Samskruti Foundation, Hyderabad V. DIT, Hyderabad

ITA 694/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9846 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMLAN TRIPATHY
• Assessee Lawyers: M V RAJASEKHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.694/HYD/10 : ASSESSMENT YEAR 2010-11 M/S. SAMSKRUTHI FOUNDATION, HYDERABAD. ( PAN AAITS 4486 Q ) V/S. DIRECTOR OF INCOME TAX (EXEMPTION), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.V.RAJASEKHAR RESPONDENT BY : SHRI AMLAN TRIPATHY O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2010- 11 IS DIRECTED AGAINST THE ORDER OF THE DIRECTOR OF INCOME TA X (EXEMPTION). 2. GROUNDS OF APPEAL OF THE ASSESSEE IN THIS APPEAL REL ATES TO ONLY ONE ISSUE, WHICH RELATES TO THE VALIDITY OF THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTION) REFUSING REGISTRATION UNDER S.12AA OF THE ACT. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSE SSEE TRUST WAS FORMED ON 12.6.2009 AND APPLICATION FOR REGI STRATION UNDER S.12AA WAS FILED IN TIME. HE SUBMITTED THAT ALL THE OBJECTS O F THE ASSESSEE TRUST ARE CHARITABLE IN NATURE AND THE DIRECTOR OF INCOME TAX(EX EMPTION) HAS WRONGLY REFUSED REGISTRATION UNDER S.12AA BY MERELY OBSERVING THAT OBJECTS ARE TOO ITA NO.694./HYD/10 M/S. SAMSKRUTHI FOUNDATION, HYDERABAD. 2 WIDE AND VAGUE. LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTION). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PE RUSED THE OBJECTS OF THE ASSESSEE TRUST AS DETAILED IN THE TRUST DEED OF THE ASSESSEE MADE ON 12 TH DAY OF JUNE, 2009, A COPY OF WHICH IS FILED BEFORE US . WE FIND THAT THE OBJECTS OF THE ASSESSEE TRUST ARE CHARITABLE IN NA TURE AND COULD NOT BE TERMED AS TOO WIDE AND VAGUE. THE OBJECTS ARE NOT F OR THE BENEFIT OF ANY PARTICULAR CASTE OR RELIGION AND THEY ARE PRIMARILY F OR THE BENEFIT OF WEAKER SECTIONS OF THE SOCIETY. THE OBSERVATION OF THE DIRECTOR OF INCOME TAX(EXEMPTION) THAT NO EVIDENCE WAS PRODUCED TO ESTABL ISH THAT THE OBJECTS OF THE TRUST ARE BEING IMPLEMENTED IS NOT SUSTAINABLE I N LAW, FOR THE REASON THAT THE ASSESSEE TRUST WAS ESTABLISHED ON 12.6.2009 AND O N 26.2.2010, THE DATE ON WHICH THE DIRECTOR OF INCOME TAX(EXEMPTION) PA SSED THE ORDER UNDER S.12AA OF THE ACT, EVEN THE FIRST ACCOUNTING PERIOD OF THE ASSESSEE TRUST HAS NOT COME TO AN END. IN THESE FACTS OF THE CASE AND PARTI CULARLY IN VIEW OF THE FACT THAT THE OBJECTS OF THE ASSESSEE TRUST ARE SPECIFIC AND CH ARITABLE IN NATURE, WE HOLD THAT THE ASSESSEE TRUST IS ENTITLED TO R EGISTRATION UNDER S.12AA OF THE ACT, WHICH IS ACCORDINGLY ALLOWED AND THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 11.2.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- ITA NO.694./HYD/10 M/S. SAMSKRUTHI FOUNDATION, HYDERABAD. 3 COPY FORWARDED TO: 1. M/S. SAMSKRUTHI FOUNDATION, 6-6-666/B, 5 TH FLOOR, DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD. 2. DIRECTOR OF INCOME TAX(EXEMPTION), HYDERABAD 3. DY. DIRECTOR OF INCOME TAX(EXEMPTION) , HYDERABAD 4. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. 5. B.V.S