Satya Devi Foundation, CHENNAI V. DIT (Exemptions), CHENNAI

ITA 551/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64559 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 08-11-2012
• Assessment Year: misc
• Appeal Filed On: 09-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: T BANUSEKHAR
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ------- ITA NO.551/MDS/2012 ASSESSMENT YEAR : - M/S. SATYA DEVI FOUNDATION, 6, MARUTHAI AVENUE, RANJITH ROAD, KOTTURPURAM, CHENNAI-600 085. V. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI. (PAN :AAKTS5824N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. BANUSEKHAR, CA RESPONDENT BY : SHRI ANIRUDH RAI, CIT-DR DATE OF HEARING : 08-1 1-2012 DATE OF PRONOUNCEMENT : 27-11-201 2 O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE DIT(EXEMPTIONS), CHENNAI DATED 27-01- 2012. ITA NO.551/MDS /2012 2 2. BRIEF FACTS ARE THAT THE ASSESSEE CONSTITUTED BY A TRUST DEED ON 03-06-2011 HAD FILED AN APPLICATION IN FORM 10A OF THE INCOME TAX ACT, 1961 ('THE ACT' FOR SHORT) ON 0 6-07-2011 FOR REGISTRATION U/S 12AA OF THE ACT. ACCORDING TO THE TRUST DEED THE OBJECTS OF THE ASSESSEE ARE TO AID POOR AND INDIGNANT BY PROVIDING SEED CAPITAL THROUGH GRANTS, OR THROUGH ANY OTHER MODE FOR SETTING UP BUSINESS OR SERVICE C ENTERS OR TO BECOME SERVICE PROVIDERS IN RESPECTIVE FIELDS IN WH ICH THEY ARE WELL VERSED OR TRAINED AND TO PROVIDE TRAINING, SKI LLS ENHANCEMENT, ENTREPRENEURIAL ORIENTATION TO GET IN TO SELF EMPLOYMENT AND HAND HOLD THEM THROUGH UP GRADATION PROGRAMS, SKILL ENHANCEMENT PROGRAMS, INTERACTIVE PROGRAMS AND THROUGH PROVIDING MARKETING ASSISTANCE AND OTHE R KINDS OF ASSISTANCE AS IS REQUIRED AND FOR THIS PURPOSE DEVE LOP CLUSTER CENTERS, CLUSTER INDUSTRIAL PARKS, SELF HELP GROUPS OR THROUGH ANY OTHER MODE OR MODES. 3 . THE DIT(EXEMPTIONS) AFTER CONSIDERING THE OBJECTS O F THE ASSESSEE OBSERVED THAT THE INITIAL PART OF THE OBJECT CLAUSE EMPHASIZES AIDING POOR. BUT THE LATER PART SPEAKS A BOUT DEVELOPING CLUSTER CENTERS AND CLUSTER INDUSTRIAL P ARKS. THE SAME CANNOT BE CONSIDERED AS AN ACTIVITY FOR THE PO OR. IT IS AN ITA NO.551/MDS /2012 3 INDEPENDENT ACTIVITY WHICH AUTHORIZES THE APPLICANT TRUST TO ACT ON COMMERCIAL LINES AND HENCE SUCH ACTIVITIES C ANNOT BE CONSIDERED AS CHARITABLE IN NATURE. WITH THE ABOVE OBSERVATION, THE DIT(EXEMPTION) REJECTED THE APPLIC ATION OF THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE HAS CARRIED THE MATTER BEFORE THE TRIBUNAL. IT WAS SUBMITTED BY THE LEARN ED COUNSEL FOR THE ASSESSEE THAT THE MAIN OBJECT OF THE TRUST IS ONLY AIDING POOR, DEVELOPING CLUSTER CENTERS AND CLUSTER INDUSTRIAL PARKS WHICH DO NOT AMOUNT TO A COMMERCIAL ACTIVITY. THE ASSESSEE TRUST IS ONLY HELPING AND NOT GETTING ANY BENEFIT OUT OF IT. 5. ON THE OTHER HAND, THE LEARNED DR STRONGLY SUPPO RTED THE ORDER OF THE DIT(EXEMPTIONS) AND SUBMITTED THAT THE ASSESSEE IS DEVELOPING CLUSTER CENTERS AND CLUSTER INDUSTRIAL PARKS AND THUS ACTIVELY INDULGED IN COMMERCIAL ACTI VITY. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NOTHING ON RECORD TO SHOW WHAT EXACTLY THE ACTIVITY CARRIED ON BY THE ASSESSEE. WHAT IS DEVELOPING CLUSTER AND WH AT IS CLUSTER INDUSTRIAL PARKS ARE NOT CLEAR FROM THE ORD ER OF THE ITA NO.551/MDS /2012 4 DIT(EXEMPTIONS) AND THERE IS NO MATERIAL ALSO AVAIL ABLE ON RECORD. THE ORDER PASSED BY THE DIT(EXEMPTIONS) IS VERY CRYPTIC. THEREFORE, WE SET ASIDE THE ORDER PASSED BY THE DIT(EXEMPTIONS) WITH THE DIRECTION TO PASS A FRESH ORDER DE NOVO IN ACCORDANCE WITH LAW AFTER GETTING ALL THE DETAI LS FROM THE ASSESSEE. THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS THEREFORE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, THE 27 TH OF NOVEMBER, 2012, AT CHENNAI. SD/- SD/- (ABRAHAM P. GEORGE) ( V.DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 27 TH NOVEMBER, 2012. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE