M/s. Hare Krishna Movement, Bangalore V. CIT, Salem

ITA 2056/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73667 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-01-2014
• Assessment Year: misc
• Appeal Filed On: 25-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM
• Assessee Lawyers: S RAMASUBRAMANIAN
• Keywords: Gift
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ! '# $ , % & BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO. 2056/MDS/2013 M/S. HARE KRISHNA MOVEMENT, DHARMAPURI, RADHAE KRISHNA BRINDAVANAM, NO.1-367, HOGGENAKAL ROAD ATTUKARANPATTI VILLAGE, ADAKKAPPADI, DHARMAPURI-636 809. VS. COMMISSIONER OF INCOME TAX, 3, GANDHI ROAD, SALEM. PAN AABTH0489D ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S.RAMASUBRAMANIAN, CA /RESPONDENT BY : MR. GURU BHASHYAM, JCIT / DATE OF HEARING : 30 TH JANUARY, 2014 /DATE OF PRONOUNCEMENT : 4 TH FEBRUARY, 2014 ' / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX, SALEM DATED 30.09. 2013 REFUSING TO GRANT REGISTRATION UNDER SECTION 12AA O F THE ACT. 2. COUNSEL FOR THE ASSESSEE SUBMITS THAT COMMISSION ER OF INCOME TAX REFUSED REGISTRATION FOR THE REASON THAT ASSESSEE ITA NO.2056/MDS/2013 2 HAS TAKEN OVER THE RECEIPTS, LETTERS OF DONORS, AND GIFTS IN THE FORM OF LAND TO THE CORPUS OF THE TRUST ONLY ON 26. 05.2011, WHEN THE GIFT DEEDS ARE REGISTERED ON 4.2.2010 ITSE LF. HE ALSO SUBMITS THAT THE COMMISSIONER OF INCOME TAX DENIED EXEMPTION ON THE GROUND THAT ASSESSEE HAS NOT CONDU CTED ANY CHARITABLE ACTIVITIES EXCEPT CONDUCTING POOJAS OF THE PRESIDING DEITIES AND DISTRIBUTING PRASADAM TO DEVO TEES. THE COUNSEL SUBMITS THAT COMMISSIONER OF INCOME TAX IS NOT JUSTIFIED IN DENYING REGISTRATION UNDER SECTION 12A A OF THE ACT WHEN THE ASSESSEE TRUST IS A GENUINE TRUST AND THE ACTIVITIES ARE GENUINE SIMPLY BECAUSE CORPUS DONATIONS WERE TA KEN OVER LATER THOUGH THEY WERE REGISTERED IN THE TRUST S NAME EARLIER, REGISTRATION CANNOT BE DENIED ON THAT GRO UND. 3. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX IN REFUSING REGISTRA TION. 4. HEARD BOTH SIDES. PERUSED THE ORDER OF THE COMMISSIONER OF INCOME TAX. WE FIND FROM THE IMPUGN ED ORDER THAT COMMISSIONER OF INCOME TAX DID NOT GRANT ITA NO.2056/MDS/2013 3 REGISTRATION MAINLY ON THE GROUND THAT THERE WAS DE LAY IN TAKING OVER POSSESSION OF CORPUS OF THE TRUST WITH LAND AND THEREFORE ACCOUNTS AND ACTIVITIES ARE NOT CLEAR. TH E COMMISSIONER OF INCOME TAX WAS ALSO OF THE VIEW THA T ASSESSEE HAS NOT CONDUCTED ANY CHARITABLE ACTIVITIE S AND IT HAS NOT DISCHARGED ONUS OF PROVING CHARITABLE NATUR E OF OBJECTS AND GENUINENESS OF ACTIVITIES CARRIED OUT. THE ASSESSEE TRUST WAS FORMED ON 18.01.2010 BY DEED OF DECLARATION EXECUTED BY INTERNATIONAL SOCIETY FOR K RISHNA CONSCIOUSNESS, BANGALORE. THE OBJECTS OF THE SOCIET Y ARE BRIEFLY AS UNDER:- I) TO ADVANCE TRANSMIT AND SPREAD THE ETHICAL AND PHILOSOPHICAL PRINCIPLES OF KRISHNA CONSCIOUSNESS AS REVEALED IN THE TEACHINGS OF BHAGVAD GITA AND SRIMAD BHAGAVATAM AND THE DOCTRINES AND THE OBSERVANCES WHICH SERVE TO PROMOTE AND MANIFEST THE SAID ETHICAL AND PHILOSOPHICAL PRINCIPLES AND IN FURTHERANCE OF THIS OBJECT. II) TO ENGAGE IN PROVIDING EDUCATION FOR PROMOT ION OF MORAL, SOCIAL, CULTURAL, ECONOMIC VALUES OF SOCIETY/PUBLIC AT LARGE AND IN FURTHERANCE OF THIS OBJECT. III) TO ENGAGE IN PROVIDING MEDICAL RELIEF FOR GENERAL HEALTH OF THE MEMBERS OF SOCIETY/PUBLIC AT LARGE AND IN FURTHERANCE OF THIS OBJECT. ITA NO.2056/MDS/2013 4 IV) TO ENGAGE IN PROVIDING RELIEF TO THE POOR AND IN FURTHERANCE OF THIS OBJECT. V) TO ENGAGE IN OTHER OBJECTS OF GENERAL PUBLI C UTILITY NECESSARY AND INCIDENTAL FOR THE PURPOSE OF ATTAINMENT OF THE ABOVE MENTIONED OBJECTS AND IN FURTHERANCE OF THIS OBJECT. VI) TO ENGAGE IN ANY BUSINESS ACTIVITY INSOFAR AS IT IS NECESSARY AND INCIDENTAL AND SUPPORTIVE TO THE ATTAINMENT OF ABOVE OBJECTS OF THE TRUST AND IN SUCH EVENT, SEPARATE BOOKS OF ACCOUNT SHALL BE MAINTAINED. 5. THE ASSESSEE HAS APPLIED FOR REGISTRATION O N 11.03.2013. THE COMMISSIONER OF INCOME TAXS OBSERV ATION THAT ACCOUNTS AND ACTIVITIES OF THE TRUST ARE NOT C LEAR BECAUSE TRUST HAS TAKEN OUT CORPUS DONATION ON 26.5.2011 TH OUGH THEY WERE REGISTERED ON 4.2.2010 ITSELF, APPEARS TO BE N OT CORRECT IN REJECTING THE CLAIM FOR REGISTRATION UNDER SECTI ON 12AA OF THE ACT. WE DO NOT FIND ANY GOOD REASON FOR DENYING REGISTRATION. THE COMMISSIONER OF INCOME TAX SHOULD HAVE EXAMINED THE OBJECTS OF THE TRUST WHETHER THEY ARE CHARITABLE AND GENUINE FOR GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT INSTEAD OF REJECTING REGISTRATION ON THE GR OUND THAT NO CHARITABLE ACTIVITIES WERE CONDUCTED EXCEPT CONDUCT ING POOJAS ITA NO.2056/MDS/2013 5 OF PRESIDING DEITIES AND DISTRIBUTING PRASADAM TO D EVOTEES. WE DO NOT FIND THESE ARE JUSTIFIABLE REASONS FOR RE JECTING REGISTRATION UNDER SECTION 12AA OF THE ACT WHEN THE ASSESSEE TRUST IS FORMED FOR CHARITABLE ACTIVITIES AND THE G ENUINENESS OF THE TRUST IS NOT DOUBTED. IN THE CIRCUMSTANCES, WE DIRECT THE COMMISSIONER OF INCOME TAX TO GRANT REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, THE 4 TH DAY OF FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) (CHALLA NAGEN DRA PRASAD) ACCOUNTANT MEMBER JUDI CIAL MEMBER CHENNAI, DATED THE 4 TH FEBRUARY, 2014. SOMU COPY TO: (1) APPELLANT (4) CIT (A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.