AIMO (TNSB) Industrial & Development Trust, CHENNAI V. DIT, CHENNAI

ITA 1916/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5264 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-04-2011
• Assessment Year: misc
• Appeal Filed On: 11-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TAPAS KUMAR DUTTA
• Assessee Lawyers: LAKSHMICHAND NAHATA
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH C : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO. 1916/MDS/2010 ASSESSMENT YEAR : N.A AIMO(TNSB) INDUSTRIAL RESEARCH & DEVELOPMENT TRUST ROUND TABLE HOUSE, 2 ND FLOOR 80/69 NUNGAMBAKKAM HIGH ROAD CHENNAI 34 VS THE DIT(EXEMPTION) CHENNAI-34 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI LAKSHMICHAND NAHATA RESPONDENT BY : SHRI TAPAS KUMAR DUTTA O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE-TRUST IS DIRECTED AGA INST THE ORDER OF THE DIT(E), DATED 8.12.2009, PASSED U/S 80G OF THE ACT 2. THE FACTS LEADING TO THIS APPEAL ARE THAT THE ASSES SEE-TRUST WAS CONSTITUTED BY A DEED DATED 26.2.1982. THE TRUST F ILED AN APPLICATION ON 26.3.2009 IN FORM NO.10G FOR RENEWAL OF EXEMPTIO N U/S 80G OF THE ACT. THE MAIN OBJECTS OF THE TRUST ARE TO PROMOTE THE INDUSTRIALIZATION OF THE COUNTRY, ENHANCE HEALTHY LABOUR MANAGEMENT R APPORT, TO DEVELOP CONSCIOUSNESS OF CONSTITUTION OF INDIA WITH SPECIAL REFERENCE ITA 1916/10 :- 2 -: TO INDUSTRY AND BUSINESS. THE INCOME OF THE TRUS T WAS FOUND TO BE FROM ALLOTMENT OF STALLS WHILE CONDUCTING EXHIBITIO NS, FEES COLLECTED FOR PARTICIPATING IN SEMINARS AND ALSO RECEIVING HALL R ENT. THE DIT(E) DID NOT CONSIDER THE ABOVE OBJECTS AND THE ACTIVITIES O F THE TRUST AS CHARITABLE IN NATURE IN VIEW OF THE AMENDED PROVISI ONS OF SECTION 2(15), RENDERING THE TRUST INELIGIBLE FOR EXEMPTIO N U/S 80G OF THE ACT. ON THAT BASIS, THE APPLICATION FILED IN FORM NO.10G FOR RENEWAL OF EXEMPTION U/S 80G OF THE ACT WAS REJECTED. NOW THE ASSESSEE-TRUST IS AGGRIEVED AND HAS PREFERRED THIS APPEAL. 3. IT WAS ARGUED THAT THE ASSESSEE-TRUST HAS BEEN REGI STERED U/S 12AA OF THE ACT BECAUSE ITS OBJECTS ARE FOUND TO BE CHARITABLE IN NATURE. ON THE OTHER HAND, THE LD.DR HAS SUPPORTED THE ORDER OF THE DIT(E). 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS IN THE LIGH T OF THE AVAILABLE EVIDENCE ON RECORD, WE FIND THAT THE ACTI VITIES OF THE TRUST ARE NOT STRUCK DOWN BY THE CHANGED DEFINITION OF CHARI TABLE ACTIVITIES U/S 2(15) OF THE ACT. THIS SECTION READS AS UNDER: DEFINITIONS. 2. IN THIS ACT, UNLESS THE CONTEXT OTHERWISE RE QUIRES, ( 15 ) 55 CHARITABLE PURPOSE 56 INCLUDES RELIEF OF THE POOR, EDUCATION 56 , MEDICAL RELIEF, 57 [ PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS, FORESTS AND WILD LIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST, ] AND THE ADVANCEMENT OF ANY OTHER 56 OBJECT OF GENERAL PUBLIC UTILITY: ITA 1916/10 :- 3 -: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PU RPOSE, IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS, OR ANY ACTIVITY OF REN DERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHER CONSIDERAT ION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, O R RETENTION, OF THE INCOME FROM SUCH ACTIVITY; ] 5. WITH REFERENCE TO THE ABOVE DEFINITION, WE ARE UNAB LE TO CULL OUT AS TO WHY THE DIT(E) HAS HELD THAT THE OBJECTS OF T HE TRUST DOES NOT FIT IN THE AMENDED DEFINITION OF SECTION 2(15) OF THE A CT . IN FACT, THE TRUST CONTINUES TO BE REGISTERED U/S 12AA OF THE ACT ON T HE BASIS OF SAME AND SIMILAR OBJECTS WHICH HAVE BEEN HELD BY THE DEP ARTMENT AS CHARITABLE IN NATURE. THEREFORE, IN OUR OPINION, W HEN THE ASSESSEE- TRUST STANDS REGISTERED U/S 12AA OF THE ACT, THE SA ME CANNOT BE REFUSED TO BE RECOGNIZED U/S 80G OF THE ACT. WE DI RECT THE DIT(E) TO GRANT RECOGNITION U/S 80G(5)(VI) OF THE ACT TO THE ASSESSEE-TRUST. 6. IN THE RESULT, THE APPEAL STANDS ALLOWED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 18.4. 2011 SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 18 TH APRIL, 2011 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR