Sri Sampath Vinayagar Temple Trust, Visakhapatnam V. The CIT, (Exemptions), Hyderabad

ITA 282/VIZ/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6495 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 18-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C V S MURTHY
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 282 /VIZ/ 201 5 ( / ASSESSMENT YEAR: NA ) SRI SAMPATHVINAYAGAR TEMPLE TRUST D.NO.10 - 1 - 33, CBM COMPOUND VISAKHAPATNAM [PAN : A ABTS1377B ] THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) HYDERABAD ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI C.V.S.MURTHY, AR / RESPONDENT BY : SMT. MADHUVANI, DR, S HRI M.N.MURTHY NAIK, DR / DATE OF HEARING : 2 2 . 1 1 .2017 / DATE OF PRONOUNCEMENT : 29 . 1 1 .2017 / O R D E R P ER BENCH 1. TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE REJECTION OF APPLICATI ON SEEKING REGISTRATION U/S 12A A OF I.T.ACT VIDE ORDER OF THE COMMISSIONER OF INCOME TAX [ EXEMPTIONS ] [CIT) , HYDERABAD , IN F. NO.CIT( E )/ HYD / 77(10)/12A / 201 4 - 1 5 DATED 30 .0 4 .201 5. 2 ITA NO . 282 /VIZ/20 5 SRI SAMPATH VINAYAGAR TEMPLE TRUST, VISAKHAPATNAM 2. THE ASSESSEE IS A TRUST FILED APPLICATION IN FORM NO.10A ON 27.10.2014 SEEKING REGISTRATION U/S 12AA OF I.T.ACT. THE CIT ISSUED THE NOTICE CALLING FOR VARIOUS DETAILS AND CLARIFICATIONS WHICH WERE FURNISHED BY THE ASSESSEE. AFTER VERIFICATION OF THE CLARIFICATIONS FURNISHED BY THE ASSESSEE, THE CIT REJECTED THE REGISTRATION SOUGHT BY THE ASSESSE E . THE LD . CIT OBSERVED THAT T HE ASSESSEE FILED ORIGINAL TRUST DEED DT. 19.09.1975 AND SUBMITTED THE SUPPLEMENTARY DEED DT. 16.03.1996 REFERRING THE ORIGINAL TRUST DEED. COMBINED READING OF THE ORIGINAL TRUST DEED AND SUPPLEMENTARY TRUST DEED SHOWS THAT THE OBJE CT S IN THE CASE OF THE ASSESSEE ARE NOT VERIFIABLE. THE CIT WAS OF THE VIEW THAT THE OBJECTS OF THE TRUST DEED APPEARS TO BE NOT CHARITABLE. THE ASSESSEE MENTIONED THE NAME OF THE TRUST AS SRI SAMPATHVINAYAGAR TEMPLE IN THE SUPPLEMENTARY TRUST DEED AND IN APPLICATION IN FOR M 10A, THE NAME OF THE TRUST WAS MENTIONED AS SRI SAMPATHVINAYAGAR TEMPLE TRUST WHICH IS DIFFERENT. HENCE, THE CIT IS OF THE VIEW THAT THERE WAS NO CLARIFICATION FROM THE ASSESSE E REGARDING THE NATURE AND THE OBJECTS AND ALSO THE N UMBER OF EXISTING OBJECTS. HAVING REGARD TO THE PROVISIONS U/S 12AA(1)(B) READ WITH CLAUSES (I) & (II) , THE CIT REJECTED THE APPLICATION FILED BY THE ASSESSEE TRUST IN FORM 10A SEEKING REGISTRATION. AGGRIEVED BY THE ORDER OF THE CIT, THE ASSESSEE IS IN APPEAL BEFORE US. 3 ITA NO . 282 /VIZ/20 5 SRI SAMPATH VINAYAGAR TEMPLE TRUST, VISAKHAPATNAM 3. WE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED BEFORE US. DURING THE APPEAL HEARING, THE LD.AR ARGUED THAT THE LD.CIT WHILE REJ ECTING THE REGISTRATION U/S 12A A OF THE ACT , HAS NOT PROPERLY APPRECIATED THE FACTS AND THE SUBMISSIONS MADE BY THE ASSESSEE TRUST. THE ASSESSEE IS A REL IGIOUS CHARITABLE TRUST CREATED FOR CARRYING OUT CHARITABLE ACTIVITIES BESIDES THE REGULAR RELIGIOUS ACTIVITIES. LD.AR FURTHER ARGUED THAT THE TRUST WAS ORIGINALLY A RELIGIOUS TRUST AND SUBSEQUENTLY IN ORDER TO EXTEND THE BENEFITS TO THE PUBLIC AT LARGE BY MAKING DONATIONS TO POOR STUDENTS FOR PAYMENT OF FEES TO ARRANGE FOR POOR FEEDING AND OR TAKING CARE OF DESTITUTE BESIDES THE ORIGINAL OBJE C TS OF WO RSHIP OF DEITY AND CONDUCTION OF RELIGIOUS FESTIVALS ETC. AMENDED THE OBJECT S . THE ASSESSEES CASE IS THAT T HE SUPPLEMENTARY OBJECTS WERE INCLUDED TO ENABLE THE TRUST TO CARRY OUT THE CHARITABLE ACTIVITIES AS DISCUSSED BY THE LD.CIT IN PARA NO.3.3. THOUGH THE CIT HAS STATED THAT THE OBJECTS OF T HE TRUST APPEAR TO BE NOT CHARITA BLE, PLAIN READING OF THE OBJECTS MENTIONED IN PARA NO.3.3. OF THE CITS ORDER AND PARA N O.4 AND 5 OF THE TRU ST DEED DATED 16.03.1996 ESTABLISH THE NATURE OF CHARITABLE PURPOSES. F URTHER THE DEFECTS MENTIONED BY THE LD.CIT WITH REGARD TO THE VERIFICATION OF FINA L NUMBER OF OBJECTS AND MISTAKE OF NAME MENTIONED BY THE ASSESSEE IN THE TRUST DEED AND THE APPLICATION ARE 4 ITA NO . 282 /VIZ/20 5 SRI SAMPATH VINAYAGAR TEMPLE TRUST, VISAKHAPATNAM CURABLE DEFECTS BY SUBMITTING THE NECESSARY INFORMATION/CLARIFICAT IONS . WE ALSO UNDERSTAND THAT THE CIT HAS NOT GIVEN ANY OPPORTUNITY FOR RECTIFICATION OF THE MISTAKES OR DEFECTS RAISED BY THE CIT. WITH REGARD TO THE FINAL OBJECTS, THE ASSESSEE MAY BE PERMITTED TO COMPILE THE FINAL OBJECTS AND SUBMIT BEFORE CIT EVIDE NCING THE TRUST DEEDS REGISTERED. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE CIT TO GIVE ONE MORE OPPORTUNITY TO RECTIFY THE DEFE CTS AND TO DECIDE THE ISSUE AFRESH ON MERITS. ACCORDINGLY, THE ISSU E OF REGISTRATION U/S 12AA IS REMITTED BACK TO THE CIT FOR FRESH CONSIDERATION. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH NOV 20 17 . SD/ - SD/ - ( . . ) ( . ) ( D.S. SUNDER SINGH ) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL M EMBER /VISAKHAPATNAM /DATED : 29 . 1 1 .2017 L. RAMA, SPS 5 ITA NO . 282 /VIZ/20 5 SRI SAMPATH VINAYAGAR TEMPLE TRUST, VISAKHAPATNAM / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT - SRI SAMPATH VINAYAGAR TEMPLE TRUST , D.NO.10 - 1 - 33, CBM COMPOUND , VISAKHAPATNAM 2 . / THE RESPONDENT THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) HYDERABAD 3 . THE ITO (EXEMPTIONS), WARD, VISAKHAPATNAM 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM