M/s. Shalem Mission Charitable Trust, CHENNAI V. ITO, Coimbatore

ITA 2120/CHNY/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68683 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 26-08-2013
• Assessment Year: misc
• Appeal Filed On: 26-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN I RS
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 80G; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.2120(MDS)/2012 M/S.SHALEM MISSION CHARITABLE TRUST, 2/407, AMMAN NAGAR-III, IDIGARAI MAIN ROAD, NGGO COLONY, COIMBATORE 641 022. PAN AAJTS9256R. VS. THE INCOME-TAX OFFICER, COMPANY WARD I, COIMBATORE. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.SRIDHAR , ADVOCATE RESPONDENT BY : SHRI P.B.SEKARAN, I RS, CIT DATE OF HEARING : 26 TH AUGUST, 2013 DATE OF PRONOUNCEMENT : 26 TH AUGUST, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX-I AT COIMBATORE, DATED 28-9-2012, REJECTING THE APPLI CATION PUT IN - - ITA 2120 OF 2012 2 BY THE ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G(5)(VI) OF THE INCOME-TAX ACT, 1961. 2. WHILE THE MATTER WAS PRESENTED BEFORE THE COMMISSIONER OF INCOME-TAX, THE ASSESSEE HAD PRODUC ED THE INCOME AND EXPENDITURE STATEMENT, BALANCE SHEET, AC COUNT OF ACTIVITIES CARRIED ON BY IT AND OTHER SUPPORTING DO CUMENTS. THE ASSESSEE-TRUST IS ENGAGED IN THE ACTIVITIES OF PROM OTING CHILD HEALTH, TOBACCO AWARENESS PROGRAMME, FREE EVENING T UITION TO POOR CHILDREN, ETC. THE TRUST IS HAVING A TIE UP W ITH A FOREIGN ORGANIZATION BY NAME VITAMIN ANGELS FOR SUPPLY OF V ITAMIN-A SUPPLEMENTS TO TARGETED GROUPS, FREE OF COST. 3. AFTER GOING THROUGH ALL THESE THINGS, THE COMMISSIONER OF INCOME-TAX HELD THAT THE ACTIVITIES CARRIED ON BY THE ASSESSEE-TRUST ARE MORE OF ENTERTAINMENT VALUE THAN OF CHARITY. HE HELD THAT THE PROGRAMMES CARRIED ON BY THE ASSESSEE-TRUST TOWARDS TOBACCO AWARENESS, EDUCATION OF STREET CHILDREN, ETC. ARE NOT OF CHARITABLE NATURE. HE AL SO DOUBTED WHETHER THE FOREIGN ORGANIZATION IS TRYING TO POPUL ARIZE ITS VITAMIN-A CAPSULES TO ULTIMATELY CAPTURE THE MARKET IN INDIA. THE COMMISSIONER OF INCOME-TAX ALSO FELT THAT THE ASSES SEE HAS NOT - - ITA 2120 OF 2012 3 PRODUCED ANY VERIFIABLE EVIDENCE, EXCEPT CERTAIN PH OTOGRAPHS. IT IS ON THE ABOVE GROUNDS THAT THE APPLICATION PUT IN BY THE ASSESSEE-TRUST WAS REJECTED BY THE COMMISSIONER OF INCOME-TAX. 4. WE HEARD SHRI S.SRIDHAR, THE LEARNED COUNSEL APPEARING FOR THE ASSESSEE AND SHRI P.B.SEKARAN, TH E LEARNED COMMISSIONER OF INCOME-TAX APPEARING FOR THE REVENU E. 5. THE ASSESSEE-TRUST IS ALREADY ENJOYING REGISTRA TION GRANTED UNDER SECTION 12AA OF THE ACT. THE GRANT O F REGISTRATION UNDER SECTION 12AA PRIMA FACIE ESTABLISHES THAT THE OBJECTS DECLARED BY THE ASSESSEE-TRUST ARE CHARITABLE IN NA TURE. IT IS AFTER MAKING NECESSARY ENQUIRIES THAT THE REGISTRATION UN DER SECTION 12AA COULD HAVE BEEN GRANTED TO THE ASSESSEE-TRUST. WHETHER THE ASSESSEE-TRUST IS ACTUALLY IMPLEMENTING SUCH OB JECTIVES IN THEIR LETTER AND SPIRIT, IS A MATTER TO BE EXAMINED BY THE ASSESSING OFFICER IN THE COURSE OF ASSESSMENT AND I N THE LIGHT OF THE PROVISIONS OF LAW STATED IN SECTIONS 11 AND 13 OF THE INCOME- TAX ACT, 1961. 6. THE OBJECTS OF THE ASSESSEE-TRUST, HAVING BEEN ONCE ACCEPTED FOR GRANTING REGISTRATION UNDER SECTI ON 12AA OF THE ACT, IT IS NOT FAIR TO BRUSH ASIDE THE APPLICAT ION PUT IN BY THE - - ITA 2120 OF 2012 4 ASSESSEE FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT WITHOUT STATING ANY COGENT REASON THERETO. WE DO N OT THINK THAT THE PROGRAMMES CARRIED OUT BY THE ASSESSEE-TRUST LI KE TOBACCO AWARENESS PROGRAMME, EVENING TUITION TO POOR CHILDR EN, SUPPLY OF VITAMIN-A SUPPLEMENTS TO POOR TARGETED GROUPS, E TC. ARE IN ANY WAY ENTERTAINMENT ACTIVITIES. THOSE ACTIVITIES ARE , IF CARRIED OUT PROPERLY, VERY MUCH CHARITABLE IN NATURE. THERE IS NO MATERIAL TO HOLD THAT THE FOREIGN COLLABORATOR VITAMIN ANGELS I S PROMOTING ANY MARKET INTEREST OF ANY FOREIGN INCUMBENT, WHICH IS ONLY AN INTELLIGENT DOUBT RAISED BY THE COMMISSIONER OF INC OME-TAX. 7. WE HAVE NO DOUBT THAT THE OBJECTIVES STATED BY THE ASSESSEE ARE LAUDABLE. REGISTRATION UNDER SECTION 12AA HAS ALREADY BEEN GRANTED. NO ADVERSE REPORT AGAINST TH E ASSESSEE- TRUST HAS BEEN PLACED ON RECORD EITHER AS A RESULT OF FIELD INVESTIGATION OR AS A RESULT OF ASSESSMENT PROCEEDI NGS. 8. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, WE FIND THAT THE COMMISSIONER OF INCOME-TAX H AS ERRED IN REJECTING THE APPLICATION PUT IN BY THE ASSESSEE-TR UST FOR GRANT OF APPROVAL UNDER SECTION 80G(5)(VI) OF THE ACT. WE D IRECT THE - - ITA 2120 OF 2012 5 COMMISSIONER OF INCOME-TAX TO GRANT THE APPROVAL AS PRAYED FOR BY THE ASSESSEE. 9. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 26 TH OF AUGUST, 2013 AT CHENNAI. SD/- SD/- (S.S.GODARA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 26 TH AUGUST, 2013. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.