Alpha Literature Society, Visakhapatnam V. THE CIT - 1, Visakhapatnam

ITA 556/VIZ/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8881 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-06-2016
• Assessment Year: misc
• Appeal Filed On: 19-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K DEVA RATNA KUMARCIT
• Assessee Lawyers: C SANJEEVA RAO
• Keywords: Gift
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HONBLE JUDICIAL MEMBER & SHRI G. MANJUNATHA, HONBLE ACCOUNTANT MEMBER ITA NO. 556/VIZ/2013 ALPHA LITERATURE SOCIETY, 48-8-19, FLAT NO.204-205, SAMPATH ENCLAVE, 1 ST STREET, DWARAKANAGAR, VISAKHAPATNAM. V. CIT-1, VISAKHAPATNAM. PAN NO. AAATA 3126 D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SANJEEVA RAO ADV. DEPARTMENT BY : SHRI K. DEVA RATNA KUMAR-CIT DATE OF HEARING : 20/04/2017. DATE OF PRONOUNCEMENT : 08/06/2017. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE COMMISSIONER OF INCOME TAX-1, VISAKHAPATNAM, DATED 11/06/2013. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE M/S.ALFA LITERATURE SOCIETY FILED AN APPLICATION IN FORM NO. 10A ON 03/12/2012 SEEKING GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE 'ACT') WITH THE FOLLOWING OBJECTS:- (I) TO ENCOURAGE, ORGANISE, ESTABLISH, CONSOLIDATE, SUPPORT, MAINTAIN, DEVELOP AND PROPAGATE ALL THE ACTIVITIES, DIFFUSION OF USEFUL KNOWLEDGE FOR THE ALL-ROUND DEVELOPMENT OF MANKIND WITH EMPHASIS ON ECONOMIC, SOCIAL AND CULTURAL FACTORS. (II) TO DISTRIBUTE THE HOLY SCRIPTURES AND OTHER USEFUL LITERATURE, 2 ITA NO.556/VIZ/2013 (ALPHA LITERATURE SOCIETY) NOVELS, STORIES, BOOKS ETC., AND PROMOTE THEIR STUDY IN HOMES AND CHURCHES OF ALL DENOMINATIONS THROUGH THE BOOK AND READING ROOM. (III) TO PRINT PUBLISH SUPPLY ANY BOOK OR LITERATURE. (IV) TO CARRY ON CHARITABLE WORK INCLUDING RELIEF TO THE POOR IRRESPECTIVE OF CAST, COMMUNITY OR CREED, PROVISION OF EMPLOYMENT OPPORTUNITY AND VOCATIONAL TRAINING. (V) TO RECEIVE DONATIONS, GRANTS, GIFTS, CONTRIBUTIONS, AND/OR OTHER FAVOURS EITHER IN CASH O IN KIND FOR THE FURTHERANCE OF ITS OBJECTIVES. (VI) TO LEND LIBRARY BOOKS AND MAINTAIN READING ROOMS, TO CONDUCT STUDY GROUPS, LECTURES, RESEARCHES, CONFERENCES, FILMS, ETC., AND TO UNDERTAKE PUBLICATION CIRCULATION OF INFORMATION FOR PROMOTION, EDUCATION OF MAN-KIND IN PREPARATION OF PAPERS, PRINTING, COMPOSING, BINDING ETC.., AND OTHER AUXILARY WORKS. (VII) TO PROVIDE THE MEMBERS A GOOD LIBRARY AND READING ROOM. (VIII) TO DO ALL SUCH OTHER ACTS OR THINGS OR DEEDS WHICH ARE INCIDENTAL OR CONDUCIVE TO THE ATTAINMENT OF THE ABOVE OBJECTS OF THE SOCIETY. 3 . THE LEARNED COMMISSIONER AFTER CONSIDERING THE OBJECTS OF THE SOCIETY IS OF THE OPINION THAT THE ASSESSEE IS RUNNING ALPHA BOOK CENTRE AND THERE IS NOTHING ON RECORD TO SUGGEST THAT THE ASSESSEE IS CARRYING ANY CHARITABLE ACTIVITIES; RUNNING A BOOK CENTRE IS AMOUNTING TO CARRYING BUSINESS, HENCE, ASSESSEE IS NOT ENTITLED FOR REGISTRATION UNDER SECTION 12A OF THE ACT. 4. ON BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 5. LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS A SOCIETY RUNNING BOOK SHOP AND WHATEVER PROFIT COMING OUT OF SELLING BOOKS, UTILIZED FOR THE PURPOSE OF CHARITABLE ACTIVITIES. IT WAS FURTHER SUBMITTED THAT ASSESSEE-SOCIETY WAS STARTED TO CARRY THE CHARITABLE ACTIVITIES AND THERE IS NO PROFIT MOTIVE INVOLVED SO FAR AS RUNNING THE BOOK SHOP. HE ALSO FILED A PAPER BOOK WHEREIN HE HAS CONTENDED THAT 3 ITA NO.556/VIZ/2013 (ALPHA LITERATURE SOCIETY) ASSESSEE-SOCIETY IS HELPING 19 POOR CHILDREN TO PURSUE THEIR EDUCATION AND SUBMITTED THAT REGISTRATION UNDER SECTION 12AA MAY BE GRANTED TO THE ASSESSEE SOCIETY. 6 . ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF THE LEARNED COMMISSIONER. 7 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. THE CASE OF THE ASSESSEE IS THAT ASSESSEESOCIETY IS RUNNING A BOOK STALL IN THE NAME AND STYLE OF M/S. ALFA LITERATURE SOCIETY AND CARRYING CHARITABLE ACTIVITIES. THE LEARNED COMMISSIONER HAS REJECTED 12A APPLICATION ON THE GROUND THAT RUNNING OF BOOK STALL IS A COMMERCIAL ACTIVITY AND IS NOT ENTITLED FOR REGISTRATION UNDER SECTION 12A OF THE ACT. WE HAVE CAREFULLY CONSIDERED THE ORDER PASSED BY THE LEARNED COMMISSIONER AND ALSO PAPER BOOK FILED BY THE ASSESSEE. WE FIND THAT ASSESSEE IS DOING SOME CHARITABLE ACTIVITIES AND THEREFORE, WE ARE OF THE OPINION THAT ASSESSEES CASE MAY BE CONSIDERED FOR REGISTRATION UNDER SECTION 12A OF THE ACT. HOWEVER, WE FIND THAT THE ASSESSEE WAS NOT FILED THE DETAILS BEFORE THE LEARNED COMMISSIONER WHICH ARE IN THE NATURE OF PAPER BOOK. THEREFORE, THE DETAILS FILED BEFORE THE TRIBUNAL HAVE TO BE EXAMINED BY THE LEARNED COMMISSIONER TO DECIDE WHETHER ASSESSEE IS ELIGIBLE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT OR NOT. THUS, WE SET ASIDE THE ORDER PASSED BY THE LEARNED COMMISSIONER AND DIRECT HIM TO EXAMINE THE DETAILS FILED IN THE FORM OF PAPER BOOK AND CONSIDERED THE ISSUE AFRESH IN ACCORDANCE. 4 ITA NO.556/VIZ/2013 (ALPHA LITERATURE SOCIETY) 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 08 TH DAY OF JUNE, 2017. SD/- SD/- (G. MANJUNATHA) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 08 TH JUNE, 2017. VR/- COPY TO: 1. THE ASSESSEE - ALPHA LITERATURE SOCIETY, 48-8-19, FLAT NO.204-205, SAMPATH ENCLAVE, 1 ST STREET, DWARAKANAGAR, VISAKHAPATNAM. 2. THE REVENUE CIT-1, VISAKHAPATNAM. 3. THE D.R. 4. GUARD FILE. BY ORDER