Rajasthan Rajput Samaj Chennai, CHENNAI V. DIT, CHENNAI

ITA 2011/CHNY/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52206 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-12-2011
• Assessment Year: 2010-2011
• Appeal Filed On: 26-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: LAKSHMICHAND NAHATA
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 2011/MDS.2010 ASSESSMENT YEAR : -- M/S. RAJASTHAN RAJPUT SAMAJ CHENNAI, 308, MINT STREET, PARK TOWN, CHENNAI-600 003. V. THE DIRECTOR OF INCOME-TAX (EXEMPTION), CHENNAI. [PAN: AAAAR8566K] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI LAKSHMICHAND NAHATA, CA RESPONDENT BY : SHRI SHAJI P. JACOB, SR.DR DATE OF HEARING : 22-12-2011 DATE OF PRONOUNCEMENT : 23-12-2011 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED DIRECTOR OF INCOME-TAX (EXEMPTIONS), CHENNAI IN DIT( E) NO. 2(1246)/09-10 DATED 29-09-2010 REFUSING TO GRANT THE ASSESSEE REGISTRAT ION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. I.T.A. NO. 2011/MDS/2010 2 2. SHRI LAKSHMICHAND NAHATA, CA REPRESENTED ON BEHA LF OF THE ASSESSEE AND SHRI SHAJI P. JACOB, LEARNED SR. DR REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE ASSESSEE IS A CHARITABLE TRUST WHICH HAD SOUGHT REGISTRATION UNDER SEC. 12AA OF THE ACT VIDE AN APPLICATION FOR REGISTRATION DATED 05-03-2010. IT WAS THE SUBMISSION THAT THE APPELLANT TRUST WAS FORMED BY A TRUST DEED DATED 25 -10-2000. IT WAS THE SUBMISSION THAT CERTAIN CLARIFICATIONS HAD BEEN SOU GHT FOR FROM THE APPELLANT BY THE LEARNED DIT AND THE SAME WAS ALSO SUBMITTED BEFORE THE LEARNED DIT. IT WAS THE SUBMISSION THAT THE APPLICATION FOR REGISTRATION WA S REJECTED ON THE GROUND THAT ONE OF THE CLAUSES IN THE TRUST DEED WHICH PERMITTED FO R CONDUCTING SHORT TOURS TO BE ARRANGED FOR THE SOCIETY MEMBERS TO ENJOY THE LEISU RE TIME HAD BEEN DELETED BUT THE SAME HAS NOT BEEN REGISTERED WITH THE REGISTRAR OF SOCIETIES AND THE ACKNOWLEDGEMENT OF THE SAME WAS NOT PRODUCED BEFORE THE LEARNED DIT. IT WAS THE FURTHER SUBMISSION THAT THE REGISTRATION WAS AL SO REJECTED ON THE GROUND THAT THE ASSESSEE TRUST WAS PROMOTING RELIGION AND WAS C LEARLY A RELIGIOUS ACTIVITY. THE LEARNED AUTHORISED REPRESENTATIVE PLACED BEFORE US THE COPIES OF THE INCOME & EXPENDITURE ACCOUNT FOR THE YEARS ENDED 31-03-2007, 31-03-2008 AND 31-03-2009. THE LEARNED AUTHORISED REPRESENTATIVE ALSO PLACED B EFORE US COPY OF THE RECEIPT ISSUED BY THE REGISTRAR OF SOCIETIES, NORTH CHENNAI IN K. 70065538 FOR THE ALTERATION OF THE SUB-REGULATION WHEREBY THE CLAUSE RELATING T O THE SHORT TOURS BY THE MEMBERS OF THE SOCIETY TRUST HAD BEEN DELETED. IT WAS THE SUBMISSION THAT A I.T.A. NO. 2011/MDS/2010 3 PERUSAL OF THE INCOME & EXPENDITURE ACCOUNT CLEARLY SHOWED THAT NO RELIGIOUS ACTIVITY WAS CONDUCTED BY THE ASSESSEE. IT WAS THE FURTHER SUBMISSION THAT THE EXPENSES WERE MORE IN THE NATURE OF BLOOD DONATION CAMP EXPENDITURE, POOR STUDENT HELP (NOTE BOOK AND DRESS) EXPENDITURE ETC. IT WAS THE SUBMISSION THAT THE ASSESSEE MAY BE GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT. 4. IN REPLY, THE LEARNED DR VEHEMENTLY SUPPORTED TH E ORDER OF THE LEARNED DIT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A P ERUSAL OF THE INCOME & EXPENDITURE ACCOUNT IN THE PRESENT CASE CLEARLY SHOW S THAT THE TOTAL SUBSCRIPTION DURING THE YEAR IS VARYING BETWEEN ` 4,000/- AND ` 5,000/-. IT IS ONLY IN THE YEAR ENDED 31-03-2009 THAT THE ASSESSEE HAS RECEIVED A D ONATION OF ` 93,200/-. A PERUSAL OF THE INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31.3.2008 CLEARLY SHOWS THAT SUBSTANTIAL PORTION OF THE EXPENDITURE H AD BEEN INCURRED TOWARDS BLOOD DONATION CAMP AND POOR STUDENT HELP. NO EXPENDITUR E HAS BEEN INCURRED TOWARDS RELIGIOUS ACTIVITIES. EVEN OTHERWISE, HAVING RELIGI OUS OBJECTS BY ITSELF DOES NOT BAR THE TRUST FROM BEING RECOGNIZED AS PUBLIC CHARITABL E TRUST INSOFAR AS UNDER THE PROVISIONS OF SECTION 80G OF THE ACT ITSELF 5% OF T HE TOTAL RECEIPTS IS HELD TO BE PERMISSIBLE FOR EXPENDITURE TOWARDS RELIGIOUS ACTIV ITIES. FURTHER THE ASSESSEE HAS ALSO PLACED BEFORE US COPY OF THE RESOLUTION DELETI NG THE CLAUSE IN RESPECT OF THE SHORT TOURS FOR THE BENEFIT OF THE SOCIETY MEMBERS AS ALSO THE COPY OF THE ACKNOWLEDGEMENT OF HAVING FILED THE SAME BEFORE THE REGISTRAR OF SOCIETIES. IN THE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ASSESSEE MAY BE GRANTED THE BENEFIT OF I.T.A. NO. 2011/MDS/2010 4 REGISTRATION UNDER SECTION 12AA. IN THE CIRCUMSTAN CES, THE LEARNED DIT IS DIRECTED TO REGISTER THE ASSESSEE AS A CHARITABLE TRUST U/S 12AA OF THE INCOME TAX ACT, 1961. IN THE CIRCUMSTANCES, THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. THE ORDER WAS PRONOUNCED IN THE COURT ON 23/12/2 011. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 23 RD DECEMBER, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE