M/s. Benhars Educational and Charitable Trust, CHENNAI V. ITO, Coimbatore

ITA 229/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68821 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 31-10-2013
• Assessment Year: misc
• Appeal Filed On: 12-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI [BEFORE SHRI. A. MOHAN ALANKAMONY, ACCOUNTANT MEM BER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER] I.T.A.NO.229/MDS/2013 ASSESSMENT YEAR : NA M/S. BENHARAS EDUCATIONAL AND CHARITABLE TRUST, D.NO.85/1, ELANGO STREET, KRISHNAPURAM, SARAVANAMPATTI POST, COIMBATORE 641 035 . VS THE INCOME TAX OFFICER, COMPANY WARD-I, COIMBATORE. [PAN AABTB9537G ] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE. RESPONDENT BY : SHRI. P.B. SEKARAN, CIT-DR DATE OF HEARING : 31-10-2013 DATE OF PRONOUNCEMENT : 06-11-2013 O R D E R PER CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-I, COIMBATORE DATED 31.1 0.2012 PASSED UNDER SECTION 12AA OF THE ACT REFUSING REGISTRATION TO THE ASSESSEE. I.T.A.NO.229/MDS/2013 :- 2 -: 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE COMMISSIONER OF INCOME TAX IS NOT JUSTIFIED IN REFU SING REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COUNSEL SUBMITT ED THAT THE CHARITABLE TRUST WAS FORMED BY THE ASSESSEE FOR PRO VIDING EDUCATIONAL AND MEDICAL FACILITIES TO POOR CHILDREN. THE COUNS EL SUBMITTED THAT THE COMMISSIONER OF INCOME TAX REFUSED REGISTRATION ON THE GROUND THAT THE ASSESSEE DID NOT PROVIDE CERTAIN DETAILS CALLED FOR AND HE WAS OF THE OPINION THAT THE TRUST WAS RUN BY THE FAMILY ME MBERS OF THE FOUNDER TRUSTEES. FURTHER, HE WAS OF THE OPINION T HAT THE TRUST IS ONLY A PRIVATE TRUST AND NOT A PUBLIC CHARITABLE TRUST. THE COUNSEL FURTHER SUBMITTED THAT THE COMMISSIONER OF INCOME TAX HAS N OT PROVIDED ADEQUATE OPPORTUNITY TO SUBMIT ITS CASE. THE COUNSE L PLEADED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO SUBSTANTIATE ITS C LAIM THAT THE TRUST IS ONLY A CHARITABLE TRUST AND IT IS CARRYING OUT C HARITABLE ACTIVITIES IN THE FORM OF PROVIDING EDUCATIONAL AND MEDICAL FACIL ITIES TO POOR CHILDREN. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTS THE ORDER OF THE COMMISSIONER OF INCOME TAX AND SUBMITS THAT REGISTRATION WAS RIGHTY DENIED TO THE ASSESSEE AS NO DETAILS WER E FURNISHED BY THE I.T.A.NO.229/MDS/2013 :- 3 -: ASSESSEE AND THE TRUST WAS FORMED BY FAMILY MEMBERS AND RUN BY THEM AND IT IS ONLY A PRIVATE TRUST AND NOT PUBLIC CHARITABLE TRUST. 4. WE HAVE HEARD BOTH PARTIES AND PERUSED THE OR DERS OF THE LOWER AUTHORITIES. WE FIND FROM THE ORDER OF THE C OMMISSIONER OF INCOME TAX THAT THE ASSESSEE TRUST WAS FORMED ON 15 .07.2005 AND THE REGISTRATION UNDER SECTION 12AA WAS SOUGHT FOR ON 18.4.2012 BY FILING APPLICATION. THE ASSESSEE APPARENTLY DID NOT FILE ANY DETAILS IN RESPECT OF ITS ACTIVITIES DURING THIS PERIOD BEFORE THE COMMISSIONER OF INCOME TAX. WE FIND FROM THE ORDER OF THE COMMI SSIONER OF INCOME TAX THAT THE COMMISSIONER OF INCOME TAX DID NOT PROVIDE ADEQUATE OPPORTUNITY TO THE ASSESSEE TO FILE THE DE TAILS OF ACTIVITIES CARRIED OUT BY THE ASSESSEE TO ASCERTAIN THE GENUI NENESS OF THE TRUST AND ITS ACTIVITIES. IN ANY EVENT, SUFFICIENT OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE. 5 THUS, WE ARE OF THE VIEW THAT THE MATTER SHO ULD GO BACK TO THE COMMISSIONER OF INCOME TAX FOR CONSIDERING THE APPLICATION OF REGISTRATION AFRESH IN ALL ASPECTS. THE ASSESSEE S HOULD SUBMIT NECESSARY DETAILS BEFORE THE COMMISSIONER OF INCOME TAX IN RESPECT OF ITS ACTIVITIES AND GENUINENESS TO SHOW T HE TRUST IS A I.T.A.NO.229/MDS/2013 :- 4 -: PUBLIC CHARITABLE TRUST NOT A FAMILY TRUST AND CARR IED OUT CHARITABLE ACTIVITIES. THEREFORE, WE RESTORE THE MATTER BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX ON THE ABOVE OBSERVATION S. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON WEDNESDAY, THE 6 TH OF NOVEMBER, 2013, AT CHENNAI. SD/- SD/- ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( CHALLA NAGENDRA PRASAD ) JUDICIAL MEMBER DATED: 06TH NOVEMBER, 2013. K.V COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR