Indomer Ananthi Chandramohan Charitable Trust, CHENNAI V. DIT, CHENNAI

ITA 55/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58148 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 10-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N MOORTHY NA IK
• Assessee Lawyers: T VASUDEVAN
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 55/MDS/2012 ASSESSEE BY : SHRI T. VASUD EVAN, ADVOCATE DEPARTMENT BY : SHRI M.N. MOORTHY NA IK, JCIT, DR DATE OF HEARING : 15.03.2012 DATE OF PRONOUNCEMENT : 15.03.2012 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO. 55/MDS/2012 IS AN APPEAL FILED BY THE ASSE SSEE AGAINST THE ORDER OF DIRECTOR OF INCOME-TAX EXEMPTIONS, CHE NNAI IN APPEAL NO. DIT(E) NO. 2(119)/11-12 DATED 30.11.2011. INDOMER ANANTHI CHANDRAMOHAN CHARITABLE TRUST PLOT 115, ALWAR THIRUNAGAR ANNEXE CHENNAI 600 087. (APPELLANT) VS. DIRECTOR OF INCOME - TAX [EXEMPTIONS] CHENNAI 600 034. (RESPONDENT) 2 ITA NO 55/MDS /2012 2. SHRI T. VASUDEVAN, ADVOCATE, REPRESENTED ON BEHA LF OF THE ASSESSEE AND SHRI M.N. MOORTHY NAIK, JCIT, D.R. REP RESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LD. A.R. THAT THE ISSUE IN THIS APPEAL WAS AGAINST THE ACTION OF THE DIT IN HOLDING THAT T HE ASSESSEE WAS NOT ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT O N THE GROUND THAT ONE OF THE OBJECTS OF THE ASSESSEE SPEAKS ABOUT DEV ELOPING AND MAINTENANCE OF PLACES OF WORSHIP AS ALSO PROMOTING GOD CONSCIOUSNESS. IT WAS THE SUBMISSION THAT THE ISSU E WAS SQUARELY COVERED BY THE DECISION OF THE HON'BLE JURISDICTION AL HIGH COURT OF MADRAS IN THE CASE OF ARULMIGU KAMAKSHI AMMAN TRUST IN TAX APPEAL NO. 643/11 DATED 25.01.2012 WHEREIN THE HON' BLE JURISDICTIONAL HIGH COURT HAS HELD AS FOLLOWS: WE HAVE CAREFULLY CONSIDERED THE ABOVE SUBMISSION. FOR THE PURPOSE OF MAKING AN APPLICATION U/S 12AA, THE APPL ICANT MUST APPLY IN FORM 10. THE SAID FORM PRESCRIBES TH E FORMAT OF THE NOTICE OF ACCUMULATION OF INCOME TO BE GIVEN BY CHARITABLE AND RELIGIOUS TRUSTS U/S 11(2) OF THE AC T. FOR THE 3 ITA NO 55/MDS /2012 PURPOSE OF AVAILING THE BENEFIT OF SECTION 11, REGI STRATION IS REQUIRED. SECTION 11(1) READS AS UNDER: 11(1). SUBJECT TO THE PROVISIONS OF SECTIONS 60 TO 63, THE FOLLOWING INCOME SHALL NOT BE INCLUDED IN T HE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON IN RECEIPT OF THE INCOME: (A) INCOME DERIVED FROM PROPERTY HELD UNDER TRUST WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES, TO THE EXTENT TO WHICH SUCH INCOME IS APPLIED TO SUCH PURPOSES IN INDIA; AND WHERE ANY SUCH INCOME IS ACCUMULATED OR SET APART FOR APPLICATION TO SUCH PURPOSES IN INDIA, TO THE EXTENT TO WHICH THE INCOM E SO ACCUMULATED OR SET APART IS NOT IN EXCESS OF FIFTEEN PERCENT OF THE INCOME FROM SUCH PROPERTY: 6. FROM A READING OF THE ABOVE, IT IS CLEAR THAT THE I NCOME DERIVED FROM THE PROPERTY HELD UNDER TRUST WHOLLY F OR CHARITABLE OR RELIGIOUS PURPOSES SHALL NOT BE INCLU DED IN THE TOTAL INCOME OF THE TRUST. THEREFORE, THE SAID PROVISION WOULD BE APPLICABLE TO BOTH THE TRUSTS ESTABLISHED WITH THE OBJECT OF CHARITABLE AS WELL A S RELIGIOUS PURPOSES. THEREFORE, SECTION 12AA OF THE ACT 4 ITA NO 55/MDS /2012 DOES NOT MAKE ANY DIFFERENCE BETWEEN THE TRUSTS CRE ATED WITH THE OBJECT OF CHARITABLE AND RELIGIOUS PURPOSE S AND EVEN IF THE TRUST IS NOT CREATED WITH BOTH THE OBJE CTS, LAW DOES NOT MAKE ANY DISQUALIFICATION FOR THE TRUST TO MAKE AN APPLICATION FOR REGISTRATION. THEREFORE, THE TR IBUNAL HAS CORRECTLY APPLIED THE PROVISION OF LAW AND ALLO WED THE APPEAL, WHICH FINDING IS BASED ON VALID MATERIAL EV IDENCE. THE FINDING OF THE TRIBUNAL IS NOT PERVERSE AND IT IS A QUESTION OF FACT. THEREFORE, WE FIND NO GROUND TO CAUSE OUR INTERFERENCE INTO THE ORDER PASSED BY THE TRIBU NAL. ACCORDINGLY, THE ORDER PASSED BY THE TRIBUNAL IS CO NFIRMED AND BOTH THE SUBSTANTIAL QUESTIONS OF LAW RAISED HE REIN ARE ANSWERED AGAINST THE REVENUE. IT WAS THE FURTHER SUBMISSION THAT IN VIEW OF THE D ECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT THE ASSESSEE WAS ENTITLED TO BE REGISTERED U/S 12AA OF THE ACT 4. IN REPLY, THE LD. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE DIT. IT WAS THE SUBMISSION THAT THE ASSESSEE TRUST HAD RELIGIOUS CLAUSES IN ITS OBJECTS AND CONSEQUENTLY WAS NOT ENT ITLED TO REGISTRATION U/S 12AA OF THE ACT. 5 ITA NO 55/MDS /2012 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. AS IT IS N OTICED THAT THE ISSUE IN THIS APPEAL IS SQUARELY COVERED BY THE DEC ISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF AR ULMIGU KAMAKSHI AMMAN TRUST [SUPRA], THE DIT IS DIRECTED TO GRANT R EGISTRATION U/S 12AA OF THE ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 15 TH MARCH, 2012. SD/- SD/- (N.S. SAINI) (GEORGE MATHA N) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 15 TH MARCH, 2012. VL COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A), CHENNAI (4) CIT, CHENNAI (5) D.R. (6) GUARD FILE