PRAYAS REHABILITATION FOUNDAITON, MUMBAI V. DIT (E), MUMBAI

ITA 6126/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3479 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 18-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M DAYASAGAR
• Assessee Lawyers: A V SONDE
• Keywords: Charitable institution
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C , MUMBAI BEFORE SHRI SANJAY GARG , JUDICIAL MEMBER AND SHRI RAJESH KUMAR , ACCOUNTANT MEMBER ITA NO. 6126/MUM/2013 : (A.Y : 2013 - 14 ) PRAYAS REHABILITATION FOUNDATION C/O. REGISTRAR - TATA INSTITUTE OF SOCIAL SCIENCES, V.N. PURAV MARG, DEONAR, MUMBAI 400 088. PAN : AACTP2790A VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), MUMBAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI A.V. SONDE & SHRI ANIL SATHE REVENUE BY : SHRI M. DAYASAGAR (CIT - DR) DATE OF HEARING : 22 / 03 /201 6 DATE OF PRONOUNCEMENT : 22 / 0 3 /201 6 O R D E R PER SANJAY GARG , JUDICIAL M EMBER : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE APPELLANT - TRUST AGAINST THE DENIAL OF REGISTRATION AS A CHARITABLE TRUST U/S. 12A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS) (IN SHORT THE DIT(E) ) VIDE ORDER DT. 3.9.2013. 2. THE LD. DIT(E) NOTED FROM THE OBJECTS OF THE TRUST THAT ONE OF THE OBJECTS WAS TO APPOINT OR WORK WITH ADVOCATES OR SOLICITORS AND TAKE THE HELP OF LEGAL PRACTITIONERS AND NOTARIES FOR THE PURPOSE OF PROVIDING 2 PRAYAS REHABILITATION FOUNDATION ITA NO. 6126/MUM/2013 LEGAL AID TO THE CITIZENS A N D CLIENT S OF ASSESSEE - TRUST OR TO THE NEEDY AND DESERVING PE RSONS TO REPRESENT THEIR CASES IN THE COURT OF LAW. HE FURTHER OBSERVED THAT THE LEGAL AID WAS BEING PROVIDED BY THE APPELLANT - TRUST TO PERSONS PROSECUTED BY THE STATE FOR CRIMINAL ACTIVITIES. THE LD. DIT(E), THEREFORE, ASKED THE APPELLANT - TRUST TO EXPLA IN AS TO HOW THE ABOVE STATED OBJECT/ACTIVITY OF THE TRUST WOULD CONSTITUTE CHARITABLE PURPOSE AS DEFINED U/S. 2(15) OF THE ACT. THE APPELLANT - TRUST EXPLAINED THAT THE SAME WOULD CONSTITUTE CHARITABLE PURPOSE AS DEFINED U/S. 2(15) OF THE ACT. THE LD. DIT(E), HOWEVER, DID NOT AGREE WITH THE ABOVE EXPLANATION AND DENIED THE REGISTRATION OF THE APPELLANT - TRUST OBSERVING AS UNDER : 4. I HAVE FULLY CONSIDERED THE ABOVE SUBMISSIONS, BUT THE SAME IS NOT ACCEPTABLE. IT IS PERTINENT TO MENTION THAT LEGAL AID TO ANY PERSON IS NOT A CHARITY OR A CHANCE BUT AS STATED, IT IS A CONSTITUTIONAL MANDATE TO THE STATE AND RIGHT OF PUBLIC, WHICH IS N OT, AN OPINION, BUT A CONSTITUTIONAL OBLIGATION AND COMPULSION. AS SUCH, IT CANNOT BE SAID AS A CHARITABLE OBJECT AND ITS RELATED ACTIVITIES AS CHARITABLE. CHARITABLE PURPOSE IS GENERALLY EQUATED WITH THE PUBLIC GOOD AND VIOLATION OF LAW ARE THE ANTIT HESIS OF THE PUBLIC GOOD. VIOLATION OF CONSTITUTIONALLY VALID LAWS IS INCONSISTENT WITH THE DEFINITION OF CHARITABLE PURPOSE AS DEFINED IN SECTION 2(15) OF THE INCOME TAX ACT. IN THE INSTANT CASE, PROVIDING LEGAL ASSISTANCE TO PERSONS BEING TRIED BY TH E STATE CANNOT BE SAID TO BE FOR THE PURPOSE OF CHARITY. 3 . BEING AGGRIEVED BY THE ABOVE ORDER OF LD. DIT(E), THE APPELLANT - TRUST HAS COME IN APPEAL BEFORE US. 4 . WE HAVE HEARD THE RIVAL CONTENTIONS. BEFORE US, THE LD. AR OF THE APPELLANT - TRUST EXPLAINED THAT THE MAIN OBJECTS OF THE APPELLANT - TRUST IS AS FOLLOWS : - 3 PRAYAS REHABILITATION FOUNDATION ITA NO. 6126/MUM/2013 TO WORK TOWARDS UNIVERSALIZATION OF QUALITATIVE REHABILITATION OF PERSONS PROCESSED BY CRIMINAL JUSTICE SYSTEM IN INDIA, OR THOSE VULNERABLE TO CRIMINALISATION, MARGINALISATION, VICT IMISATION, OR DESTITUTION AND/OR THEIR FAMILIES WITHOUT ANY DISCRIMINATION ON THE BASIS OF THEIR SEX, CASTE CREED OR RELIGION AND BY WORKING IN CLOSE CO - ORDINATION WITH CRIMINAL JUSTICE SYSTEM, GOVERNMENT DEPARTMENTS NON - GOVERNMENT AGENCIES, CORPORATE HOUS ES AND MEMBERS OF THE CIVIL SOCIETY. HE FURTHER EXPLAINED THAT TO AID AND REHABILITATE THE POOR AND NEEDY AFFECTED BY THE CRIMINAL JUSTICE IN INDIA IS THE PRIMARY OBJECT OF THE TRUST. HE FURTHER EXPLAINED THAT PROVIDING LEGAL AID IS A WAY TO ENABLE THE TRUST TO ACHIEVE ITS PRIMARY OBJECT. IT WAS ALSO STATED THAT THE TRUST PROVIDES LEGAL AID TO THOSE PERSONS WHO ARE VICTIMIZED AND CANNOT SEEK LEGAL HELP/ADVICE DUE TO THEIR POOR FINANCIAL CONDITION, LACK OF KNOWLEDGE IN REGARD TO THE LEGAL PROCEDURES OR A NY OTHER CONSTRAINTS. THUS THE SAID CLAUSE/OBJECT ENABLES THE TRUST TO PROVIDE LEGAL AID TO THE POOR AND UNDER PRIVILEGED SECTIONS OF SOCIETY AND THEREBY REHABILITATE THEM. THEREFORE , IT WAS CONTENDED THAT SINCE THE ACTIVITIES OF THE TRUST ARE DIRECTED TO WARDS THE DISADVANTAGED AND UNDERPRIVILEGED SECTIONS OF SOCIETY, IT QUALIFIES AS A CHARITABLE TRUST. 5 . FROM THE ABOVE SUBMISSIONS, WE FIND THAT THE MAIN OBJECT OF THE TRUST I S TO PROVIDE RELIEF TO THE POOR, ESPECIALLY LEGAL AID TO THE NEEDY AND TO THOSE WHO CANNOT AFFORD THE SAME. LEGAL AID TO THE POOR AND NEEDY, ESPECIALLY THE PERSONS WHO ARE VICTIMS AND CANNOT SEEK LEGAL HELP OR ADVICE DUE TO THEIR FINANCIAL CONDITION, LACK OF KNOWLEDGE OF THE PROCEDURE AND DUE TO ANY OTHER CONSTRAINTS DOES COME WITHIN D EFINITION OF CHARITABLE PURPOSE AND THUS IS SUPPOSED TO BE INCLUDED IN THE TERM 4 PRAYAS REHABILITATION FOUNDATION ITA NO. 6126/MUM/2013 RELIEF TO THE POOR. WE, THUS, DO NOT FIND ANY JUSTIFICATION ON THE PART OF THE DIT(E) IN DENYING REGISTRATION TO THE APPLICANT TRUST. THE ORDER OF THE DIT(E) IS, THEREF ORE, SET ASIDE AND HE IS DIRECTED TO REGISTER THE TRUST AS A CHARITABLE TRUST SUBJECT TO THE FULFILMENT OF OTHER CONDITIONS AS REQUIRED UNDER THE LAW. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 2 N D M A R C H , 201 6 . SD/ - SD/ - ( RAJESH KUMAR ) ACCOUNTANT MEMBER ( SANJAY GARG ) JUDICIAL MEMBER MUMBAI, DATE : 2 2 . 0 3 . 2016 *SSL* COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, C BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI