Mother Land National Charitable Trust, CHENNAI V. ITO, CHENNAI

ITA 435/CHNY/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5416 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-02-2014
• Assessment Year: misc
• Appeal Filed On: 13-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 12A; 12AA; 12

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . !' !' !' !' , # # # # $ $ $ $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NO.435/MDS/2013 M/S. MOTHER LAND NATIONAL CHARITABLE TRUST, 49-B, LALBAHADUR NAGAR, M.K.P. ROAD, PEELAMEDU, COIMBATORE 641 004. [PAN : AACTM9853F] VS. THE INCOME TAX OFFICER, COMPANY WARD I, COIMBATORE. ( %& %& %& %& / APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE '(%& ) * / RESPONDENT BY : SHRI S. BHARATH, CIT ) + / DATE OF HEARING : 20.02.2014 ,- ) + /DATE OF PRONOUNCEMENT : 27.02.2014 . . . . / 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. COMMISSIONER OF INCOME TAX, COIMBATORE, DATED 2 7.12.2012 PASSED UNDER SECTION 12A OF THE INCOME TAX ACT. 2. THE APPEAL OF THE ASSESSEE IS TIME BARRED BY 16 DAYS IN FILING. THE LD. COUNSEL FOR THE ASSESSEE HAS FILED A PETITION REQUE STING TO CONDONE THE DELAY. BY REFERRING TO THE CONTENTS THEREIN, THE LD . COUNSEL FOR THE ASSESSEE I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 2 HAS PLEADED FOR CONDONING THE DELAY. THE LD. DR HAS NOT OBJECT TO THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. ON PERUSAL OF THE PETITION FILED FOR CONDONATION OF DELAY, WE ARE SATISFIED TH AT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM NOT FILING THE A PPEAL WITHIN THE STIPULATED TIME. ACCORDINGLY, WE CONDONE THE DELAY OF 16 DAYS IN FIL ING THE APPEAL AND ADMIT THE SAME FOR HEARING. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS EXECUTED A TRUST DEED ON 10.10.2011 AND APPLIED FOR REGISTRATION UND ER SECTION 12AA OF THE INCOME TAX ACT,1961 WITH FOLLOWING OBJECTS: 1. THE OBJECTS FOR WHICH THE TRUST IS ESTABLISHED ARE: A. BLOOD DONATION CAMP, B. EYE DONATION CAMP, C. FREE HEALTH CHECK UP, D. FREE FAMILY PLANNING ADVICE & OPERATION. E. MEDICAL CAMPS, F. EDUCATIONAL CAMPS, G. HUMAN RIGHTS AND WELFARE PROGRAMS. H. ESTABLISHING AND MAINTENANCE OF HOSPITAL, NURSI NG HOMES, EDUCATIONAL INSTITUTE, HOSTELS, CULTURAL INSTITUTE, ORPHANAGES ETC., I. HIV/AIDS AWARENESS PROGRAM AND OTHER SERVICES A S THE NEEDED NEED OF SERVICE. J. VOCATIONAL TRAINING FOR SKILLED WORK, K. ANY OTHER OBJECT OF HANDICAPPED AND BLIND UTILI TY NOT INVOLVING THE CARRYING ON OF ANY ACTIVITIES FOR PROFITS. 2 IN FURTHERANCE OF THE ABOVE OBJECTS THE TRUSTEES SHALL HAVE THE FOLLOWING POWERS:- A. TO CONDUCT PROGRAMS TO CREATE AIDS AWARENESS PR OGRAMS AND EDUCATING PEOPLE IN PREVENTION MEASURES. I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 3 B. TO PROVIDE ASSISTANCE TO PHYSICALLY DISABLED FO R PURCHASING AIDS AND APPLIANCES. C. TO CONDUCT PROGRAMS TO ERADICATE LEPROSY. D. TO CONDUCT REHABILITATION PROGRAMS TO LEPROSY, AIDS AFFECTED PEOPLE. E. PROMOTE ECONOMIC DEVELOPMENT ACTIVITIES FOR THE BENEFIT OF PERSONS WITH DISABILITIES. F. PROMOTE SELF-EMPLOYMENT AND OTHER VENTURES FOR THE BENEFIT/ECONOMIC G. REHABILITATION OF THE PERSONS WITH DISABILITIES. G. ASSIST INDIVIDUALS WITH DISABILITIES OR GROUP O F INDIVIDUALS WITH DISABILITIES BY WAY OF LOANS AND ADVANCES FOR ECONO MICALLY AND FINANCIALLY VIABLE SCHEMES AND PROJECTS. H. ASSIST IN THE UP GRADATION OF TECHNICAL AND ENT REPRENEURIAL SKILLS OF PERSONS WITH DISABILITIES FOR PROPER AND EFFICIENT MANAGEMENT OF PRODUCTION UNITS. I. SET UP TRAINING, QUALITY CONTROL, PROCESS DEVEL OPMENT, TECHNOLOGY, COMMON FACILITY, CENTERS AND OTHER INFRA STRUCTURAL ACTIVITIES FOR THE PROPER REHABILITATION/UPLIFTMENT OF THE HANDICAPPED PERSONS IN SUPPORT OF THEIR ECONOMIC PURSUITS. . J. ASSIST SELF-EMPLOYED INDIVIDUALS/GROUP OF INDIV IDUALS OF DISABLED OR ECONOMICALLY BACKWARD PERSONS IN MARKETING THEIR FI NISHED GOODS AND ASSIST IN PROCUREMENT OF NEW MATERIALS. K. TO DEVELOP, OPERATE AND IMPLEMENT SPECIFIC PILO T PROGRAMS, PROJECTS AND SCHEMES IN INDIA IN SUPPORT OF PROMOTION OF THE SELF-EMPLOYMENT, ECONOMIC ACTIVITIES OF THE HANDICAPPED PERSONS WITH A VIEW OF INTRODUCING INNOVATIONS, TECHNOLOGICAL UP-GRADATION AND BRIBING THE CRITICAL GAPS OF INFRASTRUCTURE, INPUT SUPPLY AND O UTPUT PROCESSING MARKETING. L. TO ESTABLISH, MAINTAIN, SUBSCRIBE OR TO SUBSIDI ZE OR BECOME MEMBER OF TRAINING INSTITUTIONS, RESEARCH LABORATORIES, RESEA RCH INSTITUTIONS AND EXPERIMENTAL EXPERIMENTS. M. TO GENERATE SPORTS CONSCIOUSNESS AND MASS PARTI CIPATION BY YOUTH IN SPORTS AND GAMES IN RURAL AND TRIBAL AREAS. N. TO ESTABLISH, MAINTAIN, RUN, DEVELOP, IMPROVE, EXTEND, GRANT DONATIONS FOR, AND EXTENSION OF PROFESSIONAL INSTITUTIONS RUN NING TRAINING COURSES FOR DISABLED. O. TO FIGHT FOR PRESERVING CONSUMER RIGHTS AND WEL FARE. P. TO FIGHT FOR PRESERVING SOCIAL WELFARE, HUMANIT Y, HUMAN RIGHTS. Q. TO ERADICATE ILLITERACY IN RURAL AREAS AND TO E XECUTE THE LITERACY PROGRAMS LIKE ADULT EDUCATION, NON-FORMAL LITERACY, NATIONAL LITERACY MISSION PROGRAM TO RURAL MASS. R. TO PROVIDE EDUCATION IN ARTS, CULTURE, LITERATU RE, CRAFT, NEW INVENTIONS, TECHNOLOGY, ALL TYPES OF TRADITIONAL MEDICINES OF O UR COUNTRY. S. TO EDUCATE PEOPLE IN GENERAL HEALTH AND LEAD TH EM A TIDY LIFE. I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 4 T. TO PROVIDE TRAINING TO ERADICATE DRUGS AND TO C ONDUCT PROGRAMS TO INDUCE THE CAUSES OF DRUGS AMONG THE GENERAL PUBLIC . U. TO CONTRIBUTE FUNDS FOR THE ESTABLISHMENTS AND MAINTENANCE OF HOSPITALS AND NURSING HOMES FOR THE BENEFIT OF DISA BLED AND BLIND PERSONS. V . TO ACCEPT DONATIONS AND TO COLLECT FUNDS AND A CCEPT PROPERTIES IN WHATEVER SHAPE, TO CARRY ON ALL OR ANY FOR THE PURP OSE OF THE TRUST AND TO MAKE DONATIONS FOR THE PURPOSES IN FURTHERANCE O F THE OBJECTS OF THE TRUST. W. TO ACCEPT SUCH SUM AS MAY BE CONTRIBUTED AS AN ENDOWMENT AND HOLD THE CORPUS UTILIZING THE INCOME ALONG FOR THE PURPO SE OF THE TRUST. X. TO ESTABLISH HOSTELS, PHYSICAL, CULTURAL INSTITU TIONS AND ORPHANAGES AND TO MAINTAIN SUCH ORPHANAGES AND INSTITUTIONS AN D TO PROVIDE FREE CLOTHING AND DISABLED AND BLIND PERSONS. Y. TO RUN CRCHES, ORPHANAGE INSTITUTION FOR HANDI CAPPED, HOSPITALS, MEDICAL CENTERS, CLINICS, POLYCLINICS AND OTHER INS TITUTIONS FOR PROVIDING MEDICAL AIDS TO THE POOR. Z. TO CONDUCT POOR FEEDING AND TO GIVE BASIC ESSEN TIALS LIKE, FOOD CLOTHING, SHELTER ETC. TO THE POOR AND NEEDY AT TIM ES OF NEED WITHOUT ANY DISCRIMINATION AS TO THEIR CASE, COMMUNITY OR R ELIGION. AA. TO HOLD ANY PROPERTY AND DERIVE INCOME THERE F ROM HOLDING THE SAID PROPERTY IN TRUST FOR THE OBJECT OF THE TRUST. AB. TO CARRY AND DO SUCH THINGS AS ARE INCIDENTAL FOR THE PURPOSES OF THE TRUST AND SHALL EXERCISE ALL SUCH POWER AS ARE NECE SSARY FOR THE CONDUCT OF THE TRUST IN ALL MATTERS. 4. THE LD. CIT IN HIS ORDER DATED 27.12.2012 HAS O BSERVED THAT AS ON THE DATE, THE ASSESSEE HAS CLAIMED TO HAVE BEEN RUNNING A COMPUTER TRAINING INSTITUTE IN THE NAME AND STYLE O F ACT COMPUTER EDUCATION ON FREE OF COST. BUT, THE TRUSTEES HAVE BEEN PRODUCED ANY EVIDENCE TO SHOW THAT THE SAME IS RUN ON FREE OF CO ST. THE LD. CIT FURTHER OBSERVED THAT ON PERUSAL OF INCOME AND EXPE NDITURE STATEMENT FOR THE PERIOD ENDING ON 31.03.2012 SHOWS DONATIONS RECEIVED OF I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 5 ` .43,157/- AND CONTRIBUTION FROM THE TRUSTEES OF ` .10900/-. OUT OF THESE THEY HAVE SHOWS EDUCATIONAL HELP, SUPPORT TO THE PO OR, MEDICAL HELP AND SUPPORT OF WIDOWS OF ` .40,915/- AND ADMINISTRATIVE EXPENSES OF ` .5,453/-. ON PERUSAL OF BALANCE SHEET AS ON 31.03.2 012 SHOWS NAME BOARD WORTH OF ` .1,450/- AS THE ONLY FIXED ASSET. THE TRUST HAS NOT PRODUCED THE EVIDENCE FOR CARRYING OUT ACTIVITIES, WHICH ARE CHARITABLE IN NATURE. THEREFORE, THE LD. CIT DOUBTED THE GENUI NENESS OF THE TRUST AND REJECTED THE CLAIM MADE BY THE TRUST UNDER SECT ION 12AA OF THE ACT. 5. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS DOING CHARITABLE ACTIVITIES AND IS READY TO FURNISH ALL THE DETAILS AS REQUIRED BY THE LD. CIT AND PRAYED FOR GRANT OF ONE MORE OPPORTUNITY. 6. THE LD. DR HAS SERIOUSLY OBJECTED ON THE SUBMIS SIONS OF THE LD. COUNSEL FOR THE ASSESSEE AND STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. CIT. 7. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDER OF THE LD. CIT AS WELL AS CO PY OF THE TRUST DEED EXECUTED BY THE ASSESSEE TRUST. THE ASSESSEE HAS FI LED AN APPLICATION I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 6 FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. THE CLAIM OF THE ASSESSEE IS THAT THE ASSESSEE IS RUNNING COMPUTER T RAINING INSTITUTE ON FREE OF COST, BUT THE TRUST HAS NOT PRODUCED ANY EV IDENCE TO SHOW THAT THE SAME IS RUNNING ON FREE OF COST. THE ASSESSEE H AS ALSO CLAIMS THAT THE TRUST IS DOING CHARITABLE WORK I.E. EDUCATIONAL HELP TO SUPPORT THE POOR, MEDICAL HELP AND SUPPORT TO WIDOWS, BUT NO EV IDENCE WERE PRODUCED. THEREFORE, THE LD. CIT DOUBTED THE GENUIN ENESS AND REJECTED REGISTRATION OF THE ASSESSEE TRUST UNDER SECTION 12 AA OF THE ACT. WHEN THE ASSESSEE HAS NOT BEEN ABLE TO PRODUCE ANY EVIDE NCE TO SHOW THAT THE ASSESSEE IS DOING SOME CHARITABLE WORK, THE LD. CIT HAS NO OTHER OPTION EXCEPT TO REJECT THE CLAIM OF THE ASSESSEE. HOWEVER, THE LD. COUNSEL FOR THE ASSESSEE HAS REQUESTED THAT THE ASS ESSEE IS READY TO PRODUCE ALL THE EVIDENCES TO THE SATISFACTION OF TH E LD. CIT, TO MEET THE ENDS OF JUSTICE, WE ARE OF THE CONSIDERED OPINION T O GRANT ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT AND DIRECT TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER RECEIVING ALL RELEVANT MATERIALS AS MAY BE SUBMITTED BY THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FURN ISH ALL DETAILS TO THE SATISFACTION OF THE LD. CIT FOR PASSING FRESH ORDER ON THIS ISSUE. I.T. I.T. I.T. I.T.A. A.A. A. NO. NO. NO. NO.435 435435 435/M/ /M/ /M/ /M/13 1313 13 7 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THURSDAY, THE 27 TH OF FEBRUARY, 2014 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 27.02.2014 VM/- TO: THE ASSESSEE/A.O./CIT(A)/CIT/D.R.