Suraksha Society, Secunderabad V. DIT (Exemptions), Hyderabad, Hyderabad

ITA 1941/HYD/2014

• Counselvise Citation: 194122514 RSA 2014
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 19-08-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 29-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VENKAT REDDY
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NOS.1940 & 1941/HYD/2014 (ASSESSMENT YEARS 2014-15) SURAKSHA SOCIETY, HYDERABAD (PAN - AAGTS 6114 D ) V/S DY. DIRECTOR OF INCOME- TAX(EXEMPTION) II, HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.V.ANIL KUMAR RESPONDENT BY : SHRI T.VENKAT REDDY DR DATE OF HEARING 19. 08.2015 DATE OF PRONOUNCEMENT 11.09.2015 O R D E R PER B.RAMAKOTAIAH, ACCOUNTANT MEMBER : THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST A COMMON ORDER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION), HYDERABAD DATED 30.10.2014, WHEREBY THE APPLICATIONS OF THE ASSE SSEE IN FORM- 10A FOR GRANT OF REGISTRATION UNDER S.12AA AS WELL AS IN FORM 10G FOR GRANT OF APPROVAL UNDER S.80G(5)(VI) HAVE BEEN REJE CTED. 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE-SOCIETY HAS FILED AN APPLICATION IN FORM NO.10A ON 29.4.2014, SE EKING REGISTRATION UNDER S.12AA OF THE INCOME TAX ACT, 1961. IT HAS ALSO FILED AN APPLICATION IN FORM 10G FOR APPROVAL UNDER S.80G(5)( VI). IN RESPONSE TO THE QUESTIONNAIRE SENT TO THE ASSESSEE AND CLARIFYING O N VARIOUS POINTS RAISED, THE ASSESSEE VIDE ITS LETTER DATED 18.9.201 4 SUBMITTED THAT THE OBJECT OF THE SOCIETY IS TO IMPROVE THE WELL- BEING OF SEXUAL MINORITIES TO ACHIEVE A QUALITY OF LIFE WHICH WILL PRO MOTE A GENUINE SENSE OF INTEGRATION HARMONY AND INTERNATIONAL GOODWI LL. ASSESSEE ALSO FILED WRITTEN SUBMISSIONS BEFORE THE LEARNED DIRE CTOR OF INCOME- TAX(EXEMPTION), SETTING OUT THEREIN THE OBJECTIVES OF THE ASSESSEE ITA NO.1940-1941/HYD/2014 SURAKSHA SOCIETY, HYDERABAD 2 SOCIETY, WHICH, AS TAKEN FROM THE IMPUGNED ORDER OF THE DIRECTOR(EXEMPTION), ARE AS UNDER- (I) TO EMPOWER AND PROTECT THE RIGHTS OF SEXUAL MINORITIES AND PROMOTE THEIR SEXUAL HEALTH THROUGH BEHAVIOR CHANGE. (II) TO ADVANCE THE EDUCATION OF SEXUAL MINORITIES AND GENER AL EFFECTED PERSON AND GROUPS IN PARTICULAR. HAVING STI/HIV/AIDS THEIR TRANSMISSION TREATMENT AND CONSEQUENCES AND TO FOSTER THE DEVELOPMENT OF NON- JUDGMENTAL AND TOLERANT ATTITUDE FOR THOSE EFFECTED B Y STIS/HIV/AIDS. THE DIRECTOR OF INCOME-TAX(EXEMPTION), OBSERVING THAT THE ABOVE OBJECTIVES, IN HIS VIEW, CANNOT BE CONSIDERED AS COVERED U NDER CHARITABLE PURPOSES, HAVING REGARD TO THE MEANING OF CHARITABLE PURPOSE DEFINED IN S.2(15) OF THE ACT, HELD THAT THE ASSESSEE IS NOT ELIGIBLE FOR REGISTRATION UNDER S.12AA OF THE ACT, A ND CONSEQUENTLY, FOR APPROVAL UNDER S.80G(5)(VI) OF THE ACT. HE ACCORDINGLY REJECTED BOTH THE APPLICATIONS OF THE ASSESSEE FOR REGISTRATION UNDER S. 12AA AS WELL AS FOR APPROVAL UNDER S.80G(5)(VI) OF THE ACT. 3. AGGRIEVED BY THE ORDER OF THE DIRECTOR OF INCOME- TAX(EXEMPTION), ASSESSEE PREFERRED THESE APPEALS BEFORE US. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES. A PLAIN READING OF THE OBJECTIVES OF THE ASSESSEE SOCIETY MAKES IT CLEAR THAT THE ASSE SSEE SOCIETY WORKS FOR EMPOWERING AND PROTECTING SEXUAL MINOR ITIES AND IMPROVING LIVING CONDITIONS OF SUCH GROUPS AS WELL AS VICT IMS OF STIS/HIV/AIDS, BY GIVING MEDICAL RELIEF AND IMPARTING EDUCATION TO ITA NO.1940-1941/HYD/2014 SURAKSHA SOCIETY, HYDERABAD 3 SUCH SEXUAL MINORITIES. IT IS THE CONTENTION OF THE ASSESSEE BEFORE US THAT THE OBJECTS OF PROVIDING EDUCATION AND MEDIAL REL IEF CONSTITUTE CHARITABLE PURPOSE AS PER S.2(15) OR AT LEAST CONSTITUT E THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTIL ITY, SPECIFIED IN S.2(15) OF THE ACT. THE LEARNED DIRECTOR (EXEMPTION ) HAS NOT SPELT OUT HOW AND WHY SUCH ACTIVITIES OF THE ASSESSEE SOCIETY, AIM ED AT IMPROVING THE LIVING CONDITIONS OF A SECTION OF THE SOCIE TY, DO NOT CONSTITUTE CHARITABLE ACTIVITIES. IT IS NOT THAT THE ASSESSEE IS PROPAGATING THE SEXUAL ACTIVITIES, BUT WORKING FOR AME LIORATING THE HEALTH AND LIVING CONDITIONS OF THE VICTIMS OF SUCH ACTIV ITIES. WE ARE OF THE CONSIDERED OPINION, THAT THE ACTIVITIES OF THE ASSES SEE CLEARLY CONSTITUTE CHARITABLE ACTIVITIES WITHIN THE MEANING OF S .2(15), MAKING THE ASSESSEE ELIGIBLE FOR REGISTRATION UNDER S.12AA OF T HE ACT. WE ACCORDINGLY, SET ASIDE THE IMPUGNED ORDER OF THE DIRECT OR OF INCOME- TAX(EXEMPTION) AND RESTORE THE MATTER BACK TO HIS FILE WITH A DIRECTION TO GRANT REGISTRATION UNDER S.12AA AS WELL AS APPROVA L UNDER S.80G(5)(VI), IF OTHER CONDITIONS ARE SATISFIED. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 11 TH SEPTEMBER, 2015 SD/- SD/- (P.MADHAVI DEVI ) (B.RAMAKOTAIAH) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 11 TH SEPTEMBER, 2015 COPY FORWARDED TO: 1. SURAKSHA SOCIETY, C/O. M/S. ANANDAM & CO., CHARTER ED ACCOUNTANTS 7A, SURYA TOWERS, S.P. ROAD, SECUNDERABAD 500 003. 2. DY. DIRECTOR OF INCOME-TAX(EXEMPTION) II, HYDERABAD ITA NO.1940-1941/HYD/2014 SURAKSHA SOCIETY, HYDERABAD 4 3. DIRECTOR OF INCOME-TAX(EXEMPTION), HYDERABAD 4. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.