St.Vincent Hospital, Kottayam V. CIT, Kottayam

ITA 225/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64777 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 01-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SAJEEV
• Assessee Lawyers: T K MATHEW
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA

Judgement Text

1 ITA NO.225 & 226/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 225/COCH/2011 ST. VINCENTS HOSPITAL VS C.I,.T., KOTTAYAM KURAVILANGAD C/O P.V. CHACKO & CO, CAS M.G. ROAD, ERNAKULAM, COCHIN-35 PAN : AAAAS3809E (APPELLANT) (RESPONDENT) I.T.A NO. 226/COCH/2011 GIRIDEEPAM EDUCATIONAL & CHARITABLE TRUST VS C.I,.T ., KOTTAYAM KOTTAYAM C/O P.V. CHACKO & CO, CAS M.G. ROAD, ERNAKULAM, COCHIN-35 PAN : AABTG4713H (APPELLANT) (RESPONDENT) APPELLANTS BY : SHRI T.K. MATHEW RESPONDENT BY : SHRI P SAJEEV DATE OF HEARING : 05-09-2012 DATE OF PRONOUNCEMENT : 14-09-2012 O R D E R PER N.R.S. GANESAN (JM) THESE TWO APPEALS OF THE TWO DIFFERENT TAXPAYERS A RE DIRECTED AGAINST THE TWO INDEPENDENT ORDERS OF THE ADMINISTRATIVE COMMISSION ER REJECTING THE APPLICATIONS OF THE TAXPAYERS FOR REGISTRATION U/S 12AA OF THE ACT. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN BOTH THE APPEALS, WE HEARD THEM TO GETHER AND DISPOSE OF THE SAME BY THIS COMMON ORDER. 2 ITA NO.225 & 226/COCH/2011 2. SHRI T.K. MATHEW, THE LD.REPRESENTATIVE FOR THE TAXPAYERS SUBMITTED THAT THE ADMINISTRATIVE COMMISSIONER REJECTED THE APPLICATIO NS OF THE TAXPAYERS FOR REGISTRATION U/S 12AA ON THE GROUND THAT THE TRUSTS WERE ESTABLI SHED FOR UNLAWFUL PURPOSE WITHOUT CONSIDERING THE OBJECTS OF THE TRUSTS. REFERRING T O THE TRUST DEEDS OF BOTH THE TRUSTS, THE LD.REPRESENTATIVE SUBMITTED THAT THE TAXPAYERS HAVE SPECIFIC OBJECTS WHICH ARE CLEARLY SPELT OUT IN THE TRUST DEEDS. NONE OF THE OBJECTS IS UNLAWFUL OR ILLEGAL. THEREFORE, THE ADMINISTRATIVE COMMISSIONER WAS NOT JUSTIFIED IN RE JECTING THE APPLICATIONS OF THE TAXPAYERS FOR REGISTRATION. REFERRING TO THE ORDER OF THIS TRIBUNAL IN S.V.M. EDUCATIONAL & CHARITABLE TRUST IN ITA NO.644/COCH/2010 DATED 25-0 6-2012, THE LD.REPRESENTATIVE SUBMITTED THAT UNDER SIMILAR CIRCUMSTANCES THIS TRI BUNAL SET ASIDE THE ORDER OF THE COMMISSIONER OF INCOME-TAX AND REMANDED BACK THE MA TTER TO THE FILE OF THE ADMINISTRATIVE COMMISSIONER FOR RECONSIDERATION. A CCORDING TO THE LD.REPRESENTATIVE, THE FACTS ARE IDENTICAL AS IN THE CASE OF S.V.M. ED UCATIONAL & CHARITABLE TRUST (SUPRA). 3. ON THE CONTRARY, SHRI P SAJEEV, THE LD.DR SUBMIT TED THAT THE TAXPAYERS HAVE NO PROPERTY HELD UNDER TRUST. BY CONTRIBUTING A MERE SUM OF RS.1,000 THE TAX PAYER TRUSTS INTENDED TO COLLECT DONATIONS WHICH WOULD OTHERWISE BE EXEMPTED U/S 80G OF THE ACT. THE LD.REPRESENTATIVE FURTHER SUBMITTED THAT THE PR OMOTER OF THE TAX PAYER TRUSTS IS ALSO A RELIGIOUS TRUST ELIGIBLE FOR REGISTRATION U/S 12A A OF THE ACT. THE PRESENT TRUSTS WERE ESTABLISHED ONLY WITH A VIEW TO MANAGE SCHOOLS AND HOSPITALS WITH A MALA FIDE INTENTION TO CLAIM EXEMPTION U/S 80G. THE LD.DR FURTHER SUBM ITTED THAT THE VERY PURPOSE OF FORMATION OF THE TRUSTS IS NOT FOR LAWFUL PURPOSE. THEREFORE, THE ADMINISTRATIVE COMMISSIONER HAS RIGHTLY REJECTED THE CLAIM OF THE TAXPAYER FOR REGISTRATION U/S 12AA OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. FOR THE PURPOSE OF REGISTRATI ON U/S 12AA OF THE ACT, THE ADMINISTRATIVE COMMISSIONER IS EXPECTED TO EXAMINE THE GENUINENESS OF THE TRUSTS AND 3 ITA NO.225 & 226/COCH/2011 ITS ACTIVITIES. THE GENUINENESS OF THE TRUSTS CAN BE EXAMINED ONLY AFTER CONSIDERING THE OBJECT. IN THIS CASE, THE OBJECTS OF THE TRUSTS AR E SPELT OUT IN THE TRUST DEEDS ITSELF. THEREFORE, THE ADMINISTRATIVE COMMISSIONER IS EXPEC TED TO EXAMINE THE OBJECTS AS FOUND IN THE TRUST DEEDS AND THEREAFTER TO RECORD H IS FINDING WITH REGARD TO HIS SATISFACTION ABOUT THE GENUINENESS OF THE ACTIVITY OF THE TRUSTS. UNFORTUNATELY, THE COMMISSIONER HAS NOT EXAMINED THE OBJECT OF THE TRU STS AS FOUND IN THE TRUST DEED. THEREFORE, THIS TRIBUNAL IS OF THE OPINION THAT THE COMMISSIONER HAS TO RE-EXAMINE THE MATTER AFTER CONSIDERING THE OBJECTS FOUND IN THE T RUST DEEDS. ACCORDINGLY THE ORDERS OF THE LOWER AUTHORITY ARE SET ASIDE AND THE ISSUE OF REGISTRATION U/S 12AA IS REMITTED BACK TO THE FILE OF THE ADMINISTRATIVE COMMISSIONER. TH E ADMINISTRATIVE COMMISSIONER SHALL RE-EXAMINE THE MATTER AFTER CONSIDERING THE OBJECTS FOUND IN THE TRUST DEEDS AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE TAXPAYERS. 5. IN THE RESULT, BOTH THE APPEALS OF THE TAXPAYERS ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 TH SEPTEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 14 TH SEPTEMBER, 2012 PK/- COPY TO: 1. THE APPELLANTS 2. THE RESPONDENTS 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH