Annamalayar Educational and Charitable Trust, Karaikudi V. CIT, Madurai

ITA 736/CHNY/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6547 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-07-2011
• Assessment Year: misc
• Appeal Filed On: 21-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T VASUDEVAN
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NOS. 735 & 736/MDS/2011 ASSESSMENT YEAR :- M/S. ANNAMALAYAR EDUCATIONAL AND CHARITABLE TRUST, 92, ANNA PLAZA, COLLEGE ROAD, KARAIKUDI-630 002. V. THE COMMISSIONER OF INCOME-TAX-I, MADURAI. (PAN: AACTA9682N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. VASUDEVAN RESPONDENT BY : SHRI SHAJI P. JACOB O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO. 735/MDS/2011 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF T HE LEARNED COMMISSIONER OF INCOME-TAX-I, MADURAI IN C. NO. 464/110/2010-11/CIT -I DATED 14-02-2011 REFUSING TO GRANT THE ASSESSEE THE REGISTRATION UND ER SECTION 12AA OF THE INCOME- TAX ACT, 1961. ITA NO. 736/MDS/2011 IS AN APPEAL F ILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX -I, MADURAI IN C.NO. 464/110/2010-11/CIT-I DATED 14-02-2011 REFUSING TO GRANT THE ASSESSEE APPROVAL U/S 80G OF THE ACT. I.T.A. NOS 735 & 736/MDS/2011 2 2. SHRI T. VASUDEVAN, ADVOCATE REPRESENTED ON BEHAL F OF THE ASSESSEE AND SHRI SHAJI P. JACOB, LEARNED SR. DR REPRESENTED ON BEHAL F OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE ASSESSEE WAS CREATED BY A TRUST DEED DATED 09-10-2010 AND TH E ASSESSEE HAD FILED AN APPLICATION FOR REGISTRATION UNDER SECTION12AA OF T HE ACT ON 22-10-2010. IT WAS THE SUBMISSION THAT VIDE AN ORDER DATED 14-02-2011 THE LEARNED CIT REFUSED TO GRANT REGISTRATION U/S 12AA AS ALSO APPROVAL U/S 80 G ON THE GROUND THAT THE ASSESSEE HAD NOT FILED THE REGISTRATION FOR STARTIN G AN ENGINEERING COLLEGE AND NO EVIDENCE OF STARTING THE COLLEGE WAS PRODUCED BEFOR E THE LEARNED CIT. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRESENTATIVE THAT THE ASSESSEE HAD APPLIED FOR APPROVAL FROM AICTE, NEW DELHI AND THE AICTE HAD ALSO INSPECTED THE PREMISES OF THE ASSESSEE AND THE ORDERS WERE AWAITE D. IT WAS THE SUBMISSION THAT HE HAD NO OBJECTION IF THE ISSUE WAS RESTORED TO THE FILE OF THE LEARNED CIT FOR RE-ADJUDICATION INSOFAR AS THE ASSESSEE HAD TO MAKE THE APPLICATION FOR REGISTRATION OF THE TRUST WITHIN ONE YEAR FROM THE DATE OF CREATION OF THE TRUST. 4. IN REPLY, THE LEARNED DR SUBMITTED THAT HE HAD N O OBJECTION IF THE ISSUE IS RESTORED TO THE FILE OF THE LEARNED CIT FOR RE-ADJU DICATION ON BOTH THE ISSUES UNDER SECTIONS 12AA AND 80G OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS SPECIFICALLY PROVIDED THAT THE ASSESSEE SHOULD MAKE AN APPLICATION FOR REGISTRATIO N WITHIN THE PERIOD OF ONE YEAR I.T.A. NOS 735 & 736/MDS/2011 3 FROM THE DATE OF CREATION OF THE TRUST. IT IS UND ERSTANDABLE THAT THE ASSESSEE HAS MADE THE APPLICATION BEFORE IT HAS RECEIVED THE AIC TE APPROVAL. IT IS ALSO UNDISPUTED THAT BECAUSE OF THE NON-PRODUCTION OF TH E AICTE APPROVAL, THE LEARNED CIT WOULD NOT BE ABLE TO DECIDE THE GENUINENESS OF THE TRUST OR THAT THE ACTIVITIES HAVE BEEN CARRIED OUT IN TERMS OF THE TRUST DEED. HOWEVER, AS THE LEARNED AUTHORISED REPRESENTATIVE HAS SUBMITTED THAT HE WOU LD NOW BE IN A POSITION TO ESTABLISH THE GENUINENESS OF THE TRUST AS ALSO THAT THE TRUST IS FUNCTIONING IN ACCORDANCE WITH THE OBJECTS AS MENTIONED IN THE TRU ST DEED, IF AN OPPORTUNITY IS GIVEN, WE RESTORE THE ISSUES IN THESE APPEALS TO TH E FILE OF THE LEARNED CIT FOR RE- ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE O PPORTUNITY TO SUBSTANTIATE ITS CLAIM. IN THE CIRCUMSTANCES, BOTH THE ISSUES IN TH E APPEALS OF THE ASSESSEE IN REGARD TO THE REGISTRATION U/S. 12AA AS ALSO THE RE COGNITION U/S 80G OF THE ACT ARE RESTORED TO THE FILE OF THE LEARNED CIT FOR RE-ADJU DICATION. IN THE CIRCUMSTANCES, THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATIST ICAL PURPOSES. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 14/07/2 011. SD/- SD /- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 14 TH JULY, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE