Sri Bangaru China Sobhanadri Choultry, Kakinada V. THE CIT , Rajahmundry

ITA 574/VIZ/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6546 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2017
• 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

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. 574 / VIZ /201 3 SRI BANGARU CHINA SOBHANADRI CHOULTRY, D.NO. 33 - 8 - 5, RAJAJI STREET, KAKINADA. V . CIT, RAJAHMUNDRY. PAN NO. AAKTS 7120 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.V.S. MURTHY - CA . DEPARTMENT BY : SHRI M. BHUPAL REDDY CIT DR DATE OF HEARING : 08 / 02 /201 7 . DATE OF PRONOUNCEMENT : 14 / 02 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, RAJAHMUNDRY , DATED 2 8 /0 6 /201 3 FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. THE ASSESSEE - TRUST FILED AN APPLICATION IN FORM NO. 10A DATED 04/12/2012 ON 20/12/2012 FOR REGISTRATION UNDER SECTION 12AA OF THE ACT WITH THE FOLLOWING OBJECTS: - 1) TO PROVIDE FOOD TO THE VYSYA STUDENTS ACCORDING TO THE FINANCIAL CONDITIONS OF THE CHOULTRY . 2) TO CONDUCT SAMARADHANA ON THE DEATH CEREMONY OF DONORS WIFE EVERY YEAR. 3) TO PROVIDE CHALIVENDRAM (FREE SUPPLY OF WATER IN SUMMER SEASON) ACCORDING TO THE FINANCIAL CONDITIONS OF THE CHOULTRY. 2 ITA NO. 574 / VIZ /201 3 4) TO CONDUCT SAMARADHANA ON THE DEATH CEREMONY OF DONOR EVERY YEAR. 5) TO PURCHASE LANDS. 6) TO PROVIDE FOOD TO THE VYSYA AND NON - BRAHM IN STUDENTS ACCORDING TO THE FIN A NCIAL CONDITIONS OF THE CHOULTRY. 3 . THE COMMISSIONER OF INCOME TAX AFTER CONSIDERING THE OBJECTS OF THE TRUST, OBSERVED THAT THE TRUST IS FOR THE BENEFIT OF A PARTICULAR SECTION OF POPULATION AND IS PROHIBITED BY THE PROVISIONS OF SECTION 13(1 )( B) OF THE ACT AND DENIED REGISTRATION UNDER SECTION 12AA OF THE ACT. HE ALSO OBSERVED THAT IN THE TRUST DEED, NO DISSOLUTION CLAUSE HAS BEEN ADDED AND, THEREFORE, ASSESSEE IS NOT ENTITLED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 4 . WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . WE FIND THAT THE ASSESSEE TRUST IS MAINLY EXISTED TO PROVIDE FOOD FOR THE POOR STUDENTS, WHO ARE PURS U ING THEIR EDU C A TION IN VARIOUS FIELDS . THE ASSESSEE FILED A PAPER BOOK - 2, PAGE N O . 33 FOR THE ASSESSMENT YEAR 2009 - 10 AS PER THE APPROVAL OF THE EXECUTIVE OFFICER , ENDOWMENTS THEY HAVE TO PROVIDE FOOD TO 49 STUDENTS, THE STUDENTS W H O BELONGING TO VARIOUS COMMUNITIES LIKE HINDUS, CHRISTIANS AND MUSLIMS , PURSUING VARIOUS COURSES LIKE POLYTECHNIC, B.SC. DEGREE, INTERMEDIATE, ITI, B.COM. , M.SC. AND OTHER COURSES. AS PER THE DETAILS FILED BY THE ASSESSEE, WE FIND THAT THE ASSESSEE IS PROVIDING FOOD TO THE STUDENTS IRRESPECTIVE OF CASTE AND CREED. SO FAR AS OBSERVATION MADE BY THE COMMISSIONER OF INCOME TAX, THERE IS A MISTAKE IN TRANS LATION FROM 3 ITA NO. 574 / VIZ /201 3 TELUGU TO ENGLISH . AS PER THE OBJECTS, WHICH ARE WRITTEN IN TELUGU AT PAGE NO. 6 SAYS THAT ACCORDING TO AVAILABILITY OF FINANCIAL POSITION, CHOULTRY HAS TO ARRANGE FREE DISTRIBUTION OF FOOD TO THE VYSYA CASTE AND NON - BRAHMIN STUDENTS , BUT I N A TRANS LATION, IT HAS BEEN MENTIONED THAT VYSYA CASTE AND BRAHMIN CASTE AND OTHERS. WE FIND THAT THIS IS A MISTAKE COMMITTED WHILE TRANSLATION, HENCE, IT CANNOT BE SAID TO BE A VIOLATION UNDER SECTION 13(1)(B) OF THE ACT. INSOFAR AS , DISSOLUTION CL A USE IS CONCERNED, I T WAS SUBMITTED THAT THE SAME HAS ALREADY BEEN AMENDED AND SUBMITTED TO THE COMMISSIONER OF INCOME TAX. KEEPING IN VIEW OF THE SERVICES RENDERED BY THE ASSESSEE, WE ARE OF THE OPINION THAT THE ASSESSEE IS PURELY A CHARITABLE ORGANIZATION IN PROVIDING FOOD TO THE POOR STUDENTS, WHO ARE PURSUING THEIR EDUCATION IN VARIOUS FI E LDS. THUS, THE ASSESSEE DESERVES FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX IS SET ASIDE AND REGISTRATION IS GRANTED TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT. ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 1 4 T H DAY OF FEBRUARY , 201 7 . S D / - S D / - ( G. MANJUNATHA ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 4 T H FEBRUARY , 201 7 . VR/ - 4 ITA NO. 574 / VIZ /201 3 COPY TO: 1 . THE ASSESSEE - SRI BANGARU CHINA SOBHANADRI CHOULTRY, D.NO. 33 - 8 - 5, RAJAJI STREET, KAKINADA. 2 . THE REVENUE - CIT, RAJAHMUNDRY. 3 . THE D.R . 4 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., VISAKHAPATNAM