M/s. Kanakkanpatti Palaniappan Public Charitable Trust, Palani V. CIT, Madurai

ITA 2207/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0836 (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: misc
• Appeal Filed On: 06-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA IRS
• Assessee Lawyers: S JANARTHANAN
• 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. 2207/MDS/2012 M/S. KANAKKANPATTI PALANIAPPAN PUBLIC CHARITABLE TRUST, KANAKKANPATTI, PALANI TALUK 624 615 PAN AAATK7634C VS. THE COMMISSIONER OF INCOME-TAX-II, MADURAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. JANARTHANAN, 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 FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME-TAX-II AT MADUR AI DATED 14.9.2012 REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF RENEWAL OF APPROVAL UNDER SEC. 80G(5)(VI) OF THE IN COME-TAX ACT, 1961. ITA 2207/12 :- 2 -: 2. THE APPLICATION FILED BY THE ASSESSEE FOR RENEWA L OF EXEMPTION UNDER SEC.80G IS SEEN REJECTED BY THE COM MISSIONER OF INCOME-TAX, EX PARTE, ON THE GROUND THAT THE ASS ESSEE HAS NOT FURNISHED THE DETAILS CALLED FOR BY HIM, FOR VERIFI CATION. HE HAS APPLIED THE DECISION OF THE INCOME-TAX APPELLATE TR IBUNAL, DELHI (FULL BENCH) RENDERED IN THE CASE OF MULTIPLAN INDI A LIMITED (38 ITD 320). 3. WE HEARD BOTH SIDES. 4. THE ASSESSEE TRUST HAS ALREADY BEEN REGISTERED U NDER SEC.12AA. THE ASSESSEE TRUST IS CARRYING ON CHARIT ABLE ACTIVITIES IN THE NATURE OF PROVIDING FOOD FOR POOR PEOPLE WHO IS VISITING PALANIAPPAN SWAMIGAL. THE ASSESSEE ALSO PROVIDES F OOD AND MEDICAL TREATMENTS TO THE NEEDY AND POOR PEOPLE OF THE SURROUNDING AREA. THE ASSESSEE TRUST IS CARRYING O N ITS ACTIVITIES IN A BACKWARD VILLAGE AT KANAKKANPATTI, PALANI TALU K AT COIMBATORE. THE ASSESSEE DOES NOT HAVE PLENTY OF A SSETS OR HUGE FUNDS AT ITS DISPOSAL. IT IS ONLY HAVING A PI ECE OF LAND MEASURING 10 TO 15 CENTS. THE ACTIVITIES ARE CARRI ED ON BY THE ASSESSEE TRUST BY SMALL DONATIONS GIVEN BY THE DEVO TEES OF THE ITA 2207/12 :- 3 -: SWAMIGAL WHICH ARE UTILIZED FOR HELPING THE POOR PE OPLE OF THE LOCALITY IN DIFFERENT WAYS. 5. THE TRUST WAS CREATED ON 5.9.2003. REGISTRATION UNDER SEC.12AA WAS GRANTED FROM THE ASSESSMENT YEAR 2004- 05 ONWARDS. EXEMPTION UNDER SEC.80G WAS ALSO GRANTED FROM 17.9.2003 TO 31.3.2004. IT WAS AGAIN RENEWED BY TH E COMMISSIONER OF INCOME-TAX. HE HAS NOT DISCUSSED A NYTHING ADVERSE TO THE ASSESSEE BY REFERRING THE ASSESSMEN TS COMPLETED ON THE ASSESSEE. DURING THE INTERIM PERIOD, THERE IS NO CASE OF NOT GIVING THE BENEFIT OF SEC.80G TO THE ASSESSEE F OR ALL THE ASSESSMENT YEARS IN THE PAST. THERE IS NO CASE FOR THE COMMISSIONER OF INCOME-TAX AGAINST THE REGISTRATION HELD BY THE ASSESSEE UNDER SEC.12AA. 6. IN THESE CIRCUMSTANCES, IT IS NOT JUST AND FAIR TO REJECT THE APPLICATION FILED BY THE ASSESSEE, A SMALL-TIME SOC IETY, OPERATING IN A POOR VILLAGE. JUSTICE AND FAIR-PLAY SHOULD NO T BE FETTERED BY TECHNICALITIES. 7. WE DO NOT FIND ANY REASON TO DENY THE RENEWAL OF APPROVAL TO THE ASSESSEE UNDER SEC.80G. THEREFORE, THE ORDE R OF THE ITA 2207/12 :- 4 -: COMMISSIONER OF INCOME-TAX IS SET ASIDE AND HE IS D IRECTED TO GRANT THE RENEWAL OF APPROVAL TO THE ASSESSEE UNDER SEC. 80G(5)(VI) AS PRAYED FOR. 8. 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.NA RAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 12 TH FEBRUARY, 2013 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR