M/s. Glories Hand of Jesus Ministries and Public Welfare Trust, CHENNAI V. ITO, Coimbatore

ITA 2290/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1066 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 24-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution; Benefit of exemption
• Section: 80G; 12A; 12AA; 11

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI. BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT & SHRI S.S. GODARA, JUDICIAL MEMBER I.T.A. NO.2290/MDS/2012 M/S. GLORIES HAND OF JESUS MINISTRIES AND PUBLIC WELFARE TRUST, NO.: EDUCATION-115, VOC NAGAR, GANAPATHY POST, COIMBATORE 641 006. [PAN:AABTG2699A] VS. THE INCOME TAX OFFICER, COMPANY WARDI, COIMBATORE. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : DR. S. MOHARANA, CIT DATE OF HEARING : 04.03.2013 DATE OF PRONOUNCEMENT : 11.03.2013 ORDER PER S.S. GODARA, JUDICIAL MEMBER THIS ASSESSEE TRUST NAMELY M/S. GLORIES HAND OF JE SUS MINISTRIES AND PUBLIC WELFARE TRUST HAS PREFERRED THE INSTANT APPE AL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX - I, COIMBATORE DATED 30 .10.2012 IN C.NO.127(263)/80G(5)(VI)/CIT-I:CBE/2012-13 PASSED UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT 1961 [IN SHORT THE ACT]. 2. IN THE COURSE OF HEARING, THE ASSESSEE SUBMITTE D THAT THE CIT HAS ERRED IN REJECTING ITS APPLICATION SEEKING APPROVAL UNDER SECTION 80G(5)(VI) OF I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.2 22 2290 290290 290/M/ /M/ /M/ /M/12 1212 12 2 THE ACT. THE CONTENTION OF THE ASSESSEE IS THAT I TS APPLICATION AFORESAID HAS NOT BEEN CONSIDERED IN DETAIL BY THE CIT-I, COIMBAT ORE AND PRAYS FOR ACCEPTANCE OF THE APPEAL. 3. THE REVENUE, ON THE OTHER HAND, STRONGLY SUPPOR TS THE IMPUGNED ORDER. 4. WE HAVE HEARD BOTH PARTIES AND PERUSED THE ORDE R UNDER CHALLENGE PASSED BY THE CIT REFUSING APPROVAL TO THE ASSESSEE UNDER SECTION 80G(5)(VI) OF THE ACT. ADMITTED FACTS OF THE CASE ARE THAT THE ASSESSEE IS A RELIGIOUS TRUST REGISTERED UNDER SECTION 12A OF THE ACT VIDE ORDER DATED 22.07.2009. THEREAFTER, IT FILED THE APPLICATION IN QUESTION DATED 18.04.12. THE CIT HAS DECLINED TO ACCEPT THE SAME BY HOLDING THAT A RELIGIOUS TRUST IS NOT ENTITLED FOR APPROVAL. IN OUR VIEW, THIS REASON ING BY THE CIT IS SUFFICIENT TO REFUSE THE ASSESSEE ITS PRAYER AFORESAID. IN A RECE NT CASE LAW OF JEHOVAH CHURCH VS. ITO IN I.T.A. NO. 1467/MDS/2011 DECIDED ON 21.02.2013, WE HAVE INTERPRETED THE DISTINCTION BETWEEN THE REGIST RATION OF A TRUST AND APPROVAL UNDER SECTION 80G(5) OF THE ACT., AS UNDE R: 5. WE HAVE HEARD BOTH PARTIES AT LENGTH AND PERUS ED CIT ORDER REJECTING ASSESSEES APPLICATION SEEKING APPROVAL U NDER SECTION 80G OF THE ACT. ADMITTED FACTS OF THE CASE ARE THAT THE ASSESSEE IS SOCIETY REGISTERED ON 30.12.1957 UNDER THE PROVISION OF TRA VANCORE COCHIN LITERACY, SCIENTIFIC AND CHARITABLE SOCIETIES REGIS TRATION ACT, 1955. IT ENJOYS REGISTRATION UNDER SECTION 12AA OF THE ACT SINCE 28.08.2006 AS PUBLIC RELIGIOUS CUM CHARITABLE SOCIETY FOR THE ASSESSMENT YEAR 2006-07 AND SUBSEQUENT ASSESSMENT YEARS. ON 03.12.2 010, IT HAD FILED AN APPLICATION SEEKING EXEMPTION UNDER SECTION 80G OF THE ACT. VIDE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.2 22 2290 290290 290/M/ /M/ /M/ /M/12 1212 12 3 THE IMPUGNED ORDER BY THE CIT, THE SAME STANDS REJE CTED WITH A FINDING THAT ITS ACTIVITIES ARE NO CHARITABLE AS WELL AS RE LIGIOUS IN NATURE RENDERING IT INELIGIBLE FOR APPROVAL IN QUESTION. 6. AFTER GIVING OUR THOUGHTFUL CONSIDERATION TO TH E ISSUE BEFORE US I.E. AS TO WHETHER THE CIT HAS RIGHTLY REJECTED ASS ESSEES APPLICATION SEEKING APPROVAL UNDER SECTION 80G OF THE ACT, FI RST OF ALL WE REITERATE THAT THE SETTLED PROVISION IN SECTION 12A A PRESCRIBES REGISTRATION TO CHARITABLE AS WELL AS RELIGIOUS INS TITUTIONS. IN THE SCHEME OF THE ACT, BOTH KINDS OF INSTITUTIONS MAY AVAIL EXEMPTION BENEFIT UNDER SECTION 11 OF THE ACT. HOWEVER, SECTION 80G (5) BARS SUCH A RELIEF TO RELIGIOUS INSTITUTIONS AND IT ONLY APPLIE S IN CASE OF A CHARITABLE INSTITUTION. ON PERUSAL OF THE PROVISION ITSELF I.E . SECTION 80G(5) OF THE ACT MAKES, IT IS CLEAR THAT AN INSTITUTION OR FUND WHICH INCURS EXPENDITURE DURING ANY PREVIOUS YEAR RELIGIOUS NATU RE FOR AN AMOUNT NOT EXCEEDING 5% OF THE TOTAL INCOME BECOMES ELIGIB LE FOR THE BENEFIT UNDER SECTION 80G(5). THEREFORE, A RELIGIOUS INSTIT UTION IS NOT INDEPENDENTLY ENTITLED FOR APPROVAL UNDER SECTION 8 0G ABOVE SAID. 7. FURTHER, AS IT IS CLEAR FROM THE FACTS OF THE C ASE, THE ASSESSEE IS A CHURCH; ADMITTEDLY RELIGIOUS INSTITUTION. IN OUR VI EW, IT MAY BE DOING LOT OF CHARITABLE ACTIVITIES AS DESTINED BY HIM. THAT ITSELF DOES NOT CONFER IT THE STATUS OF A CHARITABLE INSTITUTION. I N A DIVERSE COUNTRY LIKE INDIA, THE DISTINCTION BETWEEN CHARITABLE AND RELIG IOUS ACTIVITIES SOMETIMES BECOMES SLENDER THIN. HOWEVER, THE LAW GR ANTS SPECIFIC AND DIFFERENT STATUS TO CHARITABLE AND RELIGIOUS INSTIT UTIONS BY TREATING THEM UNDER DIFFERENT FOOTINGS EVEN THOUGH THEY ARE ENTIT LED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. HOWEVER, A RELIGIO US INSTITUTION IS NOT ENTITLED FOR THE BENEFIT UNDER SECTION 80G OF THE ACT. ON THIS ANALOGY, WE FIND THAT THE CIT HAS RIGHTLY REJECTED ASSESSEE S APPLICATION SEEKING APPROVAL UNDER SECTION 80G OF THE ACT. TAKING CUE FROM THE SAME, WE REITERATE THAT THE ASS ESSEE WHO IS A RELIGIOUS TRUST IS NOT ENTITLED FOR APPROVAL UNDER SECTION 80 G(5) OF THE ACT. HENCE, THE ASSERTION ON THE PART OF THE ASSESSEE THAT DETAILED REASONS HAVE NOT BEEN GIVEN BY THE CIT DOES NOT FORM A GROUND AS ON LEGAL ITY ITSELF, THE CIT HAS REFUSED THE ASSESSEE THE RELIEF OF APPROVAL. THEREF ORE THE ORDER OF THE CIT STANDS CONFIRMED. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.2 22 2290 290290 290/M/ /M/ /M/ /M/12 1212 12 4 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 11 TH OF MARCH, 2013 AT CHENNAI. SD/ - SD/ - (DR. O.K. NARAYANAN) VICE-PRESIDENT (S.S. GODARA) JUDICIAL MEMBER CHENNAI, DATED, THE 11.03.2013 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.