M/s. Sri Dharma Sastha Educational and Charitable Trust, Salem V. The Joint CIT, Salem

ITA 2075/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73667 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 27-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: CA D ANANDHAAN; CA S P RAMKUMAR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! , ' # $ BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ I.T.A. NO. 2075/MDS/2013 M/S. SRI DHARMA SASTHA EDUCATIONAL AND CHARITABLE TRUST, ACHARYA POLYTECHNIC COLLEGE CAMPUS, POOLAMPATTY MAIN ROAD, VELLARI VELLI 637 101 EDAPPADI TK, SALEM DT. [PAN: AAHTS 5750 L] ( !% /APPELLANT) VS COMMISSIONER OF INCOME TAX SALEM ( &'!% /RESPONDENT) / APPELLANT BY : SHRI CA.S.P.RAMKUMAR, FCA & SHRI CA.D.ANANDHAAN, FCA / RESPONDENT BY : SHRI ANIRUDH RAI , CIT / DATE OF HEARING : 04-02-2014 /DATE OF PRONOUNCEMENT : 04-02-2014 #( / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX, SALEM DATED 27-09-20 13. I.T.A. NO. 2075/MDS/2013 2 2. THE ASSESSEE-TRUST CAME INTO EXISTENCE ON 04-07- 2005, WITH THE OBJECT OF PROVIDING EDUCATION. THE ASSESSEE FIL ED AN APPLICATION FOR GRANT OF REGISTRATION U/S.12AA OF T HE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) O N 28-03-2013. THE COMMISSIONER OF INCOME TAX, VIDE IMPUGNED ORDER REF USED TO GRANT REGISTRATION TO THE ASSESSEE U/S.12AA FOR THE REASON THAT THE ASSESSEE IS NOT CARRYING ON ANY CHARITABLE ACTIVITY . THE COMMISSIONER OF INCOME TAX FURTHER OBSERVED THAT TH E ASSESSEE HAS ALSO NOT COMPLIED WITH THE MANDATORY REQUIREMEN TS UNDER THE PROVISIONS OF RIGHT OF CHILDREN TO FREE AND COMPULS ORY EDUCATION ACT, 2009 [IN SHORT RTE ACT]. AGGRIEVED AGAINST THIS ORDER OF THE COMMISSIONER O F INCOME TAX, THE ASSESSEE HAS COME IN AN APPEAL BEFORE THE TRIBUNAL. 3. SHRI S.P.RAMKUMAR, CA APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT, THE ASSESSEE-TRUST IS RUNN ING AND MANAGING EDUCATIONAL INSTITUTIONS. SECTION 2(15) O F THE ACT DEFINES THE TERM CHARITABLE PURPOSE WHICH INCLUDES EDUCA TION. THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATI ON UNDER THE PROVISIONS OF SECTION 12AA WAS REJECTED. THE LD.AR FURTHER SUBMITTED THAT IN THE STATE OF TAMIL NADU, THE RTE ACT HAS COME IN FORCE W.E.F. 01-04-2013. THE APPLICATION FOR GRANT OF REGISTRATION I.T.A. NO. 2075/MDS/2013 3 WAS MADE TO THE COMMISSIONER OF INCOME TAX PRIOR TO THE ENFORCEMENT OF ACT IN THE STATE, THEREFORE, THERE W AS NO QUESTION OF COMPLYING WITH THE PROVISIONS UNDER RTE ACT. NO W, THE ASSESSEE HAS FILED RETURN IN THE PRESCRIBED FORM UN DER RTE ACT ON 26-09-2013. 4. ON THE OTHER HAND, SHRI ANIRUDH RAI, APPEARING O N BEHALF OF THE REVENUE SUBMITTED THAT THE COMMISSIONER OF INCO ME TAX HAD SOUGHT CERTAIN BASIC DETAILS FROM THE ASSESSEE ABOU T THE ACTIVITIES BEING CARRIED OUT BY THE ASSESSEE. THE ASSESSEE HA D FAILED TO SUPPLY THE SAME. THE LD.DR FURTHER SUBMITTED THAT NO WHERE BEFORE THE COMMISSIONER OF INCOME TAX, THE ASSESSEE HAS MENTIONED THAT IT IS CARRYING CHARITABLE ACTIVITIES . IT IS A WELL SETTLED LAW THAT IMPARTING EDUCATION PER SE IS NOT A CHARITABLE ACTIVITY. MOREOVER, THE ALLEGED RETURN FILED BY THE ASSESSEE UNDER THE RTE ACT WAS NOT AVAILABLE BEFORE THE COMMISSIONER OF IN COME TAX AT THE TIME OF PASSING OF THE IMPUGNED ORDER. 5. BOTH SIDES HEARD. WE HAVE ALSO PERUSED THE IMPU GNED ORDER. WE ARE OF THE CONSIDERED OPINION THAT THE A SSESSEE HAS NOT FURNISHED COMPLETE INFORMATION BEFORE THE COMMISSIO NER OF INCOME TAX. BEFORE US, THE AR HAS GIVEN CERTAIN DE TAILS OF THE I.T.A. NO. 2075/MDS/2013 4 STUDENTS AND THE FEE COLLECTED. WE ARE OF THE VIEW THAT FILE NEEDS REVISIT TO COMMISSIONER OF INCOME TAX. THE ASSESSE E IS DIRECTED TO PRODUCE ALL RELEVANT DETAILS AND DOCUMENTS BEFOR E COMMISSIONER OF INCOME TAX TO ENABLE HIM TO DECIDE THE APPLICATION OF THE ASSESSEE AGAIN. THE FILE IS REM ITTED BACK TO COMMISSIONER OF INCOME TAX FOR DECIDING THE APPLICA TION OF THE ASSESSEE AFRESH AFTER CONSIDERING THE RELEVANT DETA ILS AND DOCUMENTS SUBMITTED BY THE ASSESSEE. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY, THE 04 TH FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (V IKAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 04 TH FEBRUARY, 2014 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR