Compassion Ministries, V. THE C.I.T., Rajahmundry

ITA 97/VIZ/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1007 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-12-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 19-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G GURUSWAMY
• Assessee Lawyers: D L NARASIMHA R AOAR
• Section: 12AA

Judgement Text

ITA NO.97/VIZAG/2013 COMPASSION MINISTRIES, MARUTERU 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.97/VIZAG/2013 ( / ASSESSMENT YEAR: 2012-13) COMPASSION MINISTRIES MARUTERU VS. CIT RAJAHMUNDRY [PAN: AABAC0544R ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI D.L. NARASIMHA RAO,AR / RESPONDENT BY : SHRI G. GURUSWAMY, DR / DATE OF HEARING : 29.6.2016 / DATE OF PRONOUNCEMENT : 22.07.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT, RAJAHMUNDRY DATED 31.12.2012 FOR THE ASSESSMEN T YEAR 2012-13. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE NAMELY COM PASSION MINISTRIES REGISTERED WITH REGISTRAR OF SOCIETIES AND FILED AN APPLICATION ITA NO.97/VIZAG/2013 COMPASSION MINISTRIES, MARUTERU 2 IN FORM NO.10A ON 16.7.2012 FOR GRANT OF REGISTRATI ON U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE AC T') ALONG WITH MEMORANDUM OF ASSOCIATION WHICH CONSISTS THE FOLLOW ING OBJECTIVES AS UNDER: 1. TO HELP THE HELPLESS, PARENTLESS AND HUNGRY ORPHAN CHILDREN AND SEMI ORPHAN CHILDREN WITH THE FREE FOOD, FREE SHELT ER, FREE EDUCATION, FREE MEDICAL ASSISTANCE ETC., IRRESPECTI VE OF CASTE, CREED AND CLASS AND RELIGION AND RACE. 2. TO RUN THE POOR CHILDRENS HOMES AND ORPHANAGES FOR THE BENEFIT OF THE POOR AND NEEDY CHILDREN IRRESPECTIVE OF CASTE, CREED AND RACE. 3. TO HELP THE DESTITUTE CHILDREN OLD AGED MEN, WOMEN AND WIDOWS BY PROVIDING THEM WITH FREE FOOD, FREE MEDICAL AID, FR EE CLOTHING AND REVENUE-HABILITATE THEM SUITABLY AND SPIRITUALLY. 4. TO VISIT THE HELPLESS AND THE DISABLED AND THE OLD TO ENCOURAGE THEM IN THEIR SPIRITUAL AND PHYSICAL LIFE. 5. TO RUN WELFARE HOMES FOR THE BENEFIT OF THE HELPLES S AGED MEN AND WOMEN AND HELPLESS WIDOWS THROUGH GIVING FREE FOOD, FREE CLOTHING FREE MEDICAL ASSISTANCE ETC. 6. TO START AND PROVIDE FREE MEDICAL CLINICS AND FREE MEDICAL CENTRES FOR THE POOR AND NEEDY WHERE AND WHEN AND IT IS POS SIBLE. 7. TO HELP HELPLESS, ABANDONED CYCLONE, FLOOD AND FIRE VICTIMS, THROUGH DISTRIBUTING FOOD MATERIALS, MEDICAL AND SH ELTER WHERE AND WHEN IT IS NECESSARY. 8. TO ESTABLISH WELFARE CHILDREN HOMES, ORPHANAGES, WI DOW HOMES, HANDICAPPED HIV, AIDS, WELFARE HOMES ETC., FOR THE B ENEFIT OF THE PUBLIC. 9. TO START AND RUN EDUCATIONAL INSTITUTIONS IN GENERA L TECHNICAL, PROFESSIONAL AND VOCATIONAL EDUCATIONAL FOR THE BEN EFIT OF SCHEDULED TRIBES, BACKWARD CLASS AND POOR PEOPLE IRRESPECTIVE OF CASTE, CREED, RELIGION CLASS AND RACE FOR THE BENEFIT OF THE PUBL IC. 10. TO RUN FREE LITERACY CENTRES AND FREE LITERACY TRAI NING PROGRAM CENTRES IN THE NAME OF COMPASSION MINISTRIES. ITA NO.97/VIZAG/2013 COMPASSION MINISTRIES, MARUTERU 3 11. TO ESTABLISH VOCATION TRAINING CENTRES FOR PROVIDIN G COACHING LIKE TAILORING, EMBROIDERY CANE WORKS, LACE CARPET WEAVI NG AND OTHER NECESSARY COURSES FOR THE POOR AND NEEDY YOUNG PEOP LE FOR THE USE OF THEIR SELF SUPPORT. 12. TO PROVIDE NECESSARY TRAINING FOR SPIRITUAL, MORAL AND MENTAL DEVELOPMENT SO THAT THEY CAN BECOME BETTER CITIZENS OF INDIA. 3. LD. COMMISSIONER AFTER CONSIDERING THE ENTIRE DE TAILS FILED BY THE ASSESSEE, HE IS OF THE OPINION THAT THE ASSESSEE HA S NOT CARRIED OUT ANY CHARITABLE ACTIVITIES EXCEPT DIGGING BOREWELLS IN T HREE PLACES I.E. POLAMURU, BHRAMANA CHERUVU & BATLAMAGUTURU AND REJE CTED THE REGISTRATION U/S 12AA OF THE ACT ON THE GROUND THAT THE ACTIVITIES OF THE ASSESSEE ARE NOT ACCORDING TO THE OBJECTIVES AND AL SO NOT GENUINE. 4. ON BEING AGGRIEVED, THE ASSESSEE CARRIED MATTER IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED T HAT THE ASSESSEE SOCIETY IS RUNNING EDUCATIONAL INSTITUTION AND PROV IDING FREE SHELTER TO VARIOUS STUDENTS. TO SUBSTANTIATE HIS ARGUMENTS, HE HAS FILED A PAPER BOOK. FROM THE PAPER BOOK AT PAGE 14 TO 17, HE HAS SUBMITTED THAT THE ASSESSEE SOCIETY IS DOING CHARITABLE ACTIVITIES AND THEREFORE REGISTRATION U/S 12AA OF THE ACT MAY BE GRANTED TO THE SOCIETY. 6. ON THE OTHER HAND, THE LD. D.R. HAS SUPPORTED TH E ORDER PASSED BY THE A.O. ITA NO.97/VIZAG/2013 COMPASSION MINISTRIES, MARUTERU 4 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ASSESSEE SOCIETY EXIST MAINLY TO HELP THE HELPLESS AND ORPHAN CHILDREN TO PROVIDE FOOD, SHELTER AND FREE EDUCATION, FREE MEDI CAL ASSISTANCE IRRESPECTIVE OF CASTE, CREED AND CLASS AND RELIGION AND RACE. WE HAVE GONE THROUGH THE ENTIRE OBJECTIVES OF THE ASSESSEE SOCIETY AND WE FIND THAT THE ASSESSEE SOCIETY IS EXISTED FOR THE PURPOS E OF CARRYING OUT CHARITABLE ACTIVITIES. ACCORDING TO THE LD. COMMIS SIONER ASSESSEE HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES EXCEPT DI GGING THREE BOREWELLS. IN OUR OPINION, THOUGH DIGGING OF BOREWELLS IS NOT THE OBJECTIVE OF THE ASSESSEE SOCIETY SPECIFICALLY, HOWEVER, HELPING THE POOR PEOPLE WHO DOES NOT HAVE WATER FACILITY, BY DIGGING A BOREWELL AND PROVIDING WATER OBVIOUSLY A CHARITABLE ACTIVITY, UNLESS IT IS PROVE D THAT SUCH ACTIVITY CARRIED BY THE ASSESSEE IS IN A COMMERCIAL NATURE. THEREFORE, DIGGING OF THE BOREWELL CANNOT BE SAID TO BE AN IN GENUINE ACT IVITY OF THE ASSESSEE. 8. SO FAR AS RUNNING AN EDUCATIONAL INSTITUTION AND PROVIDING FOOD AND SHELTER TO THE STUDENTS ARE CONCERNED, THE LD. COMM ISSIONER HAS NOT EXAMINED THIS ASPECT PROPERLY. THEREFORE, IN OUR O PINION, THE ISSUE HAS TO BE REMITTED BACK TO THE FILE OF THE LD. COMMISSI ONER TO EXAMINE AFRESH. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. ITA NO.97/VIZAG/2013 COMPASSION MINISTRIES, MARUTERU 5 COMMISSIONER AND WE DIRECT HIM TO ENQUIRE/INVESTIGA TE ABOUT THE RUNNING OF EDUCATIONAL INSTITUTION, PROVIDING FREE SHELTER, OTHER FACILITIES AND AFTER EXAMINING THE SAME, THE LD. COMMISSIONER IS DIRECTED TO CONSIDER THE APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IN ACCORDANCE WITH LAW. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND JUL16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 22.07.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT COMPASSION MINISTRIES, D.NO.9-60 , OLD POST OFFICE, T.P. GUDEM ROAD, PENUMANTRA MANDAL, MARUTERU-534 12 2, W.G. DISTRICT 2. / THE RESPONDENT THE CIT, RAJAHMUNDRY 3. ) ( ) / THE CIT(A), RAJAHMUNDRY 4. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM