M/s Abundant Life Society, Bhopal V. The CIT, Bhopal

ITA 601/IND/2010

• Counselvise Citation: 60122714 RSA 2010
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 03-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AABAA3253D I.T.A.NO. 601/IND/2010 ABUNDANT LIFE SOCIETY, CIT, MIG 352, VS BHOPAL 9B,SAKET NAGAR, BHOPAL. APPELLANT RESPONDENT APPELLANT BY : WRITTEN SUBMISSIONS RESPONDENT BY : SHRI ARUN DEWAN, SR. DR DATE OF HEARING : 19.10.2011 DATE OF PRONOUNCEMENT : 31.10.2011 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX, BHOPAL DATED 30. 08.2010 PASSED U/S 12AA OF THE INCOME-TAX ACT, 1961. -: 2: - 2 2. WE HAVE HEARD THE LD. SENIOR D.R. AND GONE THROUGH THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE WHICH IS PLACED ON RECORD. 3. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE I.E. ABUNDANT LIFE SOCIETY IS A CHARITABLE SOCIETY REGI STERED WITH THE REGISTRAR OF SOCIETIES, MADHYA PRADESH. IT WAS CREATED ON 28.10.1997 UNDER THE PROVISIONS OF THE SOCIETIES REGISTRATION ACT, 1973. THE ASSESSEE HAD APPLIED FO R REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961, B UT THE CIT, BHOPAL, THROUGH HIS ORDER DATED 30.8.2010 HELD THAT THE REGISTRATION U/S 12AA OF THE ACT CANNOT BE GRANTED TO THE ASSESSEE BECAUSE ONLY SUCH INDIVIDUAL CAN BECOME TH E MEMBER OF SOCIETY WHO FOLLOWS THE BASIC PRINCIPLE O F BIBLE AND SOCIETY HAS NOT SUBMITTED ORIGINAL COPY OF INSTRUME NT CREATING THE INSTITUTION I.E. TRUST DEED AND ACCORDINGLY REJ ECTED THE SAME. 4. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN FURTHE R APPEAL BEFORE US. WE HAVE GONE THROUGH THE ORDERS O F THE AUTHORITIES BELOW AND FOUND FROM RECORD THAT SUB CL AUSE 5 OF CLAUSE 7 OF THE BYE LAWS OF SOCIETY PRESCRIBES THAT ONLY SUCH -: 3: - 3 INDIVIDUAL CAN BECOME A MEMBER OF THE APPLICANT SOC IETY WHO HAS DEVOTED HIS WHOLE LIFE TO THE SERVICE OF LORD J ESUS CHRIST AND WHO FOLLOW THE BASIC RELIGIOUS PRINCIPLES OF TH E APPLICANT SOCIETY I.E. BIBLE. IT IS TRUE THAT ONE OF THE BASI C CONDITIONS FOR GRANT OF MEMBERSHIP OF SOCIETY IS THAT ONLY SUCH IN DIVIDUAL CAN BECOME A MEMBER OF THE APPLICANT SOCIETY WHO HA S DEVOTED HIS WHOLE LIFE TO THE SERVICE OF LORD JESUS CHRIST AND WHO FOLLOWS THE BASIC RELIGIOUS PRINCIPLES OF THE A PPLICANT SOCIETY I.E. BIBLE BUT AS PER THE OBJECTS OF THE SO CIETY IT IS CREATED FOR CHARITABLE WORK FOR ALL AND WITHOUT ANY DISCRIMINATION ON THE BASIS OF CAST, RELIGION & COL OR. AS PER THE OBJECTS OF THE SOCIETY IT IS CREATED FOR THE UPLIFT MENT OF THE WEAKER SECTION OF THE SOCIETY, WORK FOR LITERACY MI SSION FOR POOR CHILDREN AND RURAL PUBLIC, TO PROVIDE SCHOOL, HOSTE L, HOSPITAL, LIBRARY AND EDUCATION FACILITY TO POOR AND ILLITERA TE CHILDREN, TO GIVE HIGHER EDUCATION AND ALSO HELP POOR AND ELIGIB LE CHILDREN THROUGH BOOKS, UNIFORMS AND ECONOMIC HELP AND THUS, WORK FOR THE RELIEF OF POOR AND THE GENERAL PUBLIC AND T HERE IS NO DISCRIMINATION ON THE BASIS OF CAST, RELIGION & COL OR. -: 4: - 4 5. FROM THE RECORD, WE FOUND THAT THE ASSESSEE HAD SUBMITTED DETAILS OF THREE YEARS CHARITABLE WORK DO NE BY THE SOCIETY IN FINANCIAL YEAR 2006-07, 2007-08 AND 2008 -09 TO CIT, BHOPAL, IN RESPONSE TO HIS NOTICE DATED 26.7.2 010 AS WELL AS TO ACIT, 1(1), BHOPAL IN RESPONSE TO HIS NOTICE DATED 5.7.2010. HON'BLE BOTH THE AUTHORITIES HAVE NOT OBJ ECTED ON THE CHARITABLE WORK OF SOCIETY THAT MEANS THEY ARE SATISFIED ABOUT THE CHARITABLE ACTIVITIES OF SOCIETY. THE LD. CIT IN HIS ORDER HAS NOT DOUBTED THE OBJECTS OF THE SOCIETY AN D ALSO HAS NOT STATED THAT THE SOCIETY WAS NOT CREATED FOR PUB LIC CHARITY AND ITS INCOME HAD NOT BEEN UTILIZED FOR THAT PURPO SE OR THE PROPERTY HELD BY IT WAS USED FOR THE BENEFIT OF THE TRUSTEES OR THEIR FAMILIES BUT THE OBJECTION OF CIT WAS THAT ON LY SUCH INDIVIDUAL CAN BECOME A MEMBER OF THE APPLICANT SOC IETY WHO HAS DEVOTED HIS WHOLE LIFE TO THE SERVICE OF LORD J ESUS CHRIST AND WHO FOLLOWS THE BASIC RELIGIOUS PRINCIPLES OF T HE APPLICANT SOCIETY I.E. BIBLE. THAT REASON CANNOT BE A VALID G ROUND FOR REFUSING REGISTRATION TO A SOCIETY WHICH IS CREATED HAVING THE MAIN OBJECT OF CHARITABLE PURPOSE. REGISTRATION U/S 12AA CANNOT BE REFUSED TO A SOCIETY ON THE BASIS THAT TH ERE IS A -: 5: - 5 CLAUSE IN THE BYE LAWS OF THE SOCIETY THAT ONLY SUC H INDIVIDUAL CAN BECOME A MEMBER OF THE APPLICANT SOCIETY WHO HA S DEVOTED HIS WHOLE LIFE TO THE SERVICE OF LORD JESUS CHRIST AND WHO FOLLOWS THE BASIC RELIGIOUS PRINCIPLES OF THE A PPLICANT SOCIETY I.E. BIBLE. 6. THE ASSESSEE TRUST COULD NOT BE DEBARRED AND EXCLUD ED FORM REGISTRATION U/S 12A AS ITS OBJECTS WERE BOTH CHARITABLE AND RELIGIOUS. A TRUST WHICH IS FOR RELIGIOUS PURPO SES ONLY IS EXCLUDED AND DEBARRED FROM REGISTRATION. 7. WITH REGARD TO THE OBSERVATION OF THE CIT THAT THE ASSESSEE TRUST HAS NOT SUBMITTED THE ORIGINAL COPY OF INSTRUMENT CREATING THE INSTITUTION I.E. TRUST DEED , WE FOUND THAT THE ASSESSEE SOCIETY HAS ONLY ONE ORIGINAL COP Y OF INSTRUMENTS CREATING THE INSTITUTIONS I.E. BYE LAWS , THEREFORE, IT HAS SUBMITTED CERTIFIED COPY OF INSTRUMENTS CREATIN G THE INSTITUTIONS I.E. BYE LAWS TO CIT, BHOPAL AS WELL AS ACIT, 1(1), BHOPAL. APART FROM SUBMITTING CERTIFIED COPY OF INS TRUMENTS CREATING THE INSTITUTIONS I.E. BYE LAWS TO CIT, BHO PAL AS WELL AS ACIT, 1(1), BHOPAL, ASSESSEE SOCIETY HAS SUBMITTED VARIOUS OTHER DOCUMENTS REQUIRED BY CIT, BHOPAL, IN RESPONS E TO HIS -: 6: - 6 NOTICE DATED 26.7.2010 AS WELL AS TO ACIT, 1(1), B HOPAL, IN RESPONSE TO HIS NOTICE DATED 5.7.2010. HOWEVER, BOT H THE AUTHORITIES HAVE NOT OBJECTED ON THE CERTIFIED COPY OF BYE LAWS OF SOCIETY IN CASE OF ANY DOUBT THEY COULD HAD ASKE D THE ORIGINAL COPY OF BYE LAWS OF ASSESSEE SOCIETY THROU GH THEIR ABOVE MENTIONED NOTICES. 8. IN VIEW OF THE ABOVE DISCUSSION, WE DO NOT FIND ANY MERIT IN THE ACTION OF THE CIT FOR REFUSING GRANT O F REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2011. SD/- SD/- (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 31 ST OCTOBER, 2011. CPU* 2010