Thiruvalluvar Ethics Educational Service Trust, Karaikal V. CIT, Trichy

ITA 2204/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0827 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 06-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA IRS
• Assessee Lawyers: N VIJAY KUMAR
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A.NO. 2204/MDS/2012 THIRUVALLUR ETHICS EDUCATIONAL SERVICE TRUST, FRENCH TEACHER STREET EXTN., KARAIKAL 609 602. CHENNAI 600 001. PAN AABTT1588K VS. THE COMMISSIONER OF INCOME-TAX-II, TIRUCHIRAPALLI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N. VIJAY KUMAR, CA RESPONDENT BY : DR. S.MOHARANA, IRS, CIT DATE OF HEARING : 12 TH FEBRUARY, 2013 DATE OF PRONOUNCEMENT : 12 TH FEBRUARY, 2013 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL I S DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX -II AT TIRUCHIRAPALLI, DATED 21.9.2012 REJECTING THE APPLI CATION FILED BY ITA 2204/12 :- 2 -: THE ASSESSEE FOR GRANT OF RENEWAL OF EXEMPTION UNDE R SEC.80G(5)(VI) OF THE INCOME-TAX ACT, 1961. 2. WE HEARD BOTH SIDES IN DETAIL. 3. THE COMMISSIONER OF INCOME-TAX, IN PARAGRAPH 2.1 OF HIS ORDER, HAS OBSERVED AS FOLLOWS : 2.1 IT IS SEEN FROM THE RECORDS THAT THE TRUST IS RUNNING IN THE NAME AND STYLE OF THIRUVALLUVAR TAMI L HIGH SCHOOL AT KARAIKAL. PERUSAL OF THE STATEMENT OF ACCOUNTS FILED ALONG WITH THE APPLICATION IN FORM NO.10G FOR THE YEARS ENDING 31.03.2008, 31.03.2009, 31.03.2010 & 31.03.2011 REVEALS THAT THE TRUST WAS IN RECEIPT OF DONATIONS, BANK INTEREST, ETC. THE EXPE NSES MOSTLY RELATE TO RUNNING OF THE SCHOOL APART FROM ADMINISTRATIVE EXPENSES. THE TRUST EARNED SURPLUS OF ` 22,72,064/-, ` 13,37,139, ` 3,35,516 & ` 23,80,128 FOR THE ABOVE FOUR YEARS RESPECTIVELY. FOR THE YEAR EN DING 31.03.2012, AS PER THE STATEMENT OF ACCOUNTS FILED DURING THE COURSE OF HEARING, IT IS SEEN THAT THE T RUST WAS IN RECEIPT OF DONATIONS FOR SCHOOL ITA 2204/12 :- 3 -: DEVELOPMENT/FOOD/HEALTH CAMP/CONSTRUCTION OF BUILDING, BANK INTEREST, ETC. AND THE EXPENSES RELA TE TO RUNNING OF SCHOOL APART FROM ADMINISTRATIVE EXPENSE S. THE SURPLUS FOR THIS YEAR IS ` 20,43,459. 4. IT IS TO BE SEEN THAT THE ASSESSEE HAS ALREADY B EEN REGISTERED UNDER SEC.12AA OF THE ACT AND IT IS CONT INUING THE REGISTRATION GRANTED UNDER THAT SECTION. THEREFORE , IT IS ADMITTED BY THE DEPARTMENT THAT THE ASSESSEE IS A CHARITABLE TRUST ELIGIBLE FOR OTHER BENEFITS FLOWING OUT OF THE REGISTRATION UNDER SEC.12AA. 5. IN THE PARAGRAPH EXTRACTED ABOVE, THE COMMISSION ER OF INCOME-TAX HIMSELF ADMITS THAT THE ASSESSEE IS CARR YING ON CHARITABLE ACTIVITY BY WAY OF RUNNING A TAMIL HIGH SCHOOL AT KARAIKAL FOR THE BENEFIT OF THE LOCAL POPULATION. THERE IS NO ALLEGATION THAT THE ASSESSEE TRUST IS DIVERTING ANY OF ITS INCOME FOR PURPOSES OTHER THAN THE OBJECTS PROCLAIMED BY IT. THERE IS NO CASE OF ANY PRIVATE ENJOYMENT OF ANY ASSET, PROPERT Y OR INCOME OF THE ASSESSEE TRUST. ON GOING THROUGH THE RECORDS OF THE CASE, WE FIND THAT THE ASSESSEE IS CARRYING ON CHARITABLE ACTIVITY BY RUNNING A TAMIL HIGH SCHOOL FOR THE BENEFIT OF POOR AND PEOPLE OF MODERATE INCOME. ITA 2204/12 :- 4 -: 6. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE D O NOT FIND ANY REASON TO DENY THE BENEFIT OF SEC.80G(5)(VI) TO THE ASSESSEE. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO REN EW EXEMPTION GIVEN TO THE ASSESSEE UNDER SEC. 80G(5)(VI) OF THE ACT, FROM THE DATE OF EXPIRY OF EARLIER ORDER GRANTING EXEMPTION. 7. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY, THE 12 TH OF FEBRUARY, 2013 AT CHENNAI. SD/- SD/- (S.S.GODARA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 12 TH FEBRUARY, 2013 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR