Sri Rani Vatsavayi Butchi Seethayamma Choultry, Peddapuram V. THE CIT , Rajahmundry

ITA 573/VIZ/2013

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9704 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 23-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M BHUPAL REDDY
• Assessee Lawyers: C V S MURTHY
• Section: 12AA

Judgement Text

ITA NO.573/VIZAG/2013 SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY, PED DAPURAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.573/VIZAG/2013 ( / ASSESSMENT YEAR: NA) SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY, PEDDAPURAM VS. CIT, RAJAHMUNDRY [PAN: AABTS 1385B ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI C.V.S. MURTHY, AR / RESPONDENT BY : SHRI M. BHUPAL REDDY, DR / DATE OF HEARING : 02.11.2016 / DATE OF PRONOUNCEMENT : 25.11.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT, RAJAHMUNDRY DATED 25.6.2013. 2. THE FACTS ARE IN BRIEF THAT THE ASSESSEE TRUST N AMELY, SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY HAS FILED AN APPLICATION FOR ITA NO.573/VIZAG/2013 SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY, PED DAPURAM 2 REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 ( HEREINAFTER CALLED AS 'THE ACT') ON 6.2.2012 WITH THE FOLLOWING OBJECTS: 1. FREE NITYANNADANAM TO 50 WAYFARERS. 2. FREE NITYANNADANAM TO 100 POOR PEOPLE IN A ONE TIME ON SUNDAY AND FESTIVAL DAYS. 3. FREE NITYANNADANAM TO 150 STUDENTS 2 TIMES (MORNING & EVENING). 4. FREE NITYANNADANAM TO 200 STUDENTS 1 TIME IN THE MO RNING. 3. THE LD. COMMISSIONER HAS REJECTED THE REGISTRATI ON U/S 12AA OF THE ACT TO THE ASSESSEE ON THE GROUND THAT ASSESSEE IS INVOLVED IN RELIGIOUS AS WELL AS CHARITABLE ACTIVITIES. 4. ON BEING AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED T HAT THE ASSESSEE IS MAINLY CARRYING ON ITS ACTIVITIES TO FEED THE PO OR STUDENTS IRRESPECTIVE OF CASTE AND CREED. THEREFORE, THE ASSESSEE IS ELI GIBLE FOR REGISTRATION U/S 12AA OF THE ACT. HE ALSO SUBMITTED THAT THE AS SESSEE TRUST HAS PERFORMED SRI RAMA NAVAMI KALYANAM FOR WHICH TRUST HAS INCURRED SOME EXPENDITURE AND THEREFORE, LD. COMMISSIONER IS NOT JUSTIFIED IN REJECTING THE GRANT OF REGISTRATION U/S 12AA OF THE ACT FOR T HE REASONS THAT ASSESSEE HAS PERFORMED PUJA IN THE FESTIVAL OF SRI RAMA NAVAMI, WHICH IS FOR THE BENEFIT OF THE PEOPLE. 6. ON THE OTHER HAND, THE LD. D.R. HAS STRONGLY SUP PORTED THE ORDER PASSED BY LD. COMMISSIONER. ITA NO.573/VIZAG/2013 SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY, PED DAPURAM 3 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE LD. COMMISSIONER DENIED THE REGISTRATION TO THE ASSESSE E TRUST ONLY ON THE GROUND THAT ASSESSEE IS CARRYING CHARITABLE AS WELL AS RELIGIOUS ACTIVITIES. IN SO FAR AS CHARITY IS CONCERNED, THE LD. COMMISSI ONER HAS NOT DOUBTED THE ACTIVITIES OF THE ASSESSEE. IT IS A FACT THAT THE ASSESSEE IS EXISTED TO PERFORM THE CHARITABLE ACTIVITIES. IT IS ALSO A FA CT THAT THE ASSESSEE HAS INCURRED CERTAIN EXPENDITURE ON THE OCCASION OF SRI RAMA NAVAMI TO PERFORM KALYANAM. THIS ACTIVITY CARRIED OUT BY THE ASSESSEE TO PERFORM SRI RAMA NAVAMI PUJA IS NOT THE MAIN ACTIVITY OF AS SESSEE. THE MAIN ACTIVITY OF THE ASSESSEE IS ONLY TO FEED THE POOR S TUDENTS. THEREFORE, THE DOMINANT OBJECT OF THE ASSESSEE TO FEED THE POOR IS A CHARITABLE ACTIVITY AND LD. COMMISSIONER IS NOT JUSTIFIED IN DENYING RE GISTRATION U/S 12AA OF THE ACT ON THE GROUND THAT THE ASSESSEE IS CARRYING RELIGIOUS ACTIVITIES ALSO. THE HONBLE SUPREME COURT HAS CONSIDERED THE ISSUE OF MIXED OBJECTS IN THE CASE OF CIT VS. DAWOODI BORA JAMAT 3 64 ITR 31 (2014) AND OBSERVED THAT A TRUST HAVING MIXED OBJECTS BOTH CHARITABLE AS WELL AS RELIGIOUS IN NATURE AND DOING ITS ACTIVITIES TO THE PUBLIC AT LARGE WITHOUT ANY PARTICULAR CLASS OF SOCIETY, THEN, SUCH TRUST IS NOT DEBARRED FROM REGISTRATION U/S 12AA OF THE ACT. THEREFORE, WE ARE OF THE VIEW THAT THE ASSESSEE IS ELIGIBLE FOR GRANT OF REGISTRA TION U/S 12AA OF THE ACT, ITA NO.573/VIZAG/2013 SRI RANI VATSAVAYI BUTCHI SEETHAYAMMA CHOULTRY, PED DAPURAM 4 ACCORDINGLY, WE HAVE GRANTED REGISTRATION U/S 12AA OF THE ACT TO THE ASSESSEE AND ACCORDINGLY APPEAL FILED BY THE ASSESS EE IS ALLOWED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 25 TH NOV16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 25.11.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT SRI RANI VATSAVAYI BUTCHI SEETHA YAMMA CHOULTRY, DR.NO.10-10-22, OLD M.R. COLLEGE STREET, PEDDAPURAM -533 437, EAST GODAVARI DIST. 2. / THE RESPONDENT THE CIT, RAJAHMUNDRY 3. ) / THE PRINCIPAL CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), RAJAHMUNDRY 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM