Fatima Begum Trust, Hyd, Hyderabad V. The DIT(Exemptions), Hyderabad

ITA 375/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53657 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 11-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: M FAKHRUDDDIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.375/HYD/2011 & ITA NO.376/HYD/2011 M/S. FATIMA BEGUM TRUST, HYDERABAD ( PAN AAATF 2920 N ) V/S. DIRECTOR OF INCOME - TAX (EXEMPTION), HYDERABAD (APP ELLANT) (RESPONDENT) APPELLANT BY : SHRI M.FAKHRUDDDIN RESPONDENT BY : SMT. NIVEDITA BISWAS DATE OF HEARING 8.9.2011 DATE OF PRONOUNCEMENT 14.10.2011 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AG AINST THE ORDERS OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) , REFUSING TO THE ASSESSEE REGISTRATION UNDER S.12AA AND APPROVAL UN DER S.80G OF THE INCOME-TAX ACT. THESE APPEALS ARE BEING DISPOSED OFF WITH THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPLICATIONS OF THE ASSESSEE FOR REGISTRATION UNDER S.12AA AND APPROVAL UNDER S.80G OF THE INCOME-TAX ACT, 1961 WE RE REJECTED BY THE DIRECTOR OF INCOME-TAX(EXEMPTION) FOR THE ONLY REASON THAT THE OBJECTIVES OF THE ASSESSEE TRUST ARE MIXED OBJECTS, VIZ. PARTLY CHARITABLE AND PARTLY RELIGIOUS. HE SUBMITTED THAT THE ISSUE IS SETTLED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN SOCIAL SERVICE CENTRE (250 ITR 39)(AP) ITA NO375-376H/2011 M/S. FATIMA BEGUM TRUST, HYDERABAD 2 AND COCHIN BENCH(THIRD MEMBER) DECISION OF THE TRIB UNAL IN SOCIETY OF PRESENTATION SISTERS V.S ITO (121 ITD 422) (COC HIN)-TM, WHEREIN IT WAS HELD THAT THE TERM CHARITABLE ACTIVITY AL SO INCLUDES RELIGIOUS ACTIVITY. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RE LIED ON THE ORDERS OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) . HE SUBMITTED THAT THE TRUST SHOULD BE FOR WHOLLY CHARITABLE PURP OSES IN ORDER TO ENTITLE THE ASSESSEE FOR REGISTRATION UNDER S.12AA AND APPROVAL UNDER S.80G OF THE ACT. HE HAS REFERRED TO RELEVANT PARA S OF THE ORDERS OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) IN SUPPORT OF THE CASE OF THE REVENUE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE ORDERS OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) . WE FIND THAT THE ONLY REASON GIVEN BY THE DIRECTOR OF INCOME-TAX (EXEMPTION) FOR REFUSING REGISTRATION UNDER S.12AA AND APPROVAL UND ER S.80G OF THE ACT TO THE ASSESSEE TRUST WAS THAT THE OBJECTS OF T HE ASSESSEE TRUST ARE PARTLY CHARITABLE AND PARTLY RELIGIOUS. THE I SSUE BEFORE US IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN CIT VS/. SOCIAL SERVIC E CENTRE (SUPRA), WHEREIN IT WAS HELD THAT DONATION TO A CHURCH OR CO NSTRUCTION OF A CHURCH WAS NOT A PURPOSE WHICH WAS NOT OF GENERAL P UBLIC UTILITY WITHIN THE MEANING OF S.2(15) OF THE ACT. IN SOCIE TY OF PRESENTATION SISTERS V/S. ITO (SUPRA), IT WAS HELD IN THE DECISI ON OF THE THIRD MEMBER OF THE COCHIN BENCH OF THE TRIBUNAL THAT SO FAR AS THE PROVISIONS OF S.11(1)(A) ARE CONCERNED NO DISTINCT ION IS MADE BETWEEN CHARITABLE AND RELIGIOUS PURPOSES. A CHARIT ABLE INSTITUTION CAN HAVE RELIGIOUS PURPOSES, WHEREAS A RELIGIOUS INSTIT UTION MAY BE PARTLY CHARITABLE. IN VIEW OF THE DECISIONS CITED SUPRA, WE ARE OF THE VIEW ITA NO375-376H/2011 M/S. FATIMA BEGUM TRUST, HYDERABAD 3 THAT THE ASSESSEE IS ENTITLED TO REGISTRATION UNDER S.12AA AND APPROVAL UNDER S.80G OF THE ACT, AND ACCORDINGLY, W E DIRECT THE DIRECTOR OF INCOME-TAX(EXEMPTION) TO GRANT THE ASS ESSEE TRUST, REGISTRATION UNDER S.12AA AND APPROVAL UNDER S.80G OF THE ACT, AND CONSEQUENTLY, GROUNDS OF THE ASSESSEE IN BOTH THES E APPEALS ARE ALLOWED. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSE E ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 14.1 0.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 14 TH OCTOBER, 2011 COPY FORWARDED TO: 1. M/S. FATIMA BEGUM TRUST, C/O. M/S. M.A. MOHAIDDIN & CO., CHARTERED ACCOUNTANTS, 307, LENAINE ESTATE, 5-9-189, ABID RO AD, HYDERABAD 2. DIRECTOR OF INCOME - TAX(EXEMPTION), HYDERABAD 3. DY., DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 4. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD . B.V.S