Holy cross sisters Educational trust, Calicut V. CIT, Calicut

ITA 321/COCH/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69055 (ITAT-COCHIN)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 18-11-2013
• Assessment Year: misc
• Appeal Filed On: 30-11-2012
• Court: TRIBUNAL
• Department Lawyers: M ANIL KUMAR
• Assessee Lawyers: T JOHN GEORGE
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A. NO. 321/COCH/2012 ASSESSMENT YEAR : N.A. HOLY CROSS SISTERS EDUCATIONAL TRUST, DOOR NO, 5/1433B, HOLY CROSS CONVENT, ERANHIPALAM P.O., KOZHIKODE-673 006. [PAN: AAABAC 2736R] VS. THE COMMISSIONER OF INCOME-TAX, KOZHIKODE. (ASSESSEE -APPELLANT) (REVENUE-RESPONDEN T) ASSESSEE BY SHRI T. JOHN GEORGE, CA REVENUE BY SHRI M. ANIL KUMAR, CIT(DR) DATE OF HEARING 19/11/2013 DATE OF PRONOUNCEMENT 22/11/2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORD ER DATED 28-09-2012 PASSED BY THE LD. CIT, KOZHIKODE GRANTING REGISTRATION TO THE ASSESSEE U/S. 12A OF THE ACT AS A RELIGIOUS TRUST. 2. THE GRIEVANCE OF THE ASSESSEE IS THAT THE TRUST IS FORMED PURELY FOR EDUCATIONAL PURPOSES AND FURTHER IT DOES NOT HAVE ANY OBJECT WH ICH IS RELIGIOUS IN NATURE AND HENCE, THE LD CIT SHOULD HAVE GRANTED REGISTRATION U/S 12A OF THE ACT TREATING THE ASSESSEE AS CHARITABLE TRUST ONLY. 3. THE LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATT ENTION TO THE OBJECT CLAUSE OF THE TRUST DEED DATED 08-09-2010 AND SUBMITTED THAT ALL THE OBJECTS ARE DIRECTED TOWARDS EDUCATION ONLY. HE SUBMITTED THAT THE TRUST DEED D OES NOT CONTAIN ANY OBJECT, WHICH I.T.A. NO.321/COCH/2012 2 PROMOTES RELIGIOUS ACTIVITY. HE FURTHER SUBMITTED THAT THE ASSESSEE TRUST DID NOT SPEND ANY AMOUNT FOR RELIGIOUS PURPOSES ALSO. THE LD. COU NSEL FURTHER SUBMITTED THAT THE ASSESSEE HAS SO FAR CARRIED OUT EDUCATIONAL ACTIVIT IES ONLY IN ACCORDANCE WITH ITS OBJECTS AND HENCE, THE LD. CIT WAS NOT JUSTIFIED IN CLASSIF YING THE ASSESSEE-TRUST AS A RELIGIOUS TRUST. 4. ON THE OTHER HAND, THE LD. DR SUBMITTED THAT THE EDUCATIONAL FACILITIES SPECIFIED IN THE OBJECT CLAUSE ARE DIRECTED MAINLY TOWARDS ST UDENTS OF CHRISTIAN MINORITY ONLY. HE SUBMITTED THAT ALL THE CLAUSES PRESCRIBED UNDER THE OBJECT CLAUSE OF THE TRUST DEED CLEARLY STATE THAT THEY ARE FOR THE BENEFITS OF STU DENTS BELONG TO CHRISTIAN COMMUNITY. ACCORDINGLY, HE SUBMITTED THAT THE LD. CIT WAS JUST IFIED IN CLASSIFYING THE TRUST AS A RELIGIOUS TRUST. 