St. Joseph's Church, Kollam V. CIT, Kollam

ITA 5/COCH/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7645 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2010
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 03-08-2010
• Assessment Year: misc
• Appeal Filed On: 05-01-2009
• Court: TRIBUNAL
• Department Lawyers: T J VINCENT
• Assessee Lawyers: IVAN JOSEPH
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI T.R. S00D AND SHRI N.VIJAYAKUMARAN I.T.A.NO.05/COCH/2009 ST. JOSEPHS CHURCH, KOLLAM. PA NO.AAHTS 9822R VS. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. (APPELLANT) ( RESPONDENT ) APPELLANT BY SHRI IVAN JOSEPH, CA RESPONDENT BY SHRI T.J.VINCENT, JR.DR O R D E R PER N.VIJAYAKUMARAN,J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME-TAX, TRIVAN DRUM, WHO DENIED THE REGISTRATION U/S.12AA VIDE HIS ORDER DATED 29-09-2008. 2. THE APPEAL IS DELAYED BY 23 DAYS. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE AFFIDAVIT OF ONE FR. JO SE PRAKASH, PARISH PRIEST OF ST.JOSEPHS CHURCH, CHAVA RA, THEKKUMBHAGAM. THE DELAY WAS OCCURRED FOR WANT OF PA NUMBER TO REMIT THE FEE FOR FILING THE APPEAL. AF TER COLLECTING THE PA NUMBER, FEE WAS REMITTED TO THE B ANK. THUS, THERE WAS A DELAY OF 23 DAYS. THE DELAY BEIN G A ITA NO. 05/COCH/2009 ST. JOSEPHS CHURCH, KOLLAM. 2 REASONABLE WITH SUFFICIENT CAUSE, WE CONDONE THE DE LAY AND ADMIT THE APPEAL. 3. THE FACTS RELEVANT FOR ADJUDICATION WOULD BE THA T THE ASSESSEE TRUST WAS ESTABLISHED IN 1968 AD AND FURNI SHED A CERTIFICATE TO THIS EFFECT FROM THE BISHOP OF QUILO N. THE LD. COMMISSIONER WAS OF THE VIEW THAT THERE WAS NO WRIT TEN DEED TO SPELL OUT THE ACTIVITIES AND OBJECTS OF THE TRUSTS, FOR THAT THE ASSESSEE RELIED ON THE DECISION OF THE LEKSHMI NARAYAN MEHRAJ VS. CIT (1984) 50 ITR 465 (MP) WHEREIN IT HAS BEEN HELD THAT ALL DOCUMENTS WHICH AFFORD A LOG ICAL BASIS FOR INFERRING THE CREATION OF A TRUST SHALL BE TREA TED AS DOCUMENT EVIDENCING THE CREATION OF THE TRUST. 4. THERE IS NO DISPUTE THAT THE TRUST WAS ESTABLISH ED ON THE BASIS OF CANNON LAW. COUPLED WITH THE AFFIDA VIT OF FR. JOSE PRAKASH, PARISH PRIEST OF ST.JOSEPHS CHUR CH, WHEREIN IT HAS BEEN MENTIONED THAT IN THE CASE OF D ISSOLUTION OF THE CHURCH ALL THE ASSETS WILL BE TRANSFERRED WI TH SIMILAR CHURCH OF THE DIOCESE OF QUILON OR TO THE GOVERNMEN T. THEREFORE, IT CAN BE GOVERNED BY THE CANNON LAW, WH ICH IS THE BODY OF LAWS AND REGULATIONS MADE BY OR ADOPTED BY ECCLESIASTICAL AUTHORITY FOR THE GOVERNANCE OF THE CHURCH AND ITA NO. 05/COCH/2009 ST. JOSEPHS CHURCH, KOLLAM. 3 ITS MEMBERS. THE CATHOLIC CHURCH IS A HIERARCHY AN D THE INSTITUTIONS RUN BY IT ARE GOVERNED BY THE CODE OF CANNON OR CANNON LAW. CANNON LAW OF THE CATH0LIC CHURCH IS A COMPLETE SET OF LAW BY ITSELF TO ADMINISTER THE AFF AIRS OF ITS HIERARCHY AND ALL CATHOLIC INSTITUTIONS INDIVIDUALL Y AND COLLECTIVELY. HENCE, THE DECISION OF THE HONBLE MADHYA PRADESH HIGH COURT, CITED SUPRA, INFERS THE CREATIO N OF A TRUST BASED ON THE DOCUMENTS UNDER THE CANNON LAW D OES EVIDENCING THE CREATION OF THE TRUST AND THE ASSESS EE CHURCH HAS ALSO FILED COPY OF THE DEED OF PURCHASE OF AGRI CULTURAL LAND IN ITS NAME, THE LAND TAX PAID RECEIPTS AND TH E CERTIFICATE FROM THE BISHOP OF QUILON AS DOCUMENTAR Y EVIDENCE FOR THE CREATION OF THE TRUST. HENCE, IN THE ABSENCE OF ANY SPECIFIC WRITTEN TRUST DEED, SINCE T HE ASSESSEE IS ESTABLISHED IN THE YEAR 1868AD UNDER TH E CANNON LAW AND TO THIS EFFECT A CERTIFICATE FROM BI SHOP, QUILON IS PLACED ON RECORD, WILL GO TO SHOW THAT TH E TRUST WAS CREATED. 5. NOW COMING TO THE MIXED OBJECTS OF THE TRUST WHE THER RELIGIOUS OR CHARITABLE, THIS ISSUE HAS ALREADY BEE N DECIDED BY THE THIRD MEMBER IN ITA NO. I.T.A.NO.457/COCH/20 07 IN THE CASE OF THE SOCIETY OF PRESENTATION SISTERS, CALICUT AND ITA NO. 05/COCH/2009 ST. JOSEPHS CHURCH, KOLLAM. 4 IN I.T.A.NO.128/COCH/2007 IN THE CASE OF WAYANAD MU SLIM ORPHANAGE, KALPATTA, DATED 22-09-2009, FOLLOWING TH E DECISION OF THE ANDHRA PRADESH HIGH COURT REPORTED IN 250 ITR 39, WHEREIN THE DECISIONS OF THE APEX COURT IN CIT VS. ANDHRA CHAMBER OF COMMERCE AIR 1965 SC 1281 AND IN CIT V. BAR COUNCIL OF MAHARASHTRA AIR 1981 SC 1462 HAS BEEN FOLLOWED AND DECIDED THE ISSUE IN FAVOUR OF THE ASS ESSEE AND AGAINST THE REVENUE. RESPECTFULLY FOLLOWING THE DEC ISION OF THE THIRD MEMBER CITED SUPRA, WE HOLD THAT REGISTRA TION CANNOT BE DENIED WHEN THERE IS A COMPOSITE NATURE O F THE RELIGIOUS AND CHARITABLE NATURE. UNDER THE ABOVE CIRCUMSTANCES, WE AGREE WITH THE CONTENTION OF THE LD. COUNSEL AND DIRECT THE LD. COMMISSIONER OF INCOME-T AX TO GRANT REGISTRATION U/S.12AA OF THE ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. SD/- SD/- (T.R. SOOD) (N.VIJAYKUMARAN) ACCOUNTANT MEMBER JUDICIAL M EMBER ERNAKULAM, DATED THE 04 TH AUGUST,2010. PM. COPY FORWARDED TO: 1. ST. JOSEPHS CHURCH, KOLLAM. 2. CIT, TRIVANDRUM. 3. D.R.