M/s. Rajeswari Ammaiyar Memorial Trust, CHENNAI V. ITO, Coimbatore

ITA 688/CHNY/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7748 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 03-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 688/MDS/2012 M/S RAJESWARI AMMAIYAR MEMORIAL TRUST, EWS B 601, GANDHI MANAGAR, PEELAMEDU (POST), COIMBATORE 641 004. PAN : AABTR8466L (APPELLANT) V. THE INCOME TAX OFFICER, COMPANY WARD I, COIMBATORE. (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI SANJAY PUNGLIA, J CIT DATE OF HEARING : 29.05.2012 DATE OF PRONOUNCEMENT : 29.05.2012 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL, ASSESSEE IS AGGRIEVED THAT IT WAS DENIED REGISTRATION UNDER SECTION 12AA OF INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') BY COMMISSIONER OF INCOME TAX (APPEALS)-I, CO IMBATORE, THROUGH HIS ORDER DATED 27.2.2012. 2 I.T.A. NO. 688/MDS/12 2. SHORT FACTS APROPOS ARE THAT ASSESSEE-TRUST CREA TED ON 10 TH JULY, 2007 BY A DOCUMENT REGISTERED AS 903 OF 2011, HAD T HE FOLLOWING OBJECTS AS PER CLAUSE 3 OF ITS TRUST DEED:- (1) TO START A MATRICULATION SCHOOL FOR THE EDUCATION O F BOYS AND GIRLS. (2) TO ERADICATING CHILD LABOUR AND GIVING EDUCATION TO THE CHILDREN RELIEVED FROM CHILD LABOUR. (3) TAKING SIMPLIFIED YOGA CLASSES. (4) AS FUTURE OBJECTS : ESTABLISHING MOBILE HOSPITALS AND BLOOD BANKS IN RURAL AREAS PROVIDING FREE TREATMENT AND SOCIAL SERVICE. (5) TO DO ENGAGE IN SOCIAL WORK AND SOCIAL DEVELOPMENT. 3. ASSESSEE MOVED AN APPLICATION BEFORE CIT FOR REG ISTRATION UNDER SECTION 12AA OF THE ACT. CIT SOUGHT DETAILS OF ACT IVITIES DONE BY IT. TRUSTEES OF THE ASSESSEE STATED THAT THE TRUST WAS GIVING EDUCATION TO POOR STUDENTS, SUPPORTING WIDOWS AND GIVING MEDICAL HELP TO THE POOR. HOWEVER, CIT REFUSED GIVE REGISTRATION SOUGHT FOR, FOR THE FOLLOWING REASONS:- THE DETAILS FILED BY THE TRUST WERE PERUSED. THE T RUST HAS FILED APPLICATION SEEKING REGISTRATION U/S 12A OF THE ACT ON 30.8.2011, I.E. ALMOST AFTER FOUR YEARS FROM THE DATE OF CONSTITUTI ON OF THE TRUST. IT HAS STATED PLETHORA OF OBJECTS AND NO MAIN OBJEC T HAS BEEN STATED. IN THE ABSENCE OF DIRECTION IT BECOMES DIF FICULT TO CONCEDE ITS CLAIMS OF CHARITABLE NATURE. FINANCIAL ASSIS TANCE CLAIMED TO HAVE BEEN GIVEN IN SMALL WAY TO SOME STUDENTS IS A SPORA DIC EVENT, IF IT IS TRUE, WHICH CANNOT DECIDE THE CHARITABLE NATURE. 4. NOW BEFORE US, LEARNED A.R., STRONGLY ASSAILING THE ORDER OF CIT, STATED THAT THE OBJECTS WERE DEFINITE AND CLEAR AND THERE WAS NO QUESTION 3 I.T.A. NO. 688/MDS/12 OF ONE OF THE OBJECTS BEING CONSIDERED AS MAIN AND THE OTHERS AS ANCILLARIES. ACCORDING TO HIM, FINANCIAL ASSISTANC E, EVEN IF IT WAS GIVEN IN A SMALL WAY, WAS SUFFICIENT TO MAKE IT CHARITABLE S INCE THE QUANTUM WAS NOT THE RELEVANT FACTOR. HE, THEREFORE, PRAYED THA T ORDER OF CIT TO BE QUASHED. 5. PER CONTRA, LEARNED D.R. SUPPORTED THE ORDER OF CIT. 6. WE HAVE PERUSED THE ORDER OF CIT AND HEARD THE RIVAL SUBMISSIONS. THE OBJECTS OF THE ASSESSEE-TRUST WER E TO START A MATRICULATION SCHOOL, ERADICATE CHILD LABOUR AND GI VE EDUCATION TO THEM ALONG WITH CERTAIN OTHER OBJECTS LIKE ESTABLISHING MOBILE HOSPITALS AND BLOOD BANKS AND ENGAGING IN SOCIAL WORK AND SOCIAL DEVELOPMENT. NO DOUBT, THE OBJECTS OF SOCIAL WORK AND SOCIAL DEVELO PMENT MAY PRIMA FACIE APPEAR VAGUE. BUT, WE CANNOT SAY SUCH AN OBJ ECT WAS NOT CIRCUMSCRIBED BY THE DEFINITE CHARACTERISTICS APPAR ENT IN THE OTHER OBJECTS. DEVELOPMENT OF SOCIETY HAS BY ITSELF A DE FINITE MEANING WHEN READ ALONG WITH THE OTHER OBJECTS. WE ARE UNABLE T O APPRECIATE THE OBSERVATION OF THE CIT THAT THERE WERE NO MAIN OBJE CTS. THE OBJECTS MENTIONED CAN BE DISTRIBUTIVELY OR JOINTLY CONSIDER ED. THIS WOULD NOT BY ITSELF RENDER THE ASSESSEE-TRUST A NON-CHARITABLE O NE. IN ANY CASE, IT HAS BEEN ACCEPTED BY THE CIT THAT ASSESSEE WAS GIVI NG FINANCIAL ASSISTANCE, EVEN IF IT WAS IN A SMALL WAY. THE QUA NTUM OF FINANCIAL 4 I.T.A. NO. 688/MDS/12 ASSISTANCE GIVEN IS NOT A CRITERIA TO BE CONSIDERED FOR DECIDING ON APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. WE ARE OF THE OPINION THAT THE CIT WENT OFF TANGENT, W HILE DENYING THE REGISTRATION. THE ORDER OF CIT IS, THEREFORE, QUAS HED AND HE IS DIRECTED TO GRANT THE ASSESSEE REGISTRATION SOUGHT FOR UNDER SECTION 12AA OF THE ACT. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON TUESDAY, T HE 29 TH OF MAY, 2012, AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 29 TH MAY, 2012. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT, COIMBATORE (4) D.R. (5) GUARD FILE