Rejoice Ministries, CHENNAI V. ITO, Coimbatore

ITA 1938/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95836 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 23-07-2015
• Assessment Year: misc
• Appeal Filed On: 14-07-2014
• Court: TRIBUNAL
• Department Lawyers: P B SEKARANCIT
• Assessee Lawyers: A S SRIRAMAN
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , ! , ' #$ % , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO.1938 /MDS./2014 M/S.REJOICE MINISTRIES , NO.7-189A,MANIYAKARAMPALAYAM, IDIKARAI, COIMBATORE. 641 022 VS. INCOME TAX OFFICER, COMPANY WARD-I, COIMBATORE. PAN AACTR 2252 D ( () / APPELLANT ) ( %*() / RESPONDENT ) / APPELLANT BY : MR.A.S.SRIRAMAN,ADVOCATE / RESPONDENT BY : MR.P.B.SEKARAN,CIT, D.R / DATE OF HEARING : 23.07.2015 /DATE OF PRONOUNCEMENT : 12.08.2015 + / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER:- THIS APPEAL IS FILED BY THE ASSESSEE, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-1, COIMBATORE DATED 19.0 3.2014 IN C.NO.127(481)/CIT-1:CBE/2013-14 WHEREIN THE LD.CIT- I REJECTED THE ITA NO.1938 /MDS/2015 2 APPLICATION FILED BY THE ASSESSEE TRUST SEEKING REG ISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE AGGRIEVED BY THE ORDER OF THE CIT- 1 HAS RAISED TEN ELABORATE GROUNDS BEFORE US; HOWEVER, THE CRUX OF THE ISSUE IS THAT THE ASSESSEE TRUST IS AGGRIEVED BY THE ORDER O F THE LD. CIT WHO HAD REFUSED TO GRANT REGISTRATION UNDER SECTION 12A A OF THE ACT. 3. ON PERUSING THE APPEAL, WE FIND THAT THE ASSES SEE HAD FILED THE APPEAL WITH DELAY OF 57 DAYS. THE LEARNED COUNSEL F OR THE ASSESSEE HAS SUBMITTED A PETITION DATED 14.07.2015 SEEKING C ONDONATION OF DELAY. AFTER CONSIDERING THE SAME, WE HEREBY CONDON E THE DELAY OF 57 DAYS IN FILING THE APPEAL. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A TRUST, CONSTITUTED BY A TRUST DEED DATED 12.08.2013, FILED ITS APPLICATION ON 06.09.2013 SEEKING REGISTRATION U/S. 12AA OF THE AC T. AFTER ANALYZING THE RELEVANT DOCUMENTS FURNISHED BY ASSESSEE-TRUST, THE LD. CIT OBSERVED THAT THE ASSESSEE TRUST HAD NOT CARRIED OU T ANY SUBSTANTIAL CHARITABLE ACTIVITY IN FURTHERANCE OF THE OBJECTS O F THE TRUST AND ALSO ITA NO.1938 /MDS/2015 3 GENUINENESS OF ACTIVITIES IS NOT YET ESTABLISHED AN D THEREFORE, HE REFUSED TO GRANT REGISTRATION TO THE ASSESSEE TRUST U/S.12AA OF THE ACT. 5. BEFORE US, LD. A.R. ARGUED THAT, AT THE TIME OF GRANTING REGISTRATION U/S. 12AA OF THE ACT, ONLY THE OBJECTS OF THE TRUST HAD TO BE LOOKED INTO AS HELD BY THE DECISION OF VARIOUS HIGHER JUDI CIARIES. FURTHER, IT WAS A SETTLED ISSUE THAT MIXED OBJECTS CONSISTING O F CHARITABLE AND RELIGIOUS ACTIVITIES IS ALSO ENTITLED FOR REGISTRAT ION U/S.12AA OF THE ACT. IT WAS THEREFORE PRAYED THAT THE LD. CIT MAY BE DIR ECTED TO GRANT REGISTRATION U/S. 12AA OF THE ACT. ON THE OTHER HA ND, LD. D.R RELIED IN THE ORDER OF THE LD. CIT AND ARGUED IN SUPPORT OF T HE SAME. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS APPARENT FROM THE FACTS OF THE CASE THAT THE LD. CIT HAD REJECTED TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE BECAUSE THE ASSESSEE WAS YET TO COM MENCE ITS CHARITABLE ACTIVITIES AND THEREFORE, GENUINENESS OF THE ACTIVITIES COULD NOT BE ESTABLISHED. AT THE OUTSET, WE FIND NO JUST IFICATION IN THE ACTION OF THE LD. CIT FOR REFUSING TO GRANT REGISTRATION U /S.12AA OF THE ACT ON ITA NO.1938 /MDS/2015 4 THIS FLIMSY GROUND. THE ASSESSEE TRUST IS IN THE IN CUBATION STAGE, AND HAS NOT CARRIED OUT ITS OBJECTS AT THE TIME OF APPL ICATION SEEKING REGISTRATION U/S.12A OF THE ACT. ONLY AFTER GETTING RECOGNITION OF THE ACT, THE ASSESSEE TRUST WILL BE ABLE TO SERIOUSLY P URSUE ITS OBJECTS. FURTHER ON PERUSING THE OBJECTS OF THE TRUST, WE FI ND THAT THEY ARE BOTH RELIGIOUS AND CHARITABLE IN NATURE BECAUSE THE OBJE CTS OF THE TRUST PROVIDES AS FOLLOWS:- OBJECTS OF TH TRUST THE MAIN OBJECT OF CONDUCTING MISSIONARY ACTIVITIES LIKE REGULAR WORSHIP SERVICE, GOSPEL MEETINGS, REVIVAL MEETINGS, BIBLE STUDY, PAS TOR ORDINATION FREE MARRIAGE AND PRAYER MEETINGS TO PROMOTE KNOWLEDGE O F CHRISTIAN LOVE AMONG PUBLIC AND TO SUPPORT POOR, WIDOWS, ETC. GOSPEL MINISTRIES A) TO ESTABLISH CHURCHES AND PRAYER CENTERS. B) TO CONDUCT GOSPEL WORK AND CONDUCT WORSHIP SERVI CES. C) TO PUBLISH AND DISTRIBUTE BOOKS, PERIODICALS, LI TERATURE, MAGAZINES, TRACTS AND CASSETTES, CONNECTED WITH CHRISTIANITY AND BIBLE. D) TO CONDUCT CHRISTIAN AUDIOVISUAL PROGRAMMES AND TO PROMOTE GOSPEL AWARENESS THROUGH AUDIO/VISUAL AND LEGAL BROADCASTS WHETHER BY RADIO, TELEVISION OR OTHERWISE. CHILDREN MINISTRIES TO GIVE HELP TO THE DESERVING CHILDREN FIR BETTER E DUCATION FROM TL PRIMARY LEVEL ONWARDS,CLASSES AND ENTERTAINMENT, CLASSES ETC., CONFERENCE MINISTRIES A) TO CONDUCT BIBLE RESEARCH METING. B) TO ARRANGE CHRISTIAN CONVENTIONS, MEETINGS, CAMP S, DISCUSSIONS AND TRAINING PROGRAMMERS. C) TO ESTABLISH HOW TO OBTAIN YOUTH FELLOWSHIP. MINITRY OF EVANGELISM ITA NO.1938 /MDS/2015 5 PERSONAL EVANGELISM, SEMINARS, SMALL AND LARGE MEET INGS, CRUSADES, SUPPORTING AND ENCOURAGING MINISTERS AND MINISTRIES WITH THE S AME VERSION OF THIS TRUST, SENDING MISSIONARIES IN AND OUTSIDE INDIA. LITEREATURE MINISTRY THE TRUST AIMS AT THE SETTING UP OF A PRINTING AND PUBLISHING HOUSE, BOOK SHOPS AND LIBRARIES, PUBLISHING BOOK AND OTHER WRITERS IN DIFFERENT LANGUAGE, MAGAZINES, BROCHURES, BOOKLETS AND PUBLICITY ITEMS FOR THE FUR THERANCE OF ITS OBJECTS. OTHER ACTVITIES A) TO ESTABLISH, PROMOTE, SET-UP, RUN, MAINTAIN, AS SIST, FINANCE OR TO HELP IN THE SETTING UP, MAINTAINING AND RUNNING OF OLD AGE HOME S B) TO CONSTRUCT PRIMARY HEALTH CENTRE C) TO RENDER ANY SOCIAL, MORAL AND FINANCIAL ASSIST ANCE FOR THE BETTERMENT OF THE LIFE OF ANY OLD POOR PEOPLE INDIGENT AND OTHER DESE RVING PERSONS BY PROVIDING FOOD, SHELTER PERIODICAL DISTRIBUTION OF MONEY, CLO THING, MEDICINE AND OTHER NECESSITIES FROM TIME TO TIME. D) TO PROVIDE PROPER CARE, SHELTER AND NOURISHMENT TO THE ORPHANS. E) TO PROVIDE A GOOD EDUCATION FOR THE ORPHAN CHILD REN F) TO GIVE, PROVIDE, BENDER HELP ASSISTANCE IN CASH OR KIND TO POOR DESTITUTE, WIDOWS ETC., G) TO PROVIDE FOOD, MEDICINE AND OTHER HELP AND ASS ISTANCE OF ANY SHAPE OF FORM TO THE POOR DESERVING AND NEEDY PERSONS. H) TO PROVIDE MEDICAL CARE FOR THE ORPHAN & OLD AGE D PEOPLE. I) TO GIVE, PROVIDE, RENDER HELP AND ASSISTANCE IN CASH OR KIND TO POOR. J) TO ESTABLISH CONTRIBUTE TO EDUCATIONAL AND CULTU RAL INSTITUTIONS COLLEGES, SCHOOLSLIBRARIES AND READING ROOMS ETC., K) TO SUPPORT THE TRIBAL AND WORK TOWARDS TRIBAL WE LFARE. L) TO ESTABLISH PROMOTE, SET-UP RUN, MAINTAIN ASSIS T FINANCE AND TO HELP IN THE SETTING UP MAINTAINING AND RUNNING ORPHANAGES, WIDO W HOMES, POOR HOMES, AND OTHER ESTABLISHMENT FOR THE RELIEF AND HELP FOR THE POOR, OLD AND DESTITUTE AND TRAINING PROGRAMMES FOR YOUTH SOCIAL DEVELOPMENT, C OMMUNITY DEVELOPMENT. ITA NO.1938 /MDS/2015 6 M) TO SUPPORT AND MAINTAIN SUCH INSTITUTIONS AND ES TABLISHMENT DOING GOSPEL WORK AND RELIGIOUS ACTIVITIES N) TO ESTABLISH, PROMOTE, SET-UP, RUN, MAINTAIN, AS SIST, FINANCE OR TO HELP IN THE SETTING UP, MAINTAINING AND RUNNING OF ORPHANAGES, WIDOW HOMES, HOME FOR HIV/AIDS PERSONS, LEPROSY HOME AND OTHER SUCH ESTAB LISHMENTS FOR THE RELIEF AND HELP OF THE POOR, OLD AND DESTITUTE. O) TO HELP PEOPLE AFFECTED BY NATURAL CALAMITIES. P) TO THE TALENTED YOUNGSTERS WITH THEIR EDUCATION AND EMPLOYMENT Q) TO IMPLEMENT AWARENESS PROGRAMMES, DRIVES OR MED ICAL CAMPS AND RURAL DEVELOPMENT PROGRAMMES. R) TO GIVE, PROVIDE AND RENDER HELP AND ASSISTANCE, TO IMPLEMENT ANY SCHEME FOR PROVIDING LIVELIHOOD AND UPLIFTMENT FOR THE POOR. S) TO APPLY FOR ALL KINDS OF GRANTS THROUGH TAMIL N ADU STATE SOCIAL WELFARE BOARD AND CENTRAL SOCIAL WELFARE BOARD. T) .TO ACQUIRE IMMOVABLE PROPERTIES BY PURCHASE LEA SE, HIRE EXCHANGE OR OTHERWISE AND TO BUILD, ERECT, ALTER AND MAINTAIN B UILDINGS FOR CARRYING OUT THE ACTIVITIES OF THE TRUST. U) TO PROVIDE FOOD, MEDICINE AND OTHER HELP AND ASS ISTANCE OF ANY SHAPE OR FORM TO THE POOR, DESERVING AND NEEDY PERSONS. V) TO ARRANGE FOR BLOOD AND EYE DONATIONS AND OTHER RELEVANT PROGRAMMES. W) TO OFFER ASSISTANCE AND HELP TO CHARITABLE OR ED UCATIONAL TRUSTS WITH SIMILAR OBJECTIVES. X) TO UNDERTAKE ANY SUCH OTHER, ACTIVITIES AS MAY B E NECESSARY FOR THE PROMOTION OF THE OBJECTS OF THE TRUST. FOR THE REMOVAL OF DOU BTS, IT IS HEREBY DECLARED THAT ALL THE OBJECTS OF THE TRUST WILL BE CARRIED OUT WITHOU T ANY MOTIVE OF PROFIT. THEREFORE WE ARE OF THE CONSIDERED VIEW THAT THE TR UST DESERVES TO BE GRANTED REGISTRATION U/S.12AA OF THE ACT. UNLESS T HE REGISTRATION IS GRANTED TO THE ASSESSEE TRUST, IT WOULD BE DIFFICUL T FOR THE ASSESSEE ITA NO.1938 /MDS/2015 7 TRUST TO PURSUE ITS OBJECTS. THEREFORE, IT IS THE PRIMARY DUTY OF THE LD. CIT TO GRANTS REGISTRATION U/S.12AA OF THE ACT AFTE R EXAMINING THE OBJECTS AND GENUINENESS OF THE TRUST. IN THIS CASE BEFORE US THERE IS NOTHING ADVERSE TO SUGGEST THE GENUINESS OF THE TRU ST OR ITS OBJECTS. CONSIDERING THE FACTS AND CIRCUMSTANCE OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT THE LD. CIT OUGHT TO HAVE GRAN TED REGISTRATION WHEN THE ASSESSEE HAS CATEGORICALLY EXPLAINED THE C AUSE OF DELAY IN CONDUCTING THE ACTIVITIES OF THE TRUST. THEREFORE W E HEREBY DIRECT THE LD.CIT TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE TRUST, NEEDLESS TO MENTION THAT AT THE TIME OF ASSE SSMENT THE LD.A.O SHALL BE AT LIBERTY TO WITHDRAW THE BENEFITS IF THE TRUST HAS VIOLATED ANY OF THE PROVISIONS OF THE ACT. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON 12 TH AUGUST, 2015 AT CHENNAI. SD/- SD/- ( ' #$ % ) ((CHALLA NAGENDRA PRASAD) ( . ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 12 TH AUGUST, 2015. K S SUNDARAM. ITA NO.1938 /MDS/2015 8 !!'#$!%$ /COPY TO: ! 1. /APPELLANT 2. /RESPONDENT 3. ! &!'( /CIT(A) 4. ! & /CIT 5. $) *!''+, /DR 6. * -.!/ /GF