Saidapet Varthagar Trust, CHENNAI V. DIT, CHENNAI

ITA 371/CHNY/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73678 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-12-2013
• Assessment Year: misc
• Appeal Filed On: 22-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B JENA
• Assessee Lawyers: D ANAND; KAMAL CHORDIA
• Keywords: Gift; Charitable institution; Cancellation of registration
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NO.371/MDS/2012 SAIDAPET VARTHAGAR TRUST, NO.46, BAZAAR ROAD, SAIDAPET, CHENNAI 600 015. [PAN : AABTS0164S] VS. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D. ANAND, ADVOCATE & SHRI KAMAL CHORDIA, CA RESPONDENT BY : SHRI B. JENA, CIT DATE OF HEARIN G : 05.12.2013 DATE OF PRONOUNCEMENT : 31.01.2014 O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI DATED 29.12.2011 UNDER SECTION 12AA(3) OF THE INCOME TAX ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A TRUST REGISTERED UNDER SECTION 12A(A) OF THE ACT VIDE ORDER OF THE DIT(E) IN C. NO.2(7)/1995-96 DATED 28.04.1995. THE OBJECTS OF THE ASSESSEE TRUST ARE R EPRODUCED AS UNDER: (1) TO WORK FOR AND PROMOTE UNITY AMONG BUSINESS CO MMUNITY. (2) TO MAINTAIN, DEVELOP, IMPROVE, EXPAND THE PROP ERTIES, MOVABLE AND IMMOVABLE CREATED, GIFTED, TRANSFERRED BY THE MEMBE RS, PUBLIC OR GOVERNMENT OR ANY OTHER INSTITUTION OR BODY. I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 2 (3) TO PROVIDE FEES, BOOKS, EQUIPMENTS, FREESHIPS, AND/OR SCHOLARSHIPS TO DESERVING STUDENTS. (4) TO MAKE DONATIONS TO OTHER PUBLIC CHARITABLE T RUSTS/INSTITUTIONS RECOGNIZED UNDER SECTION 80-G OF THE INCOME TAX ACT , 1961. (5) TO HELP AND ASSIST OTHER CHARITABLE CAUSES OF A SIMILAR NATURE AS AFORESAID AS THE TRUSTEES MAY FROM TIME TO TIME CHO OSE. (6) TO RENDER ASSISTANCE, FINANCIAL OR OTHERWISE, TO ALL INSTITUTIONS OR ORGANISATIONS (OR EVEN TO INDIVIDUAL CASES OF CHILD REN) WHICH HELP THE PROGRESS OF CHILDREN DIRECTLY OR INDIRECTLY. (7) TO CREATE CENTRE OF MUTUAL UNDERSTANDING BEYON D NATIONAL RELIGIOUS, LINGUISTIC OR OTHER BARRIERS. (8) TO PROMOTE EDUCATION, MEDICAL RELIEF, RUNNING O F THE KALYANA MANDAP, FOR THE BENEFIT OF THE WEAKER SECTIONS OF P UBLIC, A HOPE FOR PHYSICALLY HANDICAPPED AND ANY OTHER OBJECTS OF GEN ERAL PUBLIC UTILITY. (9) TO HOLD CONFERENCES BASED ON EXPERIENTIAL KNOW LEDGE AND WORKSHOPS IN ORDER TO PROJECT THE ACHIEVEMENTS IN T HE PRACTICE OF INDIVIDUAL AND COLLECTIVELY AS A GROUP TO EXCHANGE EXPERIENCES AND WISDOM. (10) TO STORE MEMORY CENTRES WITH AN AIM OF CHARACTER BU ILDING, PERSONALITY DEVELOPMENT AND ORIENTATION TO A SOCIAL SERVICE. (11) TO ESTABLISH, MAINTAIN, RUN, DEVELOP, IMPROVE , EXTEND, GRANT, DONATE FOR AND TO AID IN THE ESTABLISHMENT, MAINTENANCE IM PROVEMENT AND EXTENSION OF SCHOOLS, COLLAGES, POLYTECHNICS AND OT HER EDUCATIONAL INSTITUTIONS INCLUDING VOCATIONAL TRAINING CENTRES, RESEARCH CENTRES AND AUDIO EDUCATIONAL CENTRES, AND HOSTELS FOR STUD ENTS PURSUING THEIR STUDIES. (12) TO INSTITUTE STUDENTSHIPS, SCHOLARSHIPS, STIP ENDS, MEDALS, PRIZES, ETC. TO HELP AND ENCOURAGE DESERVING STUDENTS AND TO PRO VIDE MONETARY AID TO STUDENTS, SCHOLARS AND TEACHERS FOR PURSUING THEIR EDUCATION. (13) TO ESTABLISH, MAINTAIN, RUN, DEVELOP, IMPROVE , EXTEND, GRANT, DONATE FOR AND TO AID IN THE ESTABLISHMENT, MAINTENANCE, R UNNING, DEVELOPMENT, IMPROVEMENT AND EXTENSION OF HOSPITALS , CLINICS, I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 3 DISPENSARIES, MEDICAL LABORATORIES, RESEARCH UNITS, WITH SPECIAL EMPHASIS ON MEDICAL LABORATORIES, INDIAN SYSTEMS OF MEDICINE LIKE AYURVEDA AND SIMILAR INSTITUTIONS AFFORDING TREATME NT, CURE, REST, RECUPERATION AND OTHER MEDICAL RELIEF TO THE PUBLIC INCLUDING RELIEF TO THE AGED, THE PHYSICALLY HANDICAPPED AND THE MENTAL LY RETARDED. (14) TO ORGANISE, RUN AND ASSIST IN THE ORGANISING AND RUNNING OF MEDICAL CAMPS IN RURAL AREAS. (15) TO ASSIST AND PROVIDE FOR THE POUR BY CONSTRU CTING HALLS, REST HOUSES ETC. TO CONDUCT FEEDING OF THE POOR AND TO P ROVIDE FOOD, CLOTHING AND CASH GRANTS TO THE POOR, AND TO GRANT DONATIONS FOR THE SUPPORT OF THE INMATES OF ORPHANAGES, RESCUE AND RE HABILITATION CENTRES AND SIMILAR INSTITUTIONS. THE POOR MAY ALSO BE ASSISTED BY WAY OF TEACHING OF CRAFTS, ENGINEERING AND SIMILAR SKILLS AND INDUSTRIAL TRAINING, INCLUDING ON THE JOB TRAINING. (16) TO PROVIDE RELIEF BY GIVING CASH GRANTS IN TI ME OF NATURAL CALAMITIES LIKE EARTHQUAKES, FLOODS, FAMINES, ETC. (17) ANY OTHER LAWFUL ACTIVITIES THAT THE TRUSTEES MAY DECIDE TO DO UNANIMOUSLY. (18) TO TAKE OVER THE OTHER TRUSTEE OR ASSOCIATION S HAVING SIMILAR OBJECT. IT IS FURTHER DECLARED THAT THE TRUST SHALL NOT CAR RY ON ANY BUSINESS, TRADING ACTIVITY OR ACTIVITIES OR WITH THE INTENTIO N OF EARNING A PROFIT. THE AFORESAID OBJECTS OF CHARITY SHALL BE PROVIDED TO THE BENEFICIARIES WITHOUT DISTINCTION OF CASTE, CREED, COLOUR, SEX OR RELIGION. IT IS FURTHER DECLARED THAT NO ACTIVITIES OF THE TRUST WILL BE CA RRIED OUT OUTSIDE INDIA. 3. THE LD. DIT(EXEMPTIONS) ISSUED A SHOW-CAUSE NOT ICE TO THE ASSESSEE DATED 21.10.2011 ON THE BASIS OF THE PROPOSAL FROM ADIT(E)(III) AND CALLED FOR EXPLANATION OF THE ASSESSEE AS TO WHY PROCEEDINGS U NDER SECTION 12AA(3) SHOULD NOT BE INITIATED. IN RESPONSE TO THE ABOVE N OTICE, THE ASSESSEE HAS SUBMITTED A DETAILED REPLY ON 02.12.2011 AND IS REP RODUCED HEREUNDER: WE WOULD LIKE TO SUBMIT BRIEFLY THE BACKGROUND OF T HE SAIDAPET VARTHAGAR TRUST AND ITS FORMATION IN THE YEAR 1939, SAIDAPET MERCHANT ASSOCIATION WAS I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 4 STARTED IN SAIDAPET BY SAIDAPET BAZAAR BUSINESS COM MUNITY TO PROTECT THEIR INTEREST AND TO FIGHT AGAINST BRITISH SOLDIERS WHO WERE CREA TING PROBLEM IN THEIR BUSINESS ACTIVITIES THEN AND THERE. THE SAIDAPET MERCHANTS F ORMED AN ASSOCIATION AND COMPLAINED AGAINST THE ATROCITIES OF THE SOLDIERS W HO WERE CREATING PROBLEM TO THE VICEROY WHO REDRESSED THEIR GRIEVANCE THUS THE ASSO CIATION WAS FORMED AND IT WAS TAKING CARE OF THE INTEREST OF BUSINESS COMMUNI TY. AFTER LOT OF HURDLE, THE ASSOCIATION WAS ABLE TO PURCHASE A PROPERTY WHICH W AS GIVEN TO THE ASSOCIATION FOR A VERY REASONABLE SALE CONSIDERATION BY ONE OF ITS MEMBERS. THEY WERE ALSO ABLE TO START A KALYANA MANDAPAM WITH GREAT DIFFICU LTY IN A THATCHED SHED WHICH WAS SUBSEQUENTLY CONVERTED IN TO ASBESTOS ROOFING A ND FRONT AND BACK WALL PORTION WITH REGULAR BUILDING. ALL THESE EXERCISE TOOK NEARLY 30 YEARS AND THE KAL YANA MANDAPAM WAS RUNNING SMOOTHLY. DURING 1994-1995 WE WERE THREATEN ED BY POLITICIANS TO JOIN AS MEMBERS OF THE ASSOCIATION BY HAVING ONE OR TWO SHO PS IN SAIDAPET AND CAPTURE THE ASSOCIATION WHICH HAD A PROPERTY. THE ASSOCIATI ON CALLED FOR A MEETING AND DECIDED TO CONVERT THE ASSOCIATION AS A TRUST AND I T WAS REGISTERED BY TRUST DEED (REGN NO.345/95) DATED 31/03/1995. IN THIS WAY THE TRUST WAS ESTABLISHED AND WE HAVE ALREADY CELEBRATED THE COMPLETION OF 60 YEARS DIAMOND JUBILEE CELEBRATION IN THE YEAR 1999. AFTER CONVERSION OF TRUST WE HAVE STARTED DOING PH ILANTHROPIC ACTIVITIES IN THE TURST AS UNDER: RELIEF TO POOR WE WOULD LIKE TO SUBMIT THAT OUR AIM IS TO OFFER RE LIEF TO POOR AND DOWN TRODDEN, BY WAY OF OFFERING QUALITY FOOD ITEMS AT MINIMUM MA RGIN PRICE. OUR AIM IS TO OFFER RELIEF TO POOR AND DOWNTRODDEN BY OFFERING BOOKS FR OM BOOK BANK FOR HIGHER EDUCATION, POST GRADUATION, LAW, MEDICINE AND NOTE BOOKS FOR STUDENTS OF STD. II TO PLUS TWO. OUR AIM IS TO OFFER RELIEF TO POOR AND DO WNTRODDEN BY CONDUCTING MEDICAL CAMPS ON DENTAL, EYE CAMP. GENERAL MEDICINE AND GYNECOLOGY, AYURVEDA CAMP, ETC. EDUCATION 1. EVERY YEAR THE TRUST IS DISTRIBUTING FREE NOTE BOOKS TO CHILDREN OF POOR WHO ARE STUDYING STD II TO PLUS TWO. THE VALUE OF N OTEBOOKS EVERY YEAR APPROXIMATELY WILL BE RS. 1, 50,000/-. 2. WE ARE RUNNING A BOOK BANK WHERE WE DISTRIBUTE BOOKS TO POOR STUDENTS WHO ARE DOING ENGINEERING, MEDICAL AND POST GRADUAT ION. 3. WE DISTRIBUTE PRIZES FOR CHILDREN STUDYING IN E LEMENTARY SCHOOL, HIGHER SECONDARY SCHOOL CORPORATION OF CHENNAI FOR RANK HO LDERS. IST RANK GOLD I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 5 COIN AND FOR IIND AND IIIRD RANKS PRIZES AS CHOSEN BY SCHOOL AUTHORITIES LIKE DICTIONARY, THESAURUS, WORLD MAP, ETC. WE DIST RIBUTE PRIZES TO STUDENTS OF ELEMENTARY AND HIGHER SECONDARY SCHOOLS. WHO HAV E WON IN VARIOUS SPORTS ACTIVITIES CONDUCTED IN THE CORPORATION SCHO OLS. 4. WE HAVE DISTRIBUTED DRESSES AND BOOKS TO SPASTI C CHILDREN. 5. FOR DEAF AND DUMB SCHOOL CHILDREN, AT ADAYAR WE HAVE DONATED BRAILEY ITEMS AND TAPE RECORDERS FOR DUMB TO PROMOTE EDUCAT IONAL ACTIVITIES. 6. WE HAVE CONSTRUCTED TOILETS TO GOVT. GIRLS HIGH ER SCHOOL, AT KANYAKUMARI FOR POOR SCHOOL CHILDREN. RELIEF TO POOR MEDICAL WE HAVE BEEN REGULARLY CONDUCTING MEDICAL CAMPS FOR POOR AND ECONOMICALLY WEAKER SECTION. WE HAVE CONDUCTED GENERAL MEDICINE CAMPS AND GYNECOLOGY MEDICAL CAMPS, DENTAL MEDICAL CAMPS, EYE CAMPS, AYU RVEDA MEDICINE CAMPS, ACUPUNCTURE. FOR POOR STUDENTS YOGA DEMONSTRATION W AS SHOWN TO PRESERVE HEALTH. EXCLUSIVE MEDICAL CAMP WAS CONDUCTED TO THE FAMILY OF POLICE PERSONNEL. AS A RELIEF TO POOR WOMEN WHO WERE TREATED IN CORPO RATION MATERNITY HOSPITAL SAIDAPET. WE HAVE PROVIDED BENCHES FOR WOMEN WHO WE RE CARRYING CHILD AND ALSO FANS AS THESE ARE NOT AVAILABLE THERE. AS A RELIEF TO POOR WHO ARE UNDERGOING OPERATION IN CORPORATION GENERAL HOSPITAL, SAIDAPET . A.C .MACHINE WAS DONATED AT THEIR REQUEST. RELIEF TO POOR GENERAL 1. DONATIONS WERE GIVEN TO VICTIMS OF KARGIL WAR, FLOOD RELIEF, EARTH QUAKE, AND TSUNAMI VICTIMS. FOOD PACKETS WERE FREELY DISTR IBUTED TO POOR PEOPLE DURING FLOOD. 2. NARIKURAVAR CHILDREN WERE PROVIDED IN THE KALYA NA MANDAPAM WITH FOOD AND CLOTHING. 3. VESSELS WERE PROVIDED FOR MIDDAY MEALS TO POOR CHILDREN IN CORPORATION SCHOOL. 4. AFTER OBTAINING PERMISSION OF THE I.G OF PRISON WE HAVE VISITED THE SAIDAPET PRISON TO FEED THE PRISONERS WITH SWEETS AND FOOD. 5. IN SAIDAPET MERCY HOME, LITTLE MOUNT, AGED PERS ONS WHO ARE ABOUT TO DIE, ARE TAKEN AS INMATES ALONG WITH NEARLY 60 TO 7 0 INMATES REGULARLY. WE HAVE PROVIDED THEM BLANKETS AND MATS. 6. TO PROTECT THE ENVIRONMENT, WE HAVE PLANTED TRE ES IN SEVERAL PLACES NEAR SAIDAPET. INCOME TAX DEPARTMENT AWARENESS CAMP. AT THE TIME O F INTRODUCTION OF PAN CARD, AWARENESS CAMP WAS CONDUC TED BY THE INCOME TAX DEPARTMENT IN OUR KALAYANA MANDAPAM WHERE THE C OMMISSIONER OF I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 6 INCOME TAX AND OFFER DIGNITARIES HAVE TAKEN PART. W E WON THEIR APPRECIATION DURING THE MEETING. JUSTICE OF CHENNAI HIGH COURT: IN DISPOSING OFF FAM ILY COURT CASES A CAMP WAS ORGANIZED AND CONDUCTED IN OUR MANDAPAM BY SAID APET MAGISTRATE COURT. CHIEF JUSTICE OF HIGH COURT ALONG WITH OTHER JUSTIC E ATTENDED THE MEETING AND THEY WERE ABLE TO COMPROMISE MAJORITY OF THE CASES OUT O F 350 TO 375 CASES. RESERVE BANK OF INDIA: DURING COIN SHORTAGE, TWICE RESERVE BANK OF INDIA HAVE DISTRIBUTED COINS THROUGH SAIDAPET VARTHAGAR TRUST. NEARLY 20 LAKHS WORTH OF COINS WERE DISTRIBUTED AND SOILED NOTES EXCHANGED. RELIEF TO POOR PROVIDING FOOD ITEMS OUR AIM IS TO OFFER RELIEF TO POOR AND DOWNTRODDEN BY WAY OF PROVIDING FOOD