M/s. Carmel Convent, CHENNAI V. DIT, CHENNAI

ITA 510/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4859 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I VIJAYAKUMAR
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A.NO. 510/MDS/2011 M/S. CARMEL CONVENT, I.A.F., AVADI, CHENNAI 600 055. PAN AABTC 1879 J VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), CHENNAI 34. (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI S. SRIDHAR RESPONDENT BY : DR. I. VIJAYAKUMAR, CIT-DR O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE DIRECTOR OF INCOM E-TAX (EXEMPTIONS) AT CHENNAI DATED 29.12.2010. THE DIRE CTOR OF INCOME-TAX (EXEMPTIONS) HAS REJECTED THE APPLICATIO NS PUT IN BY THE ASSESSEE FOR REGISTRATION UNDER SEC.12AA AND AP PROVAL UNDER SEC.80G. ITA 510/11 :- 2 -: 2. THE ASSESSEE, M/S. CARMEL CONVENT IS A TRUST CRE ATED ON THE BASIS OF A DEED. THE ASSESSEE FILED AN APPLICA TION BEFORE THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) SEEKING REGISTR ATION UNDER SEC.12AA AND ALSO APPROVAL UNDER SEC.80G. THE MAIN OBJECT OF THE ASSESSEE TRUST STATED TO BE TO PROVIDE FOOD ETC . AND OTHER COMFORTS TO THE SISTERS WHO ARE IN CHARGE OF ADMINI STRATION AND WHO TAKE CARE OF CARMEL CENTRE FOR MENTALLY RETARD ED. BUT THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) HELD THAT THE M AIN OBJECTIVE IS FEEDING OF THE SISTERS AND THIS ACTIVITY CANNOT BE CONSIDERED AS AN ACTIVITY FOR THE BENEFIT OF PUBLIC AT LARGE. AC CORDINGLY HE HELD THAT THE ASSESSEE-TRUST IS NOT ENTITLED FOR REGISTR ATION UNDER SEC.12AA AND APPROVAL UNDER SEC.80G. 3. WE CONSIDERED THIS MATTER. IT IS TO BE SEEN THA T THE ASSESSEE-TRUST IS PROVIDING FOOD AND OTHER FACILITI ES FOR THE SISTERS NOT FOR THE SAKE OF FEEDING THEM. THOSE SISTERS AR E ENGAGED IN CHARITABLE ACTIVITIES ESPECIALLY IN CARRYING OUT TH E ADMINISTRATION OF CARMEL CONVENT FOR MENTALLY RETARDED. THE SAID I NSTITUTION, CARMEL CENTRE FOR MENTALLY RETARDED IS VERY MUCH A CHARITABLE INSTITUTION TAKING CARE OF MENTALLY RETARDED. THE ASSESSEE TRUST HAS BEEN CONSTITUTED TO HELP THE FUNCTIONING OF THE MAIN TRUST CARMEL CENTRE FOR MENTALLY RETARDED. SO THE ACTI VITIES OF THE ITA 510/11 :- 3 -: ASSESSEE-TRUST AND THE OTHER TRUST CARMEL CENTRE F OR MENTALLY RETARDED HAD TO BE READ TOGETHER AND THE FEEDING O F THE SISTERS BY THE ASSESSEE-TRUST HAS TO BE CONSIDERED AS SUPPO RTING AND COMPLIMENTARY ACTIVITIES TO THE MAIN OBJECT OF TAKI NG CARE OF THE MENTALLY RETARDED. THEREFORE, WE DO NOT FIND THAT THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) IS JUSTIFIED IN DENYING THE STATUTORY BENEFITS SOUGHT FOR BY THE ASSESSEE-TRUST. 4. ACCORDINGLY, WE DIRECT THE DIRECTOR OF INCOME-TA X (EXEMPTIONS) TO GRANT REGISTRATION TO THE ASSESSEE- TRUST UNDER SEC.12AA AND ALSO TO GRANT APPROVAL UNDER SEC.80G. 5. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING, ON THURSDAY, THE 16 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 16 TH JUNE, 2011 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR