Appeal details
Counselvise Citation
3121714 RSA 2014
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 6 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
10-04-2014
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
26-03-2014
Assessment Year
misc
Appeal Filed On
03-01-2014
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , !' # , $ % BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO. 31/MDS/2014 M/S. SRI VANI EDUCATIONAL TRUST THOPPAPPATY(PO) RASIPURAM TALUK NAMAKKAL-637 406. VS COMMISSIONER OF INCOME TAX, NO.3, GANDHI ROAD, SALEM-7. PAN:AAGTS3647H ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. PHILIP GEORGE, ADVOCATE /RESPONDENT BY : MR. CHANDANA RAMACHANDRAN, CIT / DATE OF HEARING : 26 TH MARCH, 2014 /DATE OF PRONOUNCEMENT : 10 TH APRIL, 2014 & / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, SALEM DATED 28.11.2013 DENYING REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. COUNSEL FOR THE ASSESSEE SUBMITS THAT COMMISSION ER OF INCOME TAX DENIED REGISTRATION STATING THAT ASSESSE E TRUST ITA NO.31/MDS/2014 2 FAILED TO DISCHARGE THE ONUS OF PROVING CHARITABLE / RELIGIOUS NATURE OF OBJECTS OF THE TRUST AND GENUINENESS OF T HE ACTIVITIES CARRIED OUT BY THE TRUST. HE SUBMITS THAT COMMISSIO NER OF INCOME TAX OBSERVED THAT ASSESSEE HAS NOT FILED RET URNS FOR FINANCIAL YEARS 2012-13 AND 2013-14 AND ASSESSEE TR UST HAS GIVEN ONLY TO THE EXTENT OF 7% OF GROSS RECEIPTS A S CONCESSION TO THE STUDENTS AND THEREFORE COMMISSION ER OF INCOME TAX WAS OF THE VIEW THAT ASSESSEE IS NOT A CHARITABLE TRUST. COUNSEL FOR THE ASSESSEE SUBMITS THAT RETURN S FOR FINANCIAL YEARS 2012-13 AND 2013-14 WERE FILED AS PER DUE DATES AND WHEN THE ORDER WAS PASSED BY THE COMMISSI ONER OF INCOME TAX DUE DATE FOR FILING RETURN FOR FINANC IAL YEAR 2013-14 WAS NOT EVEN LAPSED. COUNSEL FOR THE ASSES SEE SUBMITS THAT AT THE STAGE OF GRANTING REGISTRATION COMMISSIONER OF INCOME TAX SHOULD HAVE GONE INTO TH E OBJECTS OF THE TRUST AND SHOULD HAVE FOUND OUT WHET HER TRUST WAS ESTABLISHED WITH THE CHARITABLE OBJECTS AND WIT HOUT REJECTING THE OBJECTS AS NOT CHARITABLE, WITHOUT EX AMINING THE ISSUE AT ALL, COMMISSIONER OF INCOME TAX SIMPLY REF USED REGISTRATION ON THE GROUND THAT ASSESSEE HAS GIVEN FEES ITA NO.31/MDS/2014 3 CONCESSION ONLY TO CERTAIN EXTENT TO THE STUDENTS A ND RETURNS WERE NOT FILED AND THUS ASSESSEE TRUST IS NOT A CHA RITABLE TRUST. 3. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX IN REJECTING REGISTRATIO N UNDER SECTION 12AA OF THE ACT. 4. HEARD BOTH SIDES. PERUSED ORDERS OF LOWER AUTHOR ITIES AND TRUST DEED OF THE ASSESSEE TRUST. ON A PERUSAL OF THE IMPUGNED ORDER, WE FIND THAT COMMISSIONER OF INCOME TAX REFUSED REGISTRATION BASICALLY ON THE GROUND THAT S CHOOL FEES CONCESSION GIVEN BY THE ASSESSEE TRUST TO ITS STUDE NTS IS ONLY TO THE EXTENT OF 7% OF GROSS RECEIPTS AND THE OTHE R REASON FOR NOT GRANTING REGISTRATION WAS THAT ASSESSEE TRUST H AS NOT FILED RETURNS FOR THE FINANCIAL YEARS 2012-13 AND 2013-14 . IN OUR VIEW BOTH THESE REASONS SHALL NOT COME IN THE WAY OF GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT WHEN THE OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE AND W HEN THE ASSESSEE IS REGULARLY FILING THE RETURNS OF INCOME. COMMISSIONER OF INCOME TAX NEVER POINTED OUT THAT O BJECTS OF ITA NO.31/MDS/2014 4 THE TRUST ARE NOT GENUINE. THE ASSESSEE FILED A PAP ER BOOK FROM WHICH WE NOTICE THAT ASSESSEE HAD IN FACT FILE D RETURNS FOR THE FINANCIAL YEARS 2012-13 & 2013-14 ON 29.9. 2012 AND 26.09.2013 RESPECTIVELY. THE SCHOOL FEE CONCESSION GIVEN TO THE STUDENTS BY THE ASSESSEE TRUST CANNOT BE A BASI S FOR NOT GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT . ON A PERUSAL OF THE TRUST DEED, WE FIND THAT ASSESSEE TR UST WAS FORMED TO ESTABLISH, MAINTAIN AND RUN SCHOOLS, COLL EGES AND OTHER EDUCATIONAL INSTITUTIONS FOR IMPARTING KNOWLE DGE IN VARIOUS SUBJECTS OR TAKE OVER ANY EXISTING EDUCATIO NAL INSTITUTIONS, TO GIVE MONEY GRANTS TO POOR STUDENTS , SCHOLARSHIP TO POOR AND DESERVING STUDENTS, PRIZES FOR STUDENTS AND TO LEND FREE OF INTEREST, MONIES TO PO OR AND DESERVING STUDENTS TO MEET THEIR EDUCATIONAL EXPENS ES ETC. NONE OF THE OBJECTS OF THE ASSESSEE TRUST ARE NOT F OR OTHER THAN CHARITABLE PURPOSES. IN THE CIRCUMSTANCES, WE DO NOT FIND ANY VALID REASON FOR REJECTING REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT. THEREFORE, WE DIRECT THE COMMISSIONER OF INCOME TAX TO GRANT REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT. ITA NO.31/MDS/2014 5 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, TH E 10 TH DAY OF APRIL, 2014 AT CHENNAI. SD/- SD/- ( A.MOHAN ALANKAMONY ) ( CHALLA NAGEN DRA PRASAD ) . ! ( '# $%& ' ) ACCOUNTANT MEMBER / '( JUDICIAL MEMBER/ % )'( '% /CHENNAI, *' /DATED, 10 TH APRIL, 2014 SOMU '+),-.- /COPY TO: 1. APPELLANT [MR. PHILIP GEORGE, ADVOCATE, 6/10, S EETHA NAGAR, I STREET, NUNGAMBAKKAM, CHENNAI-34. 2. /RESPONDENT 3. /01 /CIT(A) 4. / /CIT 5. -2 $))34 /DR 6. $ 567 /GF .