ITEMS AT MINIMUM MARGIN PRICE. WE BUY THE INGR EDIENTS FOR THE PREPARATION OF FOOD ITEMS LIKE PULSES, CEREALS, VEGETABLES, OIL, F ROM THE WHOLESALE MARKET TO PREPARE QUALITY ITEMS. THE MAJORITY OF LABOURERS EMPLOYED BY THE TRUST BEL ONGS TO BACKWARD AND MOST BACK WARD CLASSES. WE PROVIDE THEM FOOD AN D SHELTER APART, FROM WAGES. THEY HAVE COME FROM FOR SOUTH AND THEY PERMANENTLY STAY HERE TO DO THE JOB. THUS, BY WAY OF FOOD ITEMS PREPARATION AND DISTRIBUTION M ORE THAN 30 PERSONS ARE EMPLOYED WHO BELONG TO THE BACKWARD AND MOST BACKWA RD COMMUNITY. WE PREPARE QUALITY FOOD ITEMS AND DISTRIBUTE TO POOR A ND DOWNTRODDEN. 50% LESS THAN THE HOTEL PRICES, FOR YOUR INFORMATION WE ARE GIVIN G HEREUNDER THE PRICE CHART OF DIFFERENT HOT WITH OUR PRICES: FOOD ITEMS SAIDAPET VARTHAGAR TRUST SARAVANA BHAVAN BALAJI BHAVAN IDLI 3.50 11.00 7.00 VADA 5.00 22.00 16.00 PONGAL 12.00 32.00 28.00 DOSA 12.00 36.00 28.00 COFFEE 5.00 22.00 20.00 SAMBAR RICE 12.00 36.00 26.00 CURD RICE 12. 00 36.00 26.00 VEG. BRIYANI 12.00 45.00 28.00 THE COMPARATIVE STUDY OF PRICES SHALL BE THE PROOF THAT POOR PERSONS AND DOWNTRODDEN ARE TAKEN CARE OF. SOMETIME, WE NOTICE THAT WE ARE SUPPLYING THE I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 7 FOOD ITEMS BELOW THE COST PRICE AS ALL THE PRICES I NGREDIENTS, ALONG WITH THE COST OF LABOUR HAVE INCREASED CONSIDERABLY OWING TO STEEP I NCREASE OF PRICES OF CEREALS, PULSES, OIL, GAS, VEGETABLES, ETC., WE DON'T INCREA SE THE PRICE OF FOOD ITEMS IMMEDIATELY AND WE WAIT FOR SOMETIME AND THEN ONLY INCREASE THE PRICE OF FOOD ITEMS RELUCTANTLY AS WE ALWAYS FEEL THAT THE POOR, DOWNTRODDEN AND ECONOMICALLY WEAKER SECTION SHOULD NOT SUFFER. IN FIXING AND ADJUSTING PRICE SOMETIME WE LOSE AND SOMETIME THERE IN EXCESS THAN THE COST WHICH WAS UTILIZED IN FUTURE F OR MEDICAL RELIEF FOR POOR. WE ALSO PROVIDE THIS MEDICAL RELIEF TO OUR EMPLOYEES W HO SEEK MEDICAL ASSISTANCE AND RELIEF. THEREFORE, FROM THE ABOVE THAT THE SALE OF FOOD ITE MS IN MINIMUM MARGIN PRICE AND THE LITTLE EXTRA MONEY WE RECEIVE IN SPEN T TOWARDS RELIEF TO POOR FOR MEDICAL AND TOWARDS MEDICAL EXPENSES OF OUR EMPLOYE ES WHO PREPARE AND DISTRIBUTE THE FOOD ITEMS AND WHO BELONG TO THE BAC KWARD AND MOST BACKWARD COMMUNITY. MORE OVER A LOT OF OUT STATION STUDENTS FROM FAR AW AY VILLAGES ARE REGULARLY CONSUMING FOOD FROM OUR TRUST. WITHOUT WHICH IT WIL L BE DIFFICULT FOR THEM TO STAY AND STUDY IN SAIDAPET. KALYANA MANDAPAM AS A RELIEF TO POOR, DOWN TRODDEN, AND ECONOMICALLY WEAKER SECTION WE CHARGE LOWEST RATE THAN OTHER MADAPAM IN THIS PART OF THE CITY. OUR MANDAPAM IN QUITE A BIG ONE AND THE DINING HALL WILL ACCOMMODAT E 125 PERSONS. WE HAVE PROVIDED AC IN ROOMS FOR THE BRIDE AND BRIDE GROOM. THERE IS ANOTHER HALL AVAILABLE IN THE SECOND FLOOR FOR THE PERSON TO STA Y. INSPITE OF THIS FACILITY WE CHARGE THE LOWEST RATE. YOU WILL AGREE THAT THIS MO NEY IS NOT A PROFIT AND WE HAVE TO MAINTAIN THIS BUILDING BY REGULAR COLOUR WASHING , PLUMBING, FALSE CEILING WORK AND MAINTAINING LIGHTINGS. YOU HAD STATED, THAT WE HAD COLLECTED A SUM OF RS. 93,00,706/- TOWARDS CANTEEN SALES AND RS. 8,75,203/- TOWARDS ORDER SALE S. WE WOULD LIKE TO SUBMIT THAT OUT OF THE ABOVE RECEIPTS WE HAD SPEND 90% TOWARDS INGREDIENTS FOR THE MANUFACTURE OF FOOD ITEMS AND WE HAVE SPENT TOWARDS WAGES FOR LABOURERS EMPLOYED WHO BELONG TO BACKWARD AND MOST BACKWARD C LASSES. YOU WILL NOTICE, THAT ONLY THE SURPLUS LEFT AFTER A LL THE EXPENSES IN AN ENDEAVOUR TO PROVIDE RELIEF TO POOR BY SUPPLYING FOOD ITEMS. EVE N THIS AMOUNT WE SPEND SUBSEQUENTLY TOWARDS MEDICAL RELIEF TO POOR AND TO OUR EMPLOYEES. I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 8 TESTIMONY JUSTICE OF HIGH COURT HAVE VISITED, COMMISSIONER OF POLICE AND OTHER TOP OFFICIALS OF INCOME TAX DEPARTMENT HAVE VISITED, RESERVE BANK OFFICIALS HAVE TAKEN PART IN DISTRIBUTION OF COINS. ALL THESE PERSONS HAVE APPRE CIATED OUR EFFORTS AND LAUDED OUR SERVICES IN PROVIDING RELIEF TO POOR ALONG WITH GREAT PUBLIC FIGURES, TOP MUSICIANS, TOP CINE ARTISTS ETC. IN THE FINAL CONCLUSION, WE WOULD LIKE TO SUBMIT TH AT WE, AS A CHARITABLE INSTITUTION OUT AND OUT TO SERVE TOWARDS PROVIDING RELIEF TO POOR FAMILIES BY SUPPLYING FOOD ITEMS, PROVIDING MEDICAL AND EDUCATI ON RELIEF TO POOR FAMILIES. IN THE LIGHT OF THE ABOVE CIRCUMSTANCES, WE HUMBLY REQUEST YOU NOT TO TAKE ANY ACTION U/S 12AA(3), AND ALLOW US TO CONTINUE OU R CHARITABLE ACTIVITIES SO THAT WE WILL BE ABLE TO OFFER MORE SERVICES TOWARDS RELI EF TO POOR BY TAKING YOUR GUIDANCE. 4. IN CONTINUATION TO THE ABOVE SUBMISSIONS AND TO SUBSTANTIATE THAT THE ASSESSEE TRUST HAS BEEN CARRYING ON THE OBJECTIVES OF GIVING RELIEF TO THE POOR BY SUPPORTING THEM ON GIVING FOOD AT SUBSIDISED RATE W ITH HIGH QUALITY, PROVIDING NOTE BOOKS TO THE POOR AND NEEDY CHILDREN FROM 2 ND STANDARD TO PLUS TWO, ETC. THE ASSESSEE TRUST, VIDE LETTER DATED 09.12.2011, FURNI SHED FINANCIAL YEAR-WISE CHARITABLE EXPENSES, EDUCATION EXPENSES, MEDICAL EX PENSES WITH SUPPORTING INVOICES/VOUCHERS/BILLS ETC. HAVE BEEN FILED BEFORE THE LD. DIT(E) ALONG WITH BALANCE SHEET, PROFIT AND LOSS ACCOUNT STATEMENTS. THE RELEVANT FINANCIAL YEAR- WISE I.E. 2007-08 TO 2010-11 ARE GIVEN BELOW: FINANCIAL YEAR 2007-08 EDUCATIONAL EXPENSES : RS.1,91,676.10 (PROVIDING FREE NOTE BOOKS TO POOR STUDENTS) CHARITABLE EXPENSES : RS.26,931.00 SPONSORSHIP EXPENSES : RS.16,000.00 (SPONSORING STUDY EXPENSES OF POOR CORPORATION SCHOOL) I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 9 FINANCIAL YEAR 2008-09 EDUCATIONAL EXPENSES : RS.2,14,779.80 (PROVIDING FREE NOTE BOOKS TO POOR STUDENTS) CHARITABLE EXPENSES : RS.1,87,206.00 FREE FOOD DISTRIBUTION : RS.15,200.00 MEDICAL CAMP EXPENSES : RS.21,212.00 (PROVIDING MEDICINES AND CONSULTATION) PRIZE GOLD COINS : RS.14,000.00 (GOLD COINS DISTRIBUTED TO CORPORATION SCHOOL BOYS) FINANCIAL YEAR 2009-10 MEDICAL CAMP EXPENSES : RS.12,431.50 (PROVIDING MEDICINES AND CONSULTATION) BOOK BANK EXPENSES : RS.11,312.50 EDUCATIONAL EXPENSES : RS.2,72,777.90 (PROVIDING FREE NOTE BOOKS TO POOR STUDENTS) FINANCIAL YEAR 2010-11 EDUCATIONAL EXPENSES : RS.2,77,349.10 (PROVIDING FREE NOTE BOOKS TO POOR STUDENTS) MEDICAL CAMP EXPENSES : RS.10,922.800 (PROVIDING MEDICINES AND CONSULTATION) PRIZES TO STUDENTS : RS. 39,479.00(GOLD COINS DISTRIBUTED TO CORPORATION SCHOOL BOYS) IT WAS ALSO SUBMITTED THAT APART FROM THE ABOVE, T HE ASSESSEE TRUST HAS OFFERED DONATIONS TO KARGIL WAR RELIEF, TSUNAMI REL IEF, FLOOD RELIEF, ETC. AT THE MOST NEEDY HOURS. 5. HOWEVER, THE LD. DIT(EXEMPTIONS), CANCELLED THE REGISTRATION UNDER SECTION 12AA(3) OF THE ACT AND RELEVANT PORTION OF THE ORDE R IS EXTRACTED HEREUNDER: 10. I HAVE EXAMINED THE CONTENTION OF THE ASSESSE E. MY VIEWS ON THE VARIOUS ISSUES ARE GIVEN AS UNDER: I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 10 (1) THE ASSESSEE CLAIMS THAT IT IS RUNNING A CANTE EN FOR THE RELIEF OF THE POOR IS DIFFICULT TO ACCEPT. THE CANTEEN IS RUNNING ON COMMERCIAL BASIS, MAY BE AT LESSER MARGIN. THE COMPARISON OF THE COSTING WITH SARAVANA BHAVAN AND HOTEL BALAJI BHAVAN IN NO WAY PROVES THAT CANTE EN IS NOT RUN ON COMMERCIAL LINES. I HOLD THAT THESE HOTELS, VIZ. SA RAVANA BHAVAN AND HOTEL BALAJI BHAVAN HAVE VARIOUS INFRASTRUCTURES SUCH AS A/C RESTAURANT, SERVICE FACILITY DURING DINING, ETC. THE PRESENT TRUST IS R UNNING A CANTEEN AND SERVING THE FOOD TO THE CUSTOMER AT THE COUNTER ITSELF. THE RE IS HARDLY ANY PLACE TO SIT AND TAKE THE FOOD. THEREFORE THE FACILITY ALSO IS N OT COMPARABLE WITH THESE REGULAR RESTAURANTS OR HOTELS. WHAT I FIND DEFINITE LY IS THAT THE CUSTOMERS OF THE TRUST IN THE CANTEEN WILL NOT BE OF HIGHER INCO ME GROUP BUT THE FACT REMAINS THAT THE RELATIONSHIP BETWEEN THE TRUST AND THE CUSTOMERS IS OF BUSINESS RELATIONSHIP. THERE ARE NUMEROUS SUCH LOW COST CANTEEN AVAILABLE IN THE CITY OF CHENNAI ITSELF ON THE STREET AND SMALLER PLACES WHEREIN FOO D AT VERY LOW MARGIN RATES ARE AVAILABLE. THE FOOD AT CANTEEN MAINTAINED BY TH E ASSESSEE TRUST IS GIVEN ON THE BASIS OF A STATUS OF A CUSTOMER. THEREFORE, IT IS DIFFICULT TO ACCEPT THE ARGUMENT OF THE ASSESSEE THAT IT IS DOING SERVICE T O THE POOR BY RUNNING SUCH CANTEEN. THE MAJOR ACTIVITY OF THE TRUST IS TO RUN THE CANTEEN WHICH IN MY VIEW IS A BUSINESS ACTIVITY. I HAVE PERUSED ALL THE OTHER ACTIVITIES OTHER THAN RUNNING OF CANTEEN. ITS ACTIVITIES ARE WIDE RANGING AS NARRATED ABOVE. IT APPEARS THAT THE ACTIVITIES OF THE TRUST WILL FALL UNDER OBJECT OF G ENERAL PUBLIC UTILITY. (2) RUNNING OF MANDAPAM AS CLAIMED BY THE ASSESSEE IS IN THE NATURE OF RELIEF TO THE POOR ONLY IS ALSO NOT ACCEPTABLE BECA USE THE MANDAPAM IS GIVEN ON CHARGE, MAY BE AT LESSER RATE, TO ATTRACT THE CU STOMERS HAVING CAPABLE OF SPENDING LESS. IT DOES NOT MEAN THAT IT IS RELIEF T O THE POOR. 11. IN VIEW OF THE ABOVE, I HOLD THAT THE ACTIVITI ES OF THE TRUST ARE GENERAL PUBLIC UTILITY AND THE ASSESSEE IS DERIVING BUSINES S INCOME AS DISCUSSED ABOVE FROM THE CANTEEN ACTIVITY, ORDER SALES AND TH E MANDAPAM RECEIPTS FAR EXCEEDS THE THRESHOLD LIMIT OF RS.10 LAKHS FOR THE F.Y.2008-09. THEREFORE THE ASSESSEE'S OBJECTS AND ACTIVITIES ARE HIT BY FIRST AND SECOND PROVISO TO SEC. 2(15) OF THE I.T.ACT AND WITH EFFECT FROM 1.4.2009 THE INSTITUTION HAS LOST ITS CHARACTER AS A CHARITABLE INSTITUTION. THIS VIEW HA S BEEN TAKEN BY THE UNDERSIGNED EARLIER WHILE DECIDING THE APPLICATION IN FORM 10G FILED BY THE ASSESSEE FOR RENEWAL OF APPROVAL U/S 80G OF THE I.T . ACT, AS MENTIONED EARLIER. I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 11 12. IN VIEW OF THE ABOVE, I HOLD THAT THE OBJECTS AND ACTIVITIES ARE IN THE NATURE OF 'GENERAL PUBLIC UTILITY' AND THE TRUST IS RECEIVING COMMERCIAL RECEIPTS TO PROVIDE SERVICE TO PARTICULAR:, SERVICE S. THE TOTAL SUCH RECEIPTS ARE MUCH MORE THAN THE THRESHOLD LIMIT OF RS.10 LAC S FOR THE ASST. YEAR 2009- 10. ACCORDINGLY, THE OBJECTS AND ACTIVITIES OF THE TRUST IS NO LONGER CHARITABLE IN NATURE. ONCE THE CHARACTER OF THE INS TITUTION IS NO LONGER CHARITABLE IN NATURE THE INSTITUTION CANNOT BE SAID TO PURSUE CHARITABLE ACTIVITY AND U/S. 12AA(3), THE REGISTRATION CAN BE CANCELLED IF THE ACTIVITY IS NOT GENUINE. IT IS PERTINENT TO NOTE THAT GENUINENE SS HAS TO BE EXAMINED WITH REGARD TO CHARITABLE PURPOSE. OTHERWISE THE INTERPR ETATION OF THE WORD 'GENUINE' WILL BE VERY VAGUE. IF THE ACTIVITIES ARE NOT CHARITABLE THE ACTIVITIES OF THE INSTITUTION CANNOT BE SAID GENUINELY CHARITA BLE. ONCE THE OBJECT OF THE INSTITUTION IS NO LONGER CHARITABLE IN NATURE, THEY ARE NOT ELIGIBLE FOR ANY EXEMPTION U/ S.11 & 12 OF THE I.T. ACT. 13. ACCORDINGLY, I HEREBY CANCEL THE REGISTRATION GRANTED TO THE ORGANIZATION U/S 12A(A) WITH EFFECT FROM 1.4.2009 I .E. INTRODUCTION OF PROVISO TO SEC.2(15) OF THE ACT AS FROM THAT DATE THE ORGAN IZATION HAS NOT REMAINED CHARITABLE AS DISCUSSED SUPRA IN PARA NO. 1L. 6. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL B EFORE THE TRIBUNAL. 7. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE MAIN OBJECTS OF THE ASSESSEE TRUST ARE TO GIVE RELIEF TO POOR, EDUC ATION AND MEDICAL CARE. HE ALSO POINTED OUT THAT FROM THE PAPER BOOK PAGE 57 THAT T HE ASSESSEE TRUST HAD INCURRED EDUCATIONAL EXPENSES, MEDICAL CAMP EXPENSE S, CHARITABLE EXPENSES, IN THE FINANCIAL YEARS 2008-09, 2009-10 AND 2010-11. I N SO FAR AS KALYANA MANDAPAM IS CONCERNED, IT WAS SUBMITTED THAT THE TR UST HAS BUILT A KALYANA MANDAPAM TO PROVIDE SHELTER TO THE ECONOMICALLY WEA KER SECTION OF THE PEOPLES WHO ARE NOT ABLE TO BEAR HUGE EXPENSES TO PERFORM M ARRIAGE AND THE TRUST IS CHARGING VERY LOW RATE AND WHATEVER EARNED WERE USE D FOR THE PURPOSE OF THE OBJECTS OF THE ASSESSEE TRUST. SO FAR AS CANTEEN IS CONCERNED, THE LD. COUNSEL FOR I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 12 THE ASSESSEE HAS SUBMITTED THAT THE TRUST PROVIDES FOOD AT VERY LOW COST SINCE ITS INCEPTION TO NEEDY, DOWNTRODDEN, UNDERPRIVILEGED, L OW INCOME AND ECONOMICALLY WEAKER SECTIONS PARTICULARLY, SLUM DWELLERS, RAG PI CKERS, SMALL PLATFORM VENDORS IN SAIDAPET MARKET, AUTO DRIVERS, STUDENTS COMING F ROM VILLAGES AND OLD PEOPLE. HE HAS ALSO POINTED OUT FROM PAGE 52 OF PAPER BOOK AND SUBMITTED THAT THE ASSESSEE TRUST WAS CHARGING VERY LOW RATES OF FOOD ITEMS WITHOUT ANY PROFIT MOTIVE. 8. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORD ER PASSED BY THE LD. DIT(EXEMPTIONS). 9. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH ORDER OF THE LD. DIT(EXEMPTIONS). WE FIND F ROM ASSESSEES PAPER BOOK THAT IN THE YEAR 1939, SAIDAPET MERCHANT ASSOCIATIO N WAS STARTED IN SAIDAPET BY SAIDAPET BAZAAR BUSINESS COMMUNITY TO PROTECT THEIR INTEREST AND TO FIGHT AGAINST BRITISH SOLDIERS WHO WERE CREATING PROBLEM IN THEIR BUSINESS ACTIVITIES THEN AND THERE. THE ASSOCIATION PURCHASED A PROPERTY WHICH W AS GIVEN TO THE ASSOCIATION FOR A VERY REASONABLE SALE CONSIDERATION BY ONE OF ITS MEMBERS AND ALSO STARTED A KALYANA MANDAPAM IN A THATCHED SHED WHICH WAS SUB SEQUENTLY CONVERTED IN TO ASBESTOS ROOFING AND FRONT AND BACK WALL PORTION WI TH REGULAR BUILDING. ALL THESE EXERCISE TOOK NEARLY 30 YEARS AND THE KALYANA MANDA PAM WAS RUNNING SMOOTHLY. THE ASSOCIATION DECIDED TO CONVERT THE ASSOCIATION AS A TRUST AND IT WAS REGISTERED BY TRUST DEED (REGN NO.345/95) DATED 31/ 03/1995. THE ASSESSEE TRUST I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 13 WAS GRANTED REGISTRATION UNDER SECTION 12A(A) OF TH E INCOME TAX ACT VIDE ORDER OF THE DIT(EXEMPTIONS) IN C.NO. 2(7)/1995-96 DATED 28.04.1995. AFTER CONVERSION OF TRUST AND GRANTED REGISTRATION AS TRU ST, THE TRUST STARTED DOING PHILANTHROPIC ACTIVITIES AND THE OBJECTS AS NARRATE D IN THE TRUST DEED WERE REPRODUCED HEREIN ABOVE. THE TRUST HAS CELEBRATED T HE COMPLETION OF 60 YEARS AS DIAMOND JUBILEE CELEBRATION IN THE YEAR 1999. CONSE QUENT UPON INTRODUCTION OF PROVISO TO SECTION 2(15) OF THE ACT WITH EFFECT FRO M 01.04.2009, THE ADIT(E) SELECTED THE TRUST FOR SCRUTINY FOR THE ASSESSMENT YEAR 2009-10 AND CALLED FOR VARIOUS DETAILS AND VIDE LETTER DATED 05.09.2011 HA S SUBMITTED PROPOSAL FOR INITIATING THE PROCEEDINGS UNDER SECTION 12AA(3) OF THE ACT FOR CANCELLATION OF REGISTRATION. THE ASSESSEE TRUST HAS FILED A DETAIL ED REPLY DATED 02.12.2011 TO THE NOTICE, WHICH WERE REPRODUCED HEREINABOVE. IT IS TH E CASE OF THE ASSESSEE THAT THE ASSESSEE IS INCURRING VARIOUS EXPENSES OF EDUCA TION, MEDICAL CAMPS, BOOKS TO THE POOR AND PRIZES TO STUDENTS AND OTHER CHARIT ABLE EXPENSES. IT IS NOT THE CASE OF THE REVENUE THAT THE EXPLANATION GIVEN BY T HE ASSESSEE IS NOT CORRECT AND APART FROM THAT THE DIT(E) HIMSELF ADMITTED THA T THE ASSESSEE IS RUNNING A CANTEEN WITH LESSER MARGIN. SO FAR AS KALYANA MANDA PAM IS CONCERNED, THE LD. DIT(E) WAS OF THE OPINION THAT SIMPLY BECAUSE THE T RUST IS CHARGING LOWER RATE, IT CANNOT BE SAID THAT IT IS RELIEF TO THE POOR. THE L D. DIT(E) HAS NOT CONSIDERED THE DETAILED EXPLANATION GIVEN BY THE ASSESSEE PROPERLY . THE LD. DIT(E) HAS NOT DENIED VARIOUS CHARITABLE ACTIVITIES CARRIED BY THE ASSESSEE. IT IS NOT THE CASE OF THE DIT(E) THAT THE ACTIVITIES OF THE TRUST OR INST ITUTION ARE NOT GENUINE. IT IS ALSO I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 14 NOT THE CASE OF THE DIT(E) THAT THE ACTIVITIES OF T HE ASSESSEE TRUST ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE T RUST OR INSTITUTION FOR WHICH THE ASSESSEE TRUST WAS GRANTED REGISTRATION UNDER SECTI ON 12A IN 1995. 10. A PERUSAL OF SECTION 12AA(3) OF THE ACT WOULD INDICATE THAT A REGISTRATION GRANTED UNDER SECTION 12AA CAN ONLY BE WITHDRAWN WH EN THE COMMISSIONER/ DIRECTOR OF INCOME TAX (EXEMPTION) IS SATISFIED THA T (A) THE ACTIVITIES OF THE TRUST OR THE INSTITUTION ARE NOT GENUINE OR (B) THE ACT IVITIES OF THE ASSESSEE ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR THE INSTITUTION. THERE CANNOT BE ANY OTHER LEGALLY SUSTAINABLE REASO NS FOR CANCELLING OR WITHDRAWING THE REGISTRATION GRANTED UNDER SECTION 12AA. BY NO STRETCH OF LOGIC, THE ACTIVITIES OF THE ASSESSEE CAN BE SAID TO BE NO T GENUINE AND THE ASSESSEE IS ADMITTEDLY PURSING THE OBJECTS FOR WHICH IT WAS EST ABLISHED. WHEN THE ASSESSEE IS ENGAGED IN BONAFIDE ACTIVITIES, WITH THE FRAME W ORK OF LAW, TO PURSUE ITS OBJECTIVES, IT CANNOT BE SAID THAT THE ACTIVITIES O F THE ASSESSEE TRUST ARE NOT GENUINE. 11. IN THIS CASE, THE LD. DIT(E) HAS NOT GIVEN ANY FINDING THAT THE ASSESSEE HAS VIOLATED THESE TWO CONDITIONS. AS NO SPECIFIC VIOLA TION HAD BEEN POINTED OUT BY THE LD. DIT(E), KEEPING IN VIEW OF THE FACTS AND CI RCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT INVOKING SECTION 12AA(3) OF THE ACT IS NOT WARRANTED IN THIS CASE. I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 15 12. AFTER GOING THROUGH THE PROVISIONS OF SECTION 12AA(3) AND SECTION 2(15), WE FIND THAT TO WITHDRAW THE REGISTRATION GRANTED U NDER SECTION 12AA HAS BEEN PROVIDED IN SUCH CLAUSE (3) OF SECTION 12AA OF THE ACT. THE PROVISIONS OF SECTION 2(15) ARE TOTALLY DIFFERENT. BY THE AMENDED PROVISI ONS OF SECTION 2(15), IT HAS BEEN PROVIDED THAT IF ANY YEAR THE GROSS RECEIPTS O F AN INSTITUTION EXCEEDS ` .10 LAKHS [NOW ` . 25 LAKHS W.E.F. 01.04.2012], THEN IN THAT CASE, T HE ASSESSING OFFICER IS EMPOWERED TO EXAMINE THE ALLOWABILITY OF EXEMPTI ON UNDER SECTION 11 OF THE ACT ON YEARLY BASIS BUT THE SAME HAS NO EFFECT IN C ONTINUATION OF REGISTRATION ALREADY GRANTED BY THE LD. DIT(E) DURING 1995. 13. IN THE CASE OF CIT V. SARVODAYA ILLAKKIYA PANN AI [2012] 343 ITR 300 (MAD), THE HONBLE JURISDICTIONAL HIGH COURT HAS HE LD THAT THE REGISTRATION GRANTED TO A CHARITABLE TRUST CANNOT BE CANCELLED UNTIL OR UNLESS THE CONDITIONS AS LAID DOWN UNDER SECTION 12AA OF THE ACT ARE VIOLATED. IN THIS CASE, NO SUCH VIOLATION HAS BEEN POINTED BY THE LD. DIT(E) EXCEPT STATING T HAT THE ACTIVITIES OF THE ASSESSEE TRUST ARE IN GENERAL PUBLIC UTILITY AND TH E ACTIVITIES OF THE TRUST IS NO LONGER CHARITABLE IN NATURE BECAUSE THE THRESHOLD L IMIT OF ` .10 LAKHS HAS BEEN CROSSED. THEREFORE, KEEPING IN VIEW OF THE FACTS AN D CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THE ASSESSEE TRUST IS EN TITLED TO THE CONTINUATION OF REGISTRATION UNDER SECTION 12AA OF THE ACT AND WE Q UASH THE ORDER PASSED BY THE LD. DIT(EXEMPTIONS) AND THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. I II I.T.A. .T.A. .T.A. .T.A. NO. NO. NO. NO.371 371371 371/MDS/ /MDS/ /MDS/ /MDS/12 1212 12 16 14. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED ON FRIDAY, THE 31 ST OF JANUARY, 2014 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V.DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 31.01.2014 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.