Dr. Thangamma Educational and Health Trust, Vellore V. ADIT, CHENNAI

ITA 337/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68692 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2013
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 10-09-2013
• Assessment Year: misc
• Appeal Filed On: 22-02-2013
• Court: TRIBUNAL
• Department Lawyers: SUNEEL VERMA
• Assessee Lawyers: G BASKAR
• Keywords: Charitable institution; Condonation of delay
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 337/MDS/2013 DR. THANGAMMA EDUCATIONAL AND HEALTH TRUST, NO.10, NETHAJI ROAD, TIRUPATHUR, VELLORE DIST 635 601. [PAN: AACTM 7815 R] VS THE ASSISTANT DIRECTOR OF INCOME TAX (EXEMPTIONS)-III, CHENNAI . (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G. BASKAR, ADVOCATE REVENUE BY : SHRI SUNEEL VERMA, CIT DATE OF HEARING : 10-09-2013 DATE OF PRONOUNCEMENT : 10-09-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTIONS), CH ENNAI, DATED 26-11-2012 PASSED U/S. 12AA OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT). 2. THE APPEAL HAS BEEN FILED WITH THE DELAY OF 17 D AYS. AN APPLICATION FOR CONDONATION OF DELAY SUPPORTED BY A N AFFIDAVIT I.T.A. NO. 337/MDS/2013 :- 2 -: CITING REASONS CAUSING DELAY HAS BEEN FILED. WE AR E SATISFIED WITH THE DELAY IN FILING OF THE APPEAL IS UN-INTENTIONAL AND THE MISTAKE IN NOT SENDING THE DOCUMENTS FOR FILING OF THE APPEAL IS BONAFIDE AND NOT DELIBERATE. THE LD. DR HAS NOT RAISED ANY SERI OUS OBJECTION IN CONDONATION OF DELAY IN FILING OF THE APPEAL. IN T HE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JU STICE, WE CONDONE THE DELAY IN FILING OF THE APPEAL AND ADMIT THE APPEAL FOR ADJUDICATION ON MERITS. 3. THE ASSESSEE-TRUST WAS CONSTITUTED ON 27-01-1993 . AN APPLICATION IN PRESCRIBED FORM WAS MADE ON 29-05-20 12 FOR SEEKING REGISTRATION U/S. 12AA OF THE ACT BEFORE TH E DIRECTOR OF INCOME TAX (EXEMPTIONS). THE DIRECTOR OF INCOME TAX(EXEMPTIONS) AFTER PERUSING THE OBJECTS OF THE A SSESSEE HELD THAT OBJECT CLAUSES 3(A) AND 3(B) SEEM TO BE COMMER CIAL IN NATURE. THE DIRECTOR OF INCOME TAX(EXEMPTIONS) FUR THER HELD THAT THE ACTIVITIES OF PUBLICATION OF BOOKS AND ESTABLIS HMENT OF COTTAGE AND SMALL SCALE INDUSTRIES AND RESEARCH INSTITUTE A RE NOT COVERED UNDER THE DEFINITION OF CHARITABLE PURPOSES AND REJ ECTED THE APPLICATION OF THE ASSESSEE SEEKING REGISTRTION U/S . 12AA OF THE ACT. I.T.A. NO. 337/MDS/2013 :- 3 -: 4. SHRI G. BASKAR, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE IMPUGNED ORDER HAS BEEN PASSED BY THE DIRECTOR OF INCOME TAX(EXEMPTIONS) WITHOUT AFFO RDING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THE LD. COUNSEL SUBMITTED THAT IF GIVEN A CHANCE AFRESH, HE WOULD B E ABLE TO SHOW THAT THE AIMS AND OBJECTS OF THE ASSESSEE-TRUST ARE CHARITABLE IN NATURE. 5. ON THE OTHER HAND, SHRI SUNEEL VERMA APPEARING O N BEHALF OF THE REVENUE SUPPORTED THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTIONS). THE LD. DR SUBMITTED THAT THE DIR ECTOR OF INCOME TAX(EXEMPTIONS) HAS CLEARLY STATED THAT THE ACTIVITIES BEING CARRIED OUT BY THE ASSESSEE ARE NOT CHARITABL E IN NATURE. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESENTATIVES OF BOTH THE SIDES. WE FIND THAT VI DE COMMUNICATION DATED 06-09-2012, THE DIRECTOR OF INC OME TAX(EXEMPTIONS) HAD SOUGHT INFORMATION ON SPECIFIC POINTS. THE ASSESSEE HAD FILED DETAILED REPLY ON 02-10-2012 TO THE AFORESAID COMMUNICATION RECEIVED FROM THE DIRECTOR OF INCOME TAX(EXEMPTIONS). THE APPLICATION OF THE ASSESSEE S EEKING I.T.A. NO. 337/MDS/2013 :- 4 -: REGISTRATION U/S. 12AA WAS REJECTED BY THE DIRECTOR OF INCOME TAX(EXEMPTIONS) AS HE WAS NOT CONVINCED THAT THE AC TIVITIES CARRIED ON BY THE ASSESSEE ARE CHARITABLE IN NATURE . THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED THAT IF AN OPPO RTUNITY IS GRANTED, THE ASSESSEE WILL BE ABLE TO SHOW THAT THE ACTIVITIES BEEN CARRIED OUT BY THE TRUST ARE FOR CHARITABLE PURPOSE S AS DEFINED U/S. 2(15) OF THE ACT. IN THE INTEREST OF JUSTICE, WE R EMIT THE ISSUE BACK TO THE DIRECTOR OF INCOME TAX(EXEMPTIONS) TO DECIDE THE MATTER AFRESH AFTER AFFORDING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE IN ACCORDANCE WITH LAW. THE IMPUGNED ORDER IS SET ASIDE AND THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 10 TH SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (VIKAS AWASTHY) JUDICIAL MEMBER DATED: 10 TH SEPTEMBER, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR