M/s. Urban Rural Women & Children Development Society, CHENNAI V. DDIT, CHENNAI

ITA 485/CHNY/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51962 (ITAT-CHENNAI)
• 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: B
• Next Hearing Date: 04-10-2011
• Assessment Year: misc
• Appeal Filed On: 11-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P R RAVIKUMAR
• Assessee Lawyers: S SRIDHAR
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NOS. 484 & 485/MDS/2011 M/S URBAN RURAL WOMEN & CHILDREN DEVELOPMENT SOCIETY, 1/10, ARUMANDAI KOTTU SALAI, SHOLAVARAM, THIRUVALLUR DISTRICT. PAN : AAAAU1361P (APPELLANT) V. THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI. (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI P.R . RAVIKUMAR, CIT-DR DATE OF HEARING : 04.10.2011 DATE OF PRONOUNCEMENT : 14.10.2011 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THESE ARE APPEALS FILED BY THE ASSESSEE AGAINST O RDER DATED 28.09.2010 OF DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI, DENYING IT REGISTRATION UNDER SECTION 12AA OF INCOM E-TAX ACT, 1961 (IN SHORT THE ACT) AND APPROVAL UNDER SECTION 80G OF THE ACT. I.T.A. NOS. 484 & 485/MDS/11 2 2. SHORT FACTS APROPOS ARE THAT ASSESSEE-SOCIETY FO RMED ON 1.7.2002, HAD FILED AN APPLICATION IN FORM 10A AND 10G FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND FOR APPROVAL UNDER SECTION 80G OF THE ACT, RESPECTIVELY. LD. DIT(E) C ALLED FOR CERTAIN INFORMATION AND ALSO REQUIRED IT TO RECTIFY CERTAIN DEFICIENCIES NOTED IN THE APPLICATION. ASSESSEE APPEARED BEFORE LD. DIT( E) AND FILED CERTAIN REPLIES AND PRODUCED SOME RECORDS. LD. DIT (E) WAS OF THE OPINION THAT OBJECT CLAUSE G(3) OF THE ASSESSEE MEN TIONED ARRANGING SHORT TOURS FOR THE BENEFIT OF THE SOCIETY-MEMBERS AND THIS COULD NOT BE CONSIDERED AS CHARITABLE ACTIVITY. FURTHER AS P ER LD. DIT(E), AS PER CLAUSE G(1) OF ITS OBJECTS, ASSESSEE COULD PROMOTE RELIGION. HE, THEREFORE, HELD THAT ASSESSEE COULD NOT BE GIVEN RE GISTRATION UNDER SECTION 12AA OF THE ACT NOR APPROVAL UNDER SECTION 80G OF THE ACT, IN VIEW OF EXPLANATION 3 READ WITH CLAUSE (II) OF SECT ION 80G(5) OF THE ACT. 3. NOW BEFORE US, ASSAILING THE ORDER OF LD. DIT(E) , LEARNED A.R. SUBMITTED THAT LD. DIT(E) HAD NOT VERIFIED THE MEMO RANDUM TOTALLY AND ASSESSEE WAS UNABLE TO FURNISH A COPY OF MEMORA NDUM AFTER I.T.A. NOS. 484 & 485/MDS/11 3 INCLUSION OF CLAUSES REQUIRED BY LD. DIT(E), IN TIM E. ACCORDING TO LEARNED A.R., ASSESSEE WOULD BE ABLE TO PROVE CHARI TABLE NATURE OF ITS ACTIVITY AND ALSO GENUINENESS BEFORE LD. DIT(E), IF GIVEN A CHANCE. 4. PER CONTRA, LEARNED D.R. DID NOT RAISE ANY SERIO US OBJECTION IN SENDING THE MATTER BACK TO LD. DIT(E) FOR FRESH CON SIDERATION. 5. WE HAVE PERUSED THE ORDER OF LD. DIT(E) AND HEAR D THE RIVAL CONTENTIONS. IT IS AN ADMITTED POSITION THAT ASSES SEE COULD NOT GIVE ITS MEMORANDUM WITH CLAUSES SPECIFICALLY REQUIRED T O BE ADDED/ AMENDED BY LD. DIT(E), IN TIME. THEREFORE, LD. DI T(E) WENT BY THE CLAUSES MENTIONED IN THE MEMORANDUM PRIOR TO THE AM ENDMENT, FOR COMING TO A CONCLUSION THAT ASSESSEE COULD NOT BE G IVEN REGISTRATION UNDER SECTION 12AA OF THE ACT AND APPROVAL UNDER SE CTION 80G OF THE ACT. MEMBERSHIP OF THE ASSESSEE-SOCIETY, AS PER TH E MEMORANDUM FILED BY THE ASSESSEE BEFORE US, WAS OPEN TO ANY PE RSON, SUBJECT TO PAYMENT OF NOMINAL SUBSCRIPTION CHARGES. SOCIETY M EMBERSHIP BEING OPEN TO PUBLIC AT LARGE, ARRANGING SHORT TOURS COUL D NOT ITSELF BE A REASON FOR DENYING REGISTRATION UNDER SECTION 12AA OF THE ACT AND APPROVAL UNDER SECTION 80G OF THE ACT. NEVERTHELES S, IN VIEW OF THE I.T.A. NOS. 484 & 485/MDS/11 4 ABOVE FACTS AND CIRCUMSTANCES, WE ARE OF THE OPINIO N THAT THE MATTER HAS TO BE REMITTED BACK TO LD. DIT(E) FOR FRESH CON SIDERATION DE NOVO. WE, THEREFORE, SET ASIDE THE ORDER OF LD. DIT(E) BO TH FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AS WELL AS FOR APPROV AL UNDER SECTION 80G OF THE ACT AND REMIT BACK TO HIS FILE FOR CONSI DERATION DE NOVO. ASSESSEE SHALL CO-OPERATE AND FURNISH DETAILS SOUGH T FOR BY LD. DIT(E), AS PER LAW. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER WAS PRONOUNCED IN THE COURT ON 14 TH OCTOBER, 2011. SD/- SD/- (GEORGE MATHAN) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 14 TH OCTOBER, 2011. KRI. COPY TO: APPELLANT/RESPONDENT/DIT (EXEMPTIONS), CH ENNAI/ D.R./GUARD FILE