M/s. House of Salvation, CHENNAI V. ACIT, Erode

ITA 74/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2378 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 15-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA
• Assessee Lawyers: S SRIDHAR
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN,VICE-PRESID ENT AND SHRI VIKAS AWASTHY, JUDICIAL MEM BER ITA NO.74/MDS/2013 M/S. HOUSE OF SALVATION, C/O. S.SRIDHAR, ADVOCATE, NEW NO.14, OLD NO.82, FLAT NO.5 1 ST AVENUE, INDIRA NAGAR, ADYAR, CHENNAI-600 020. PAN: AAATH9029C VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE II, ERODE. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. S.SRIDHAR, ADVOCATE RESPONDENT BY : MS. VIDISHA KALRA, CIT (DR) DATE OF HEARING : 1 ST APRIL, 2013 DATE OF PRONOUNCEMENT : 1 ST APRIL, 2013 O R D E R PER VIKAS AWASTHY, JM: THE APPEAL HAS BEEN FILED BY THE ASSESSEE IMPUGNING THE ORDER OF COMMISSIONER OF INCOME TAX-II, COIMBATORE DATED 24.09.2012 VIDE WHICH THE APPLICATION FOR REGISTRAT ION UNDER SECTION 12A OF THE INCOME TAX ACT HAS BEEN REJECTED BY THE CIT. 2. THE ASSESSEE IS A TRUST CONSTITUTED ON 7.3.2002. A PERUSAL OF THE TRUST DEED SHOWS THAT THE TRUST HAS BEEN ITA NO.74/MDS/2013 2 CONSTITUTED AS CHARITABLE AND RELIGIOUS TRUST WITH THE FOLLOWING OBJECTS:- A) TO CONDUCT SPIRITUAL PRAYER HOUSES FOR THE WELFARE OF ALL PEOPLE AND PROMOTION OF UNIVERSAL LOVE BROTHERHOOD AND WORLD PLACE. B) TO GIVE, PROVIDE, RENDER, HELP AND ASSISTANCE TO IMPLEMENT ANY SCHEME FOR PROVIDING LIVELIHOOD AND UPLIFTMENT FOR THE POOR. C) TO PROMOTE THE HILL TRIBAL FROM THEIR STAGNATE CONDITION. D) TO ESTABLISH AND MAINTAIN NURSERIES, PRIMARY, MIDDLE, SECONDARY, HIGHER SECONDARY, MATRICULATION SCHOOLS AND COLLEGES WITHOUT PROFIT MOTIVE. E) TO ESTABLISH PROMOTE, SET UP MAINTAIN, ASSIST, AID OR HELP IN THE SETTING UP AND MAINTAINING AND RUNNING OF HOSPITALS, CHARITABLE DISPENSARIES, MATERNITY HOUSE, MEDICAL CAMPS FOR RENDERING OR PROVIDING MEDICAL RELIEF TO THE SUFFERING HUMANITIES. F) TO ESTABLISH, PROMOTE, SET UP, RUN, MAINTAIN, ASSIST, FINANCE AND TO HELP IN THE SETTING UP MAINTAINING AND RUNNING UP ORPHANAGES, WIDOW HOMES, LUNATIC ASYLUMS, POOR HOMES AND OTHER ESTABLISHMENTS FOR THE RELIEF AND HELP FOR POOR, OLD AND DESTITUTE AND HANDICAPPED WITHOUT ANY ITA NO.74/MDS/2013 3 DISCRIMINATION OF CASTE, COLOUR, CREED AND RELIGION. G) TO ORGANIZE, ARRANGE, CONDUCT, LECTURES, CLASSES AND SEMINARS AND BRING OUT ANY DISTRIBUTE AUTO AND VIDEO CASSETTES AND MAGAZINES AND OTHER LITERATURE, MORAL AND SPIRITUAL LOVE AMONG PUBLIC. H) TO START, BUILD, ESTABLISH, MAINTAIN AND GIVE DONATION TO CHURCHES, PRAYER HOUSES, PRAYER TOWERS, WORSHIP CENTRES, BIBLE SCHOOLS, YOUTH LEAGUES AND WOMENS FELLOWSHIP AND PROMOTE SUCH OTHER SPIRITUAL ACTIVITIES. K) TO WORK IN CO-ORDINATION WITH ANY OTHER TRUST OR INSTITUTIONS HAVING SIMILAR AIMS AND OBJECTS AND TO AID, ASSIST THEM IN ANY MANNER. L) THE ACTIVITIES OF THE TRUST WILL NOT BE CARRIED OUT OUTSIDE INDIA. M) TO GIVE AIDS AWARENESS AND ASSISTANCE FOR THE RELIEF OF PERSONS AND ANIMALS EFFECTED BY NATURAL AND OTHER CALAMITIES SUCH AS FLOOD, FIRE, FAMINE, CYCLONE, EARTHQUAKE, STORM, ACCIDENT, DROUGHT AID EPIDEMIC. N) THE BENEFITS OF THE TRUST ARE SEEN TO ALL IRRESPECTIVE OF CASTE, RELIGION, CREED AND COLOUR. ITA NO.74/MDS/2013 4 3. THE ASSESSEE MADE AN APPLICATION FOR REGISTRATIO N OF THE TRUST UNDER SECTION 12A OF THE ACT ON 8.3.2011. THE CIT ON THE BASIS OF THE REPORT OF ASSISTANT COMMISSIONER O F INCOME TAX, CIRCLE-II, ERODE REJECTED THE APPLICATION OF T HE ASSESSEE VIDE IMPUGNED ORDER DATED 24.9.2012. A PERUSAL OF T HE ORDER SHOWS THAT THE SAME IS SKETCHY AND A NON-SPEAKING ORDER. AGGRIEVED AGAINST THE SAID ORDER OF THE CIT, THE ASSESSEE HAS COME IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI S.SRIDHAR, APPEARING ON BEHALF OF THE ASSE SSEE SUBMITTED THAT THE COMMISSIONER OF INCOME TAX WITHO UT AFFORDING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE HAS REJECTED THE APPLICATION FOR REGISTRATION UNDER SEC TION 12A SUMMARILY. THE FINDING OF THE COMMISSIONER THAT THE TRUST CANNOT BE RELIGIOUS AS WELL AS CHARITABLE IS NOT TE NABLE. THE COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT A P ERUSAL OF THE OBJECTS OF THE TRUST CLEARLY SHOWS THAT THE ASS ESSEE TRUST IS UNDERTAKING CHARITABLE ACTIVITIES OF PROVIDING EDUC ATION BY ESTABLISHING SCHOOLS AND COLLEGES WITHOUT ANY PROFI T MOTIVE, PROVIDING MEDICAL FACILITIES FOR WHICH IT IS SETTIN G UP AND MAINTAINING HOSPITALS, CHARITABLE DISPENSARIES, MAT ERNITY ITA NO.74/MDS/2013 5 HOMES, MEDICAL CAMPS ETC. THE ASSESSEE IS ALSO ESTABLISHING ORPHANAGE, OLD AGE HOMES, LUNATIC ASYL UMS WHICH CAN BE USED BY CROSS SECTION OF PEOPLE WITHO UT ANY DISCRIMINATION OF CASTE, COLOUR, CREED AND RELIGION . THE COUNSEL FOR THE ASSESSEE CONTENDED THAT MAJORITY OF THE ACTIVITIES OF THE TRUST ARE CHARITABLE IN NATURE. THEREFORE, THE CIT OUGHT TO HAVE GRANTED REGISTRATION UNDER SECTIO N 12A OF THE ACT. 5. ON THE OTHER HAND, MS. VIDISHA KALRA APPEARING O N BEHALF OF THE REVENUE RELIED ON THE ORDER OF THE CI T. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY BOTH THE PARTIES AND HAVE PERUSED THE IMPUGNED ORDER AS WEL L AS THE OBJECTS OF THE TRUST WHICH ARE REPRODUCED HEREINABO VE. A PERUSAL OF THE OBJECTS OF THE TRUST CLEARLY SHOWS T HAT THE TRUST HAS BEEN FORMED PRIMARILY WITH THE OBJECTS OF CARRY ING ON CHARITABLE ACTIVITIES. THE ORDER OF THE CIT IS A NO N-SPEAKING ORDER. THE CIT HAS ERRED IN COMING TO THE CONCLUSIO N THAT THE TRUST CANNOT BE CHARITABLE AS WELL AS RELIGIOUS. TH ERE IS NO BAR IN THE ACT THAT A TRUST CANNOT UNDERTAKE CHARITABLE AS WELL AS RELIGIOUS ACTIVITIES. WE THEREFORE, DIRECT THE COMM ISSIONER OF ITA NO.74/MDS/2013 6 INCOME TAX TO GRANT REGISTRATION TO THE ASSESSEE TR UST UNDER SECTION 12A OF THE ACT. HOWEVER, IT IS MADE CLEAR T HAT IN CASE THE TRUST IS ALSO CARRYING ON RELIGIOUS ACTIVITIES, THE BENEFIT UNDER SECTION 80G SHALL BE SUBJECT TO THE RESTRICT ION AS SPECIFIED IN SUB-SECTION (5B) OF SECTION 80G OF THE ACT. ACCORDINGLY, THE IMPUGNED ORDER DATED 24.9.2012 IS SET ASIDE AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 1 ST DAY OF APRIL, 2013 AT CHENNAI. SD/- SD/- ( DR. O.K.NARAYANAN ) (VIKAS AWASTHY) VICE-PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 1 ST APRIL, 2013. SOMU COPY TO: (1) APPELLANT (4) CIT(A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.