Hindu Nadars Vaguthan Pankalikalughu Pathiyapatta Trust, CHENNAI V. ITO, Virudhunagar

ITA 2430/CHNY/2014

• Counselvise Citation: 243021714 RSA 2014
• Duration Of Justice: 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 26-09-2014
• Court: TRIBUNAL
• Department Lawyers: P B SEKARANCIT
• Assessee Lawyers: S SRIDHAR
• Section: 80G

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO2430. /MDS./2014 M/S.HINDU NADARS VAGUTHAN PANKALIKALGUHU PATHIYAPATTU TRUST , M 6/19 ARUPPUKOTTAI ROAD, VIRDHUNAGAR 626 001 VS. THE INCOME TAX OFFICER, WARD I(1), VIRDHUNAGAR. PAN AABTH 1545 C ( / APPELLANT ) ( / RESPONDENT ) !' # $ / APPELLANT BY : MR.S.SRIDHAR,ADVOCATE %&!' # $ / RESPONDENT BY : MR.P.B.SEKARAN,CIT, D.R ' ( # )* / DATE OF HEARING : 07.07.2015 +, # )* /DATE OF PRONOUNCEMENT : 10.07.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX-II, MADURAI DATED 31.07.2014 IN C.NO.102/53/CIT-II/2013-14 PASSED UND ER SEC.80(G) OF THE ACT READ WITH SECTION SEC. 250 OF THE ACT. ITA NO.2430 /MDS/2014 2 2. THE ASSESSEE HAS RAISED NINE ELABORATE GROUNDS IN ITS APPEAL; HOWEVER THE CRUX OF THE ISSUE IS THAT THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT, WHO HAD REFUSED TO GRANT RECOGNITION U/S.80G OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E-TRUST WAS FORMED ON 13.05.2013, REGISTERED U/S.12AA WITH THE COMMISSIONER OF INCOME TAX-II, MADURAI ON 29.01.2014 VIDE C.NO. 101/53/CIT-II/2013-14 . FURTHER, THE ASSESSEE TRUST FILED ITS APPLICATION S EEKING RECOGNITION OF THE ASSESSEE TRUST U/S.80G(5) OF THE ACT IN FORM NO .10G DATED 28.03.2014. DURING THE COURSE OF HEARING, THE REPRE SENTATIVE OF THE LD. A.R. PRODUCED BOOKS OF ACCOUNTS BEFORE LD.CIT. AFTER ANALYZING THE RELEVANT DOCUMENTS FURNISHED BY ASSESSEE-TRUST AND VERIFICATION CARRIED OUT BY THE DEPARTMENT, THE LD. CIT CAME TO THE CONCLUSION THAT THE TRUST HAS MADE ITSELF INELIGIBLE FOR GRANT OF INITIAL APPROVAL U/S.80G(5)(VI) OF THE ACT. 4. LD. A.R. ARGUED BEFORE US BY STATING THAT THE ASSESSEE HAS NOT VIOLATED ANY OF THE PROVISIONS OF SECTION 80G(5) OF THE ACT AND THEREFORE, THE ASSESSEE-TRUST WAS ENTITLED FOR BEIN G RECOGNIZE U/S 80G(5) OF THE ACT. FURTHER, THE LD. A.R. SUBMITTED THAT THE ACTIVITIES OF ITA NO.2430 /MDS/2014 3 THE ASSESSEE TRUST WERE CONFINED TO THE OBJECTIVES APPROVED BY THE REVENUE AND IT WAS NEVER DOUBTED. LD.A.R FURTHER AR GUED BY STATING THAT, THOUGH THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITIES DURING THE RELEVANT ASSESSMENT YEAR, THIS REASON AL ONE WILL NOT SUFFICE FOR REJECTING THE APPLICATION MADE BY THE ASSESSEE FOR GRANTING RECOGNITION U/S 80G OF THE ACT. LD. A.R. VEHEMENTLY ARGUED BY STATING THAT UNLESS THE ASSESSEE TRUST RECEIVES INCOME BY W AY OF DONATION IT WOULD NOT BE POSSIBLE FOR THE TRUST TO CARRY OUT IT S OBJECTIVES. THEREFORE TO FACILITATE THE ASSESSEE TRUST TO SCOUT FOR DONATION IT WOULD BE VERY MUCH ESSENTIAL TO OBTAIN RECOGNITION U/S.80 G(5) OF THE ACT. IT WAS THEREFORE PLEADED THAT THE LD. CIT MAY BE DIREC TED TO GRANT OF RECOGNITION U/S.80G OF THE ACT. LD. D.R ON THE OTH ER HAND RELIED ON THE ORDER OF THE LD.CIT AND PLEADED THAT THE SAME M AY BE UPHELD. 5. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PER USED THE MATERIALS AVAILABLE ON RECORD AND TRUST DEED. IT I S APPARENT FROM THE FACTS OF THE CASE THAT THE REVENUE HAS RECOGNIZED T HE ASSESSEE TRUST U/S.12AA OF THE ACT. AS POINTED OUT BY THE LD. A.R. , UNLESS THE ASSESSEE TRUST RECEIVES INCOME BY WAY OF DONATION I T WOULD NOT BE POSSIBLE FOR THE ASSESSEE TRUST TO FULFILL ITS OBJE CTS. IN ORDER TO FACILITATE ITA NO.2430 /MDS/2014 4 THE ASSESSEE TRUST TO RECEIVE DONATION, IT IS VERY MUCH ESSENTIAL FOR THE TRUST TO BE RECOGNIZED U/S.80G(5) OF THE ACT. M OREOVER IT IS NOT THE CASE OF THE REVENUE THAT THE ASSESSEE TRUST HAS VIO LATED ANY OF THE PROVISIONS OF THE ACT, OR ACTED IN SUCH A MANNER WH ICH IS NOT IN CONSONANT WITH THE OBJECTS OF THE TRUST. THEREF ORE, WE HEREBY DIRECT THE LD. CIT TO GRANT THE RECOGNITION U/S.80G (5) OF THE ACT IN ORDER TO PURSUE ITS ACTIVITIES. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWE D. ORDER PRONOUNCED ON 10 TH JULY, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . !' # ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 10 TH JULY, 2015. K S SUNDARAM. # %)-. / .,) /COPY TO: 1. !' /APPELLANT 2. %&!' /RESPONDENT 3. ' 0) ( ) /CIT(A) 4. ' 0) /CIT 5. .3 %)45 /DR 6. 6 7( /GF