Glory of God's Ministry, CHENNAI V. ITO, Nagercoil

ITA 2164/CHNY/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2547 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-05-2013
• Assessment Year: misc
• Appeal Filed On: 30-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G K DHALL
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 80G; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER] I.T.A.NOS.2164 & 2165/MDS/2011 ASSESSMENT YEAR : N.A GLORY OF GODS MINISTRY C/O S. SRIDHAR, ADVOCATE NEW NO.14 OLD NO.82, FLAT NO.5 1 ST AVENUE, INDIRA NAGAR, ADYAR CHENNAI 600 020 VS THE INCOME TAX OFFICER WARD I(1) NAGERCOIL [PAN AABTG 4350 Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI G.K.DHALL, CIT/DR DATE OF HEARING : 02-05-2013 DATE OF PRONOUNCEMENT : 09-05-2013 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER THESE APPEALS FILED BY THE ASSESSEE ARE DIRECTE D AGAINST THE ORDERS DATED 7.10.2010 OF LD. CIT-I, MADURAI, R EJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRAT ION U/S 12AA OF THE ACT AND ALSO APPROVAL U/S 80G(5) OF THE ACT. 2. FACTS APROPOS ARE THAT ASSESSEE, A PUBLIC RELIGIOU S AND CHARITABLE TRUST, FILED ITS APPLICATION FOR GRANT O F REGISTRATION U/S 12AA OF THE ACT ON 26.4.2010. LD. CIT CALLED FOR REPORT S FROM LOWER I.T.A.NO.2164 & 2165/11 :- 2 -: AUTHORITIES FOR VERIFYING THE GENUINENESS AND CHARI TABLE NATURE OF THE ACTIVITIES. AS PER THE CIT, ASSESSEE WAS HAVING RECEIPTS FROM CHURCH ACTIVITY, BUT IT COULD NOT PRODUCE ANY DONATION REC EIPT, LIST OF DONORS ETC. FOR VERIFICATION. FURTHER, AS PER CIT, ASSE SSEE WAS HAVING WHICH WERE ADMIXTURE OF BOTH RELIGIOUS AND CHARITABLE AND COULD NOT FORM ANY CHARITABLE ACTIVITIES. THEREFORE, HE REJECTED THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. 3. AS CIT HAS REFUSED REGISTRATION TO THE TRUST, AS A COROLLARY TO THE SAME, HE REFUSED APPROVAL U/S 80G OF THE AC T ALSO TO THE TRUST. 4. NOW, BEFORE US, LD. A.R OF THE ASSESSEE ARGUED THAT OBJECTS, WHICH WERE ADMIXTURE OF BOTH RELIGIOUS AND CHARITAB LE CANNOT BE A GROUND FOR DENYING REGISTRATION U/S 12AA OF THE AC T. AT THE TIME OF GRANTING OF REGISTRATION U/S 12AA, LD. CIT HAS T O EXAMINE WHETHER THE TRUST IS GENUINE AND THE ACTIVITIES OF THE TRUS T ARE BEING CARRIED OUT AS PER THE OBJECTS OF THE TRUST. THOUGH THE TR UST WAS FORMED ONLY ON 28.11.2003, IT HAD BEGUN ITS ACTIVITIES IN ALL S ERIOUSNESS ONLY IN 2010. 5. PER CONTRA, LD. DR HAS SUPPORTED THE ORDER S OF THE LD. CIT. 6. WE HAVE PERUSED THE ORDERS OF LD. CIT AND HEARD TH E RIVAL SUBMISSIONS. LD. CITS FINDING WAS THAT OBJECTS OF THE ASSESSEE WERE I.T.A.NO.2164 & 2165/11 :- 3 -: ADMIXTURE OF RELIGIOUS AND CHARITABLE. IN VIEW OF THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF DY .DIT(E) VS ANJUMAN- E-KHYKHAH-E-AAM [2011] 49 DTR 262, A REGISTRATION S OUGHT CANNOT BE DENIED FOR THE REASON THAT OBJECTS WERE ADMIXTURE O F RELIGION AND CHARITY. SAME VIEW HAS BEEN REPORTED BY THE DECISI ON IN THE CASE OF CIT VS MISPTA PENTACOSTAL MISSION, MEERALU, IN TCA NO.648 OF 2011 DATED 6.2.2012. JUST BECAUSE DONATION RECEIPTS WER E NOT PRODUCED , WE CANNOT PRESUME THAT THE ACTIVITIES CARRIED ON WE RE NOT GENUINE. WE ARE, THEREFORE, OF THE OPINION THAT ASSESSEE HA S TO BE GIVEN ONE MORE OPPORTUNITY FOR FURNISHING DETAILS OF DONORS AND ALSO ITS EXPLANATION BEFORE THE LD. CIT. THEREFORE, WE SET ASIDE THE ORDERS OF LD. CIT AND REMIT THE ISSUE OF REGISTRATION U/S 12 AA AND APPROVAL U/S 80G(5) OF THE ACT TO HIM FOR CONSIDERATION AFRESH. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THURSDAY, THE 09 TH OF MAY, 2013, AT CHENNAI. SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER DATED: 09 TH MAY, 2013 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR