVAL U/S. 80G OF THE ACT ON THE SAME DAY VALID UPTO 31.03.2006. NOW, IT HAS APPLIED FOR RENEWAL OF APPROVAL U/S. 80G OF THE ACT ON 09.07.2009 BEYON D THAT PERIOD AFTER A LAPSE OF ALMOST FOUR YEARS. IT IS OBSERVED FROM THE REPORT OF THE AO THAT THE APPLICANT TRUST DID NOT APPEAR AND PRODUCE COPIES O F ACCOUNTS, ETC. FOR VERIFICATION AND THEREFORE, CONCLUDED THAT THE GENU INENESS OF THE CHARITABLE ACTIVITIES CLAIMED TO HAVE BEEN CARRIED OUT BY THE APPLICANT TRUST ARE NOT VERIFIABLE. IT IS FURTHER OBSERVED THAT THE APPLICA NT TRUST IS RUNNING A B.ED. COLLEGE AND A TEACHER TRAINING INSTITUTE. THERE IS NO FORMATION FROM THE NOTES NO ACTIVITIES WHETHER ANY FREE OR SUBSIDIZED EDUCAT ION IS PROVIDED TO THE NEEDY AND POOR STUDENTS. THEREFORE, IT IS PURELY CO MMERCIAL VENTURE AND THERE IS NO ELEMENT OF CHARITY IN IT. THEREFORE, THE APPL ICANTS CLAIM OF BEING ENGAGED IN ANY CHARITABLE ACTIVITY IS WITHOUT ANY M ERIT. THEREFORE, I HOLD THAT THE APPLICANT TRUST IS NOT ENTITLED FOR RENEWAL OF APPROVAL U/S. 80G OF THE ACT. 4. FROM THE ABOVE, IT IS CLEARLY SEEN THAT THE APP LICANT TRUST HAS NOT FULFILLED THE STATUTORY OBLIGATIONS FOR RENEWAL OF APPROVAL U/S 80G OF THE ACT. THEREFORE, ITS APPLICATION FOR RENEWAL OF APPROVAL U/S. 80G OF THE ACT STANDS REJECTED. 4. THEREFORE, THE ASSESSEE IS AGGRIEVED. IT REITER ATES BEFORE US THE PLEADINGS RAISED IN THE GROUNDS AND PRAYS FOR ACCEP TANCE OF THE APPEAL. 5. PER CONTRA, THE REVENUE SUPPORTS THE IMPUGNED O RDER OF THE CIT. 6. WE HAVE HEARD BOTH PARTIES AT LENGTH AND PERUSE D THE ORDER OF CIT IN QUESTION. THE ISSUE BEFORE US IS AS TO WHETHER THE ASSESSEE IS ENTITLED FOR I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1886 886886 886/M/ /M/ /M/ /M/10 1010 10 3 APPROVAL UNDER SECTION 80G OF THE ACT. THERE IS N O ISSUE BETWEEN THE PARTIES THAT THE ASSESSEE IS A REGISTERED TRUST U NDER SECTION 12AA OF THE ACT SINCE 23.12.2005. UNDISPUTEDLY, THE REVENUE I S ALSO NOT DISPUTING BY LEADING ANY COGENT EVIDENCE ABOUT MIS-UTILIZATION O F ANY FUND OR DONATION AT THE INSTANCE OF THE ASSESSEE. THE REVENUE IS ALSO N OT DISPUTING THAT IN THE LAST 4 ASSESSMENT YEARS; THERE IS NO ISSUE OF ANY A LLEGED MALPRACTICE ON BEHALF OF THE ASSESSEE SO FAR AS COMPLIANCE OF PROV ISIONS OF THE ACT IS CONCERNED. IN THIS MANNER, WE SEE NO REASON AS TO W HY THE ASSESSEES APPLICATION SEEKING RENEWAL OF APPROVAL UNDER SECTI ON 80G OF THE ACT SHOULD NOT BE ACCEPTED. THEREFORE, WE ALLOW THE INS TANT APPEAL FILED BY THE ASSESSEE AND GRANT IT APPROVAL UNDER SECTION 80G OF THE ACT. 7. CONSEQUENTLY, THE APPEAL STANDS ACCEPTED. ORDER PRONOUNCED ON THURSDAY, THE 21 ST OF FEBRUARY, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (S.S. GODARA) JUDICIAL MEMBER CHENNAI, DATED, THE 21.02.2013 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.