Yono Club Trust, Erode V. ACIT, Erode

ITA 2124/CHNY/2012

• Counselvise Citation: 212421714 RSA 2012
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 26-08-2013
• Assessment Year: misc
• Appeal Filed On: 26-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Assessee Lawyers: N C RAVIKRISHNAN
• Keywords: Charitable institution
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT AND SHRI S.S. GODARA, JUDICIAL MEMBER I.T.A. NO.2124/MDS/2012 YONO CLUB TRUST, 170/171, VIVEKANANDA SALAI, NARAYANAALASU, ERODE. PIN 638 001. PAN : AAATY2207P (APPELLANT ) V. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE I, ERODE. (RESPONDENT) ASSESSEE BY : SHRI NC RAVIKRISHNAN, ADVOCAT E DEPARTMENT BY : SHRI PB SEKARAN, CIT DATE OF HEARING : 26 AUG 2013 DATE OF PRONOUNCEMENT : 26 AUG 2013 O R D E R PER S.S. GODARA, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, COIMBA TORE, DATED 26.9.2012, PASSED IN CASE NO.1121/CIT-II/2011 -12 UNDER ITA 2124/MDS/2012 2 SEC.12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. A PERUSAL OF THE CASE FILE MAKES IT APPARENT TH AT THE GRIEVANCE OF THE ASSESSEE IN THE INSTANT CASE IS TH AT THE COMMISSIONER OF INCOME TAX HAS WRONGLY DISMISSED I TS APPLICATION SEEKING REGISTRATION UNDER SEC.12A OF T HE ACT. THE ASSESSEE CLAIMS ITSELF TO BE A CHARITABLE TRUST. I TS STATED OBJECTS CLAIMED ARE TO HELP AND DEVELOP THE GAME OF BADMIN TON SHUTTLE COCK WITHOUT PROFIT MOTIVE. THE CASE FILE REVEALS THAT THE ASSESSEE TRUST WAS CONSTITUTED VIDE A TRUST DEED DA TED 16.9.2008. THEREAFTER, ON 18.3.2010, IT CHOSE TO F ILE APPLICATION SEEKING REGISTRATION. IN PROCEEDINGS THEREOF, THE CIT SOUGHT COPY OF ASSESSEES RETURNS FOR THE THREE PRECEDING ASSESSMENT YEARS, TRUST DEED, DETAILS OF ITS ACTIVITIES, BANK STATEMENT AND DONATION RECEIPTS. AS PER THE ORDER UNDER CHALLENGE , THE ASSESSEE DID NOT APPEAR AND PRODUCE THE SAME DESPIT E OPPORTUNITIES GIVEN. THEREFORE, THE CIT HELD HIMSE LF WAS UNABLE TO VERIFY THE GENUINENESS OF THE ASSESSEES OBJECTS AND ACTIVITIES. ITA 2124/MDS/2012 3 ACCORDINGLY, HE DISMISSED THE APPLICATION, WHICH LE AVES THE ASSESSEE AGGRIEVED. 3. WE HAVE HEARD BOTH PARTIES. THE ASSESSEE REITE RATES THE GROUNDS AND PLEADS FOR ACCEPTANCE OF THE APPEAL ON THE ISSUE OF REGISTRATION WHICH IS OPPOSED BY THE REVEN UE. UNDISPUTEDLY, THE OBJECTS OF THE ASSESSEE ARE CLAIM ED TO PROMOTE TO HELP AND DEVELOP THE GAME OF BADMINTON SHUTTLE COCK WITHOUT PROFIT MOTIVE. ON A SPECIFIC QUERY BEING RAISED BY THE BENCH TO THE ASSESSEE AS TO WHETHER THE PROMOTION OF THE EVE NT IN QUESTION WAS FOR THE GENERAL PUBLIC OR ITS MEMBERS ONLY, THE RESPONSE IS THAT IT DOES NOT CATER THE GENERAL PUBL IC BUT CONFINES ONLY TO ITS MEMBERS. IN OUR VIEW, OFFERING OF THE SO CALLED SERVICE TO A PARTICULAR SECTION AS IN THE INSTANT C ASE TO MEMBERS OF THE ASSESSEE ORGANIZATION ONLY DOES NOT IN ANY W AY LEAD TO A CHARITABLE ACTIVITY FOR THE PURPOSE OF SEC.2(15) OF THE ACT. WE REITERATE THAT A CHARITABLE ACTIVITY CAN NOT BE CON FINED TO A PARTICULAR SECTION BUT FOR THE SOCIETY AT LARGE. I N VIEW OF THESE FACTS AND CIRCUMSTANCES, INSTEAD OF RESTORING THE I SSUE BACK TO ITA 2124/MDS/2012 4 THE FILE OF CIT, WE REJECT THE ASSESSEES CONTENTIO NS BY HOLDING THAT IT IS NOT ENGAGED IN ANY CHARITABLE ACTIVITY. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING ON MONDAY, THE 26 TH DAY OF AUGUST 2013 AT CHENNAI. SD/- SD/- ( DR. O.K. NARAYANAN ) ( S.S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED : 26 TH AUGUST 2013 JLS. C.C: APPELLANT/RESPONDENT/CIT/DR/G.FILE.