5. IN THE REJOINDER, THE LD. AR SUBMITTED THAT THE FACILITIES OF THE TRUST ARE GIVEN NOT ONLY TO THE STUDENTS BELONGING TO THE CHRISTIAN MINORITY COMMUNITY BUT ALSO TO THE STUDENTS BELONGING TO OTHER COMMUNITIES ALSO WITHOU T DISCRIMINATION OF CASTE, CREED, NATIONALITY, RELIGION OR POLITICAL AFFILIATION. HE ALSO INVITED OUR ATTENTION TO PAGE 9 OF PAPER BOOK-II TO SUBMIT THAT THE STUDENTS PARTICIPA TING IN THE INSTITUTE BELONG TO ALL THE COMMUNITIES. HE FURTHER SUBMITTED THAT ARTICLE 30 OF THE CONSTITUTION GUARANTEES A RIGHT TO ALL MINORITIES, WHETHER BASED ON RELIGION OR LANGUAGE TO ESTABLISH AND ADMINISTER EDUCATIONAL INSTITUTIONS OF THEIR CHOICE, WHICH DOE S NOT MEAN THAT THE EDUCATIONAL INSTITUTIONS RUN BY MINORITY COMMUNITIES, WILL BE R ELIGIOUS IN NATURE. HE SUBMITTED THAT THE ASSESSEE IS RUNNING A VOCATIONAL TRAINING INSTI TUTE, WHEREIN THE STUDENTS BELONGING TO ALL COMMUNITIES HAVE BEEN GIVEN ADMISSION. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. WE NOTICE THAT THE LD. CIT HAS GRANTED REGISTRATION U/S. 12A OF THE ACT TO THE TRUST CLASSIFYING THE SAME AS A RELIGIOUS TRUST. HOWEVER, A PERUSAL OF T HE OBJECT CLAUSE OF THE TRUST WOULD SHOW THAT ALL THE OBJECTS ARE DIRECTED TOWARDS EDUC ATIONAL ACTIVITIES AND WE DO NOT FIND ANY OBJECT WHICH IS DIRECTED TOWARDS RELIGIOUS ACTI VITIES. ACCORDING TO THE LD. AR, THE ASSESSEE HAS NOT SPENT ANY AMOUNT TOWARDS RELIGIOUS ACTIVITIES. THE PURPOSE OF THE I.T.A. NO.321/COCH/2012 3 OBJECT CLAUSE SHOWS THAT THE EDUCATIONAL FACILITIES ARE MAINLY DIRECTED TOWARDS STUDENTS OF CHRISTIAN MINORITY COMMUNITY AND ALSO STUDENTS B ELONGING TO OTHER COMMUNITIES. WHEN A SPECIFIC QUERY WAS ASKED TO THE LD A.R AS TO WHETHER THESE KINDS OF CLAUSES WILL VIOLATE THE PROVISIONS OF SEC. 13(1)(B) OF THE ACT, THE LD A.R SUBMITTED THAT THE BENEFITS OF THE TRUST ARE NOT RESTRICTED TO THE STUDENTS FRO M CHRISTIAN COMMUNITY ALONE AND THE SAME WAS EXTENDED TO THE STUDENTS BELONGING TO OTHE R COMMUNITIES ALSO. WE NOTICE THAT THE LD. CIT APPEARS TO HAVE OVERLOOKED THE VAR IOUS CLAUSES MENTIONED IN THE OBJECT CLAUSE OF THE TRUST DEED. ACCORDINGLY, IN OUR VIEW, THE REGISTRATION GRANTED BY THE LD. CIT TO THE ASSESSEE AS A RELIGIOUS TRUST NEEDS REVIEW AT HIS END. ACCORDINGLY, WE RESTORE THIS MATTER TO THE FILE OF THE LD. CIT W ITH A DIRECTION TO EXAMINE THE PLEA OF THE ASSESSEE VIS-A-VIS THE OBJECTS OF THE TRUST AND TAKE APPROPRIATE DECISION ON THE MATTER IN ACCORDANCE WITH LAW, AFTER AFFORDING NECE SSARY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 22-11-20 13. SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 22ND NOVEMBER, 2013 GJ COPY TO: 1. HOLY CROSS SISTERS EDUCATIONAL TRUST, DOOR NO, 5 /1433B, HOLY CROSS CONVENT, ERANHIPALAM P.O., KOZHIKODE-673 006. 2.THE COMMISSIONER OF INCOME-TAX, KOZHIKODE. 3. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 4. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T, COCHIN